EURO 2024 failed to fully lift the gloom above the Scottish hospitality trade, a new survey has found.

Nearly two-thirds (62%) of respondents to a survey of summer trading captured by the Scottish Licensed Trade Association in August reported that trading was down on the same month last year. This was despite the boost brought by the appearance of the Scotland men’s team at the European international football tournament in Germany in June and July.

The survey, which canvassed the views of more than 400 pubs, bars, restaurants and hotels, covering the full spectrum of hospitality businesses in Scotland, found visitors are being more selective, with 19% leaving earlier and 16% only attending for events. Some 64% said patrons were spending less, not visiting as often, dwelling for less time.

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Respondents meanwhile cited rising costs as an increasing challenge – 77% of venues said they are seeing cost rises of 10% and above, compared with 30% when the survey was carried out in January. And within the cost base, increase business rates continue to be a challenge, after 41% of outlets said they had seen an increase of 10% or more.

A clear majority (58%) of outlets said they expect to see trade decline over the remainder of 2024, with 44% expecting a decline of more than 10%. This came after operators stated they had been more optimistic about their prospects for the June to August period, compared with last year, with less outlets expecting a major decline.

Only 52% of respondents said they are opening in line with their trading plan – emphasising that operators are continue to limit trading hours amid ongoing concern over costs.

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As for how those surveyed think the UK Government could support the industry, 78% said the best way would be to reduce value-added tax, which is currently set at 20%.

“Despite the uplift from Euro 2024, in 62% of outlets trading is down versus last year,” said Colin Wilkinson, managing director of the SLTA. “Visitors are more selective on when they visit, with 19% leaving earlier and 16% only visiting our pubs and bars for events. Our report identifies that 64% of respondents highlighted less spend, fewer visits and less time spent in the venue.”

Mr Wilkinson added: “Our survey has now become a barometer which measures the pulse of Scotland’s hospitality sector. Over that time, we have seen the impact of Brexit, Covid, and right now our biggest challenge is not only spiralling business operating costs but also the cost of living increases that are having an impact on the ‘leisure pound’.

“With recent changes at Westminster, we call on the Scottish and UK governments to work to support one of our key industries. The most effective way to achieve this is by reducing VAT in the licensed hospitality sector and an urgent review on the commercial rating system.”