Businesses call for 'hardship' status

An action group fighting for compensation for businesses affected by the foot-and-mouth epidemic claims the true cost of the crisis in Wales could run into hundreds of millions of pounds.

A delegation of business and tourism operators from Powys in mid Wales are to converge on the Welsh Assembly, where they will call for the region to be declared a special hardship area.

Restriction signs remain in the countryside

While many areas of Wales are slowly reopening recent studies indicate that visitors are still staying away.

A new report for south and west Wales warns that the number of people enquiring about holidays is down by 85% and almost 75% of all businesses are reporting cancellations.

The Powys Rural Business Campaign claims the cost to businesses in the region could reach £100m - with up to 2,000 small businesses facing possible bankruptcy.

Campaign chairman, Ian Mitchell said: "These bankruptcies and people going out of business are going to really hit in the autumn.

We're estimating to be down by 35 to 45 per cent everyday and obviously that is not sustainable in the long term

Dan Yr Ogof cave complex owner, Ashford Price

"People will realise they've got no summer left, they've got a winter to get through and their overdrafts are sky-high."

He added: "It is a stark reality and I'm afraid that the problem is that if people don't recognise it, it's going to be too late."

The tourist industry has suffered badly since the start of the foot-and-mouth crisis, particularly because of restrictions on walking in the countryside.

Roy Mitchell, who runs a horse-drawn caravan holiday company at Llangorse, Powys, said he had been forced to sell off half his caravans.

His wife has had to go back to work as a nurse in Cheshire.

One of the attractions which has been effected by a fall in visitor numbers is the popular Dan Yr Ogof cave complex at Abercraf, south Wales

Owner of the site Ashford Price said: "The situation is very serious.

"We're estimating to be down by 35 to 45 per cent everyday and obviously that is not sustainable in the long term."

The Wales Tourist Board has estimated the tourism industry in Wales has been losing up to £20m per week - based on an average 75% loss of business.