Skegness Hatters Hotel owner claims asylum seekers controversy led to cancelled bookings

• Video report by Amelia Beckett

A hotel owner says he is hundreds of thousands of pounds worse off after rejecting a Home Office request to house asylum seekers.

Gary Allen turned down two offers to take in migrants at the Alice in Wonderland-themed Hatters Hotel, in Skegness, as part of government efforts to deal with the growing backlog in asylum claims.

He said he was unsure his business would survive but does not regret the decision, claiming it was the "right thing to do".

Mr Allen said: "They wanted us to close down, house 52 immigrants – close the hotel completely. We only had to leave one member of staff on site change the laundry once a week, which would've been brilliant for us, and they offered us £536,000 for 12 months.

"And we turned it down. We turned it down because it's the right thing to do. If we take you're part of the problem not part of the solution."

Hundreds of asylum seekers were bussed into Skegness in 2021 and placed in five hotels.

Almost two years later there are still around 400 living across four hotels in the town.

Mr Allen said his business had suffered because of the wider issue.

"We specifically had people that have rang and cancelled because they know the immigrants are in Skegness," he said.

"Whether the sun shines or not, we've always had tourists in Skegness. It's historic. This time last year we were booked up until the middle of September.

"We've still got vacancies for every single week. People will blame the cost of living crisis, [but] part of it is because there are so many immigrants in Skegness.

"Skegness historically, for years, has been a coastal holiday town. It's known for popcorn candyfloss, donkey rides, fairgounds, amusement arcades - that's what it is.

"Everyone that says [migrants] should stay here ...you take them into your homes give them your spare rooms if that's what you really want.

"The british taxpayer can't keep paying, it's impossible."

One man who fled religious persecution in Iran, but has been in a hotel in Skegness for almost two years, told ITV News he wanted to move on.

He said: "Two years we have been here, we can't move anywhere. That's why we are fed up."

He said some local people had been "very friendly very nice" but some "are looking different[ly] at us, thinking we are criminal".

The Home Office would not comment on the offer to the Hatters Hotel.

A spokesperson said: "We have been clear that the use of hotels to house asylum seekers is unacceptable – there are currently more than 51,000 asylum seekers in hotels costing the UK taxpayer £6 million a day.

"The Home Office is committed to making every effort to reduce hotel use and limit the burden on the taxpayer."

The owners of The Hatters Hotel have now applied for a change of use for the building because of the uncertainty over bookings.

If approved it could be used for residential and nursing care.

Analysis by ITV Calendar political correspondent Charanpreet Khaira

We’ve all heard Rishi Sunak’s "Stop the boats" slogan. 

But whether it’s intended as a promise, an ambition, or a catchy way to win votes, it may be distracting us from an even bigger problem. 

Last week it emerged that the UK's asylum backlog has reached a record high.

That means there are more asylum seekers waiting for an initial decision on their application for refuge in the UK than ever before. 

Even if the government managed to stop every single Channel crossing from hereon, (which looks unlikely given the records that just keep being broken) there’s still hundreds of thousands of asylum seekers in the UK waiting to find out if they can stay. 

To be precise, according to the figures released last week, a total of 175,457 asylum seekers were in that backlog at the end of June 2023. 

That’s up 44% from 122,213 at the end of June 2022. 

And while those asylum seekers wait for the Home Office to decide their fate, the UK has a legal obligation to house them. 

That’s what’s led to this row in Skegness, with some feeling that the town’s at risk of losing its traditional character as a seaside resort. 

Skegness isn’t alone - decisions to house asylum seekers in towns and cities across the country have been met with controversy, notably at the nearby RAF Scampton. 

And there are fears that it could be hitting poorer communities harder - the Home Office admits that housing for asylum seekers is provided outside London and the South East “as a general rule” in order to achieve “value for money.” 

But that can cause tension in areas that are already feeling the pinch from the cost of living crisis. 

Some members of the business community in Skegness fear the tourism industry has been hit this summer by the town’s reputation as housing asylum seekers, with some claiming that bookings have been cancelled as a result. 

In reality, there are a number of factors that could have contributed to a slower tourist season - such as families feeling financial pressures, train strikes over the summer, and poor weather. 

But even the local council are up in arms about the number of asylum seekers being housed in Skegness.

Earlier this year, they threatened to take legal action against the Home Office, claiming that using hotels for asylum seekers instead of tourists required planning permission. 

The Home Office themselves described the use of hotels for asylum seekers as "unacceptable", adding it costs the taxpayer £6 million a day. 

The problem is, none of the alternatives are particularly promising either.

RAF Scampton has been at the centre of countless protests and legal challenges, after it was announced that the former military base would be used to house asylum seekers.

Earlier this summer, the Bibby Stockholm, which was supposed to be the first of many barges used to house asylum seekers, had to be evacuated after Legionella bacteria was found onboard. 

Meanwhile, the government’s plan to fly asylum seekers to Rwanda still hasn't taken off.

Home Secretary Suella Braverman likes talking about these alternatives to hotels - perhaps she’s been listening to the frustration of people in Skegness - but it’s much rarer to hear her talking about the asylum backlog. 

Until that’s sorted, there’s no easy answer to this problem.

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