Murdo Fraser MSP has said he shares the concerns of a prominent trade body who have found that more than 80% of hospitality venues expect the Scottish economy to decline.
The Scottish Conservative politician, who is the Shadow Cabinet Secretary for Business, Economy, Tourism and Culture, was commenting following the release of a Winter survey conducted by the Scottish Licensed Trade Association (SLTA), which also found that 75% of hospitality venues expect the new employers’ National Insurance costs to impact on their staffing levels.
SLTA’s latest Market Insight Report also revealed that 6% of the survey respondents are considering closing their premises. In addition, the report stated that cost pressures continue to have an impact with 63% of respondents reporting increases of over 10%. And rising rates continue to be a challenge across the hospitality sector, with 33% of its businesses seeing an increase of 10% or more.
Commenting, Mr Fraser said: “This report produced by the SLTA raises many concerns and highlights how much of our hospitality sector is struggling, and it explains the reasons why it is facing difficulties. The survey responses, which primarily looked at trade over the Christmas and New Year period, came from more than 400 pubs, bars, restaurants and hotels across the country, and the report gives a good insight into the many challenges facing the hospitality sector in Scotland.
“It is notable that Colin Wilkinson, SLTA managing director, warns that 75% of hospitality outlets expect the new employers’ National Insurance costs to impact on their staffing levels, and Mr Wilkinson states this will make it even more difficult for businesses to open their full operating hours, remain competitive and attract customers to their venues.”
Mr Fraser continued: “Despite the SNP claiming they are listening to businesses in Scotland, it is obvious they do not understand how business works and have done very little to help our hospitality sector. The damning findings of this survey show how out of touch they are, and how they have let our hospitality sector down.”
