Further funding announced for Tourism Sector

Two new funding packages worth £15 million will support the tourism sector as it continues to feel the impacts of the coronavirus (COVID-19) pandemic.

A £14 million Hotel Recovery Programme will help to secure up to 3,000 jobs at Scotland’s larger hotels until the start of the summer 2021 tourism season. Eligible businesses can apply for individual grants of up to £250,000 in addition to a suite of wrap-around business support and advice.

The Programme will be jointly administered by the Scottish Government’s enterprise agencies and builds on the existing funding and support for tourism businesses through the Creative, Tourism and Hospitality Hardship Fund and the Pivotal Enterprise Resilience Fund.

VisitScotland will also deliver £1 million in grants to self-catering businesses that have not received any other Scottish Government COVID-19 support. Businesses that apply and meet the criteria will be eligible for a one-off £10,000 grant to support them through the winter season.

Tourism Secretary Fergus Ewing said:

“We recognise the important contribution the hotel sector makes to tourism and the wider Scottish economy, supporting approximately 46,000 jobs across the country. 

“Scotland is home to many of the world’s iconic hotels and they, like much of the sector, have suffered considerably this year from the impacts of coronavirus. The Hotel Recovery Programme is a dedicated funding package designed to safeguard jobs in these establishments and offer some security until the new tourist season begins in summer 2021.

“The Scottish Government is doing everything in its power to support the tourism industry, however without significant borrowing powers at our disposal this action will always be limited. Whilst we very much welcome measures taken by the UK Government, such as accepting our call to cut VAT rates for the tourism industry, longer-term support for jobs is necessary. I hope the UK Government responds positively to our ask for an extension to the Coronavirus Job Retention Scheme.”

Background

The Enterprise Agencies (Scottish Enterprise, Highlands and Islands Enterprise, South of Scotland Enterprise and VisitScotland) will begin taking expressions of interest for the Hotel Recovery Programme in late August. Businesses that meet the criteria for the Programme will be eligible for both grants and a holistic business review with bespoke support based on their individual needs.

The Hotel Recovery Programme comprises £9 million in revenue and £5 million capital.

Applications for the self-catering support scheme will open in early August. VisitScotland will work with The Association of Scotland’s Self-Caterers (ASSC) to review applications received for the self-catering support scheme.  

Further details and opening dates for both funds will be announced in due course.