3.c Information on the wider economic and hospitality sector challenges and impact on Oak Tree Inn businesses
Wednesday 27th May 2020
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In this video, filmed in week 10 of lockdown (the business has been closed for 72 days), Sandy shares his feedback and views from meetings he has held with the Cabinet Minister for Tourism, Fergus Ewing; meetings he has been in with the National Park Board; and meetings he has been in with the Loch Lomond Visitor Destination Group:
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Concern at level of support from the banks and have raised this with the Minister and explain the seriousness of the situation for businesses of the size of the Oak Tree Inn. Look at bank account for the business daily – fixed costs, holiday pay, pension contributions, etc
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“Well documented that businesses with a rateable value over £51,000 has had no (grant) support” and this has been raised with Ministers.
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They have an application in to the Pivotal grant scheme but
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Insurance cover is another issue. The Oak Tree Inn has a business interruption policy with an infectious disease clause but the insurance company is not entertaining a claim. This has been raised with the Scottish Minister directly.
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The National Park Destination Group meets to look at the state of the tourism industry and feeds into the meetings with the Government. High up on the agenda is the opening up of the National Park again but there needs to be appropriate facilities, eg car parks, toilets, etc
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Businesses with employees of 100 to 200 or so employees, like the Oak Tree Inn, appear to have “slipped through the net” in terms of support and this is particularly concerning across the tourism sector and is being voiced at the meetings Sandy attends,
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Some other hospitality business feeling like they have been “hung out to dry” and are considering not reopening.
Friday 29th May 2020
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It is the first-stage easing of the lockdown and this means people are able to travel locally (up to 5 miles) from their home. In this video diary Sandy explains about:
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· The fact that there was a large number of cars arriving from early morning.
· Sandy was in contact with the Chief Executive of the National Park, voicing his concerns about the potential number of visitors without proper toilet facilities, etc
· Reporting that the decision had been made to close the road that runs up the east side of Loch Lomond to prevent any further cars going up. This also then blocks any access to Sandy’s businesses as the largest employer on the east bank of Loch Lomond.
Second half of May 2020
Hospitality and hotel failures
In the second half of May, sadly a number of hospitality businesses failed. Some examples are:
14 May
David Urquhart Group – hotel and tour operator collapses https://www.bbc.co.uk/news/uk-scotland-scotland-business-52663623
20th May
DoubleTree by Hilton in Aberdeen – hotel closing, 90 staff redundant. https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-52738873
22nd May
Specialist Leisure Group collapses with the loss of 2,500 jobs. It operated well known bus tour companies Shearings and National Holidays as well as a number of hotel chains (7 in Scotland – see next news item). https://www.bbc.co.uk/news/uk-england-manchester-52776657
23rd May
7 hotels close in Scotland as a result of the above company’s collapse: https://www.bbc.com/news/uk-scotland-52779276?ocid=wsnews.chat-apps.in-app-msg.whatsapp.trial.link1_.auin
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First half of June 2020
Several Scottish hospitality businesses announce redundancies
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In the first half of June, there were several announcements made by hotel groups about possible redundancies. The Oak Tree Inn Directors submitted their HR1 form (formally announcing possible redundancies) on 29th May (see section 3.2 above). Here are some examples of announcements from this time period:
5th June
InterContinental Hotels Group (IHG) announce redundancies at five prestigious hotels. https://www.bbc.co.uk/news/uk-scotland-scotland-business-52923731
7th June
Crieff Hydro group of hotels announce up to 241 staff to possibly be made redundant. https://www.bbc.co.uk/news/uk-scotland-scotland-business-52955200
10th June
MacDonald hotel chain announces up to 1800 jobs at risk of redundancy https://www.bbc.co.uk/news/uk-scotland-scotland-business-53006605
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Monday 1st June
Sandy is interviewed for BBC Scotland television news about concerns regarding the re-opening of the National Park and the lack or adequate car parking and toilet facilities:
https://www.bbc.co.uk/programmes/m000jtfy
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6th June
Given the issues with many people flocking to the National Park and to areas like Balmaha in particular, the decision was taken by the police and the local Council to close the road to Balmaha for three weeks. This is the only road up the east side of Loch Lomond and it is closed to prevent chaotic scenes as people travel on the easing of lockdown.
