Three in 10 Moray tourism and hospitality businesses doubtful over survival into next year after slow start to staycation boom, according to Federation of Small Businesses survey
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A NEW business survey has found the eagerly anticipated staycation boom has been slower than expected – leaving three in 10 Moray tourism businesses pessimistic about surviving into next year.
The Federation of Small Businesses (FSB) Highlands & Islands report, based on the results of a recent survey of tourism and hospitality businesses, has found that staycationers did not take off as soon as travel restrictions were lifted.
The survey, conducted between May 25 and June 4, focused on the Highlands & Islands Enterprise area (Moray, Shetland, Orkney, Outer Hebrides, Highland, Argyll and Arran) and attracted 290 responses.
A wide range of worries were cited by businesses, chief among them being keeping up to date with government rules and regulations (64 per cent). Some 41 per cent were worried about having too few customers.
In the Inverness, Moray, and Badenoch & Strathspey areas, 48 per cent of businesses described themselves as doing badly, as against 42 per cent in the region as a whole. Businesses in these areas were especially worried about low turnovers (54 per cent compared to 41 per cent across the whole region).
Some 29 per cent of tourism and hospitality businesses in the Inverness, Moray, and Badenoch & Strathspey areas were pessimistic about their chances of surviving until 2022, as against a quarter across the whole region.
Staffing shortages were also highlighted, though the shortage in the Inverness, Moray, Badenoch & Strathspey area was less pronounced than elsewhere.
The report calls on the Scottish Government to commit to a range of actions, including withdrawing the need for physical distancing and self-isolation once most of the adult population is fully vaccinated.
FSB Highlands & Islands development manager David Richardson said: "The fact that so many businesses in the Inverness, Moray, Badenoch & Strathspey area described themselves as struggling is a matter of grave concern, and it’s no wonder that a quarter fear that they might not survive until 2022. This is the time of year when these lynchpin businesses must build up the cash reserves needed to carry them through the long winter, undertake essential repairs and refurbishment, and start paying off any debts resulting from Covid loans.
"They simply cannot afford to be operating on 'slow'.
"The lack of customers, especially overseas visitors, is a real worry and the sooner travel restrictions are lifted the better.
"However, the concern that should be exercising minds most is staffing. Staff shortages have been a growing problem for years, even with a plentiful supply of EU workers, but now the situation is becoming critical.
"We must make it as easy as possible for businesses to take on staff, including much-needed migrant workers from overseas, and we must solve the accommodation issue, with a mixture of affordable housing for residents and rooms for seasonal staff. We are encouraging the idea of shared accommodation blocks in key settlements akin to university halls of residence."
