Capital repayment holidays, one of the many support measures the bank has introduced for its business customers, have also been extended to both businesses.
Nigel Walsh, Director, Corporate & Commercial Banking, Ulster Bank, says the prolonged closure of caravan parks is a significant challenge for the dealerships.
“Caravan dealerships are reliant on a strong, but short trading season and that window of opportunity is closing fast. We’re pleased to be able to extend this support to both companies, some of the many businesses within the leisure and tourism industry we continue to work closely with at this time.”
Leona McNicholl, Senior Relationship Manager, Commercial Banking, Ulster Bank, says the support is intended to help maintain positive cash flow as the businesses work with their suppliers.
“Caravan dealerships undertake inventory restocking in the off-season – the winter months – ahead of the peak season pre-Easter and through the summer. Both businesses are reporting depressed sales and high stock levels with payments falling due.
“We’re pleased to be able to deliver these loans and capital repayment holidays at this critical juncture to provide cash flow relief to Cookstown Caravans Ltd and LPC Caravans, enabling them to continue to work with and maintain relationships with their trusted suppliers.”
Lockdown restrictions and the closure of caravan parks have severely impacted caravan sales during what would normally be the industry’s peak trading season.
However, sections the leisure industry could see an increase in demand as lockdown is eased, as Malcolm Sempey, Managing Director of Cookstown Caravans Ltd, explains.
“We’re optimistic the demand for new and used caravans will return once lockdown is relaxed and holidaymakers are able to return to the parks,” he says.
Economy Minister Diane Dodds recently announced that caravan parks, camp sites and self-contained tourist accommodation will be able to reopen from Friday 26 June.
“There’s still a lot of uncertainty around foreign travel this summer and the fallout of Covid-19 could be with us for some time to come yet, so we’re anticipating quite strong demand when trading resumes,” explains Malcolm.
“We expect to see a shift in focus to highlight domestic tourism opportunities on account of travel restrictions and the public’s caution towards travelling abroad, both of which have the potential to drive demand for staycations.”
According to figures published by the Northern Ireland Statistics and Research Agency (NISRA), an estimated 4.5 million nights were spent by Northern Ireland residents on domestic overnight trips within Northern Ireland in 2018, with campsites, caravan parks and trailer parks accounting for 10% of the total[1].
Of the estimated 2.2 million overnight trips recorded, more than three fifths (61%) were for a holiday.
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