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An evidence-based approach is needed to introduce restrictions in the Northwest, according to figures from the hotel industry.
Pubs, restaurants and hotels in the Derry and Strabane council area face new restrictions after a spike in cases there.
However, hospitality companies are asking for evidence on the causes of the increase in cases.
Derry Chamber called the decision “bitterly disappointing.”
Starting next week, for at least fifteen days, pubs, cafes, restaurants and hotels will only be able to open for take away, home delivery and outdoor dinners.
Redmond McFadden said the measures would put “further pressure on our already struggling businesses.”
“This is a bitterly disappointing step that the executive has been forced to take to slow the spread of the virus in the Northwest,” he said.
“The dramatic increase in cases in recent weeks has been deeply concerning for everyone in our region and we support the executive in taking the necessary steps to save lives, protect the public and support our health service.
“However, we have to recognize that the consequences of these measures will put increased pressure on our already struggling businesses and, unfortunately, can lead to business closures and job losses, particularly in the hospitality sector.”
Johnny Kelly of the Fir Trees Hotel in Strabane, County Tyrone, said the area was considered “one of the safest places on this island to do business and live” a few weeks ago.
“I’m not so sure this is really being driven entirely or exclusively by the hotel industry,” he said.
“We have been open for three months, we have had over 40,000 visits to the hotel during that three month period.
“We have had absolutely no Covid-19 incidents among our very loyal customer base and absolutely none among our staff.
“If we impose these restrictions from time to time we go back to how we were in two weeks, three or four weeks with nothing else changing, by implication we will be here again and again and again.”
Colin Neill of Hospitality Ulster said that many companies would not be able to continue operating under the new rules.
“They will not be able to meet the requirements, like outer space and with the colder weather, this will no longer be feasible,” he said.
“Donegal placed in level three status means that this entire northwestern area will indeed limp.”
Jim Roddy, manager of city center initiatives in Londonderry, said there was no indication that hospitality was to blame for the increase in cases.
“It is concerning if it is only preventing people from going to hospitality when earlier in the week we were talking about domestic transmission rather than transmission through hospitality,” he said.
“We had a fantastic month in August with the eating out plan to help out, the restaurants were full and we didn’t see a spike.
“We’ve seen an increase in the last few weeks in the city and we really need to find what is causing that increase and address the cause.”
SDLP leader and Foyle MP Colum Eastwood urged people in the Northwest to follow the new regulations, but said support was needed for affected businesses.
“The government cannot restrict business opportunities in the Northwest without additional support for businesses that will close and workers will be forced to be home,” he said.
“I will push hard for a support package that meets the needs of the people in Derry and Strabane who are being asked to make more sacrifices.”