‘Wrecking ball’ that’s smashed £265m hole in self-catering sector

CORONAVIRUS restrictions have sent a ‘ financial wrecking ball’ crashing into Scotland’s economy, business leaders have claimed.

Scotland’s self- catering accommodation industry has already lost £265million as a direct result of restrictions, according to its main trade body.

Property experts also warned that the pandemic has accelerated the mass exodus of firms from town centres.

In Edinburgh’s Princes Street – one of Scotland’s most iconic shopping thoroughfares – one in five premises is now empty, with the decline in tourists and city centres blamed.

An analysis by the independent consultants Frontline yesterday revealed the scale of the financial impact on self- caterers. It estimates that the industry has lost £265million since September.

The industry is still hampered by travel bans and restrictions on household gatherings.

Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, said: ‘These alarming and distressing figures show that Covid-19 restrictions have sent a financial wrecking ball swinging through Scotland’s vital self-catering sector.

‘While this is a huge number that is difficult to comprehend, each and every pound of it represents a loss to someone’s business, their livelihood, and their family’s future and quality of life.

‘While we welcome the announcement of more funds for the hospitality sector, we’ve yet to see what it means for our sector, which has been completely devastated by the travel restrictions.’

Frontline surveyed 999 self-catering operators out of 17,576. It found that 942 suffered a loss of earnings of less than £50,000, with the average being £10,715.

A further 55 l ost more than £50,000, with an average of £85,800, while one operator lost £2.6million and another £1.5million. Suzanne Hamilton, director of Frontline, said: ‘The restrictions put in place in Scotland have had a hugely detrimental impact on the selfcatering sector.’

Meanwhile, property consultancy Savills found a rise in empty buildings on Edinburgh’s Princes Street.

It said the street’s ‘vacancy rate’ is now 21.5 per cent, compared with 7.5 per cent three years ago.

The city’s George Street now has a vacancy rate of 22 per cent, up from 5 per cent i n 2017. The research was compiled before the failure of high street icons Debenhams and Arcadia Group.

Liz McAreavey, chief executive of the Edinburgh Chamber of Commerce, said: ‘Jenners looks like it is going to be a hotel and there are a number of other hotel projects in the pipeline.’

Roddy Smith, chief executive of Essential Edinburgh, said: ‘The pandemic has only accelerated the changes. Big retailers are struggling but there are many people who want to be on Princes Street.’

‘Devastated by restrictions’