Tourism boost can’t prevent claimant increases

MANCHESTER’S tourism sector continues to enjoy strong growth despite the overall economic malaise, according to research body New Economy.

Its latest Manchester Monitor points to hotel occupancy figures which show that rates increased to 72.9% in Manchester city centre and 70.9% in the wider city-region in April, as well as highlighting a report from Visit Manchester which showed that conferences and business events generated £822m for the city last year- a 43% increase on 2009.

However, the number of people claiming Jobseekers’ Allowance in the city continued to rise by 9,000 in April, and the number of long-term unemployed has grown by almost 54% year-on-year – an increase of 13,400 people.

Director of economic strategy Baron Frankal said: “With some exceptions, all signs are pointing to a continuously stagnant economy in Greater Manchester.  Whilst this is not unique to our region – the UK economy as a whole contracted by 0.3% in the first three months of the year – we’re still facing the serious question about how we promote immediate growth.  

“Whilst Manchester has many initiatives in place such as the City Deal, superfast broadband and the growth plan, all of which will help ensure its stability as the UK’s second economic powerhouse, we cannot ignore the fact that many businesses are continuing to hold off from making investment decisions as they wait for clear signs of improvement.”