The Scottish Tourism Emergency Response Group (STERG), which is chaired by VisitScotland, was created to respond to the COVID-19 crisis. STERG was established in March 2020 and has helped to get significant levels of financial help to the industry.
It has been working on a single, joined-up, phased National Action Plan not just to combat the current issues but also to look at how the industry could effectively recover once the lockdown is eased.
This has been a real team effort, giving the agencies an opportunity to refocus plans and redirect budget, as well as working alongside the tourism industry to work through daily issues.
On this page you'll find an update on what STERG has delivered since it began in March 2020, including:
STERG meeting key notes and actions
2022
1. Business support funds
A press release by the Scottish Government, announcing the £9 million business support fund, was issued. This fund will be administered by VisitScotland and is made up of £3 million from the original Scottish Government £100 million announced for business support, £3 million from the second £275 million for business support announced by Scottish Government and £3 million that has been repurposed from phase one STERG recovery funds held by VisitScotland.
It was noted that there was widespread media coverage across for example Daily Record, the Herald, Business Insider.
In terms of next steps, VisitScotland will be contacting eligible businesses directly (i.e., businesses which were previously supported by VisitScotland under these funds) to advise that the funds are open. Information on the funds process will also be published on VisitScotland.org, the enewsletter, find business support website and social media.
Sector leads attending the STERG Sector call yesterday seriously challenged why guest houses, B&Bs and self-catering businesses had been excluded from all funding when these businesses were also impacted by the guidance and restrictions put in place by Scottish Government in December and January.
Rob Dickson will meet with representatives of these sectors on 14 January to better understand the issues and the impact on businesses in these sectors. Judith Young advised that following this meeting with the Sector leads the Scottish Government tourism team will inform ministers of the situation.
It was noted that the Tour Guide fund (previously administered by VisitScotland) has not been reopened. It was recommended that this decision should be reconsidered by STERG and the Scottish Government.
Sectors leads also highlighted yesterday that the proposed £6,800 one off payment through the VisitScotland administered funds, while welcome, is likely to be felt by businesses as not very much. It was noted however that £6,800 is comparable to payments in other sectors and other funds.
The Scottish Wedding Industry Fund is to run once again. The eligibility criteria for this fund will be agreed this week. Applicants will be notified directly.
It was noted that there are businesses in some local authority areas, for example Moray who have not yet received top up funding from Local Authorities despite the announcements being made circa five weeks ago. Action: Further conversation to take place offline after the STERG meeting.
2. Looking forward
2022 Market position
Despite bookings coming to a near halt in early December and over Christmas and New Year, recent data gathered by VisitScotland suggests that the market position for 2022 is looking strong.
Recent discussions with DMOs suggest that bookings are looking strong for February through to Easter, May seems quiet but then bookings pick up and are strong for the summer.
Based on recent evidence it is not clear how significant a problem we will have in 2022. If the trajectory of forward bookings does not restart and pick up again strongly then that will be a problem. It was suggested that driving international bookings could be challenging in the current environment. It was noted that there should continue to be a strong focus on the domestic market.
VisitScotland recommend that if there is any residual funding from the £9 million business support then it should be focused on domestic marketing (either at a national level or at DMO level) and visitor management to build on the work done in 2020 and 2021.
It was noted that for Scotland to be competitive, international marketing activity should not be paused. Concern about an outbound spike, as international travel restrictions ease, strengthens the case for marketing activity that will persuade international visitors to return to Scotland.
STERG activity and responsibilities for 2022
In the short term it was proposed that STERG prioritises activity which will enable a successful 2022. This activity should be in alignment with the principles and commitments of Scotland Outlook 2030.
It was noted that a focus on having the right measures in place for 2022 will also help address the impact of omicron through December and January.
Action: A STERG 2022 planning session is to be scheduled at the beginning of February.
The National Strategy for Economic Transformation (NSET)
The 10 year NSET is due to be published soon. It is not clear how tourism will be referenced in the document however it was noted that tourism has fed into the process through feedback from the STA, VisitScotland and others.
5. STA Financial Impact Survey
Findings of the survey will be shared at the Tourism CPG on Monday 17 January.
STERG to consider the most efficient and effective way to collect consistent industry data on an ongoing basis to inform discussions with the Scottish Government and to help shape policy
Action: A discussion on industry surveys in 2022 is to be added to the agenda for the STERG 2022 planning session.
