Resilient North East will survive disaster

May 25 2009 The Journal

BUSINESS leaders last night warned Newcastle United’s relegation could hit the economy across the region.

Bosses in the leisure industry said they feared a drop in away fans visiting St James’s Park would hit their business on match weekends, while it was feared the profile of the region would also take a knock.

There are fears morale in the region could be badly affected and money lost, as fans face the prospect of watching their club outside the top flight.

But business leaders sounded a note of optimism by pointing out there was more to the North East than football and that the region would survive the relegation blow.

Sunderland survived on a dramatic last day, but after a poor performance the Magpies dropped out of the top flight for the first time in 16 years.

A spokeswoman for the CBI North East said the relegation could cost the region money in the short term.

She said: “This is clearly disappointing news for Newcastle and is a terrible blow for morale in the city.

“There will no doubt be some loss of revenue in the short term but business as a whole is focussed on the wider global recession and the impact that this is having on their businesses at the current time.” And Lottie Haylock, a manager at the Grey Street Hotel in the centre of Newcastle said she feared her business could suffer, as Newcastle face playing teams such as Scunthorpe and Blackpool, instead of Manchester United and Liverpool.

She said: “It will definitely have an impact on our business. Whenever we play the big teams there is a definite surge in bookings. Those bigger clubs also have lots of foreign fans who come to watch games in England and stay in our hotel, spending their money here. That is not the case with many of the Championship clubs.

“It is difficult to say how big the impact will be, as its never happened to me before, but I’m worried about the impact it might have.”