• Kenneth Gibson MSP

Hospitality and Leisure could contribute £250 million more to Scotland’s Economy

Scotland’s hospitality and leisure industry could contribute £250 million more to our economy this year than in 2019, according to new research from Barclays Corporate Banking.


Following a post-lockdown surge in trade, 93% of hospitality and leisure businesses in Scotland are confident about their growth prospects for this year.


Based on projected sales figures for the period from April to December 2021, when the hospitality sector has largely been open again, this equates to £3.5 billion more in national Gross Value Added (GVA) than in the equivalent period in 2019.


Staycation tourism could be here to stay, with more than half (52%) of consumers in Scotland prioritising UK holidays over those abroad.


Following the COVID pandemic, it also transpired that customers would pay an extra 18.6%, on average, to eat and drink in venues with particularly good standards.


Mike Saul, head of hospitality and leisure at Barclays Corporate Banking, commented:


“After a very difficult period for the hospitality sector, it is great to see how well the sector has bounced back.


“However, it is also an industry that is undergoing a substantial amount of change – from the customers it serves to the products it sells.


“While the industry is navigating some short-term challenges around supply chains and labour shortages, operators that prioritise these areas will be an incredibly strong position for the long-term.”


Kenneth Gibson MSP said:


“This is heartening news for an industry that has suffered greatly from pandemic-induced lockdowns.


“A huge issue however is the well-publicised staff shortages which businesses across North Ayrshire and Scotland are now suffering as a consequence of Brexit, which means it may be difficult to optimise revenue and profit. We are seeing it with the Auchrannie on Arran, which mentions Brexit as a factor in having to reduce its capacity for the time being.”


ENDS