TOURISM ON BRINK OF DISASTER
Half of hotels struggling as staycation boom fails to materialise
HOTELS and holiday homes are in ‘crisis mode’ with the pandemic devastating Scotland’s tourism sector, it was warned last night.
One in three hospitality businesses remains closed despite the relaxation of restrictions, a study shows.
Nearly half of hotels are on the brink as tourists hold off on committing to staycations during the crucial summer months.
Owners of hotels and self-catering accommodation say July occupancy currently looks likely to be only 20 per cent of what they would normally expect.
The Scottish Tourism Alliance (STA) said its research paints a ‘worrying’ picture and highlighted an ‘extremely slow’ start to bookings, with 30 per cent of businesses remaining shut despite the easing of restrictions.
STA chief executive Marc Crothall said the sector is ‘nowhere near as buoyant’ as some reports have suggested and many businesses are operating ‘in crisis mode’.
Most rural hotels (62 per cent) are less than half full this month, with an almost identical scenario predicted for June and July.
The picture is dramatically worse for city hotels, with 94 per cent half full this month. In Glasgow and Edinburgh, hotels reported occupancy of only 14 and 19 per cent.
Self-catering accommodation is also struggling, as rules around multiple household occupancy force many to remain closed.
According to the Association of Scottish Self Caterers, larger facilities will continue to be affected until at least the end of June.
Mr Crothall said: ‘While the smaller properties within the selfcatering sector are looking at a positive level of recovery, other accommodation providers are struggling as bookings are not coming in at the level needed to trade viably over what would be the busiest part of the year.’ The STA said food and beverage income is ‘far from healthy’, although it hopes to see improvement from Monday with a further easing of restrictions.
But John Henderson, founder of Scots firm Born Brewery, said that after previous lockdowns, publicans ‘are definitely suffering’. He added: ‘They are, understandably, nervous about indoor reopening this time around. No one knows what business will be like or how quickly it might pick up.’
A survey by the Association of Scotland’s Visitor Attractions last month found that 54 per cent of attractions planned to remain closed because of physical distancing restrictions. Chief executive Gordon Morrison said: ‘This important sector of our country’s £11billion tourism industry not only needs continued government support to survive and thrive but also needs the public to get behind it.’
According to adventure holidays association Wild Scotland, 64 per cent of its members are operating at below 50 per cent capacity. Spokesman Victoria Brooks said: ‘For many it has been a very slow start – more of a distant rumble than the staycation boom predicted.’
Labour MSP Rhoda Grant said: ‘Appropriate support for the tourism sector has to be in place to get them through this period.’ Tory
MSP Maurice Golden said: ‘Vital jobs and livelihoods remain under great threat across the sector and we must see SNP ministers continue to support businesses in coming months.
‘We also must see ministers ensure that tourism and staycations across Scotland are promoted as much as possible.’ A
Scottish Government spokesman said: ‘The pandemic has had a significant impact on the sector, that’s why we have provided substantial support to tourism businesses.
‘Over the past year we have worked closely with organisations like the STA on support for the tourism and hospitality sectors and will continue to do so.’ There was, however, some good news yesterday.
According to recruitment website Reed.co.uk, hospitality jobs in Scotland more than doubled last month, up 188 per cent compared with March. Reed chairman James Reed said the surge was ‘incredibly positive’.