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By Scott Wright
HUGE numbers of businesses in the Scottish tourism industry remain deeply concerned they will be unable to trade at viable capacity levels this summer, heaping even more pressure on operators struggling to survive 12 months into the pandemic.
First Minister Nicola Sturgeon outlined indicative dates for the reopening of large parts of the economy earlier this week, with hospitality outlets able to reopen and travel across the Scottish mainland recommencing from April 26.
However, groups representing a broad range of tourism businesses, from museums and wildlife tours to adventure sports and sailing companies, say a lack of clarity on physical distancing rules threatens the viability of many companies.
And they argue there remains a crucial funding deficit in the financial support provided by government, with many firms continuing to fall through the gaps.
Many businesses have been forced to take on huge levels of debt to ensure their survival over the last 12 months, amid warnings that the cost of servicing additional borrowings will undermine operators’ ability to reinvest and promote Scotland on the international tourism stage.
Gordon Morrison, chief executive of the Association of Scottish Visitor Attractions (ASVA) said the sector continues to face huge pressure even though outlets such as museums and galleries can begin reopening next month.
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Mr Morrison, whose organisation represents 500 attractions, including Edinburgh Zoo and Eilean Donan Castle, warned: “When we talk about reopening, it is not a panacea straight away. It is not as if this is going to save the industry. We are still going to have a difficult time ahead.”
Mr Morrison highlighted the pressure of social distancing measures, stating such restrictions last summer meant there had been a “misconception” tourism had enjoyed a staycation boom.
A two-metre social distance requirement “really damages our sector’s ability to trade at an economically viable level”. He said: “Only 22% of attractions were able to operate at a viable level last year because of physical distancing.”
A recent survey by the ASVA found only 15% of its members would see no impact on their ability to trade at a sustainable level if a two-metre social distancing rule was enforced.
Mr Morrison said: “That means 85% of the industry is still going to see their profits dramatically reduced. The majority are going to at best break even, or open and lose money.”
Noting that ASVA would like to see Scotland follow the World Health Organization’s recommendation for a one-metre social distance, he said: “We are really calling on the Scottish Government to look at physical distancing.”
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Victoria Brooks, manager of Wild Scotland, cited concerns over a lack of government support in her sector, which represents wildlife and adventure tourism attractions.
While the recent marine and outdoor restart funds have been “very welcome”, she said: “To be quite honest, the support across the whole sector has been nowhere comparable to other sectors.”
Ms Brooks noted firms such as wildlife watching or activity operators have been unable to access temporary closure grants under the strategic framework business fund. They also do not benefit from the relief from business rates, as they are not based in properties with rateable values. Many businesses operate from boats or home offices. Hardship funds are small and the sector receives no benefit from the temporary reduction in VAT.
“More money is needed,” Ms Brooks said, stressing that support is needed for those who are “not able to operate, or able to operate viably this year.”
“We need to invest in these incredible businesses to ensure they survive,” she said.
Mr Morrison said that while the strategic framework business fund gives temporary closures grants £3,000 every four weeks, the average ongoing fixed costs of visitor attractions when closed is around £35,000.
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“You can see the big gap between the funding support and the level of costs being incurred,” Mr Morrison said. “The debt that has been growing within the attractions sector over the course of the year is pretty astronomical. The big attractions… their costs are anything from £100,000 a month up to £500,000. The support for those guys doesn’t even touch the sides.”
Tourism businesses remain deeply concerned over the continuing absence of international visitors because of travel restrictions. Ms Brooks said it was vital to step up efforts to promote domestic tourism to offset the drop in income from overseas.
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