Wide open Skye... but don’t go looking for a bargain!
IT usually attracts 500,000 visitors each year to its stunning beauty spots.
Yet some of Skye’s leading hoteliers have warned that the Chancellor’s cut in VAT will not lead to cheaper holidays on the island.
They insist the tax break is entirely for the benefit of business and that savings will not be passed on to tourists.
Hoteliers are asking visitors to ‘show their support’ for the struggling hospitality industry as they prepare to reopen.
Car parks at visitor spots and in the town of Portree were left deserted yesterday.
At Old Man of Storr, only a handful of vehicles were there. In 2018, drivers had to park on roadside verges due to crowds.
Last week, Chancellor Rishi Sunak announced a temporary reduction in VAT for the hospitality industry to 5 per cent – excluding alcohol sales.
This has led to many potential customers asking businesses to pass on the VAT reduction through lower prices.
But during an online meeting on Monday, organised by destination management organisation SkyeConnect, most hoteliers from Skye and Lochalsh said the VAT reduction was designed to support struggling businesses that have not been able to trade for four months.
They said they have also had to make significant investment in extra furnishings and
new cleaning technology and products to let them operate safely under Government guidelines.
Most businesses have had to reduce capacity in order to meet the social distancing guidelines as well as facing the shortest season on record.
Gary Curley, director of the Sligachan Hotel, said: ‘Passing on the VAT reduction in prices to customers in an environment where social distancing has reduced business capacity and overheads have increased may not be possible.
‘The hospitality sector has been hit hard by this crisis and prices that reflect the operational environment will likely be a key factor in many businesses ability to survive through to 2021.’
Malcolm Roughead, VisitScotland chief executive said: ‘Scottish tourism is facing its biggest challenge in a generation and will need financial support for some time to come to help it recover.
‘The Scottish public has a crucial part to play in helping this happen. It’s easy to not think of yourself as a tourist in your own country but many of the experiences that we often enjoy with loved ones, such as holidays, shopping or eating out, all contribute to our visitor economy.
‘July 15 marks a new era for the industry as we start to welcome back visitors and take our first steps on the road to recovery. However, reopening won’t be the same for all businesses, many are still adapting to this new normal, so it’s important that we recognise that as we try to restore our industry.’