Scottish tourism bookings fall as cost of living bites

Scottish tourism is set for a challenging summer with businesses reporting a decline in forward bookings as customer uncertainty hits an "an all-time high".

 

In a survey by the Scottish Tourism Alliance (STA), half of businesses said they had taken fewer than normal bookings for June to August, compared to the same period on 2019, while 40% said that spending had decreased since May 2021.

 

The 700 businesses that took part in the survey said the drop was due to factors including the cost-of-living crisis, the appeal of outbound international travel, and people taking late decisions on holiday destinations.

 

Owners and operators of hotels, bars, restaurants, and visitor attractions were questioned for the survey between 17 May and 8 June.

 

Around one-third of respondents said they were in steady recovery, 50% stated that it would take at least a year to recover and 6% said they were unlikely to survive.

 

Marc Crothall, chief executive of STA, said that the survey confirmed that the recovery from the pandemic is happening at a much slower pace than anticipated with the cost of living crisis hitting Scotland's tourism industry hard.

 

“People are hesitant about committing to booking a break due to household financial challenges and uncertainty, consumer spend is down and with the rise of energy prices and supplier costs, many businesses are finding that the level of recovery is almost static,” he said.

 

“This impacts the ability for our tourism industry to remain competitive globally; we struggle to compete on price and we’re unable to retain and attract the quality of staff required to deliver the level of service demanded by today’s consumers.”

 

Crothall said the STA will continue to lobby the UK government to lower VAT, change immigration rules, extend business rates relief and invest in promoting Scotland as a tourist destination.

 

However, Malcolm Roughead, chief executive of VisitScotland, said there had been some encouraging signs of a return of international visitors and consumer research which showed more UK residents are expected to take an overnight domestic trip between June and September than in 2021.

 

He said: “We’re working hard to build on this interest and ensure Scotland is front and centre of mind for visitors planning a trip. By working together with industry, we can rebuild this vital part of Scotland’s economy and drive its sustainable recovery.”

 

Hotelier's views

 

Roddy Watt, chief executive of Highland Coast Hotels, which has six properties, said that the company has noticed a softening in the market, with less people around. “There is no doubt that there is an exodus overseas, despite the chaos in the airline sector. I believe that concerns about the escalating cost of living is breeding caution generally.

 

“The Americans are back, but not so many Europeans are travelling here. All of that said, business is still strong and we anticipate a strong season. It is still a case of book early to avoid disappointment.”

 

The Wee Hotel Company, which comprises the Pierhouse Hotel & Seafood Restaurant in Port Appin and the Three Chimneys on the Isle of Skye, is enjoying a solid summer of business, with few vacancies available before the end of September.

 

“There has perhaps been a tiny drop in our lunch business and we are monitoring the situation closely as we don’t want to be complacent,” said Gordon Campbell Gray, founder of the Wee Hotel Company.

 

“We have always been very careful to never ramp up the prices merely because demand is high. I have always believed in being fair and never to be greedy. We are, I feel, reaping the benefits of this.

 

“In addition to keeping the room rates reasonable we are being very creative regarding sourcing and introducing new and often less well-known varieties of fish which are both delicious and less expensive.

 

"It is very important for us that we can ensure that our local clientele continues to be able to come as well as our overseas and British guests and as always, we want their experience to be super positive and have them wishing to return. It is there essential both morally and ethically that we endeavour, despite the horrendous increases in the cost of everything, to maintain affordable prices if possible.”

 

Mark Linklater, who heads up marketing consortia Scotland’s Personal Hotels and Hotels of Distinction,, said that hotels in rural locations had bounced back more strongly than city centre hotels. “I think all hotels will benefit from the current chaos at the airports," he added.

 

*Image: PhotoWiolaGrafika / Shutterstock *