Tiers three and four could provide losses for 95% of Scottish hospitality

The placement of 32 local areas into tougher Covid-19 restrictions could lead to vast closures for pubs and hospitality firms across Scotland, according to new research.

A report published by UKHospitality Scotland, the Scottish Beer and Pub Association, and the British Institute of Innkeeping has found that 95% of the Scottish hospitality industry would be trading at a loss when placed into tiers three and four.

The findings come from a joint survey conducted by CGA, a hospitality market research company, which warned of the “miserable” impacts that could occur when placing hospitality businesses into stricter tiers on 21 November.

A joint statement said: “The results of the survey make for pretty miserable reading. What is most alarming is the total lack of sustainability of businesses placed in levels three or four.

“Lighter restrictions, as in levels zero and one, allow some businesses to break even or even turn a profit. The higher protection levels look increasingly like a death sentence for businesses, though. They are unlikely to survive.”

Also found in the survey was that 72% of firms within the sector expect to close by next year unless they are given more Government support.

The statement added: “The Scottish Government must rethink the restrictions being placed on the sector, otherwise this will be fatal for many vital businesses. 

“This must go hand-in-hand with enhanced financial support that goes way beyond what is currently on offer.”