SCOTTISH hospitality and tourism campaigners have called on ministers to use official government messaging to give people the confidence to visit pubs and bars again, as operators battle to get back on their feet following two years of severe disruption.

As First Minister Nicola Sturgeon prepares to publish a strategic framework on living with Covid for Scotland today, hospitality outlets across the country have still to return to full operating capacity, despite many of the restrictions brought in to combat the Omicron variant in December now being lifted.

A combination of soaring costs, including surging energy bills, and still limited footfall in town and city centres mean many businesses have taken the decision to open for only part of the week to conserve cash. A chronic shortage of staff is also giving the trade a continuing headache.

Industry figures say a radical shift in Scottish Government messaging is needed to give people confidence to visit hospitality outlets again.

Paul Waterson, veteran hotelier and spokesman for the Scottish Licensed Trade Association, told The Herald: “There are many premises that have never reopened since the original lockdown in March 2020 and many others have closed permanently due to restrictions being lifted and then imposed again.

“Being closed during the lucrative Christmas season last year was the last straw for many in fact figures show one in four licensed hospitality businesses have closed. Some places are only opening up at weekends, others are closing on Mondays and Tuesdays because of staffing issues or a lack of business, especially in town centres.”

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Mr Waterson said taking a decision to close for part of the week is not one operators take lightly, noting that it can be difficult for hospitality businesses to recover once they begin closing on certain days.

“Regular customers can quickly fall out of the habit of visiting,” he said

Mr Waterson, who said a shortage of chefs was also a key factor behind part-time opening, declared: “Business is all about momentum and many premises have lost that momentum. When you are in our business, you do not want to shut. You lose momentum and people lose the habit of coming to you.”

He added: “When you look at the people who are shutting… it is previously successful licensed venues. It is good operators.

“What is making matters worse is that customers still do not have the confidence to come out and frequent our pubs and bars. We need the government to come out and say: it’s safe to go out and visit pubs and bars as you did before. They need to help us.

“It’s all very well for the government to stop restrictions, but they have to give people the confidence to come out and socialise”

Leon Thompson, executive director for UKHospitality in Scotland, cited ongoing staff shortages as a key factor as he confirmed that “some businesses continue to remain closed or only offer a partial service”. His organisation estimates that the industry faces a shortage of around 40,000 workers in Scotland.

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Mr Thompson said the industry remains “extremely concerned about the future”, with the loss of Christmas and New Year trade that had been badly needed to build up cash reserves now compounded by rising costs. Declaring that there is “unprecedented levels of debt” across the sector because of the upheaval the pandemic has brought in the last two years, he said operators are in a “precarious position”.

Mr Thompson told The Herald: “Lack of cash reserves, unprecedented levels of debt, rising costs across the board and a chronic labour shortage are the severe pressures facing our businesses. The increased cost of energy, insurance, food and drink and labour are putting immense pressure on businesses as they emerge from the most recent impact on trade brought by the Omicron variant. Businesses are counting the cost of restrictions and closure from the last two years and this is resulting in reduced investment and, in some cases, owners exiting the market.”

Asked what the industry would like to see in the framework for living with Covid, which is due to be published today, Mr Thompson called for the removal of all remaining restrictions – Covid passports, face mask wearing and the mandatory use of the test and protect app.

He said: “The updated framework needs to place trust in the business community and the public to make decisions that best protect workers and customers. We can’t go back to having a cycle of restrictions, which are damaging for our sector, the people who work in it and the well-being of Scotland’s economy.

“Our businesses need a stable, predictable and supportive operating environment. The strategic framework must deliver that.”

Marc Crothall, chief executive of the Scottish Tourism Alliance, said the picture facing the wider tourism and hospitality sectors was “mixed”, with signs of some consumer groups having confidence to come out again balanced by the cost of living crisis that is causing other demographics, such as young families, to behave more cautiously. Inflation is forecast by the Bank of England to exceed seven per cent by spring.

“People are out and about much more,” he said. “The challenge is, of course, is [whether] that [is] seven days out of seven, and lunchtimes,” he added, citing the cost of living crisis.

Mr Crothall expressed hope the new framework will give the industry confidence it can stay open and trade freely, stating that positive messaging from officials and the removal of restrictions had been identified as a key wish among business owners in the STA’s most recent survey.

“To remove restrictions and actually communicate positively… that doesn’t cost anybody anything,” he said. “It wasn’t businesses saying: give me money, money, money. It was just [a wish to] change the mindset of the public.”

Mr Crothall noted that hotels were still not benefiting from business travel during the weeks, and he believes it could be latter part of summer before a meaningful recovery is seen in terms of inbound visitors from overseas. In the meantime, he said, the tourism industry was struggling from a chronic staff shortage and soaring costs, including on energy and food and drink.

Industry figures are continuing to campaign for the level of value-added tax applied in the industry to remain at the reduced rate of 12.5 per cent.

VAT is scheduled to be restored to the pre-Covid rate of 20% in April.

In Scotland, there also remain hopes that relief from business rates will be extended beyond the first quarter of the next financial year. Firms in the retail, hospitality, leisure and aviation sectors are currently exempt from paying rates until March 31.

In the first three months of the new financial year, firms in those sectors will be entitled to 50% relief, capped at £27,500 per rate payer. As yet there is no sign of that relief being extended further.