Around a third of all hospitality and tourism businesses across Scotland are not expecting to survive beyond 2022, according to an extensive study.
Research into the issue was carried out by the Scottish Tourism Alliance (STA) in recent weeks, with the evidence uncovered highlighting the extent of financial woes within the hospitality and tourism sectors.
More than 1,300 businesses were surveyed and most said their cash reserves are either close to zero or can only cover between one and two months’ worth of financial outgoings.
Just over two thirds (68 per cent) of those asked said that they are experiencing financial difficulty and would describe their concerns about paying their bills each month as “extreme”.
Employers from across 31 Scottish regions were polled for the research between December 17th 2021 and January 10th 2022.
The prevailing view of businesses currently struggling to stay afloat across the country is that sector-specific grants are among the most helpful forms of support they can receive as they attempt to survive and recover.
Marc Crothall, the STA’s chief executive, has said that the financial support and assistance provided to businesses by the Scottish government recently has been “hugely welcome”.
However, he added that the funds involved “won’t touch the sides of what is evidently a gaping chasm between business failure and any sense of stability” as far as a huge number of tourism and hospitality operators are currently concerned.
The STA has said that while direct financial support is helpful, what small firms within the tourism and hospitality industries really need is the opportunity to do more business and to trade their way towards recovery.
“Financial support will never fully restore businesses to a more even keel in terms of viability and the ability to remain competitive,” explained Mr Crothall from the STA.
“We need to see a commitment to supporting a robust marketing campaign to stimulate the international market which our visitor economy, particularly city destinations are so reliant on.”
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