Chamber News

Strong networks will underpin hospitality and tourism sector recovery

Scotland’s hospitality and tourism industry is back in business at last. The sector was one of the worst affected throughout the pandemic and those that will survive will add new depth to the meaning of the word ‘resilient’.

Their difficulties are far from over, and these businesses, which are often family-owned, face a leap of faith as lockdown restrictions ease, but are not completely removed. The sector has a key role to play in Scotland’s economic recovery both nationally and locally, by creating jobs and adding to the vibrancy of our communities. The single biggest issue affecting the industry now is uncertainty. Until international tourism returns, recovery will be dependent on attracting and retaining local customers. Who will be venturing out and how safe will people feel? Will they have confidence in their own job security to spend, and carry-on spending for the foreseeable future? Right now, these are all unknowns and yet are key considerations in making planning decisions around staffing levels and purchasing. There are also longer-term financial issues. Many businesses have taken on loans and these will need repaid at some point. Close management of income and outgoings is going to be crucial and there is a risk that some businesses may open with a flourish but be forced to close quite quickly if lack of custom means infeasibly high debt levels become overwhelming. And there are other challenges facing small businesses which have not gone away. Meeting new environmental and sustainability standards, the fallout from Brexit, high street decline, and taxation will all have an impact on future success.

Business owners and managers with a healthy network can draw on collective knowledge and resources. Working with trade organisations, connecting with others in the sector and reaching out to family business specialists such as Queen Margaret University Business School or Business in the Community for information and independent advice could make the difference between success and business failure.

Organisations like the Edinburgh Chamber of Commerce will play a vital role in the months ahead in ensuring that the hospitality industry survives and grows and continues to play a vital role in the social and economic future of Scotland.

“And there are other challenges facing small businesses which have not gone away. Meeting new environmental and sustainability standards, the fallout from Brexit, high street decline, and taxation will all have an impact on future success.”

To find out more about how Queen Margaret University Business School can help hospitality and tourism businesses, or any family-owned business, contact Dr Majella Sweeney - MSweeney@qmu.ac.uk