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The Impact of Coronavirus on the Tourism Industry

During this unprecedented period, it’s important that we keep an eye on what our competitors are doing, how the industry is reacting and the sentiment and behaviours of our target audiences.

Here you will find the results from our industry surveys and our latest market intelligence report.

Monitoring the situation

We’re proactively tracking the effects of Coronavirus on the industry. This is a rapidly changing situation and it’s important for us, with your valued regular input, to be able to monitor developments.

We’ve conducted two surveys thus far, both have allowed us to see not only the overall impact on Scottish tourism, but also the impact it is having across different regions and business sectors, so that we can consider how best we might adapt our activities. It’s also allowed us to inform the Scottish Government and other industry bodies. Thank you to those that took part.

Results | 20 – 30 March

We had 2,243 responses – 62% were accommodation providers.
•99% of businesses responding have experienced cancellations/decline in bookings/fewer visitors
•54% of respondents were owner/proprietor run businesses with no employees; a further 33% were small businesses of 1-10 FTE’s
•The largest responding segment with 38% were non-serviced accommodation providers
•58% of respondents (with employees) stated they have had to reduce staff numbers to date (30 March) with a likelihood of further losses in the future.
•The majority of respondents claim to have lost up to £50,000, with some claiming losses of substantially more than this.
•Average length for survival of business without support is 3 months
•43% want long term relief from paying business related taxes e.g. VAT

Other key issues raised include loss of income compounded by seasonality, support as grants not loans, business Interruption Insurance not paying out, support needed for self employed including those falling between the cracks in support measures announced i.e. new start-ups, those using their own home and still having to pay existing bills, those renting and those who do not qualify for grant under current rules.

Results | 9 – 16 March

There were 2,200 completed responses from the following business types: Non-serviced Accommodation 30%; Hotel, B&B & Guesthouse 30%; Activities, Attractions and Tours 25%; Food, Drink and Retail businesses 9%; and businesses that classified themselves as ‘other’ 5%.

Responding to questions on the impact to business in the week beginning 9 March:
•60% of businesses report that they have experienced an increase in cancellations, a drop in bookings, or that they have received fewer visitors in the previous week.
•The biggest impacts were recorded amongst the Hotel, B&B & Guesthouse category, with 72% reporting negatively, whilst 66% of Activities, Attractions and Tours said they have been adversely affected. 55% of Food, Drink and Retail businesses were also affected.

Of those that responded, 55% of businesses were able to quantify what this means in lost revenue. Total losses recorded:
•Total losses for cancellations in this past week, £3,508,807.
•Total losses for future bookings in this past week, £17,534,764.

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