SCOTLAND’S Tourism Secretary has indicated domestic holidays could be on the cards later this year – but has warned businesses reliant on international trade may need further support even once restrictions are lifted.

Fergus Ewing has also stressed that the UK Government’s furlough scheme is not enough to meet struggling businesses’ overheads, warning it may need to be extended further if restrictions are still in place.

He issued the warning while appearing at Holyrood’s Culture, Tourism, Europe and External Affairs Committee.

Mr Ewing told MSPs that “hotels are suffering very, very badly at the moment, especially those reliant on international trade” - many of which are “major employers" in remote parts of Scotland.

He added: “It may be possible for tourism to resume at some point this year. It will be busy, if we are able to travel again safely.

“Most of us also realise that the resumption of international travel is far, far less clear.”

Mr Ewing highlighted “the future of businesses involved in international trade”, warning that “we may need to think of looking at how we can focus our support” for those sectors “after domestic trade re-opens" who will still be “effectively without revenue".

Last month, Willie Macleod from UK Hospitality told MSPs that the tourism industry will struggle to recover before international travel resumes to pre-pandemic levels.

He said: “It is fair to say that the cities—not just hotels, but bars and restaurants—have been absolutely devastated by what has happened. “There has been a total absence of international tourism and travel, and the fortunes of tourism are very much tied up with the fortunes of the aviation industry.”

Mr Ewing has also criticised the UK Government’s furlough scheme, warning “it does not really do what it says on the tin”.

The SNP minister has warned that “an extension of the scheme will be required” if Covid-19 restrictions continue past April, when the support scheme is due to expire.

Currently, the furlough scheme requires employers to contribute National Insurance contributions and employer pensions.

Employers can claim 80 per cent of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month under the scheme.

Mr Ewing added: “The state has said you cannot trade but the state is not meeting all the fixed overheads that it has.

“It may well be the furlough scheme has to be extended further in order to protect employment.”