The Barometer Survey Results

At the end of August we conducted a survey with our members about the season from 31 December 2015 – 31 July 2016.

45.5% of our respondents had properties in a rural location, 16.3% semi-rural and 6.6% urban or semi-urban.  43.7% said that bookings for this period were slightly better or the same, with 6.6% saying they were substantially better.  Only 17.2% said lower or substantially lower.

Most of the respondents (46.9%) said that the majority of their guests come from the UK but there were also lots of comments saying that there has been an increase in the amount of European guests.

You can view a summary of the survey and results in this PDF report, and read some of the comments below.

Bookings compared to last year:

“About the same, but definitely slower to fill up”.

“February was particularly busy, lots of short breaks”.

“A very slow start to the year.  Season did not get off to a start until Easter. Fully booked until end October”.

Bookings for rest of 2016:

“We have lots of people from Europe book a short break in Edinburgh a few months in advance and post-Brexit vote my enquiries from Europe have fallen off the edge of a cliff, with previous German guests actually taking the time to contact me to say why the Brexit vote will affect their choice of where to holiday in the future.  I.e not to the UK, although one did comment that the fact that Scotland had voted to stay may be sufficient for him to decide to return to Scotland on holiday.”

 “I would love more people from England. I have been doing B & B and self-catering since about 1992 and used to get lots of English visitors. I feel the Scottish Referendum knocked those numbers severely. I still get my regular returners, but lack new business from England”.

Has the guest demographic changed over the last year?

“More overseas guests, especially German.  Fewer English and Scottish”.

“Far more Scots, far fewer English”.

“More Europeans since Brexit, more English than last summer following remain in UK vote”.

“Less US etc and more worldwide – China, Scandinavia now through Booking dot com”.

Where do majority of guests come from?

“Scotland 30%
Rest of UK 55%
EU and Europe 12%
Australia USA 3% “.

“So far it’s only a slight majority from the UK, we’ve had a substantial minority of enquiries and guests from Europe”.

“Only just the majority, lots of Europeans, Americans and Australians too”.

Has this changed in recent years?

“Scotland is still our main source of visitors but more Europeans in recent years”.

“More Europeans recently, German and Dutch”.

 “No Australians of Americans this year”.

“No US guests”.

“More Europeans, particularly Germans and also Eastern Europeans”. 

What opportunities or threats do you perceive in the aftermath of Brexit? 

Opportunities to encourage guests from further Asia etc. China us an emerging market which could be targeted.

Opportunity – depressed pound makes it more affordable for non-UK visitors to come and less affordable for UK visitors to go elsewhere.

Threats ….  Anger & frustration from Europeans which has already been expressed from past visitors – German in particular.   Uncertainty in economic climate.

Hopefully Scotland still feels safe and welcoming to visitors and business will carry on as usual, who knows?

Opportunities for more foreign guests with weaker pound.
More stay in UK holiday makers.
More out of season short breaks

Increasing costs of running a business
Reduced numbers of guests due to less disposable income

Has the Living Wage had an impact on your business? If yes, in what way?

All staff now on minimum wage or above and we employ 6-8 housekeeping staff depending on the time of year so staff costs have increased significantly and not able to increase accommodation costs to the same degree.

We subcontract cleaning and rates allowed for are far in excess of the living wage level.
The impact on bottom line is however significant and together with utility prices makes offering winter breaks less of a proposition.

Is there anything that you think the ASSC can do to help your business, other than what we are actively doing at present, or anything else that you think that the ASSC can do to help support self-catering in Scotland?

I think you do a great job keeping us very informed. As a small number one man band I do find it difficult to take breath and read it all. I’m trying to manage my time better and at least I know you are there if I need help.

We have recently had excellent support from the ASSC in respect of a supporting letter to help gain planning permission.

I think you are doing a fantastic job!

More lobbying about VAT please!

“Carry on”! Bring back the conference to Inverness or Aviemore on occasion. Help set up a “Digital Mentor” system for one-2-one advice and help, that is free or subsidised. Seriously look at the impact of VS marketing etc on the carrying capacity for B&B, Self-catering in remote areas: the whole NW coast has to turn away visitors as we are full!

Campaign for non VAT for small tourism related businesses.

Much of our business comes via the ASSC and we are happy with that.

Organise or give information on training courses for digital media marketing. 

Tourist Tax, Visitor Levy or Bed Tax

Like most tourism businesses in Scotland the Association of Scotland’s Self- Caterers does not support a tourist tax, visitor levy or bed tax.

  • Scotland is already expensive to visit. The World Economic Forum ranks the UK 140th out of 141 counties in terms of tourism price-competitiveness.
  • Given that a tourist tax would make Scotland less competitive, it would be contrary to the National Tourism Strategy, working against efforts to increase visitor numbers and revenues. It would jeopardise the significant contribution that tourism makes to the Scottish economy through tourism-related employment and visitor spend.
  • A bed tax would penalise accommodation providers in a sector which benefits many other businesses, attractions, restaurants, pubs along with the cultural and events sector.
  • Recent analysis by the BHA shows that, of fourteen European countries, which apply some form of tourist tax, all but one levy reduced rates of VAT on hotel services. In fact, the UK is one of only three EU countries that do not have a reduced rate of VAT for tourism services.
  • The new Scottish Government has declared that there are no plans to implement any new taxes on the tourism sector, which it says is currently subject to the second highest VAT rates in Europe. It believes there are no existing legal powers for local authorities to levy a local bed tax or tourism tax.
  • The Scottish Tourism Alliance, British Hospitality Association and tourism members of the Federation of Small Businesses have also expressed their strong opposition to calls for tourist taxes.

The ASSC believes that this should be monitored closely.

  • There have been several calls to investigate the possible introduction of a tourist tax from politicians in the previous parliament, and certainly Councils, notably Edinburgh, have been looking at this as an option.
  • We believe that the 2017 budget will be an enormous challenge, particularly for Councils, increasing the pressure to raise income. There are Council elections in May 2017.
  • It may be possible for Councils to agree a legal mechanism in City Deal negotiations being agreed at Westminster and Holyrood.
  • The general public seem to understand and may well support a tourist tax. Many may have paid a small amount when on their own holidays to other destinations.
    The Government is coming under pressure to review local taxation as well as business rates, so we consider the position to be more fluid and in the balance than might appear.

Businesses Reject ‘Tourist Bed Tax’ Proposal

Four in five Scottish small firms are against plans to introduce the ‘tourist bed tax’ that would impose a levy on visitors’ accommodation bills.  A survey by the Federation of Small Businesses (FSB) found that 82% of firms are against the proposals, and the Scottish Tourism Alliance and British Hospitality Association have also voiced their opposition.

Read the article in full here…