The boss of Scotland’s biggest tourism body has warned the hospitality and tourism sectors face a “grave” number of job losses without a “swift and urgent” extraordinary package of funding.
Marc Crothall, chief executive of the Scottish Tourism Alliance, called on First Minister Nicola Sturgeon to put pressure on UK Chancellor Rishi Sunak to act before more businesses are “forced into temporary or permanent closure”.
The announcement on Saturday evening of a forced closure of all hospitality and tourism businesses due to a new, more contagious variant of Covid-19 has left many pubs, bars, restaurants and hotels reeling as they face another difficult lockdown.
It comes as a new poll revealed on Friday that 72% of UK hospitality businesses said they feared becoming “financially unviable” as a result of Covid-19 restrictions.
The letter by Mr Crothall, which was also addressed to Scottish finance minister Kate Forbes and tourism minister Fergus Ewing, said that while the new tightening of restrictions was a “decisive response” to the health risk of the new variant, it also required a “similarly swift and committed response” to the impact on trade.
He called for support for both frontline businesses and supply chains “over what will now be a significantly more challenging period” than had been “previously understood or anticipated”.
The tourism chief added: “Operators are now dealing with a flood of cancellations and have lost much needed revenue as a result of yesterday’s announcement.
“With no opportunity to trade viably over the coming weeks and potentially months, there is a need for an even greater level of financial support to save businesses and jobs”
Mr Crothall also stressed that, under current arrangements, hospitality businesses now face not being able to place employees onto furlough.
He said: I would ask and urge that the Scottish Government press the chancellor for a change to the existing furlough cut-off dates to protect those that now face being made redundant.
“The tourism and hospitality sector is a major economic driver and offers Scotland a strong route to recovery.
“It is therefore absolutely vital that both governments protect businesses at the front line of our sector and the supply chains that support them.”
Adrian Watson, chief executive of Aberdeen Inspired, said “difficult decisions” would need to be made in the New Year by some businesses on the High Street and called for urgent support for retail and hospitality in the “short and long-term”.
He said the support needed would require “huge capital investment” and even then he expects “more casualties” in the weeks and months to come.
Speaking to the P&J, Mr Watson predicted: “At best, January and February will be difficult”.
Highland Council leader Margaret Davidson said: “I don’t feel we have any option.
“It is quite evident that what is happening down south really does have the potential to hit us the same in Scotland.
“I think the First Minister was correct to do it but now we need to be sure that if we are in what is effectively a lockdown then the support mechanisms are working.
“It is the middle of winter and so I want to make doubly sure there are food supplies and that the welfare system is targeting help to those in need.
“And they are really going to have to look again at the support in place for businesses.
“Many businesses were reeling anyway but now the retail and tourism sectors are absolutely scunnered, they really are.”
New figures released last month showed Aberdeen faces a looming tidal wave of job losses –with many of those expected to be within hospitality.
The number of potential redundancies is anticipated to be more than four times that of Edinburgh and six times more than Glasgow.
The data, released as part of an economic report by Aberdeen City Council, showed that the Granite City topped the list of predicted redundancy notices issued across Scotland between March and September 2020.