Scottish tourism industry at risk of collapse

The Scottish tourism industry is “at risk of total collapse”, according to industry body Scottish Tourism Alliance (STA).  

Scottish tourism industry at risk of collapse

Marc Crothall, STA chief executive

The body has said that there are over 2,500 tourism businesses which are not receiving grant support from government and as a result companies that are the lifeblood of the industry are doomed to fail. 

Scottish Tourism Alliance also revealed that a “stark number” of businesses are being turned down for hardship grants and other sources of funding.



In an interview with BBC Radio Scotland’s Good Morning Scotland, Marc Crothall, STA chief executive, said: “These businesses will not survive more than a few weeks. The furlough scheme was there to protect jobs for the future. If there is no business, there are no jobs.”

The organisation has called for a date to be set for the re-opening of the tourism industry in Scotland to allow businesses to plan and provide confidence to people who wish to holiday in the country.

It noted that the easing of lockdown in England has sparked a revival of the industry south of the Border, amid reports bookings for destinations such as Cornwall are on the rise.

The body said that 2,500 tourism businesses are not receiving coronavirus grants because they operate from properties with a rateable value of more than £51,000.

Mr Crothall continued: “The support that has been made available to the industry – especially the furlough scheme – has been very welcome. And the early grant support to smaller businesses has managed to keep a few of them alive in the short-term.

“But 2,500 businesses have not qualified for grants from the outset. The current hibernation costs of those is excessive. The concern now is, unless we get a date to open up tourism again, many won’t even make it to the start line.

“What we are already hearing from many businesses is, following the announcement from the prime minister, that people who were looking to vacation in Scotland are now already booking to have their holiday south of the Border.

“We need to capture as much of that market as possible. Publishing a date – accepting the fact it may need to move – is what the industry needs.”

He added: “This isn’t about 2,000 businesses, it’s about the industry as a whole. There is no way the tourism sector and supply chain that feeds it can survive without longer term support right the way through the summer and into next year.”

  • Read all of our articles relating to COVID-19 here.

 

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