HOSPITALITY bosses have warned that support set to be handed out to the industry has been “marred” by mainland Scotland braced for lockdown restrictions from Boxing Day.
The Scottish Government has announced details of a £104 million fund for tourism and hospitality businesses – previously announced as part of a £185 million package by Finance Secretary Kate Forbes.
Available funding includes £19.2 million to provide one-off grants for hospitality businesses, £11.8 million for international inbound, coach tourism and domestic tour operators, £7 million for self-catering and £5 million for visitor attractions.
Businesses required to close by law are currently able to claim up to £3,000 every four weeks.
The funding, to be made available in January, was revealed before Nicola Sturgeon announced mainland Scotland will enter tier 4 lockdown rules for three weeks from Boxing Day.
The Scottish Government said that further work will be undertaken to establish additional support when mainland Scotland moves into level 4 lockdown and the Scottish islands to level 3 rules.
Tourism Secretary Fergus Ewing said: “It’s been a particularly bruising year for our tourism and hospitality sectors.“The Covid-19 crisis has shattered previously successful businesses and we are committed to doing everything possible to get them back on their feet.
“These funding streams seek to throw a lifeline to some sectors that we know are particularly vulnerable and may not have access to help from other sources.
“We’ve already invested well over £2.3 billion to support businesses across Scotland, including 100% rates relief for pubs and restaurants but we know this is not enough.
“The restrictions, as necessary as they are, continue to have a profound effect and it is fair to say that tourism and hospitality businesses are feeling it more than most.
"This funding will provide a vital lifeline in the build up to what should be much of the industry’s busiest time of the year."
He added: “The funding aligns in the short term with many of the tourism taskforce’s recommendations and I am grateful to it for its work on this.
“Clearly, in light of the enhanced restrictions announced at the weekend to control the spread of the virus, we will be undertaking further work on what additional support is needed by businesses, including for the longer term.
“There is a need to move quickly to ensure the sector is adequately supported and ready to go again, when the time is right.”
The hospitality sector, while welcoming the support for businesses who had previously fallen through the cracks, has raised fears over the impending restrictions.
Colin Wilkinson, managing director of the Scottish Licensed Trade Association (SLTA), said: “These additional financial support measures have been marred by the earlier-than-expected lockdown payback measures that the industry had been anticipating.
“These new constraints will have an even greater negative impact on the sector and those in the supply chain at this time as we are losing any resemblance of the vitally important Christmas and New Year trade.
“In light of this development the Scottish Government will need to urgently review the provision of ongoing, realistic financial compensation if the sector and the staff that it employs are to be here after spring 2021 and part Scotland’s economic recovery.
“With the right support, delivered now, businesses might just survive in 2021 to once again provide the festive celebrations that we will miss so dearly.”
The Scottish Beer and Pub Association (SBPA), has welcomed the announcement but called for rules to be relaxed over Hogmanay.
SBPA CEO, Emma McClarkin, added: “This news of course comes against the backdrop of further restrictions which will impact the trade for a long time.“The UK and Scottish Governments must now look at an additional support package for hospitality to cover these further restrictions, as it’s a long way back to profitability for our members.
"The levels must also be amended to extend operating hours and loosen restrictions on alcohol sales to allow pubs and bars a chance of viability in the New Year.”
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