Press Release: No Evidence of Boom in Sight for Scottish Tourism

Research published by the Scottish Tourism Alliance (STA), the representative body for tourism business in Scotland paints a stark picture for the sector in contrast to recent speculation that tourism in Scotland is set for a boom this summer.

The organisation conducted research, predominantly with hospitality businesses following the easing of some restrictions on 26th April and also collated the results of research undertaken by a number of member sectoral groups within the industry, totalling 980 responses.

The STA surveyed 271 businesses directly and found that 30% took the decision to remain closed from the 26th April; of those, 31% have said that they do not plan to reopen next week when restrictions will ease further.

The organisation’s research highlighted an extremely slow start to accommodation bookings; between 41 – 45% of accommodation providers who responded indicated that over the course of May, June and July, occupancy is sitting at below 20%.

62% of rural hotels have less than 50% occupancy for May and just 26% of rural hotels have indicated that they will have 60%+ occupancy for this month. The picture is almost identical for June and for July, 54% of rural hotels indicate that their occupancy will be lower than 50%; just 30% have said they expect occupancy of 60%+.

Predicated occupancy levels in the cities is worryingly low with 94% of hotels in cities reporting occupancy levels of below 50% in May, 98% of hotels in cities are reporting occupancy levels of below 50% in June and 87% of city hotels are reporting occupancy levels of below 50% in July.

This is also reflected in the recent STR data which shows forward occupancy levels for Glasgow hotels sitting at just 14% for May and June, dropping to 13% in July and rising slightly to 15% in August.  The picture is similar in Edinburgh with May occupancy at 19%, June 20%, July 19% rising to just 22% in August.

Of the 271 businesses surveyed by the STA, 38% said that their average gross food and beverage takings since reopening are below 20% and just 11% of respondents are taking between 76 – 100% of the norm.

Recent media reports have pointed towards a boom in tourism in Scotland however the latest research conducted by the STA, the Association of Scottish Visitor Attractions (ASVA), the Association of Scotland’s Self-Caterers (ASSC) and Wild Scotland, the trade body representing the adventure tourism sector shows that the industry is far from recovery and in many respects, is in a worse position now than it was a year ago.

According to research published by the ASSC which gleaned 262 responses, larger self-catering properties that rely on multiple households have been under either full closure or restricted trading since the first lockdown on 24th March 2020 and will continue to be affected until at least end of June 2021 according to the current route map, having only been able to enjoy ten viable weeks of trading.

Wild Scotland surveyed 105 members and found that 45% of respondents will operate at less than 50% of capacity due to current restrictions, with 64% referencing physical distancing as the main factor.  The association has said that many businesses within the adventure tourism sector will require further financial support to survive into 2022, particularly those with a reliance on the international market, those impacted by physical distancing and much of the marine tourism sector, some of which remains closed, facing a second year of no trading and potential business collapse.

The Association of Scotland’s Visitor Attractions surveyed their membership in April, receiving 342 responses and found that 54% of attractions will remain closed as a result of the continuation of 2m physical distancing or will lose money when they do reopen.”

Quotes:

STA Chief Executive, Marc Crothall said; “Our survey uncovered what we knew was happening across the industry from anecdotal conversations; that things were nowhere near as buoyant as has been suggested and in fact, that too many businesses across all sectors within our industry are continuing to operate in crisis mode.  The STA held three forums with hospitality, tourism and destination groups this week and all attending very much echoed our research findings.

While the smaller properties within the self-catering sector are looking at a positive level of recovery, other accommodation providers are struggling as bookings are not coming in at the level needed to trade viably over what would be the busiest part of the year and food and beverage income is far from healthy across the board, although this will hopefully change with the next easing of restrictions on 17th May.

It is also important to acknowledge that there is a recruitment crisis within the tourism and hospitality sector with all respondents to our survey indicating that they have vacancies; conversations I’ve had suggest that the picture is far more worrying across the sector, particularly in terms of the recruitment of chefs.

A great deal rides on the further easing of restrictions which come into force from next Monday and beyond, particularly for the night time economy and events industry, this really is the last chance for most of Scotland’s tourism industry to start to recoup some of the lost income from the past year, however I know that that easing will not go far enough for many as our research indicates; it may very well be too late for recovery.

 ASSC Chief Executive, Fiona Campbell said:

While the Association of Scotland’s Self-Caterers welcomes the reopening of parts of Scotland’s tourism and hospitality sectors, there remains an urgent need for more clarity as to when larger self-catering properties can welcome multiple households again.

Our sector, and especially those larger businesses within it, also needs further financial support from the Scottish Government, which we believe must continue until Scotland reaches level zero and beyond to normality.

“What we can guarantee at the moment, is that our guests and visitors can rely on Scotland’s self-caterers to provide them with a safe, hygienic, and minimal risk environment in which they can enjoy a well-deserved and much-needed break.

