The Herald

Staycation boom stalls as visitor numbers short ‘by a country mile’

Special Series: Business sets out support needed to help firms through Covid-19 pandemic, reports Brian Donnelly

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BUSINESS leaders have said that many more household names will “crash and burn” bringing the loss of thousands of jobs without ongoing support as early indication­s show the staycation market will not be enough to shore up stricken tourism and hospitalit­y firms.

Already famous brand names like Crieff Hydro Group, Macdonald Hotels and Apex Hotels have started consulting on redundanci­es even as furlough continues as they bid to balance the books, and it is warned others will follow.

Marc Crothall, chief executive of the Scottish Tourism Alliance, said the easing of some restrictio­ns is welcome, but added: “There’s a long way to go.

“It is not the boom by any means. It is very, very slow take-up.

“A small 15-20 bedroom hotel in a rural part of the west coast will be doing okay but bigger properties have just not got the volume of visitors that they need to get by a country mile.”

He said the July average occupancy numbers for Glasgow and Edinburgh hotels was between six to eight per cent and “August is not much better with September touching 15% in the two big cities, so that is really serious”.

“The hotel needs to be at 60% occupancy just to break even.”

He said: “These businesses will need a significan­t level of financial support.

“We are at the end of the first mile of a very long marathon and I think we are going to hit the wall a good few times still, and without that ongoing commitment from both Scottish and UK government­s to help the industry through this, there will be some major falls of long-establishe­d businesses and sadly we’ve seen far too many already and we need to avoid others crashing and burning.”

Licensed trade veteran Donald Macleod, whose company Hold Fast Entertainm­ent owns The Garage in Glasgow and employs around 170 directly, said he believes there is scope for testing limited capacity gatherings within the hospitalit­y industry.

He said: “In my own sector, two iconic clubs, The Garage and Cathouse,

I would like to see some pilots going ahead where social distancing is removed but based on a capacity level.

“I’m going on the basis that when you saw the people going to the beaches there wasn’t massive pick-up or a surge in infection rates after the Black Lives Matter marches.

“So I think now we should be looking ahead maybe in September to try some pilots supported by government but not based on social distancing.

“Social distancing is what’s killing business. We need to get the economy going and I would like to see a more confident approach now that we have got a handle on the infection rate.”

Professor Graeme Roy, director of the Fraser of Allander Institute at Strathclyd­e University, said: “The biggest risk to the recovery would be a return of the virus in a significan­t way and having to reimpose a lockdown.

“There’s a really difficult balance now for policymake­rs about when they ease the restrictio­ns and when they start to wind down the financial support, and we’ve got to get that right.

“Only when you start to open businesses will many of the risks start to crystalise and so a business that is shut at the moment and all its staff are

It is not the boom by any means. It is very, very slow take-up

furloughed, if it is only going to work at 60% or 70% capacity, that is still way down on what it might have been in order to make it profitable.

“What further measures are going to be needed to try and stimulate the economy and try and support growth over the medium term, and that is about how do you potentiall­y support sectors that are particular­ly struggling at the moment like tourism or the airlines.

“But then also how to then support the economy more generally with stimulus until you get confidence back until activity will start coming back again.”

He also said: “Sadly policymake­rs can’t do everything, it is going to be a challenge. We are in a recession, we will come out of it quickly, but it is going to be a long road to recovery.”

 ??  ?? A visitors’ favourite: Loch Maree Viewpoint, Beinn Eighe and Loch Maree National Nature Reserve Picture: Getty Images
A visitors’ favourite: Loch Maree Viewpoint, Beinn Eighe and Loch Maree National Nature Reserve Picture: Getty Images
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