Covid-19 Restrictions (Tourism Sector Input)

– in the Scottish Parliament at on 12 November 2020.

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Photo of Tom Mason Tom Mason Conservative

8. To ask the Scottish Government what input the Scottish tourism sector has had into its decision making on Covid-19 restrictions. (S5O-04752)

Photo of Fergus Ewing Fergus Ewing Scottish National Party

Throughout the pandemic, we have maintained regular contact with the Scottish Licensed Trade Association, the Scottish Tourism Alliance, UKHospitality and many other tourism business representative bodies and organisations in order to fully appreciate and understand the challenges that they face. For example, in consultation with the industry, we decided to close wet pubs by law in the current guidelines that came into force on Monday 2 November, so that they can access the most appropriate level of support, given that they would be unviable with drink sales alone. We will continue to engage with the sector in order to help to support those businesses.

Photo of Tom Mason Tom Mason Conservative

The Scottish Conservatives have called for a business advisory council to give businesses the seat at the table that they have been asking for since this pandemic began. That council should almost certainly include representation from the Scottish tourism sector, which has been among the worst hit by the pandemic. The tourism sector, like most other business sectors, has clearly indicated that it wishes to be actively engaged with Government, and a formal council will ensure that future guidance on restrictions is rooted in the practical concerns of the businesses that have to follow them. Will the minister back that proposal?

The Deputy Presiding Officer:

At last, a question.

Photo of Fergus Ewing Fergus Ewing Scottish National Party

We have engaged thoroughly, in depth and repeatedly with business organisations since March. We debated the issue thoroughly yesterday, when the particular proposal that Mr Mason raises was rejected. The Conservatives have failed to provide any detail about what that council would do, what it would comprise, who would serve on it, what its remit would be and who would be excluded therefrom.

I have engaged with all said organisations on an extremely regular basis, and I am absolutely certain that we listen to them and understand their concerns. At the end of the day, we in the Government have to make decisions that balance public health, lives and livelihoods. That is a difficult act, but I assure the chamber that, although we are always ready to consider any detailed proposal, none has arrived from the Scottish Conservatives, despite the fact that they have been asked by one of our representatives for such details. I do not know whether that proposal has support across the business community. I have not actually been asked to adopt it. The main thing is that my colleagues and I are in regular, indeed, almost daily, contact with everybody involved, and I think that we have established fairly good relationships with almost all of them, to the extent that the current arrangements are as efficacious as they possibly can be.

The Deputy Presiding Officer:

Four members want to ask supplementary questions, and I will try to take them all. Therefore, I ask everyone to keep questions and answers crisp.

Photo of Willie Rennie Willie Rennie Liberal Democrat

Travel agents have been working throughout the pandemic to get customers’ holiday payments back, but have earned nothing from that. Will the minister consider a special fund, just like the one that is being considered in Northern Ireland?

Photo of Fergus Ewing Fergus Ewing Scottish National Party

I am happy to give an undertaking to Mr Rennie, as I think that I did in the debate yesterday, to consider the issue carefully. We are sympathetic to everyone who has been impacted by Covid to a major extent, and that includes the vast majority of the tourism sector. If Mr Rennie has any more details of what he believes would be appropriate, I am happy to meet him to discuss them. I am always ready to consider any detailed and constructive proposal from wherever it comes.

Photo of Kenneth Gibson Kenneth Gibson Scottish National Party

The cabinet secretary has been proactive in supporting tourism businesses large and small throughout the pandemic, with limited resources. Can he advise what further steps will be taken to support, particularly throughout the winter, larger tourism business such as hotels, which tend to have high overheads and are often major employers in small and medium-sized communities?

Photo of Fergus Ewing Fergus Ewing Scottish National Party

Mr Gibson has been tireless in his advocacy for his constituents in Arran, for example, who were extremely worried at the beginning of the crisis about the ferry situation, which I think has been ameliorated since then, to some extent, at least. We have launched the £14 million hotel support programme to support businesses and jobs in the hotel sector, and the enterprise agencies are in the process of finalising grant support now. Just this morning, I spoke to Charlotte Wright, the chief executive of Highlands and Islands Enterprise, and I know that that work is nearing completion.

It is my hope that the consequentials will allow us to enhance and extend that support. Major hotels are major employers of many people, which is why in Scotland—I am not sure that that has been done anywhere else in the UK—we established the £14 million hotel support programme in order to support people in their jobs.

Photo of Oliver Mundell Oliver Mundell Conservative

With travel and other necessary restrictions in place, does the cabinet secretary recognise that the distinction between open and closed is meaningless for many accommodation businesses that are closed in all but name and cannot be viable at this time?

Photo of Fergus Ewing Fergus Ewing Scottish National Party

There is a vast range of circumstances. In general terms, the impact on accommodation providers is likely to be the most significant because of the diminution of customers in the available market and the fact that there is a certain worry that the regulations may be extended, which is causing forward cancellation of accommodation bookings.

In the accommodation sector, there is particular pressure; however, I am afraid that it is more complicated than Mr Mundell says. For example, in the self-catering sector, small units for one family have done reasonably well in some parts of the country and are continuing to do so—[

Interruption

.] Mr Mundell is muttering again. He does that all the time from a sedentary position. If he wants to do that, that is up to him, but I want to give the answer.

Some businesses have managed to do reasonably well while they can continue to trade lawfully, but larger self-catering premises serving more than two, three or four families and larger units have been hit extremely hard. The position is rather more complex than the member indicates.

Photo of Maureen Watt Maureen Watt Scottish National Party

Has the UK Government given any indication that it will give serious consideration to the series of financial measures that are outlined in the Scottish tourism recovery task force’s recommendations?

Photo of Fergus Ewing Fergus Ewing Scottish National Party

It has not as yet. I have had five or six conference calls with the UK tourism minister, Nigel Huddleston, and we have a good working relationship. The other devolved Administrations are also on those calls, the most recent of which was towards the end of last week.

We have not yet had a response to the task force’s financial proposals to help the sector recover. That includes a request for a business rates holiday from the Scottish Government and for a VAT reduction and other measures from the UK Government.

I am pleased to say that the task force’s recommendation to hold a UK tourism summit, where representatives from across the islands discuss those matters together, has received a fair wind and a positive response. We are in touch with Nigel Huddleston’s office in order to make the necessary arrangements for that event, which will allow the problems that we are discussing in the Parliament to be raised across the islands. I hope that that will lead to action from the UK Government, as the task force has requested.