The Press and Journal (Inverness, Highlands, and Islands)
Fears about Brexit effect on Highland economy
Hospitality: Uncertain future for EU nationals
Growing fears about the impact of Brexit on the Highland economy were raised at a meeting of tourism leaders in Inverness yesterday.
Freda Newton MBE, who owns Jacobite Cruises, warned about the “uncertainties” facing the many EU nationals who are working in the local hotel trade.
But there were calls to plug any future shortage of staff by training more young people and focusing on helping budding entrepreneurs.
The issues were raised at a business briefing hosted by the Press and Journal and sponsored by Ledingham Chalmers solicitors.
Other panellists included Highland economist Tony Mackay, Jennifer Young of Ledingham Chalmers and John Todd of John stone Carmichael.
Keynote speaker Tom Campbell, managing director of the hugely successful North Coast 500 road trip, highlighted new research which found that 86% of surveyed hotels, 78% of food and drink businesses, and 70% of activity providers reported an increase in trade last year due to the route, with 26% intending to hire more staff as a result.
Ms Newton started her address to delegates by suggesting that the business community had been too soft on politicians over a cap of 12.5% on business rates rises. Who would accept 12.5% wage increases, 12.5% increase in fuel duty?” she asked.
“They have given in one hand and taken away with the other and weare meant to say ‘ thank you very much’.
“We as business leaders know the economy of the Highlands and the importance of tourism to the Highlands.” But she added: “Brexit is the bigger issue. Nobody knows what’s going to happen.
“It’s the uncertainty that’s not good for anyone and not good for anyone in tourism.
“There is the freedom of the European market to come to UK and Scotland and we have to make sure that is maintained.
“We have very few foreign nationals in our own business but it affects the hotel industry.
“Where are they going to get employees from – because they are just not going to be here?”
Mr Campbell said: “The gap between the number of jobs and staff to fill the gaps could grow and we need to focus on the training and hospitality sector as a rule, and the need for entrepreneurs who want to start their own business. Our own young people have to be taking these opportunities.”
Mr Mackay said that the growth of the economy of the Highlands and Islands economy is at about 1.2%, compared to the Scottish
average of 1%, and UK average of 2%. He argued that economic issues in the region were being“ignored or obliterated” by politicians, adding: “The tourism industry is doing pretty well because of the value of sterling. But Highland Council has got huge expenditure constraints and job cutbacks. The prospects are not very good and Brexit is going to make things even worse.”