Ahead of the Scottish Government’s Budget on Wednesday 4th December, the Scottish Tourism Alliance is calling for more help for tourism and hospitality businesses that are on a financial knife-edge.
Recent survey findings of tourism and hospitality businesses found:
- Trust in the Scottish Government to deliver on key areas affecting the tourism and hospitality industry over the next 12 months is significantly low – with 85% of respondents having no or low trust in it to deliver greater funding for the sector.
- Despite a 21% rise in net turnover and a strong boost from international visitors, survey respondents reported profitability is down 1% and 33% of respondents are reporting a drop in profits over the past year.
- Nearly half of businesses (45%) have a cash reserves of only three months or less.
The survey was carried out before the UK Government’s National Insurance employer contribution announcement, which will have an even greater cost burden on businesses. The sector north of the border are looking closely at the Scottish Government to help mitigate this impact.
The full survey results are available here.
Marc Crothall MBE, Chief Executive of The Scottish Tourism Alliance, said:
“Tourism and hospitality businesses are telling us loud and clear that they need more than warm words from the Scottish Government in the latest Budget.
“They need to see measures that will immediately ease the financial burden on them and that will directly support the sector to grow and be more competitive.
“At a minimum, the business community is looking to the Scottish Government to pass on the 40% business rates relief from the UK Budget, with a roadmap to introducing a permanently lower rate that is fair and proportionate.
“Although celebrated for its contribution to the economy and its remarkable recovery post-COVID, the tourism and hospitality sector has felt overlooked in recent years as a key economic driver. We must invest to have long-term success.
“We must see a Budget that protects, restores and invests: protects our businesses and the wider tourism and hospitality sector, restores funding that has been taken away and rebuilds trust in government to support the industry, and invests in future-proofing and making Scotland as competitive a destination as possible.
“Our latest survey found that 85% of respondents have no or low trust in the Scottish Government to deliver funding for the tourism and hospitality sector over the next 12 months. There’s a risk that trust level could dip even further if they don’t see anything significant for them in Wednesday’s Budget.”
