STA Destination Forum meeting with the Cabinet Secretary
The Destination Forum met this morning to discuss the latest challenges for the industry around the current Coronavirus restrictions; the group was joined by the Cabinet Secretary, Fergus Ewing MSP.
The Cabinet Secretary acknowledged that the level 3 and 4 market has been diminished and the restrictions on travel from England and Wales has had serious adverse effects on businesses.
Mr Ewing said that he recognised that the decisions around levels are controversial ones but highlighted that the Scottish Government is taking decisions from the medical experts on the numbers and this is the basis of those decisions. He explained that the latest decisions have been made with a cautionary approach, also looking at the situation in Wales where after lockdown there was a significant spike in cases. Mr Ewing told us that the last thing the Scottish Government wants is to see a situation where there is a sudden rise in those numbers, acknowledging that this was a tough decision but the right one.
He told us that his approach within the Cabinet is to argue for the positive rather than the unachievable and is putting forward the case for some restrictions within Level 3 to be eased.
He added: “There is an area to work on; that is to continue to argue to case for modest lifting of restrictions or easing for example, being able to offer a glass of wine with meals. There are some choices that tourism and hospitality might want to make that offers you something, rather than nothing.”
The Cabinet Secretary has argued the case for a 12pm for hospitality opening tomorrow but this has been rejected. The ban on background music will be assessed and this is currently being worked on; Mr Ewing told us that it’s only because of lobbying that this is happening. It has been decided that this will come into effect from Saturday.
On the subject of funding, Mr Ewing told us that he had been concerned about the gaps where businesses have received no funding and was pleased that this was being tackled. The announcement of £2k – £3k to help deal with the post-Christmas dip in demand will be allocated on top of any additional funding. One of the reasons the details were not announced in a ‘oner’ yesterday was that the Scottish Government wishes to work with sectors individually to avoid unintended consequences and do their best to tailor packages to make them work as best as they can and make the money work as best it can.
Discussions are happening today; the Cabinet Secretary said he did want to do more and is arguing that this is an investment payment to help the tourism industry survive. He said that if the virus is not tackled going into the season next year, there will be further demand for assistance.
In relation to the Task Force, he acknowledged the great work of the Task Force, the Cabinet is still considering aspects of that and what amount of money is used for recovery and what proportion of that could be used for survival – does the Scottish Government store for recovery or use now? He explained that those are the kind of choices that the Scottish Government is making.
Mr Ewing took questions and said that the STA’s advocacy with the First Minister is very effective and she is very sympathetic to our case; lifting of restrictions around opening hours and alcohol may be our best approach in terms of lobbying.
Mr Ewing assured the group that the First Minister does not look at things with a broadbrush approach and has said that he is keen to press the case for Arran opening up sooner and will work with Sheila Gilmore from VisitArran to progress that.
With reference to restrictions on travel from other parts of the UK, he highlighted that this under constant review. He acknowledged the difficulty in areas such as the Borders where businesses are not legally required to close but cannot receive the closure payment or restriction payment which have been interpreted in a way where businesses have to close, even if they don’t have to do so by law. He said that by looking at the financial packages, he would be inclined to move away from that. For example, wedding businesses will get some specific assistance.
Marc Crothall highlighted the confusion around differentiating between Christmas bubble travel and leisure travel and that the interpretation of the guidance of by the industry and consumer is challenging. He also suggested taking a Scottish approach to Hogmanay, saying that it would be foolish in thinking that there wouldn’t be movement across the country but if there were guidelines to allow some travel within guidance, that would be welcome. He also highlighted the fact that is critical that there is communication and clarity of messaging as this is becoming more and more difficult to comprehend. He has recommended that the messaging around guidance is communicated via VisitScotland through the industry.
From an Edinburgh point of view, remaining in Tier 3, Donald Elmslie, Chair of ETAG talked about the frustration felt by businesses in Edinburgh and the feeling that the Scottish Government is not following the science in terms of the level of restrictions within Edinburgh. EH highlighted that there is still a missing link in support for destinations and that city centres are facing a real challenge, particularly Edinburgh because of the loss of the international dimension. Tourism expenditure in 2019 was £1.2B which is a quarter of the size of Scottish whisky exports. He highlighted the fact that Scotland needs a vibrant Edinburgh to support tourism across the rest of Scotland and asked that the Scottish Government looks favourably on support for destinations who can help the Scottish Government meet some of their objectives for the recovery of the economy.
The Cabinet Secretary told us that there is an opportunity for a fresh approach to be taken and acknowledged the extent to which Edinburgh relies on the international market. Regarding Level 3, he said that the approach has been a cautionary approach and the Scottish Government doesn’t want to see a revival in cases; this means that those decisions must be reviewed frequently and he will be part of this.
Mr Ewing said that it is important to bolster Scotland’s reputation as a place where Covid infection has been brought under control in relation to attracting the international market back to Scotland and particularly Edinburgh.
Marc Crothall highlighted that Glasgow is now the 4th worst city in the UK for footfall and that 30,000 jobs within tourism, hospitality and retail are currently at risk.
There was an ask that the Scottish Government communicates with local authorities in relation particularly to island communities who are having difficult accessing funding because they are in Tier 1 or 2. Mr Ewing said that councils have discretion and that’s the reality of the situation but acknowledged that there are differences in the allocation of funding via local authorities. He has asked to continue to conversation on this with members of the forum to try to persuade local authorities that there are cases where other local authorities are supporting businesses and that more support must be given.
Mr Ewing said that it is worth persevering with the argument that well managed venues where staff are ordered to carry out a rigorous procedure should be able to operate with fewer restrictions and that the STA and other trade groups should progress this. He added that there is a chink of light with the music decision but there is some way to go so the STA should pursue this further.
The Cabinet Secretary ended the call by thanking everyone and acknowledging that these calls do feel very sombre and that he relays this to colleagues within the Cabinet who do not have as a direct a route to tourism as he does. Funding is being worked on and there will be an announcement as soon as possible and he will progress the case for easing restrictions on hospitality.
