The Impact of Covid-19 Restrictions on The Scottish Self-Catering Sector

The Association of Scotland’s Self-Caterers (ASSC) undertook a survey of nearly 1000 self-catering operators in Scotland to gauge the financial impact of Scottish Government Covid-19 restrictions since September 2020. This survey was conducted last week, and demonstrates huge financial losses for operators throughout Scotland, including in areas that are in Levels 1 & 2 of coronavirus restrictions but are still experiencing difficulties due to a drop in bookings.

The work was complemented by estimations provided by the respected and independent economic consultancy, Frontline, on the total financial impact on self-catering businesses in Scotland.

Frontline have estimated a total financial impact of £265m for the self-catering sector alone since September 2020 due to Covid-19 restrictions. This encompasses the impact of travel bans, the rule of six and one household, restrictions on household gatherings and Christmas bubbles guidance.

The data from Frontline does not include significant economic impact and footfall generated by visitors staying in self-catering accommodation in local businesses, bars, restaurants and visitor attractions. The total economic impact is therefore likely to be considerable.

The survey work from the ASSC also provides insights into current state of affairs within Scottish self-catering and how Covid-19 has impacted trading.

We absolutely welcome the announcement today of more funds for the hospitality sector, however, we’ve yet to see what it means for our sector, which has been completely devastated by the travel restrictions, as borne out in the findings from the Frontline Report.

Read the full report: ASSC Sectoral Survey on Impact of Covid 19 Restrictions December 2020

Read the press release: Press Release – Cost of Covid 19 Restrictions

Further Funding Announced for the Self-Catering Sector

Kate Forbes’ has delivered a ministerial statement to the Scottish Parliament today.

Main Points

  • The Cabinet Secretary for Finance Kate Forbes highlighted that the Scottish Government will provide a new £185m business support fund. This will be broken down sector by sector to ensure “tailored support” which will be as “effective as possible”.
  • The Scottish Government support “recovery plans”, developed in partnership with the tourism sector, including self-catering.
  • £60m has been set aside for the tourism industry and the details were currently being developed in consultation with industry – full details will be announced later by the Cabinet Secretary for Tourism Fergus Ewing.
  • The Scottish Government will also provide one-off payments to hospitality businesses in the new year. £2,000 and £3,000 grants will be made available, depending on rateable value, and this support will extend to hotels.
  • In response, the Shadow Cabinet Secretary for Finance Murdo Fraser sought clarity on whether self-catering would be eligible for the tourism funding. Kate Forbes replied that the Scottish Government had tailored their previous packages of support in cooperation with industry, name checking the Association of Scotland’s Self-Caterers, and said it was “the intention” of the Scottish Government to provide funding to self-catering.

Read the Scottish Government’s press release.

Marc Crothall, Chief Executive of the Scottish Tourism Alliance said:

“This afternoon’s announcement that a significant proportion of the latest consequentials will be allocated to support business and the wider economy is very much welcomed by the tourism industry, especially by those who have had little or no support to date, as we enter what are perhaps the bleakest conditions our sector will ever experience.

With the majority of our industry either closed or partially open, operating mostly in an unviable, unsustainable manner with the continued restrictions, I know that all business owners will be eager to learn more of the detail of today’s announcement; further clarity around the allocation of funds for each of our sectors, how the packages of support will be distributed, criteria for application and dates when funds will become available is of critical importance and I very much hope a subsequent announcement will be made within the next few days.

Our industry has been left in limbo for an unacceptable period of time with no clear or helpful indication of when support will land, forcing many business owners into temporary and permanent closure to stem the daily haemorrhage of outgoings which are required to remain even partially operational during this period of restrictions.

Despite the announcement of a total package of support, I know there will be widespread disappointment and frustration from many across the industry that the detail on what level of funding businesses can expect to receive, how these funds will be distributed and when, was not made clear in today’s statement.  This is what businesses had hoped for and expected from the Finance Secretary; they have been left to make hugely difficult decisions within a continued context of unknowns.

Substantial, immediate and targeted support can make the difference between businesses being able to survive through the coming weeks and winter months until we hopefully experience a degree of market stimulation in the Spring, or having to close their doors for good.  The strength of Scotland’s tourism product is being eroded every passing week so my overarching message to the Scottish Government is to provide the clarity awaited on the support package this week and the assurance that the delivery mechanisms of the support are robust enough to allow the monies needed so desperately to be distributed without further delay.”

ASSC Talks Videos

The COVID-19 pandemic has brought unparalleled challenges and uncertainty for us all. While our sector has behaved in an exemplary fashion, we’ve had to take some difficult decisions. The latest of which was to cancel our Annual Conference and Exhibition, which was due to be held on 27 October 2020 at the Glasgow Hilton.

Despite this disappointing news, we remain resolute in our aims of continuing to share knowledge, build upon the extensive support already given to our membership, facilitating continued networking and collaboration, and continuing to support our members. We therefore decided to organise a series of exciting and informative weekly webinars.

Sign into the members area to access the videos here.

Question Time with Industry Leaders: Today, we were joined by the Titans of Tartan Tourism – Marc Crothall, CEO, The Scottish Tourism Alliance and Riddell Graham, Director of Industry and Destination Development, VisitScotland together with Caroline Millar, Owner – The Hideaway Experience, CAS Millar Consulting and Scottish Agritourism, (Go Rural), this is a great opportunity to get the latest insights on tourism in Scotland as we look towards planning an opportunities in 2021. Watch the video here.

LEADERSHIP, RECOVERY AND OPPORTUNITIES

DYNAMIC PRICING

CLEANING UP: FUTURE PROOFING YOUR BUSINESS

EXTENDING YOUR SEASON WITH UK AND IRISH VISITORS

REGULATION OF SHORT-TERM LETS, WITH THE SCOTTISH GOVERNMENT SHORT-TERM LET DELIVERY GROUP

RULE OF SIX: HOW TO NAVIGATE RESTRICTIONS

SHORT-TERM LET LICENSING: A BRIEFING SESSION WITH ASSC AND GILSON GRAY LLP

DIGITAL RESET FOR THE NEW NORMAL

BUSINESS FINANCE IN THE CONTEXT OF COVID-19

THE ONE YOU CAN’T AFFORD TO MISS

THE UNINSURABLE RISK: WHAT YOU NEED TO KNOW

2020 ASSC AGM AND QUESTIONS WITH INDUSTRY LEADERS (UNEDITED)