The current situation with Covid-19 is one of the biggest challenges that we have faced in our lifetimes. Preservation of life has been our overriding objective since the start of this crisis; it is that simple. By staying at home and following the physical distancing guidance, the people of Scotland are doing everything that they can to protect our national health service and social care services, and to save lives.
However, the measures that we have taken, and are continuing to take, to deal with this crisis reflect its magnitude. We have had to implement restrictions on liberties that have had a very serious impact on our economy, and our tourism and hospitality sector has been devastated. I understand how difficult this is. Businesses have gone from anticipating another bumper tourism season this summer to seeing their income drop to zero almost overnight.
The Scottish and United Kingdom Governments have moved quickly to try to address the financial challenges that are faced by businesses affected by the current crisis, including those in the tourism and hospitality sector. The Scottish Government has provided a package of support worth over £2.3 billion, going above and beyond UK Government consequentials. We have provided rates relief and developed grant schemes that are not available elsewhere in the UK, and we have met and listened to businesses to understand where gaps still exist.
Since the middle of March, I have spent much of my time taking part in calls with sectoral organisations and business owners to hear first-hand about the impact that the restrictions are having. Many of the people who have taken part in those calls have suffered the most severe impacts on their lives and their livelihoods.
I commend the work of organisations such as the Scottish Tourism Alliance and UK Hospitality in representing their sectors and providing a vital bridge between the Scottish Government and businesses. We have worked in partnership to ensure that the UK Government understands the pressures on the industry in Scotland. That work is not complete. Kate Forbes and I have written to the chancellor to request a discussion on how we can work together to further support the sector and alleviate some of the pressures on businesses, including through a review of VAT rates.
The UK Government must lead on a financial recovery plan for tourism in the UK with significant funding attached, and we will use those consequentials for the industry in Scotland.
From my numerous discussions with industry over the past weeks and months, I know that what the industry needs now is clarity on when it will be able to reopen and start on the long road back to sustainability and growth. I fully understand the unique challenges that the uncertainty is creating. Businesses need to know what orders to place and when. They need to have the confidence to take bookings, while understanding the risks inherent in the continued presence of the virus. To take bookings, they need to be able to plan staff rotas and shifts and to restock. They need to be in a position of readiness to go once restrictions are lifted and to avoid any unnecessary delays. Some businesses may also wish to pre-purchase personal protective equipment.
Visitors need time to request annual leave and to make bookings. Notice, preparedness and readiness go hand in hand and are a key part of preparing for recovery.
The Scottish Government understands the exceptional and very challenging circumstances facing our tourism and hospitality sector. It is heavily dependent on seasonality, meaning that the already limited opportunities are narrowing by the day. Many businesses are facing key decisions about their futures, with all the implications for jobs and investment. It is an unenviable position by any measure.
I do not seek to underplay the impact that this crisis is having on all parts of Scotland’s economy, which is profound. However, those facts set the sector apart and that needs to be recognised. We have heard the messages clearly and we are not impervious to the sector’s calls for more clarity. Our responsibility is to balance the exceptional circumstances that the industry faces with the need to continue to take the right steps at the right time to protect life.
Covid-19 has not gone away; it remains a threat. However, I am keen to give additional clarity where possible and to provide an indicative date from which we hope that the sector can begin to operate. That date cannot be definitive. The science and health advice must be in the right place. The virus must have been suppressed, the test and protect system must be used effectively and our route map must be on course.
Given the vital interdependencies between the tourism and hospitality sector and wider sectors of the economy, including public transport, we must make holistic decisions about when to change restrictions. We cannot make changes for any sector in isolation. That is why we must be assured that the epidemic is suppressed to enable the more general opening up of our country that will come with the reopening of tourism and hospitality. In that way everyone—employees, tourists and customers—can be confident that it is safe to make this change.
Statutory reviews of the current restrictions are required on 18 June and 9 July. Those reviews must take place and their outcomes must show the necessary progress in our fight against the virus before tourism can resume. As things stand just now, our hope is that we will be able to give the go-ahead for a reopening of the sector at the review on 9 July. Assuming that that proves possible, some time would then be required for interconnected services such as transport to prepare.
On that basis—and on the clear understanding with the industry that nothing can be absolutely guaranteed at this stage and that we may need to change this date if the evidence requires it—we would encourage tourism and hospitality businesses to prepare, within appropriate safety guidelines, for reopening on 15 July.
For the reasons that I have set out, that timetable is by necessity both provisional and conditional. We very much hope that it can be met and that setting it out now, even with caveats, gives the sector greater clarity and some much-needed ability to plan ahead. I cannot stress enough how important it is that the time until then should be used to implement the changes that are necessary to satisfy regulations and to adapt to a new way of living.
I will say something about that new way of life, because things will not be the same as before. Covid-19 has changed that and safety must come first.
I can therefore also announce that we will soon be publishing guidance for the tourism and hospitality sector that will help businesses make the necessary changes. We have worked closely with the industry in this area and that will provide a key link between Government and the good work done across the sector to prepare guidelines and practical measures for safe reopening.
Things will look and feel different, and that is also a challenge for businesses. Workplaces will need to adapt and innovate to make best use of space and facilities within the guidelines. There will be a key role for the industry in building confidence in communities, which, understandably, may be hesitant to welcome back visitors.
Customers—we, the public—will also need to adapt to new ways of using the services, just as we have had to do throughout the crisis. I have confidence that everyone will, once again, rise to the challenge.
I accept that this is disruptive and difficult, but the measures are essential to ensure that workplaces are safe and compliant; in keeping with our fair work principles, they have been developed in partnership with trade unions and the appropriate regulatory bodies. That will give confidence to employers, employees, customers and the public that Scotland’s tourism and hospitality sector is prepared and ready once again to provide safe, reliable and enjoyable experiences.
I will make one final announcement before I finish. I highlight that I am setting up a Scottish tourism recovery task force to take forward strategic oversight of, and provision of advice on, recovery plans in response to the impact of Covid-19 on Scottish tourism and hospitality.
The task force will be responsible for ensuring that the tourism recovery plan is fully co-ordinated with wider Scottish Government and other recovery plans. It will also take into account wider actions that are being taken by the UK Government and other devolved Administrations, as well as international best practice including that of the European Union.
I will chair the task force along with the Minister for Business, Fair Work and Skills, Jamie Hepburn. I will announce the membership shortly—we are in the process of seeking to finalise that—and will publish a draft work plan for the group, which will include looking at recovery needs for the sector; working with the devolved Administrations and the UK Government on UK-level interventions; developing a domestic visitor marketing campaign; and, crucially, having clear public messaging on the safe recovery of tourism and the economic benefits for our communities. The task force will work closely with the sector, allowing us to identify the key actions that are necessary for a strong and safe recovery.
At the start of March, I was involved in the launch of Scotland’s new tourism strategy, taking us through to 2030. The strategy sought to make Scotland the world leader in 21st century tourism. That should still be our ambition. Scotland has a wealth of assets and a wonderful reputation as a welcoming country. The Covid-19 crisis has been devastating for the industry, but we must look to rebuild the sector and begin welcoming visitors once again.
We recognise that, in order to achieve that, businesses must be ready to go when safe to do so, to avoid any unnecessary delay, which would inflict yet more reputational and financial harm. Today’s additional clarity on when that may happen will help avoid that and assist businesses to be ready to reopen.
Under the guidance of the new tourism task force, and with the incredible dedication and hard work of the thousands who work in tourism and hospitality in the public and private sectors, I believe that we can make a safe and strong recovery.