Eight out of ten tourist attractions ‘face closure’
● Industry leaders say some long-established sites could fold this summer if they are unable to welcome back visitors
Many of Scotland’s long-running museums, galleries, gardens, castles and palaces may be forced to shut down for good, industry leaders have warned.
The Association of Scottish Visitor Attractions has claimed more than 80 per cent of Scotland’s visitor attractions could go out of business due to the coronavirus pandemic.
More than 80 per cent of Scotland’s visitor attractions could go out of business as a result of the coronavirus pandemic, industry leaders have warned.
Many long-running museums, galleries, gardens, castles and palaces may be forced to shut down for good if they cannot reopen this summer, according to the Association of Scottish Visitor Attractions.
The industry body, which represents more than 450 different sites, said nearly half of them had raised concerns about being unable to survive the next three months without generating any income while facing huge running costs.
However ASVA said many of its members had already “written off this season,” while others were trying to plan ahead on the basis of a partial reopening, but having to keep their cafes and shops closed.
The warnings over the possible demi se of visitor attractionsemerged as new research revealed that nearly half of all tourism businesses in Scotland say they will “struggle” to get through the coronavirus pandemic.
ASVA’S sites are said to attract more than 37 million visitors across Scotland each year, as well as support more than 5000 jobs.
ASVA chief executive Gordon Morrison said: “The average ongoing running costs for our member attractions comes out at around £64,000 per month, which includes staff costs – even when taking advantage of the job retention scheme – maintenance, security, insurance, utilities and equipment hire. But there is no income for attractions just now and the level of losses is unsustainable for many.
“Most have very limited reserves, which were mainly used up during the winter months and on expenditure to get ready for what was expected to be a busy season ahead.
“Most attractions make their money between March and October. But with little or no season likely this year, many face either huge levels of debt or going out of business entirely within 12 months.”
Latest Uk-wide research has found that just one in five people are expecting to able to go to visitor attractions again with the next three months.
The study for the Association of Leading Visitor Attractions said operators would have to consider whether to limit visitor numbers, how to “police” social distancing measures, be more flexible on providing picnic facilities and provide hand sanitiser around their sites.
The report states: “The market is highly cautious overall, waiting to see how well attractions handle the reopening phase before committing to visits. How well we deal with fears over crowds and our ability to implement and police distancing measures on site will determine our success.”
Mr Morrison added: “It’ll take time to build consumer confidence. Public safety is definitely the main priority. Attractions will however play a very significant part in the recovery, so it is important there is government support for our sector to ensure we’re there to support the economy.
“We have a very diverse sector and some will find it easier to open than others. Outdoor sites will benefit first – it’ll be a slower recovery for indoor attractions. Parks, gardens and zoos are likely to be in a position to re-open more quickly and take advantage of people being keen to get out and do something.
“Indoor attractions will find it much more difficult, particularly with social distancing restrictions limiting visitor numbers.
“A number of sites are looking at partial re-opening, whilst others have already written off this season and are now planning for 2021. But without further financial support from the Scottish and UK governments, some attractions will definitely go under if they are unable to reopen this summer.”
Meanwhile the Scottish Tourism Alliance, the main voice of the industry north of the border, has revealed the scale of concern from businesses about the impact of the crisis.
Nearly half of those surveyed said they would not be able to retain any staff at all after May unless the furlough scheme was extended. Almost a third said they only had enough reserves to last for another three months.
STA chief executive Marc Crothall said: “All businesses are carrying overhauls and a lot of them have been unable to access any kind of grant.
“They have significant hibernation costs. If they can’t generate revenue, businesses will collapse. It’s about trying to see as many of them as possible through to the autumn and winter
“It’s not just about the virus and social distancing – it will also be about whether there will be enough of a volume of visitors through to reach the break event point.”
What is now “essential” in everyday life across the UK? What are we learning to live without as the lockdown continues?
There is barely a household not now experiencing a searching examination of what is, and what is not, “essential” – whether in venturing outdoors, persevering with social-distance shopping or picking our way through online retail websites amid countless items labelled “unavailable” or “coming soon”.
From overseas holidays to pub visits and eating out, we have been forced into major behavioural change – much of which may prove lasting.
Airlines are now having to cope with a downturn in passenger traffic that may last for years. And the hospitality sector – seemingly inconsequential but accounting for some ten per cent of the economy – is facing a massive struggle to survive months of restrictions and social distancing. Restaurant visits and eating out will be highly restricted, more expensive and reserved for “essential” special occasions. As for pubs and cafes – many will struggle to survive without outdoor seating areas.
When it comes to shopping, we are learning to purge ourselves of non-essential items. Gone are the temptations of impulse buying – even in B&Q browsing time is limited as the staff beckon us through in ones and twos and we follow the floor-painted arrows and red tape along the permitted aisles.
Evidence mounts that the dominant services sector of the economy contracted at a record pace last month. According to IHS Markit, around 79 per cent of services, such as cafes and hairdressers reported a fall in business activity amid mass shutdowns in response to the coronavirus.
And it warned that the decline could be even greater. Tim Moore, economics director at IHS Markit, says the data “highlights that the downturn in the UK economy during the second quarter of 2020 will be far deeper and more widespread than anything seen in living memory”.
Welcome to the new world of “the people’s austerity”. Much of it is causing us to
despair and moan. But a greater part of it we are coming to accept for the greater good of our health, safety and well-being.
We are adapting to a new normal of restriction – with its many changes to previously everyday social behaviour. Tentative recovery is evident in areas such as road traffic, weekly shopping habits, outdoor work on construction sites and of course adapting to working from home. We have embraced a quantum leap in our use of digital technology and in a few weeks have become more tech-savvy than we ever imagined.
Will we snap back to the way we were? Unlikely, I suspect, as many of the changes we have come to accept are for the better. We are focused on staples, not fripperies. Food waste is sharply down. Transaction volumes on credit and debit cards have plunged – even after allowing for those DIY
splurges on Amazon.
And will we mourn the decline of packed buses and trains as peak commuting volumes have declined and a return to office work is likely to be staggered? Not much, I suspect.
Among the most dramatic changes will be an aversion to long-distance air travel to exotic holiday destinations. Virgin Atlantic has announced it is to cut more than 3,000 jobs in the UK and end its operation at Gatwick airport.
Many airlines have been struggling as the coronavirus pandemic has brought global travel to a virtual standstill. British Airways said it was set to cut up to 12,000 jobs from its 42,000-strong workforce. It also told staff that its Gatwick operation might not re-open after the pandemic passes. Ryanair has also said it will cut 3,000 jobs – 15 per cent of its workforce – with boss
Michael O’leary saying the move was “the minimum that we need just to survive the next 12 months”.
As for air fares, there are fears that these could rise by at least 50 per cent, according to the International Air Transport Association. If airlines are forced to keep middle seats free, they will need to raise air fares significantly.
Holiday destinations in Scotland such as the Highlands and Islands should be major beneficiaries – if visitor businesses can hold out during the current restrictions. Here, as in other areas, we may find “the people’s austerity” an acceptable change to our notions of “essentials” and “priorities”.