Scottish hospitality is ‘adapting’ to market challenges, says STA

Scottish hospitality businesses are “finding new ways to adapt to challenging market conditions”, according to The Scottish Tourism Alliance and The Cumberland Building Society.

From wine safaris, where guests explore Scotland’s countryside, to developing wedding venues and corporate event spaces, Scotland’s hospitality businesses are expanding their range of services to draw in visitors.

The groups said the past few years have “presented a challenging time” for many businesses across Scotland, with the hospitality and tourism sector feeling the hit.

Rising costs, staffing issues, and reduced footfall due to the cost of living crisis have all put a strain on an industry with 15,830 registered tourism businesses providing 175,900 jobs across the country according to the Scottish Tourism Alliance.

Figures from the Great Britain Tourism Survey 2023 show almost a 7% fall in domestic holidays across Scotland in 2023 compared with the previous year. Meanwhile, the figures for Scotland also showed nearly a 6% drop in spending last year.

Despite a fall in domestic holidayers and their spending, Scotland’s hospitality businesses experienced some respite with an increase in international visitors vying to see what the country has to offer.

International tourism in Scotland is showing promise, with almost 4 million international tourists visiting the country in 2023. Additionally, their spending increased by 41% from 2019, with visitors spending £3.6 billion last year.

The Scottish Tourism Alliance said that statistics make for good reading and the outlook for 2024 shows continued improvement. Visit Britain anticipates 39.5 million overseas visitors will holiday to the UK in 2024, bringing a boost of £34.1 billion, some 7.6% more than the previous year.

With Scotland offering must-see destinations, such as Perthshire, Dumfries & Galloway, and the

Alasdair Swan, Senior Commercial Relationship Manager at specialist hospitality lender, Cumberland Building Society, which provides commercial lending to Scotland’s hospitality businesses, said: “Scotland’s hospitality and tourism sector has suffered several setbacks over the past few years which have presented considerable challenges to overcome.

“Our people-first approach to banking allows us to work incredibly close with our customers in the hospitality space, and so we’ve seen first-hand just how difficult things have been for these businesses to stay afloat. What is noticeable is the resilience of Scotland’s business owners who work day in, day out to adapt their services and evolve the experience they offer to visitors so they can continue to serve their local communities and contribute to their local economies.”

Marc Crothall, CEO, Scottish Tourism Alliance, added: “What’s clear is that while people are keen to spend their vacation in Scotland, they are also looking for an experience that will give them unforgettable memories. For hospitality and tourism business owners who adapt and can do this, they will stand themselves in good stead for the future.