Tourism and Hospitality in the Highlands – FSB Survey Report

FSB Scotland has published analysis of its latest survey of tourism and Hospitality businesses in the Highlands and Islands.

Report headlines:

1.  Economic recovery in the sector is highly uneven, with some businesses doing well (34%), some doing ok (24%), and a large group of businesses struggling to generate sales and profits (42%).
2. Resilience levels in the business community are also uneven, for while the majority of respondents were optimistic about surviving until 2022 (75%), a sizeable minority were pessimistic about their chances of survival (25%).
3. Reopening the industry did not lead to an instant “staycation boom” for all tourism businesses as some had forecast, and almost one in 10 businesses described themselves as barely staying afloat (9%).
4. Keeping up to date with changing government rules and regulations (46%), low turnover levels (41%) and travel restrictions (40%), were the top three concerns for business owners.
5. Recruitment challenges were a key concern for employers, with almost half (45%) highlighting that they did not have enough staff to meet their businesses’ needs. These challenges have led some firms to reduce opening hours and/or reduce the range of services offered.
6. While 40% of employers are responding to recruitment challenges by increasing pay to attract and retain staff, there are wider issues that will continue to impair progress in local labour markets – particularly for businesses in remoter parts of Scotland. The absence of an available local workforce, the supply of affordable and attractive staff accommodation, and the lack of access to migrant workers are all adversely affecting the ability of employers to recruit and retain staff.

The report proposes six recommendations for the Scottish and UK Governments to help the industry transition from crisis to recovery – including reducing Covid-19 restrictions on the sector when the adult population is fully vaccinated and piloting a remote visa for employers in the HIE area.

To download the report, please click here.