COMMENT: Lancashire’s shale gas development will revitalise Blackpool’s local economy and hotels

Comment from Claire Smith, president of Stay Blackpool. I have worked in Blackpool all my adult life and I know more than anyone that the prosperity of Blackpool’s hospitality industry is closely tied to the prospects for the North West’s regional economy as a whole. Unfortunately, between 2001 and 2011, the North West saw one of the largest declines in share of total value of goods and services produced throughout the UK. What’s more, over the next 25 years our region’s population is projected to grow at significantly slower rate than the rest of the country and visitor numbers to Blackpool remain a third from its heyday of the 1980s. According to the Centre for Cities, Blackpool has had one of the largest real wage drops from 2012 to 2013 and the fifth lowest weekly earnings in the UK. Local businesses, politicians and economists all agree that towns like Blackpool desperately need to think of creative ways to attract fresh investment to create jobs and revitalise fortunes. But today, with the development of its shale gas reserves Lancashire has the opportunity – according to the Institute of Directors - to make itself Europe’s centre for another new industry - like the railways, energy development and factories from yesteryear. And as with the 19th century, Blackpool stands to economically benefit directly. This is the message that myself and 50 other signatories to a letter in the Daily Telegraph recently wanted to communicate. On reasonable assumptions the Bowland Shale – which incorporates Lancashire – has the potential to supply 40 to 50 years’ worth of current gas demand. While there are a considerable number of unknowns, the latest expert estimate suggests that UK shale gas development could create up to 64,000 jobs and a potential spend of £33bn over the next two decades. From our National Park in the Lake District to Britain’s most visited coastal resort in Blackpool, the hospitality sector is a crucial part of the North West economy, making-up around 3% of the total value of goods and services provided in the region. In Blackpool, the hospitality sector is a major source of employment, with nearly 7% of our town’s jobs working in accommodation, food and beverage sectors. Evidence from Scotland and America has shown the real power of energy industries to support local economies. Before the arrival of oil and gas, Aberdeen was facing a bleak future from the decline of its traditional industries. But today, as the energy capital of Europe, its hospitality sector has occupation rates second only to London. In America, shale has revitalised local economies and led to a boom in the hospitality industry, with recent studies showing that it led to a rough doubling of hotel room occupancies in Washington County, Ohio, North Dakota and Texas. A recent research paper by the North West Energy Task Force estimates that if we see similar patterns to the United States, then up to 4,500 jobs could be created in the UK hospitality sector - with many of them being in the North West, including Blackpool. As President of Stay Blackpool, the representative body of over 200 hoteliers, guest houses and B&Bs in Blackpool, and a member of the North West Energy Task Force, I believe that my industry can play an invaluable supportive role to the onshore energy industry in the North West. That is why I call on all local businesses to get behind this fantastic opportunity to revitalise our economy and restore confidence once again to our town’s future prospects. Claire Smith is the president of Stay Blackpool, which represents 200 hoteliers, and is an executive panel member of North West Energy Task Force.