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Iain Miller: Hospitality industry not out of the woods yet

Iain Miller.
Iain Miller.

You’ll never be bored in Aviemore – or so I always tell our visitors.

That statement has never rung truer than over the past two years.

The Covid-19 pandemic and resulting lockdowns have brought about the most significant challenge to the hospitality industry that you or I are likely to witness in our lifetime.

The mass closure of bars, restaurants, cafes and hotels in March 2020 brought an eerie curtain of stillness down on Aviemore – a town that just weeks prior had been bustling with visitors, early holidaymakers and those looking to make the most of the tail end of the snowsports season.

Aviemore really is the snowsports capital of Scotland, with the Cairngorms National Park home to three of Scotland’s five ski centres.

While we can’t always rely on the snow, in a good year with peak conditions we can see as many as 120,000 visitors travel to the Cairngorms to hit the slopes.

With more than 30 locations throughout the UK, the impact of this sudden closure was felt sharply across all Macdonald Hotels and Resorts venues.

Here in Aviemore we have more than 400 bedrooms across different hotels and 18 lodges on site, so this impact was felt threefold.

Closing our doors on three separate occasions, through challenging and difficult lockdowns, was a situation none of us could have envisaged.

MacDonald Aviemore Resort.

The lifting of Covid-19 restrictions throughout the UK earlier this year was welcome, not only for us at Macdonald Aviemore Resort but for the whole hospitality and tourism sector.

We may have paused for a moment to breathe a collective sigh of relief and look back on the challenges of the months past.

But our attention has now turned to navigating the road back to recovery – and I must stress the hospitality industry is not out of the woods yet.

I’m thrilled to see our hotels and lodges busy again, and our team thriving in being back at work.

Overall, the 2021 summer season was good, all factors considered. I’m cautiously optimistic about the months ahead – booking levels for the 2022 season certainly look encouraging.

There’s now a real eagerness for short breaks and staycations within Scotland.

Since reopening our doors, more bookings than ever before have been from those travelling from elsewhere in Scotland.

International travel has been slower to recover, though we’re beginning to see things pick up.

Since reopening our doors, more bookings than ever before have been from those travelling from elsewhere in Scotland.”

The increase in those choosing to holiday at home does make up slightly for the decline in international visitors, though we’d like to see bookings continue to rise as we move through 2022 and into 2023.

While we are primarily a leisure destination, corporate events formed a substantial portion of our pre-pandemic business.

This is a key area of revenue which has not yet recovered for us. People are no longer travelling for business as much as they used to, with an increase in remote and flexible working that seems to be here to stay.

As a result, we’ve experienced a sharp decline in midweek bookings, rooms which would previously have been occupied by our business guests.

The resort’s conference and events business has not yet returned to pre-pandemic levels.

From corporate events and conferences to weddings and other family celebrations, this is an element of our business which is taking a little more time to recover.

Progress is slow and steady, however, and we’ve been noticing a real pick-up in corporate bookings over the past three or four months. I’m quietly confident this will continue.

However, Covid-19 is no longer the sole threat to the tourism and hospitality sector.

Scotland and the rest of the UK is gripped in a cost-of-living crisis. Stories are as heart-breaking in their numbers as they are in their nature.

Having to choose between heating or eating is a situation none of us should face.

Everyone affected by rising costs

We will all be impacted by the rising cost of living to various extents.

When budgets are squeezed and families are under financial pressure, holidays and leisure activities are often, understandably, among the first cuts to be made.

Running costs are increasing at an uncomfortable pace, for businesses and for households alike. With gas and electricity prices rising so sharply, our running costs will doubtlessly go up as the year progresses. There truly are tough times ahead, for us all.

We are all looking to a more positive future, but with a degree of uncertainty as further challenges emerge.”

The situation for Scotland’s hospitality sector has doubtlessly improved in recent months, and we’ve been delighted to host two major conferences in the past few weeks alone – bringing a real buzz from businesses getting back together face-to-face.

We’ve been fortunate to host both returning customers who had to pause their conferences during the pandemic, together with new clients bringing large-scale events to Aviemore.

Picturesque Loch an Eilein, near Aviemore.

We are all looking to a more positive future, but with a degree of uncertainty as further challenges emerge.

These new challenges brought by the rising cost of living will affect us all, and shape the months ahead in hospitality and tourism.

I’m looking to the future with a balance of optimism and caution; I’m confident there will be brighter days ahead, once we move past the difficulties the immediate future presents.

Iain Miller is managing director at Macdonald Aviemore Resort.

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