Tourism chiefs warn sector is facing ‘devastation’ after visitor cancellations
Scottish tourism chiefs have warned that the sector is facing “unprecedented devastation” as a result of the tightened coronavirus restrictions after operators were hit with a “flood” of last-minute festive season cancellations.
Industry leaders have predicted “grave” levels of job losses and business closures unless urgent and “extraordinary” financial help is provided by the Scottish Government.
The warnings have been made as it emerged that one in five tourism businesses in Scotland have used up all of their cash reserves – with a further quarter predicting they will also run out within the next few months unless restrictions are lifted.
The recent survey of nearly 3,000 businesses found that more than a third have made staff redundant in 2022, while more than two thirds expected to have to make cuts in the next few months.
Some operators are said to have estimated losses of up to £600,000 as a result of the announcement that Level 4 restrictions would be imposed across mainland Scotland from Boxing Day.
The Scottish Tourism Alliance, which has published an open letter to First Minister Nicola Sturgeon on behalf of the industry, said it was already “decimated” by the pandemic and only had the “slimmest prospects of recover y” in the next few months before the latest curbs were announced.
It has been endorsed by the Scottish Chambers of Commerce, Scotland Food and Drink and UK Hospitality.
A planned five - day relaxation of travel restrictions within Scotland has been reduced to just one – Christmas Day – while hospitality businesses have been told to close from Boxing Day. The only exceptions are in island communities.
In his letter, STA chief executive Marc Crothall said: "Operators are now dealing with a flood of cancellations and have lost much-needed revenue. With no opportunity to trade viably over the coming weeks and potentially months, there is a need for an even greater level of financial support to save businesses and jobs including those in the supply chain and the livelihoods of many in the local communities that the industry supports.
“The scale of job loss will be grave without longer term financial support for business. Several operators who had seen a window of opportunity to trade over Christmas and into the new year have taken on new employees.
"The scale of damage and devastation to businesses, local economies, communities and livelihoods will be unprece - dented without immediate, more meaningful, targeted and robust support."
The government recently announced an additional £185 million to help businesses, including in the hospitality sector, withstand the impact of the pandemic.
Mr C roth all added :“Your announcement that restrictions will be tightened for the foreseeable future is clear and understood and is a decisive response to the health risk.
"The ask of the industry is that the government now delivers a similarly swift and committed response to the economic consequences of this action.”
The recent i nd us trys urvey, conducted between 19 November and 6 December, found that more than a third of Scotland’s tourism businesses had performed worse than expected since reopening in the summer. Around 6 per cent of operators said they had lost more than £1 million as a result of the pandemic.
Malcolm Roughead, chief executive of government agency Visitscotland, said: "The survey paints a grim picture for tourism businesses trying to keep afloat during a global pandemic.” It came as one of Edinburgh's leading chefs and restaurateurs claims hospitality businesses have been left on “death row” by coronavirus restrictions – as she warned of the impact of a growing trend for holding clandestine dinner parties behind closed doors.
Carina Con ti ni, who runs three eateries in Edinburgh city centre, has warned the industry is facing a “slaughter of the innocents” unless there is a rethink over blanket restrictions.
Ms Contini claimed the recent increase in coronavirus cases in the city was down to “mixing at home, where more alcohol is often consumed,” rather than people gathering in restaurants, which have been banned from selling alcohol under the Scottish Government’s Level 3 restrictions.in a blog posted before First Minister Nicola Sturgeon announced the introduction of strict new curbs across mainland Scotland from Boxing Day, Ms Contini said it was “clear that Scottish Government has no idea how hospitality works.”
She wrote: “We're not a production line that you just stop and start. Do they understand the resource required to manoeuvre around this quagmire?”
“I feel like hospitality is sitting on death row waiting for a par don, but every one, including the judge, knows we’re innocent.“there needs to be a rebalance. Not because people are getting drunk in restaurants but because more people are entertaining at home and house parties are the fashion for some."we’re creating an economic and skills disaster that has successfully defined and given life to a nation of great food. Please let’s not kill this and let the big boys win.
"We need our reprieve, don’t slaughter the innocent. Let us help share good food, health and community wellbeing with far more flare, joy, environmental benefits and value than any supermarket. We need all the ingredients for our mutual success.”