SARS and the Gulf War are all expected to have an impact on visitor numbers. STEPHEN LEWIS reports on efforts in York to counter a slump in tourism...

Tourism is big business for York, pumping something like £264 million into the city's economy every year. Ten thousand jobs - ten per cent of the city's workforce - depend on tourism.

It isn't only hotels, tourist attractions such as the National Railway Museum or Jorvik, or shops which benefit. The money pours into almost every aspect of York's economy. There are many people, such as builders or cleaners, who, even though they may not realise it, have jobs which depend in part on tourism.

So anything which shakes the confidence of travellers is bad news for the city.

The impact of September 11 and the second Gulf War were bad enough. Then along came SARS - severe acute respiratory syndrome - to make matters more uncertain. If all that weren't enough, the Dean and Chapter of York Minster announced the introduction of a compulsory entrance charge for York Minster some time during the summer.

You would need a crystal ball to really gauge the possible effect of SARS and the Gulf War on tourist cities such as York, says Gillian Cruddas, chief executive of the York Tourism Bureau.

But the noises coming from Visit Britain - the new organisation which replaced the British Tourist Authority a couple of weeks ago - are upbeat. "There is no reason for people to cancel travel plans to this country because of the SARS virus," a statement released by the organisation declared yesterday. "The risk of SARS in this country at the present time is very low."

With just a handful of cases so far confirmed in the UK, none of whom have died, that is undoubtedly true. Sadly, tourists are notoriously as prone to panic as city financiers, and facts rarely get in the way when they are deciding whether or not to go on holiday. It's all about perception.

Certainly, leading hoteliers and other tourist bosses in York are worried enough about the combined effects of SARS, the Gulf War and the downturn in the American economy to have participated in Project George, a new national initiative designed to encourage overseas visitors.

Gillian Cruddas insists that overall, tourism in York remains fairly upbeat. "If you ask businesses you will get mixed reports about how they think the summer is going to go," she says. "One or two of the hotels are a bit nervous, but I have talked to some of the attractions and they are quite buoyant."

She says part of the reason is that the war in the Gulf did not go on as long as many had feared, and therefore its potential impact on visitor numbers should be lessened.

Another factor that has helped counter the fall in the number of overseas visitors is that British holidaymakers, too, have been reluctant to go overseas. "Maybe not quite as reluctant as the Americans are!" she says. "But we have had quite a lot of visitors taking short breaks in York. We are well placed for that."

Not that the tourism industry in York can afford to be complacent. In some ways, the Minster's announcement that it is planning to impose charges on visitors could not have come at a worse time. Mrs Cruddas was reluctant to be drawn into criticism. "If the Dean and Chapter have decided to do that, we will have to work together with them," she says. "But it is bad news for York, because the Minster is York's icon attraction."

The real bad news for tourism in the city stems back further than the Minster, SARS or the Gulf War. It has been a difficult few years for the tourist industry in general, and for the UK and York in particular.

A few years ago, big-spending Americans made up 33 per cent of all visitors to the city. That's now down to about 20 per cent - and while much of that fall in American holidaymakers has been compensated for by more British and European visitors, Americans do tend to spend more.

The slump in American visitor numbers really began, says Gillian, with the fall in the value of the dollar compared with the pound. "Then there was foot and mouth, flooding, September 11 and BSE. They have all helped make Americans nervous."

York has been fighting back, however, launching campaigns such as Stay Just A Little Bit Longer and the York Pass, which gives visitors entry to all the city's visitor attraction for a single payment.

There have also been efforts to attract to the city more continental visitors, especially from Germany, Belgium and Holland, with offers run jointly with P&O Ferries offering discount entry to various York attractions for visitors who travel by ferry.

A similar scheme, York First Stop By Train, has been run with Arriva trains.

This year there are fresh initiatives. A shopping campaign will "sell" York as a great shopping destination to British visitors.

Also, a Summer In The City' campaign will also aim to attract British visitors, as will an email campaign that's about to be launched. About 50,000 people living more than a two-hour drive from York will be targeted to receive emails telling them about the beauty of the city and its attractions.

City tourism bosses are also hoping to build on the success of the late night Thursday shopping to attract more visitors.

Efforts are also being put into targeting overseas visitors. York, along with other "heritage cities" in the UK, is targeting the US market, and there are hopes of getting budget airline Jet2 on board for a York First Stop By Air deal, in which Jet2 passengers visiting the city would get a range of discounts.

If this goes ahead it is likely initially to involve passengers from Holland only - but if successful that could be extended to other European countries.

At heart, York is a "great product", according to Gillian Cruddas.

There is the city itself, with its walls, Minster and many attractions - and the beauty of the Yorkshire coast and countryside around. It adds up to an unbeatable holiday destination.

These may be difficult times for the tourist industry in general but York is better placed than most to ride them out.

Updated: 11:36 Wednesday, April 30, 2003