Victoria Brooks, lead representative from Wild Scotland said:

“The good news is that some outdoor activity operators are experiencing high demand and are already receiving enquiries into 2022 which is incredibly positive. However, this is not the case across the whole sector. For many, it has been a very slow start – more of a distant rumble than the anticipated staycation boom predicted. Boat operators are significantly down on 2019 visitor numbers – this is due to limited capacity as a result of continued physical distancing restrictions, but they’re also experiencing very low demand which is incredibly disappointing and of course impacts massively on local and rural economies including accommodation, shops, cafes and restaurants. You can of course put some of this down to the weather, but businesses across the sector are very aware that consumer confidence is lacking – messaging has been mixed and of course we are missing our international visitors. The outdoor sector is also very reliant on mixed groups being able to gather in accommodation, in vehicles and on boats which remain restricted.

Tourism is vital to Scotland’s recovery but to survive we need to continue to invest both in businesses and infrastructure to support the anticipated demand. It is also imperative that consumer messaging relating to restrictions and travel is simple to understand across all four nations to restore consumer confidence and ensure we have a successful and hopefully extended season ahead.”

John Henderson, Founder of Born Brewery said:

“How does the industry feel at the moment? Both our rural and city centre publicans are definitely suffering. They have been burnt by lockdowns and brief re-openings, they have been burnt by poor outside trade due to recent weather, and they are, understandably, nervous about indoor re-opening this time around. No one knows what business will be like or how quickly it might pick up. For us, as a brewery with short shelf-life cask ale products, that’s a huge problem. We are the last product they will risk investing in as cask ale needs a constant through-put. And our sales, at 25% of the seasonal average, prove that. Things need to change fast, but consumers appear in no rush to get back to hospitality.”

‘No evidence of boom’ say Scots tourism firms

The Herald coverage.

The Insider coverage.

BBC coverage.

Clarity on Self-Catering Indoor Household Socialising Rules – 17 May onwards

Indoor household socialising rules and self-catering are aligned and that the changes announced in terms of the acceleration of plans – thanks to positive data on the falls in case numbers – therefore also apply to self-catering accommodation.

In self-catered or other unregulated (unstaffed) accommodation, in-house socialising rules apply. In Level 2, a maximum of 6 people from up to 3 households can socialise in a private dwelling. Children under the age of 12 from these households do not count towards the total number of people permitted to meet.

Q Can households share a room in a hotel / other tourist accommodation?

A.  Given the transmission risks associated with different households sleeping in the same room,  Bedrooms should only be occupied by one household or extended household.  This is the position in levels 0-3 (closed in 4).  However, we will keep all restrictions under review and will not keep these in place for longer than necessary.

In self-catered or other unregulated (unstaffed) accommodation, in-house socialising rules apply.

In public spaces within regulated (staffed) tourist accommodation, the rules about socialising in an indoors public place apply.

See indoor socialising rules for public/private places.

Tourism and hospitality guidance should be followed with any easings to mitigate risk.

Operators are advised to ensure there is sufficient capacity within their accommodation to safely accommodate the numbers of people and households permitted in the levels framework, allowing for required physical distancing between household groups.  The number of people and households permitted will depend on the capacity of the accommodation, and the stage we are at in the coronavirus timetable for easing restrictions.

When sharing self-catered tourist accommodation it is advisable for separate households to have their own bedrooms and that shared bathrooms and kitchens are kept clean and materials and instructions for these are provided.

Visitors should, where practicable, use shared rooms one at a time with cleaning and ventilation in between (e.g. preparing and eating a meal). Where communal toilets are being used providers should implement measures to decrease the risk of contamination, including enhanced cleaning, and consider reducing access to a one in, one out basis. Cleaning materials should be provided for users to ‘clean as they go’.

The approach to reducing household restrictions will be gradual as we move through the levels to ensure continued suppression of the virus. The Scottish Government will keep the guidance around restrictions under review to ensure safety but will not keep them in place longer than is necessary.

Within regulated (staffed) tourist accommodation which indoor socialising rules apply to shared and / or public areas?

In public spaces within regulated (staffed) accommodation, the rules with regard to socialising in an indoors public place will apply, subject to relevant appropriate mitigation measures.

In private/self-catering environments which are unstaffed (which would include hostels entertaining as an exclusive use booking and with no staff on hand), then the in-house socialising rules will apply.

Q: If someone has a self-catering cottage books from Saturday 15th for a week, and Moray stays at Level 3, does the guest (form Level 2) have to return home on Monday 17th?
A: No they can stay and the booking can be honoured, but when they’re there, they should only visit attractions in Moray and not travel outside except for essential reasons.

