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STA launches key research project: Tourism & Hospitality – The Growing Cost of Doing Business

Created: June 14, 2017
Posted in: Representation, Self-catering Industry, Tourism Industry, Uncategorized

The Scottish Tourism Alliance (STA) is conducting a piece of research to gain a clearer insight into the impact of the rising costs within Scotland’s tourism sector.

There is no assurance that the Business rate relief cap will be extended for a further year from April 18, in the event that the Barclay Review has not come up with an agreed alternative. The rising cost evidence produced in this research (that will highlight the combined total of rising costs) should help demonstrate and support the call to Scottish Government for the business rates relief cap to be extended for a further year.

There is now a need to demonstrate to all governments and local authorities that despite positive increases in visitor numbers in recent years there are a number of costs that have steadily increased over the last three years disproportionately to the level of growth. Many have described this as a ‘perfect storm’, which is affecting their financial sustainability.

Over this period these costs include the National Living Wage, Business Rates, licensing, insurance premiums and auto-enrolment pension schemes.

The aim of the project is to demonstrate the reality of how these and other increases are impacting on tourism and hospitality businesses’ potential to invest in the quality of the product and their workforce whilst remaining competitive and most importantly, sustainable.  We can only gain a real understanding and demonstrate the impact if we capture and present the costs as a complete picture, rather than individual examples.

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