One in three tourism firms expects to fail this year
A £9 million package of support for the tourism sector, announced today by the Scottish Government, won’t be enough to save up to one in three operators going out of business, said a trade body.
Tourism Minister Ivan McKee said the money would help a range of businesses, including coach operators, hostels and visitor attractions, survive the winter.
But Marc Crothall, chief executive of the Scottish Tourism Alliance, said businesses needed “positive messaging” that would encourage bookings for the summer season, as well as help with costs such as VAT.
A survey conducted by the STA revealed that one in three tourism and hospitality businesses say they are likely to fail in 2022.
Just over half of all respondents said that they had either zero or just one to two months of cash reserves to stay afloat.
Two-thirds (68%) said they were in financial difficulty, citing extreme concern over increased costs, particularly in relation to utilities.