Fuel tax threatens to close Scottish hotels
Scottish hoteliers have warned that Westminster's financial policies, especially soaring petrol prices, could cause more hotels to close this year.
Their gloomy forecasts followed the recent publication of the Scottish Tourist Board's 1999 tourism figures. Enterprise minister Henry McLeith described them as "disappointing".
And the signs are that 2000 is proving even worse. Peter Taylor, owner of Edinburgh's Channings hotel and vice-chairman of the British Hospitality Association, said his research suggested turnover had fallen by 10-12% in the past year for many hoteliers.
And, for the first time, Taylor said it was not just outlying areas such as the Highlands and Islands feeling the pinch. Hotels within the more buoyant central belt were also growing concerned and Taylor estimated that business in Edinburgh was 3% down.
Paul Murray-Smith, chairman of the Scottish Tourism Forum and former managing director of Scottish Highland Hotels, blamed Government fiscal policy - including air passenger duty, VAT, business rates and soaring fuel prices - as well as uncreative marketing.
For Gavin Ellis, owner of the Knockomie hotel in Forres, Moray, steep rises in petrol prices threatened "dire consequences for rural Britain", not just in Scotland. He reckoned business at some of his rural competitors was 20% down, and that rising fuel prices had lost some up to 40% of their business over the past four years.
He believed petrol charges had impacted on touring holidays, a dominant part of the Scottish market, and put off American visitors who refused to pay the high prices.
He said many hotels - especially those locked into the discounted coach market - could no longer afford to reinvest in improving hotels or raising wages.
The Scottish Executive has already targeted marketing, the Internet, training and quality as areas that need improvement.
It has set up a tourism skills training body and is about to pilot Internet bookings on its VisitScotland Web site. National travel timetables will also be included by the end of this year.
It has also expanded the role of STB inspectors to include advice-giving, and there is a new requirement for hotels to display prices clearly outside the building.
The launch last week of a marketing campaign to boost golf tourism (worth £100m a year to Scotland) is the first of a series to exploit niche markets such as wildlife, sport and genealogy.
And the STB has also suggested extending the opening period of those hotels that traditionally close for winter.
Taylor says the tourism strategy announced in March will help in the long term. But he and Murray-Smith believe an immediate marketing campaign is needed.
And unless the Government acts now to cut petrol from 83p to 60p a litre, Ellis sees many hotels facing crisis point - especially first-time buyers from the South who have bought hotels in North Wales, Cornwall or North Scotland.
by Angela Frewin angela.frewin@rbi.co.uk
Source: Caterer & Hotelkeeper magazine, 20-26 July 2000
