Scottish Tourism Alliance responds to University of Edinburgh research into Covid impact on tourism sector
A study by the University of Edinburgh has revealed that around half of Scotland’s hospitality businesses and 90,000 jobs could be at risk if the country entered a second lockdown with one in four businesses likely to fold.
The research also revealed that:
- Medium and large companies seem to be more sensitive to the shock caused by Covid-19 as compared to small businesses
- Younger businesses are more vulnerable compared to the more established ones
- The highest risk levels are exhibited by young companies with no profit and high levels of debt
The research has generated a significant amount of media interest and we’ve been busy doing interviews throughout the day. You can catch Marc Crothall’s interviews on STV News at 6pm and Reporting Scotland at 6.35pm.
Marc Crothall, CEO of the Scottish Tourism Alliance said:
“Summer is over and the small window for domestic tourism in Scotland has now closed. With inbound tourism to Scotland at its lowest ever level, the industry is steeling itself for some very dark days ahead. Quite simply, with the loss of the international market, thousands of tourism businesses will be unable to survive until next summer and beyond without government support.
These businesses won’t be replaced; Scotland is in grave danger of losing so many vital elements of its tourism product which has drawn so many millions from around the globe for years. Some areas of the sector have been able to get going over the last few weeks but bookings have started to tail off and the loss of the international market has dented and frustrated many hundreds of businesses to the degree that they’ll be unable to afford the hibernation costs until the inbound market resumes.
The picture is stark; the reality is that a wave of tens of thousands of redundancies is on the very near horizon and without specific government intervention and support, we are in serious danger of losing what is one of the most important drivers for Scotland’s economy.”
You can download the research by the University of Edinburgh and Wiserfunding here.
