STA meetings – 25 March

UK Tourism Industry Council meeting – 25 March

We have been assured by the Nigel Huddleston MP, Under Secretary of State for Arts, Heritage and Tourism who was on today’s call that further clarity will be offered within the coming days on the following:

• Support for the self-employed
• Much more detail around furloughing
• Accessing bank loans (for all businesses)
• Clarity for events venues and the MICE sector on business rates and future event planning
• A clearer definition of what is reserved and devolved

A point also raised which we will receive more clarity around in time is the support package for longer term recovery.

STA Council Meeting – 25 March 

Agenda:

Summary of STA focus
Fergus Ewing, The Cabinet Secretary for Rural Economy and Tourism

Points discussed:

• UK / Scot Government communication: Timely, Concise & Consistent
• Grants: access, process, self-catering exclusion
• Bank loans: industry concerns re no capital holidays, restrictions
• Self Employed support
• Insurance
• April Wage increase
• OTA
• Other reliefs
• Employee welfare support
• Job Retention Scheme – urgency on furlough clarity  Click here to view questions raised

The Cabinet Secretary Fergus Ewing acknowledged every specific point made by those who attended.

Mr Ewing amplified and fully acknowledged the urgent need for many businesses to get cash now, and particularly for the self-employed. He also fully appreciated the need for definitive terms and conditions around furlough.  In response to Fiona Campbell CEO of the ASSC and Caroline Miller representing the Agritourism sectors who raised concerns regarding the issue of self-catering operators not being able to access the £10k grant the minister replied that the self-catering sector is particularly important to Scotland’s tourism industry and that Scottish Government has received a large number of representations from throughout the country. The exclusion from the grant scheme is an anomaly that requires fair treatment. He advised that he had spoken to Kate Forbes, Cabinet Secretary for Finance, personally about this issue and this is under immediate and active consideration. He stated there is a need to help all in the sector especially those where self-catering is their main business. Scottish Government will help and are making sure there will be no unintended consequences as a result of the scheme they are proposing.

Mr Ewing also accepted that there was a wider population of businesses in the sector that must not and will not be overlooked, for example, the coach sector and sole traders.

The sustainability of funding for membership organisations such as Green Tourism, DMOs and other core trade bodies was also highlighted as being at risk due to being reliant on funding from membership subscriptions and sponsorship from the private sector.

It was stressed by Gordon Morrison of ASVA that due to the seasonality of trade for many attractions that cash will need to tide them over the following winter too. He stated that as many were charitable organisations taking out loans from the bank was not an option.  A further point was also raised by Marc Crothall that there needs to be consideration to supporting security costs and other overheads to protect many of our assets in our industrial museums citing there will be insufficient cash to sustain these costs as they will receive no gain or benefit from rates relief.

Examples of some of the bank conditions of lending and securities being sought that have been quoted to business were shared by Calum Ross and John Henderson. It was stressed that the banks must be pressed to do more with better conditions attached.

The Cabinet Secretary concluded that there was full recognition of the impacts being felt by the tourism sector stating the sector was probably  “closest to the fire” – he also commented that politics comes second right now and that the Scottish Government and UK Government will do everything possible to minimise business failure. He acknowledged the need for consistency of communication coming from the government to organisations within the tourism industry and praised the STA for the work we have done and stressed must continue to do in lobbying and representing the interests of the industry. He has invited continued dialogue through the STA Council forum.

The meeting was attended by the following: