The financial impact of First Minister’s advice to postpone Christmas parties has been laid bare by a Fife hotel.
Hospitality businesses across Scotland were hoping for a bumper festive season to help rebuild their finances until Nicola Sturgeon’s guidance last week as the Omnicron variant of Covid-19 spreads.
Taypark Hotel in Dundee has been hit by 100 cancellations and The View restaurant in Wormit has lost out on £5,000.
Now Balbirnie House Hotel’s managing director Nicholas Russell estimates the financial impact at £35,000 and counting.
Fife hotel hit by cancellations
He said the Markinch venue has seen “immediate and significant numbers” of festive party cancellations.
“This Friday’s party night is completely cancelled, together with numerous other private events and individual bookings as well,” he said.
“We then had more cancellations after the guidance to restrict gatherings to three households.
“The lost revenue so far is around £35,000.
“Once again Scotland’s entire hospitality sector has been thrown under the bus.”
A £100 million fund for hospitality businesses was announced on Tuesday.
But Stephen Montgomery, spokesperson for the Scottish Hospitality Group said the industry requires more support.
He warns: “Over the last 20 months, hospitality businesses have accrued significant debt and are facing rising costs from inflation and the return of business rates next year.
“The funding will provide a little breathing space in the short term – but it is clear the hospitality sector will require much more support if we are to save venues from going to the wall.”
Rising costs, recruitment issues and less Government support
Ms Sturgeon said Scotland is facing a “likely tsunami” of infections of Covid-19 in the coming weeks.
Scottish businesses and hospitality premises will also face new legal requirements to enforce social distancing and reduce crowding.
Mr Russell said: “We can only hope that there won’t be any further new restrictions which will compromise the future even further.
“Moving further ahead, business rates relief is no longer applicable for Scotland in 2022 and tourism tax is seemingly reverting back to 20%.
“Costs are accelerating everywhere due to Brexit, with industry pundits suggesting hospitality sector inflation may be as high as 18%.
“Additionally, and amongst severe Brexit-related recruitment challenges, there are also new rises in national wages for 2022.
“There are challenging times ahead for hospitality.”
Balbirnie House Hotel weddings
Softening the blow for the Fife hotel is the number of postponed weddings due to take place in 2022.
The venue was named best wedding hotel in the world by the international Haute Grandeur Awards.
Mr Russell said: “Balbirnie House is most thankfully fully staffed.
“We are currently holding reservations for a record-breaking year ahead. 182 weddings are already booked in 2022.”
