68% of businesses in the tourism and hospitality industry say they have recently been in financial difficulty, survey reveals

About The Authors

10th February 2022 13:56 - Sport, Leisure and Tourism

68% of businesses in the tourism and hospitality industry say they have recently been in financial difficulty: A  survey in the tourism and hospitality sector has revealed that nearly seven in 10 businesses believe they are not financially stable, with just over half saying they have between zero and two-months-worth of the cash reserves needed to keep their company in business.
 
The study by the Scottish Tourism Alliance polled over 1,300 Scottish respondents gaining an accurate representation of the tourism and hospitality industry in Scotland. Of the respondents in the survey, 36% had non-serviced accommodation with just over a quarter (26%) being from the serviced accommodation sector.
 
In addition, one in 10 of those surveyed were from the food and drink sector (pub, bar, café or restaurant), with the sector viewing the retention of the 12.5% VAT rate as a major priority for recovering the tourism and hospitality industry.
 
When asked what has caused financial worry within their sector, just over half (52%) the respondents polled said they have been impacted by staff shortages, the majority coming from the hospitality sector.
 
Cancellations
 
Looking at December 2021, the survey asked respondents what level of cancellations they experienced, with just over a quarter reporting they had received no cancellations (26%), compared to 38% who had experienced less than 50% of cancellations and 37% who recorded more than half of their bookings being cancelled. 
 
Of the companies experiencing more than 50% of bookings cancelled in December 2021, tour and coach operators were the worst affected (49%), followed by food and drink (47%), serviced accommodation (45%) and unserviced accommodation (24%), with attractions (19%) also seeing half of their bookings cancelled.
 
Looking at the bookings for January to March 2022, the survey revealed that the situation has improved somewhat, with a third of respondents reporting no cancellations (32%), while 44% reported less than 50% cancellations, and a quarter (24%) said they have experienced half of their bookings being cancelled. 
 
Of the companies who have experienced more than 50% of bookings cancelled, tour and coach operators were the worst affected (36%), followed by serviced accommodation (28%), and food and drink (23%). Unserviced accommodation (17%) and attractions (14%) also saw more than half their bookings cancelled.


Sign up for free insights from your sector…

Support Us...

We hope that you have found this article useful. This section is freely available for all to use. Please help support it by liking us or following us on our social media platforms:

Share this article...


For updated Sport, Leisure and Tourism insights please follow us on @DJS_Leisure or use our RSS feed

Other Sport, Leisure and Tourism Research Findings

Other Latest Market Research Insights

© DJS Research 2022