Signs of recovery start to emerge in Scottish pubs and hotels

The Scottish hospitality sector is seeing signs of growth emerging after successive years of decline, a new report has revealed.

Pubs, clubs and small hotel groups surveyed by the Scottish Licensed Trade Association (SLTA) found that 38 per cent of businesses reported increases in business in the first half of the year, although 39 per cent of firms still saw falls.

Colin Wilkinson, secretary of the SLTA, said the growth being seen by some members was “against a backdrop of long-term decline” in the sector.

The survey of some 600 members found that 69 per cent expect growth or stability for the rest of year but Wilkinson said the fragile recovery was under threat from issues including changes to the rates system.

More than three quarters (76 per cent) of survey respondents highlighted it as the biggest concern they face and reducing VAT levied on the sector was also cited as a measure which could help the sector. Wilkinson said the survey also highlighted huge pressures for rural operators with 46 per cent showing a decline over the first half of 2017 compared to 2016.

“Many village pubs are integral to tourism and the community within rural areas, and the decline in this area is sadly likely to lead to further closures and wider impacts on tourism and employment.” 0 ‘Rates concern’ – Colin Wilkinson of the SLTA