The weak economy is playing havoc with the cash reserves of seasonal businesses, with many having to consider discounting to attract more trade in the off season.
Finance experts warn that they are seeing small firms that rely on tourism having to work hard to attract business all year round as cash reserves from peak season trading erode more quickly than usual.
Sally Revell, a small business expert at accounting software firm Intuit, said: “We’re all aware that it’s hard out there for many businesses at the moment and seasonal firms are finding it particularly tough.
“Typically, the main focus for seasonal business is on taking maximum benefit from the good times to see them through the lean periods. They still have an eye on this of course but now, for many of them, the peaks in demand are just not what they were – they’re having to pay closer attention to managing the troughs through cutting costs, reducing waste and other measures.”
Kevin and Leah Vigars have run the four room, four star Carraw B&B in Northumberland and tend to have full bookings from Easter through to the end of October.