STA Update: Scottish Tourism Alliance responds to Scottish Government Budget Statement 2023-24
Responding to the Scottish Government Budget Statement 2023-24, Marc Crothall, CEO of the Scottish Tourism Alliance said:
The priorities of the Scottish Government’s budget in relation to tackling child poverty, strengthening public services and the transition to net zero are right and just.
The news that the Scottish Government will freeze the current rate of non-domestic rate poundage for another year will provide a sigh of relief within the sector; this was a key ask from the industry. There will however be disappointment that the comparable business rates relief extended to businesses south of the border has not been afforded to Scottish businesses.
With VAT bills looming at end of January, business are grappling with an unprecedented rise energy costs and needing to repay borrowings; the decision to stay open or shut up shop has never been more real.
The cost of living and the cost of doing business crises have put thousands of businesses and livelihoods across our industry at serious risk; this is being compounded by a conveyor belt of regulatory costs coming at a time when our sector continues to operate very much in recovery mode from a three-year period of intense challenge and hardship.
The tax increase announced this afternoon further reduces consumer ability to support our already struggling sector; spending on leisure will continue to drop.
There has been little respite for our industry and no meaningful fiscal support to date to enable an economic bounce back for tourism and hospitality businesses across Scotland. The situation is grim; we have now entered our most difficult winter yet. We have strikes, high levels of inflation and a further rise in interest rates, putting yet more squeeze on household spending, severely curtailing footfall and time being spent enjoying leisure and hospitality experiences at a time when businesses could have been trading at much healthier level.
The continued erosion of Scotland’s tourism and hospitality industry should be a major concern for all, however there is some positive news from a marketing point of view in that VisitScotland’s core budget has been protected which we hope will translate to increased inbound visitor numbers.
Scotland’s tourism and hospitality industry can, if supported with the right fiscal measures and not burdened with costly and untimely regulation, provide the economic stimulus needed to improve the health and wealth of the nation.
News of the investment of an extra £72m to complete delayed CalMac ferries being built by Ferguson Marine ferries and four other for Islay and other routes, will be welcomed by businesses in our island communities which have suffered significant economic hardship as a result of the current delays in augmenting and replacing the current fleet. We are also pleased to learn of the investment in Scotland’s colleges and universities to support skills development and the creation of a new pipeline of talent for our tourism and hospitality sector.
Our businesses will continue to work with determination and resilience to weather what is the worst storm we have faced to date. Continued supportive measures will be needed to ensure future recovery and for Scotland’s tourism industry to remain competitive.
