My business week

It seems that the outbreak of foot and mouth disease was caused by some unfortunate lab technician in Pirbright forgetting to wash his hands. While he may now be scrubbing away like Lady Macbeth, much damage has been done. Local farmers have seen their prize herds destroyed, though we seem, fingers crossed, to have narrowly escaped a catastrophe like that of 2001. That said, the episode is a frightening example of "connectivity", the knock-on effect that sees businesses far from the source of a problem severely affected.

It is perhaps the tourism and hospitality industry that is most vulnerable to this kind of risk, and while the plight of the farmers in 2001 was rightly recognised and compensation paid, few were aware of the problems faced by hoteliers. With the footpaths closed off and the media full of pictures of smouldering piles of dead cattle, few fancied a week in the great British countryside. As a result, losses incurred by the tourist trade, and ancillary businesses like pubs and cafes, comprised [pound]5bn of the total [pound]8bn loss to the economy during this time.

Fast forward to 2007 and it seems every middle-class Brit worth their organic alfalfa is holidaying in Britain. Fate, however, has done her best to ensure the heavens have opened on a near-daily basis. This has benefited some areas of the sector, with holidaymakers spending more in restaurants and indoor attractions. Of course, the booming British economy is not all good news: a strong pound is a major disincentive to the Americans who usually flock across the pond each summer.

Yet hoteliers can take heart from a most unlikely source, the Government. While Tony Blair enjoyed the Tuscan sun back in 2001, this year our dour new PM was conveniently holidaying in Dorset, allowing him to respond quickly to both flooding and foot and mouth. Here is yet another advantage of taking a break in Britain: if our own domestic emergency threatens, we can be on hand relatively soon.

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