As in the video from Sandy above (dated 29th May) this means that the Oak Tree Inn businesses are impacted by road closure https://www.bbc.co.uk/news/uk-scotland-52948072
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6th June 2020 From the National Park.
Gordon Watson, Chief Executive of Loch Lomond and the Trossachs National Park advising people to still stay away from the National Park.
6th June 2020 From Police Scotland
Police Inspector Andy Bushell, Inspector for Stirling rural, provided some information and guidance in relation to activity in and around our National Parks.
https://www.facebook.com/ForthValleyPoliceDivision/videos/670902503506173/
14th June 2020
Sandy Fraser shares his views on the Scottish Government’s announcement on the 10th June 2020 (see section 3.d below, date 10th June 2020) that the tourism sector may open up from 15th July; and he comments on the closing of the road up the east side of Loch Lomond (as reported above). He explains:
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· Yes, delighted that Nicola Sturgeon and Fergus Ewing have made the announcement, but the devil is in the detail and the complexities which are yet to be seen regarding the opening up of the tourism business.
· Social distancing, regulations for bedrooms, use of outdoor spaces, etc – guidance has to be seen.
· They have been responsible business owners in Balmaha and not opening just now. But the closure of the road has presented frustration and challenges.
· “It has been a hugely challenging time”.
· “The human side of this is massive” and comments on staff contacting to ask about wages, job security, how they pay their mortgages, etc.
Tuesday 23rd June 2020
On Friday 19th June there was a Destination Group meeting with the National Park and representatives of the main tourism businesses based in the Park. Then on Tuesday 23rd June there was a follow up, more focused meeting of the businesses. Sandy explains that:
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Main point of discussion was the First Minister of Scotland’s (Nicola Sturgeon) on Thursday 18th June that outside eating areas and beer gardens would not yet be permitted to open, nor the 5 mile limit for leisure travel to be lifted (see section 3.4 under Thursday 18th June 2020).
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One of main things discussed was how the mood of residents who live in the National Park had changed, from residents going out to seek out and report people who were in the National Park against national guidelines
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Some of the businesses’ reservations about how serious they view the situation were perhaps “not heard”.
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As a result, Sandy emailed on the Sunday (21st) the Chief Executive of the National Park and copied in the chair of the Destination Group and other key players. He explained that he and other businesses are very concerned at lack of clarity as to when public toilets will be available and a “tide of change” of local residents. Hence it was “really, really urgent that something is done about it”.
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As a result the informal meeting of key businesses was held that morning (23rd June) and “because of the severity and the crisis which (tourism businesses find themselves in” it was decided to send a letter to the First Minister, the Cabinet Secretary for Tourism and the local MSP stating severe concerns.
Sunday 28th June 2020
It has been a busy past week with a key meeting with the National Park, contact with the local MSP (Member of Scottish Parliament) and a direct call with the Chief Executive. This is in addition to the First Minister’s announcement about revised opening timescales for some parts of the business (see section 3.d, 24th June). Sandy explains the key pressing issues for the sector and the lobbying he, Stuart and David have been doing:
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Trying to get clarity as to when can open (subject to meeting conditions) and have spent the past week trying to get clarity on various issues.
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Has received some clarity as a result of communications and the Government announcement.
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Reminder that the business took the decision to shut the village shop due not to the law, but as a result of no car parking or toilet facilities and not wanting to fall out with local residents.
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Estimate that is a loss of £220,000 in turnover just from the shop alone. “Very sore financial position to bear”
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National Park chief executive confirmed that temporary toilets will be on site at the National Park car park from Friday 3rd July. “Delighted for that”.
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“A certain realisation that after 14 weeks need to start the engines of this operation”
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“Having spent time figuring out how not to have any staff here, I now have to figure out how we can get them back. All in all we are looking forward to it, and I am sure the bank manager will probably have the biggest smile on his face”