The ASSC Barometer Survey serves as a vital tool in capturing the realities faced by Scotland’s self-catering sector. Conducted bi-annually, the survey gathers critical data and insights from self-catering operators across Scotland, shedding light on booking trends, business performance, regulatory impacts, and economic pressures.
In an ever-evolving tourism landscape, data-driven policymaking is essential. The findings from the Barometer help inform key stakeholders, including the Scottish Government, VisitScotland, local authorities, and industry partners. By providing clear, evidence-based insights, the survey ensures that decisions affecting the sector are rooted in real-world business experiences, rather than assumptions.
Recent regulatory changes, such as Short-Term Let Licensing, the Visitor Levy, and the abolition of the Furnished Holiday Let tax regime, have introduced new challenges for operators. The Barometer acts as a platform for self-catering businesses to voice their concerns, helping policymakers understand the sector’s needs, anticipate trends, and implement fair and effective regulations.
With 63% of respondents relying on self-catering as their primary source of income, the sustainability of the sector is not just a business issue—it is a community and economic priority. The survey underscores the critical role self-catering plays in Scotland’s tourism industry and the wider economy, particularly in rural areas.
By leveraging the insights from the ASSC Barometer Survey, policymakers and industry leaders can work collaboratively to support a thriving, sustainable, and well-regulated self-catering sector that continues to contribute to Scotland’s tourism success.
Executive Summary
Industry Overview
- 468 respondents participated in the survey.
- Highland region (32%) had the most respondents, followed by Argyll & Bute (12%) and Edinburgh (12%).
- 87.8% operate self-catering accommodation, while others run B&Bs, glamping sites, and property management agencies.
- 63% of respondents rely on their property as their primary source of income.
- 86.9% of properties were available for 210+ nights annually.
Business Performance & Booking Trends
- Occupancy in April–June 2024: 33% had over 76% occupancy, while 29% had 51–75%.
- Income in April–June 2024: 28% said income improved, 39% said it stayed the same, while 28% reported declines.
- Occupancy in July–September 2024: 45% had over 76% occupancy, an improvement over spring.
- Income in July–September 2024: 27% saw an increase, while 26% reported a decline.
- Winter season bookings (Nov 2024–Feb 2025): 30% expect worse bookings than last year.
- Looking ahead to 2025: 43% expect bookings to be down, while 35% predict them to remain similar.
Challenges Affecting the Industry
- Economic Pressures & Cost of Living Crisis
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- Increased energy, staffing, and operational costs have reduced profitability.
- Many operators are struggling to raise prices due to customer price sensitivity.
- Short-Term Let (STL) Licensing & Regulation
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- 84% of respondents now have an STL license.
- Some waited over 15 months for approval.
- High compliance costs (licensing fees, property upgrades) are a burden.
- Some operators have exited the market due to licensing challenges.
- Declining Domestic Demand
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- UK-based travelers are booking less due to rising holiday costs.
- Shorter stays & last-minute bookings have become more common.
- Overseas visitors (North America & Australia) have returned, helping offset domestic declines.
- Infrastructure & External Factors
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- Unreliable ferry services have impacted island tourism.
- Poor summer weather reduced visitor numbers.
- Tourist Levy (Visitor Tax) is expected to further impact pricing and demand.
- Marketing & Booking Platform Challenges
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- 63% rely on flexible changeover days to attract more guests.
- Many operators depend on third-party platforms (Airbnb, Cottages.com, Booking.com), which take high commission fees.
- Social media & direct bookings are underutilised.
- Increasing Competition
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- Unlicensed rentals & black-market listings undercut compliant businesses.
- Hotel & aparthotel expansion is intensifying competition.
Future Business Confidence
- 3–6 months outlook: 38% not optimistic, while 26% feel positive.
- 12-month outlook: 35% optimistic, 34% concerned.
- 24-month outlook: Confidence declines, with 39% expecting worse conditions.
Regulatory Concerns
- STL Licensing Issues: Slow approval processes, inconsistent rules, and high compliance costs.
- Planning Control & Tourist Levy: Concerns that these increase costs and reduce bookings.
- FHL Tax Abolition: 55% expect a negative impact, with 10% calling it “devastating”.
- Small Business Bonus Scheme Removal: 30% say it would be significantly detrimental.
Sustainability & Energy Efficiency
- Only 27% use renewable energy (mostly solar).
- 57% do not have any renewable systems but some are considering future upgrades.
- EV Chargers: 63% do not offer charging, mainly due to high costs and low demand.
- Sustainability: 73% see it as important, but only 25% have sustainability policies.
Growth Opportunities
- Targeting international visitors (capitalising on the weak pound).
- Wellness tourism & eco-friendly stays as emerging trends.
- More flexible stays & pricing models to match changing consumer demand.
- Collaboration with local businesses to enhance visitor experience.
Support Needed for 2025
- 78% want industry lobbying & representation to influence government policy.
- 30% need marketing support to boost direct bookings.
- 27% seek networking & collaboration opportunities in the sector.
Final Sentiment
- The sector is under pressure from regulatory burdens, economic uncertainty, and shifting demand.
- Many operators are struggling to stay profitable and feel unsupported by policymakers.
- 66% plan to stay in business beyond 2025, while others consider downsizing or exiting.
- Despite challenges, opportunities exist for those able to adapt marketing, pricing, and guest experience strategies.