The owners of an historic Shetland hotel, that had faced possible closure because of the Covid crisis, are setting their sights on upgrading it to four star status.
With “significant improvements” planned, the project at Busta House Hotel is being backed with £90,000 from development agency Highlands and Islands Enterprise (HIE).
The business has also received £97,400 in working capital from HIE to support it through the pandemic.
Overlooking the shore of Busta Voe, on Shetland’s mainland, the 18-bedroom hotel dates back to 1588.
Serving mainly local and tourist markets and popular with international visitors, it had an 80% occupancy rate during the summer. But the pandemic had a devastating effect on its trade as it had to close its rooms and diversify by offering a takeaway service.
Travel restrictions on ferries and flights have had a huge impact on the number of people visiting Shetland.
Busta House co-owner, Grant O’Neil, said: of Busta House said: “We truly appreciated the support from HIE.
Without such help I feel that we would have been in an unavoidable position of having to close not only one of Shetland’s finest hotels, but also one of Shetland’s most historically important buildings.
“Thanks to HIE we have been able to continue to operate and offer our services to both the local community and to national and international travellers alike.”
Busta House would become Shetland’s only four star hotel, if it achieves that status through the updgrade.
The project will enable the business to retain 14 jobs.
Tourism vital to islands’ economy
The hotel has also been awarded a £6,375 Digital Enhancement Grant by HIE to redesign its website, introduce an integrated online booking system and provide a gift purchase service.
Andrew Gear, the agency’s head of business growth in Shetland, said: “Tourism is hugely important to the economy of Shetland.
High value visitor accommodation is a vital part of the industry. It supports other local businesses, creates employment and contributes to community resilience.
“The upgrade of the Busta House Hotel will enable it to target the growing market of higher visitor spend.
“We are really pleased to support the project and look forward to the upgraded hotel reopening.”
Shetland’s hard-hit tourism sector received a boost last month with the announcement the islands will host the Tall Ships Races in 3023.