The protection levels have now been fully updated to reflect this:

Coronavirus (COVID-19) protection levels: what you can do – gov.scot (www.gov.scot)

 

Next steps out of Lockdown

Today the First Minister gave an update on changes to COVID-19 restrictions which come into effect from Monday 17th May. 

People will be able to hug their loved ones and meet in private homes as most of mainland Scotland moves to Level 2, with eased restrictions on hospitality, entertainment, education and sport.

In an acceleration of previous plans, the number of people and households that can meet inside homes in Level 2 has been increased to six people from three households.

The new rules, which come into effect on Monday 17 May, will apply to all mainland local authority areas with the exception of Moray, which is experiencing a high and increasing number of Coronavirus (COVID-19) cases. As a result Moray is likely to remain in Level 3 for a further period, with travel in and out of the area prohibited other than for permitted purposes. A final decision on this will be made at the end of this week.

The Scottish Government is working with Moray Council and Grampian Health Board to reduce case numbers, and will provide financial support for affected hospitality and leisure businesses if Level 3 restrictions do remain in place.

As the virus is now sufficiently under control in the Western Isles, Orkney, Shetland and remote Highland and Argyll islands, these communities are expected to move straight to Level 1.

From 17 May, anyone entering Scotland from countries on a new international travel ‘Green List’ will not be required to quarantine on arrival, but will have to take a PCR test for COVID-19. The Green List will initially be the same as that in place for England but will be subject to review based on Scotland’s specific needs.

Under Level 2 restrictions:

  • up to six people from three households will be able to meet in each other’s homes or gardens without physical distancing – this was the limit previously planned for Level 1 but has now been accelerated for areas in Level 2. People will be encouraged to use their judgment about close physical contact with others
  • up to six people from three households will be able to meet indoors in places such as pubs, cafes and restaurants, while up to eight people from eight households will be able to meet outdoors
  • pubs and restaurants will be able to serve alcohol indoors until 10:30pm in two-hour booked slots
  • venues including cinemas, theatres, concert halls, music venues, comedy clubs, amusement arcades, casinos, snooker halls and bingo halls will be able to reopen
  • events will resume with a maximum capacity of 100 people indoors, 250 outdoors where there is unrestricted standing and 500 for events with seating. Organisers will be allowed to apply to hold bigger events
  • outdoor contact sports and indoor group exercise classes will be able to restart
  • more than one person will be able to sing during religious services
  • amateur performing arts groups will be able to perform outdoors
  • colleges and universities will have more flexibility to resume in-person learning

First Minister Nicola Sturgeon said:

“The success of the vaccination programme, and continued high compliance with the various rules and restrictions, means that we have seen continued suppression of the virus in the last three weeks. As a result the situation overall is a very positive one, and we are now in a position to relax more restrictions and restore much more normality to our everyday lives.

“I know just how unwelcome the likelihood of a further period in Level 3 must be to people in Moray, and we are doing everything possible to ensure that any extension of Level 3 is for as short a period as possible. I would appeal to everyone living in the region to follow all the public health advice so that we can get the situation back under control and allow Moray to get back on a positive track just as quickly as possible.

“It is almost eight months since most of us have been able to meet in each other’s homes. While I know all of us have been looking forward to being able to do that again, I would encourage everyone to please use judgement – close physical contact still carries risk, so if you have loved ones who are vulnerable for any reason, you should still be careful. And you should perhaps limit the overall number of people that you choose to have close physical contact with.

“We still intend to be highly cautious on international travel, given the risk of new variants, but we consider that the situation now allows us to begin a careful move away from blanket restrictions on non-essential travel. Everyone should think seriously about whether they really need to travel abroad this summer. I know for many people international travel is about family connections. But when it comes to holidays abroad, my advice continues to be to err on the side of caution and to staycation this summer.”

Background

Coronavirus (COVID-19) protection levels: what you can do

Level 1 restrictions will apply from Monday in:

  • the Western Isles, Shetland and Orkney
  • all islands in Highland, except for Skye given its fixed link with the mainland
  • the Inner Hebrides islands in Argyll, including Islay, Jura and Mull

Countries on the green list are:

  • Australia
  • Brunei
  • Falkland Islands
  • Faroe Islands
  • Gibraltar
  • Iceland
  • Israel
  • New Zealand
  • Portugal
  • Saint Helena, Ascension and Tristan da Cunha
  • Singapore
  • South Georgia and the South Sandwich Islands

If you enter Scotland from a red list country – one of the countries identified as acute-risk under our current regulations – you will be required to enter a managed isolation hotel and stay there for 10 days. Due to changes coming into force from tomorrow, those countries will include Turkey, the Maldives and Nepal.

If you arrive from a country on the amber list – which will be the majority of countries – you must self-isolate at home for 10 days, and take two PCR tests during this period.

A new app – Check in Scotland – was launched at the end of April, to help Test and Protect easily contact people who need to self isolate. Please download and use the app if you can.