Weymouth’s economy faces potential damage as rent increases loom over 65 council-owned hotels, sparking concerns from local representatives. Littlemoor and Preston councillor Louie O’Leary warned that significant rent hikes for small, family-operated hotels and B&Bs may contradict Dorset Council’s stated goal of economic growth.
Speaking at Tuesday’s Dorset Council Cabinet meeting, Cllr O’Leary emphasized the risk: “Higher rents will, potentially, put a lot of small businesses out of business.” His remarks highlight fears that the council’s moves could undermine the local tourism sector, a vital part of the county’s economy.
Cllr Richard Biggs, Portfolio Holder for Growth, acknowledged the issue but defended maintaining rents at market value, explaining, “It’s our properties, council taxpayers’ properties, and clearly, we have to get rents which are at market values. We’re not a charity.”
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While recognizing tourism as an important economic contributor, Cllr Biggs cautioned that it isn’t the primary engine for the high, well-paid jobs Dorset aims to create. He also stressed a more tailored approach in dealing with individual hotels, given their varying viability and circumstances.
Council officer Nick Webster, head of the growth and regeneration team, outlined the council’s broader tourism strategy. Efforts focus on boosting visitor spending countywide and extending the tourism season into the shoulder months. Additionally, the council is encouraging innovation and increased productivity within tourism businesses to support sustained economic growth.
Voicing broader regional concerns, Verwood councillor Simon Gibson, Conservative spokesman for the economy, called for attention beyond the Weymouth-Dorchester corridor. He advocated for greater openness to opportunities, particularly in northern Dorset, and welcomed plans to develop regeneration strategies for market towns, although funding constraints may affect the pace.
Weymouth councillor Ryan Hope expressed support for the council’s strategy, emphasizing, “We should fully support this strategy. It’s timely, our businesses need the support, and it shows that Dorset Council is committed.”
The debate underscores the challenge of balancing financial sustainability for council-owned properties with fostering a vibrant local tourism sector that supports small businesses and economic growth.