Ross hotel closure 'unlikely to be last' warns Highland economist as impact of Covid-19 hits hard
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GLOOMY prospects face the Ross-shire tourist trade after it was dealt another hammer blow – and experts warned the area could be worse hit by the pandemic lockdown than others.
The stark warning came after a second major hotel closed its doors in Strathpeffer following the collapse of another giant of the tourism trade.
Specialist Leisure Group entered administration at the end of last week, sparking the loss of 2500 jobs across the UK and the closure of dozens of hotels.
In Strathpeffer the group operated the Bay Highland Hotel, which is one of the most prominent landmarks in the village and overlooks the square.
News of its shock closure came just a fortnight after Hart Hotels entered insolvency following the collapse of coach tour operator David Urquhart Travel, prompting the immediate shuttering of the Garve Hotel in Garve, and Mackay's Hotel, also in Strathpeffer.
Specialist Leisure Group was also heavily involved in the coach tour and hotel business – with Shearings Holidays, Bay Hotels, and Caledonian Travel among its numerous brands.
Leading Highland economist Tony Mackay fears further trouble in the sector's future.
He said that Ross-shire's tourism industry already "appears to have been worse hit than the average", and he believes the county will "do worse than average" when trade does rebound, due in part to the importance of the coach tour industry "not only to the hotels which have been forced out of business but also local shops, restaurants and other businesses used to the custom of coach visitors".
He added that continuing social distancing rules will also be a major headache for hoteliers, and bus tours in particular, as they will mean "the coaches would have to carry many fewer passengers" and also that "many other people may be reluctant to go on coach holidays" for fear of catching Covid-19.
Acknowledging that there have been "differing views" among experts as to what may happen during the rest of 2020, he added: "There seems general recognition that there will be little overseas tourism. However, some people predict a big increase in visitors from the UK."
But he said that while there are "a few positive signs, notably the success of the North Coast 500 project", he also warned that the "prospects for the rest of 2020 seem very gloomy".
And he doesn't foresee much chance that the recently closed hotels will reopen under new ownership this year.
"The hotels could diversify into other tourism markets but that would be a time consuming process so I see little chance of the hotels reopening this year. That will have knock-on impacts on other businesses in Strathpeffer and elsewhere in the county."
Fellow Highland business figure, David Richardson, also fears more blows to come. The Federation of Small Businesses' Highlands and Islands development manager said: "The collapse of Shearings and the closure of its Bay Highland Hotel in Strathpeffer, with all the coaching business that goes with it, is clearly a significant blow... and we must hope that a buyer comes along soon.
"Sadly, [this closure] is not likely to be the last. We know from our recent FSB's business survey that over a third of the Highlands & Islands businesses that are currently closed fear that they will never reopen, and many of these will be in Ross-shire. We must all work together to keep our communities strong by saving as many local businesses as possible."
He also called for clarity as to when businesses can reopen, what they can do to keep staff and customers safe, and urged the governments to not only maintain recent support, but invest in marketing campaigns to drive tourism when the lockdown lifts.
Related: Second hotel confirms closure
