SCOTLAND’s self-catering hospitality industry believes it is being let down by Scottish Government Covid-19 support as only 4% of those who’ve applied for grants have had requests approved.

The industry, which contributes around £723 million to Scotland’s economy, says it is “deeply pessimistic” about the future of their businesses over the next year - due to a lack of reliable government support.

A survey, carried out by the Association of Scotland’s Self-Caterers (ASSC), found that only 4% of self-caterers who applied for business support grants have had their request for help granted by their local authority.

Struggling self-caterers, who have closed their doors in order  to support the national fight against coronavirus, reported overwhelming levels of disappointment at the inaction of both local authorities and the Scottish Government.

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Self-caterers also reported that they have found the process of applying for grants complicated and bureaucratic - amid complaints from some traders that the requested evidence of income is often impossible to provide.

According to the study, operators also said they had not received any feedback from local authorities and were being kept in the dark about the appeals process.

ASSC chief executive, Fiona Campbell, said: “That only four per cent of applicants have received their rightful support is a scandal and shows that an important part of Scotland’s tourism sector risks being left behind when it comes to business grant support.

“The self-catering sector acted swiftly to close their businesses in response to Covid-19 and therefore needs support during this difficult time.

“The Scottish Government needs to issue proper guidance to local authorities to ensure that self-caterers can access the funds that they are entitled to.”

The self-catering industry in Scotland supports thousands of jobs and is likely to be a key part of the Scottish recovery effort as the country leaves lockdown, when safe to do so.

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Ms Campbell added: “I am incredibly proud of how Scotland’s self-catering sector has acted throughout this crisis.

“Our properties have closed and we have suspended our businesses, at significant cost, in order to do our part.

“While the industry has endured many difficulties in the past, we have entered into a period of unparalleled uncertainty.

“The need for tourist accommodation will return but, if this lasts for an extended period, a significant proportion of operators will become insolvent.”

Tourism makes up around 13% of the Scottish economy - but the sector in Scotland was dealt a major blow with the cancellation of the five summer Edinburgh festivals.

Ms Campbell said: “Tourism will play a key role in aiding our economic recovery. “Scotland, and Edinburgh in particular, has become a destination of choice for travellers. Its compact nature, UNESCO-listed sites, the mostly welcoming population has allowed for a surge in small businesses, cafes, restaurants and bars to flourish.

"It is had a hugely benign impact on the city and its residents. The impact will be seen when pubs, clubs and restaurants simply do not reopen after restrictions are lifted. "While many have criticised the apparent ‘over tourism’ within Edinburgh, the debate may soon shift to whether we have a tourism industry at all."

The Scottish Government yesterday announced that a £20 million hardship fund for creative, tourism and hospitality companies not in receipt of business rates relief, will begin paying out in early May.

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Economy Secretary Fiona Hyslop said: "This funding is intended to relieve the hardship of individuals and smaller firms that are ineligible for support from the UK Government or are not in receipt yet of the funds they need to survive.

“Our hospitality, tourism and creative sectors have been decimated by this crisis and previously profitable businesses have seen demand dry up overnight."

While announcing that emergency rules relating to the Covid-19 pandemic have been strengthened, the Scottish Government has also stressed that holiday accommodation businesses can manage online and telephone services for bookings related to future dates - once the lockdown has been lifted.

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Nicola Sturgeon told MSPs at First Minister's Questions that the Scottish Government is looking at ways of "plugging these gaps" in financial support.

The First Minister added that she wanted to ensure the funding goes "out of the door and into the pockets of businesses" as quickly as possible to give reassurance to traders.

Self-catering platform Airbnb blocked hosts from booking holidays in the UK during the lockdown following political pressure.

On Saturday, The Herald revealed that fellow travel website, Booking.com was still accepting bookings - despite the Scottish and UK governments calling for accommodation providers to adhere to the lockdown and travel restrictions.

Booking.com has now suspended all UK holiday rentals during the lockdown period. SNP Westminster leader Ian Blackford, who cricticised Booking.com at the weekend, has welcomed the u-turn by the company.

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Mr Blackford, the MP for Ross, Skye and Lochaber, has previously hit out at accommodation providers and holiday-makers putting additional pressure on health services in rural parts of Scotland.

He said: “Anyone flouting the rules against unnecessary travel is putting lives at risk. Travelling to a rural area not only increases the risk of infection for local people, but it puts pressure on local amenities and healthcare.

“An outright ban on holiday bookings should have been taken from the outset of the lockdown, nevertheless I am pleased Booking.com has taken the right decision now for the health and safety of their customers and local communities.

“What is important is that we save lives – tourism will return when it is safe to welcome people.

"I am grateful that so many tourist providers have contacted me and supported efforts to keep us all safe.”