Press statement: Tourism industry despair as Economy Secretary announces no grant support for thousands of businesses
Press Release
FOR IMMEDIATE RELEASE
27 May 2020
The Scottish Tourism Alliance, the representative body for tourism businesses across Scotland has expressed its bitter disappointed at yesterday’s announcement by the Economy Secretary that grants will not been extended to businesses occupying premises with a rateable value above £51k.
The association has been campaigning on behalf businesses such as hotels, pubs, restaurants and visitor attractions who have to date received no significant support via grant funding.
Marc Crothall, Chief Executive of the Scottish Tourism Alliance said; “While the support given so far by both the Scottish and UK governments is very welcome, it is not enough. Despite the recent increases to the Hardship and Pivotal funds announced by Scottish Government the total sum of support available still falls well short of what is needed to protect business from collapse. We are hearing of many tourism business above the RV51 threshold who have had their applications to these funds declined. As such it remains the case that at this juncture there are hundreds of tourism businesses, pubs, hotels, visitor attractions, and event venues who are all incurring significant monthly costs with no income coming in still not having received and grant support and many about to go the wall.
These medium to large businesses are the lifeblood of Scotland’s tourism industry, major employers and the recovery of our industry and wider economy is dependent on them. Their monthly hibernation costs range from £10k per month to £350k+ and with no income or support, they are now collapsing. The loss of thousands of jobs is imminent as these businesses simply have no revenue; we are now days away from this.
If as we are being told by Scottish Government ministers, there is no more money to support these business then we urge them, as the industry are doing to press their UK counterparts in the Treasury harder still.”
“Without these businesses, Scotland’s tourism product is significantly compromised; the knock on impact of closure will also put at risk many other types of business in the supply chain that are dependent on their custom , not to mention be a great loss to those living in local communities – as many are central to local life. For Scotland to be able compete on a global stage and achieve our 2030 tourism strategy vision of being the world leaders in 21st century tourism it is essential that these business are protected if not with the genuine risk of loss of significant damage to our tourism fabric this may be unattainable.”