6. Tourism Recovery Pan
Phase 1 Priority Projects
The £3 million which has been repurposed from the Phase one priority projects, to boost the business support fund, was drawn from small underspends in the following projects, the Days Out Incentive Scheme, and the International Demand Building.
Due to the impact of the omicron variant, VisitScotland need to adjust the Terms & Conditions on payments made to businesses in the Days Out Campaign, DMO marketing fund and the inbound tour operators fund. These adjustments should give businesses more leeway on reporting and on activity, however, everything still must be wrapped up by 31 March. It was noted that these adjustments will not impact the money they have received or the activity that they have committed to do.
It was highlighted that the hard deadline to spend recovery funding effectively by the end of March 2022 is challenging due to the disruption which the omicron variant has caused. Marketing activity funded by the Destination & Sector marketing fund and the promotion and recruitment for the Tourism & Hospitality Talent Development programme have been interrupted and there is a risk that the success of these initiatives will be significantly impacted if there is no flexibility to roll activity into the next financial year.
It was accepted that this is serious problem and that it is very frustrating to be bound by financial accountability rules, however the Scottish Government cannot offer any flexibility on this. It was suggested that in order to ‘live’ with COVID moving forward there is a need to be able to flex public sector investment rules to take into account and respond to the reality and the impacts of the national pandemic. The ability to adjust the rules (e.g., 31 March cut off), would ensure that public money is spent in the right way and delivers the right outcomes. It was noted that this would be raised today on the fortnightly business organisations call with Scottish Government.
The monthly Phase one status report will be available at the end of January.
The monthly Phase one budget update (to 31 December) is due to be submitted to Scottish Government on Friday 14 January.
Skills Development Scotland continues to progress the leadership and skills development programmes.
Phase two of the Tourism & Hospitality Talent Development programme is now open for applications. Currently there is a push to drive the number of applicants - target is 1,600 delegates.
The new skills development programme is progressing well. All programmes will be rolled out and promoted over the next few weeks.
- Springboard have been commissioned to deliver a talent attraction programme.
- Keep Scotland Beautiful have been commissioned to deliver a climate literacy training programme.
- Hospitality Health have been commissioned to deliver a mental health and wellbeing programme.
- ASVA have been commissioned to deliver a complete story telling programme.
- People First have been commissioned to deliver a management and leadership training programme for chefs.
- Inclusion Scotland have been commissioned to deliver a disability and inclusion training programme for the tourism sector.
Phase two, two-year recovery recommendations
The follow up meeting to discuss Tourism Funding Models has been scheduled for Monday 31 January.
Next steps on the two-year recovery recommendations are to be discussed as part of the STERG 2022 Planning session.
Action: A discussion on next steps for the two-year recovery recommendations is to be added to the agenda for the STERG 2022 planning session.
7. Partner updates
STA
The STA Board will meet next week to undertake a strategic review of the organisation and its priorities for the next two years. This review, which will also include research with key stakeholders, will ensure that the STA remains fit for purpose.
The STA parliamentary reception will take place on 1 March and will be sponsored by Murdo Fraser. On the same day, the deputy convener of the Tourism CPG, will look to instigate a tourism debate in parliament.
Dates for Scottish Tourism Month (STM) industry events are being collated by the STA. Sector organisations and DMOs already have events planned. The STA does not yet have a signature event in the diary.
Action: Opportunities for Scottish Government Ministers during STM to be discussed and agreed.
STERG should consider the strategic updates or key messages that are to be communicated to industry during STM.
Action: A discussion on STERG communications is to be added to the agenda for the STERG 2022 planning session.
Enterprise Agencies
Scottish Enterprise are focused on delivering the Phase 1 recovery projects to meet the deadlines of 31 March.
Stuart Black is now in post as the new HIE CEO.
HIE is trialling activity focused on Sustainable Tourism Supply Chains and has commissioned Dave Gass to develop new content and material for three webinars and at least one physical workshop (tied to a destination). The aim is to engage tourism businesses and community organisations on the subject of sustainable / local supply chains and raise awareness of the benefits (cost efficiencies, new business opportunities, local community engagement, carbon reduction and sustainable use of resources etc.) Dates for online webinars are 8, 10, 16 February. The physical face to face workshop is yet to be confirmed but will take place in March. Marketing and sign-up will launch next week. This is a new approach and HIE is testing the demand. If all goes well HIE anticipates doing more activity later in the year.
HIE has developed new content to raise awareness of the benefits of embedding fair work principles. https://www.hie.co.uk/fairtourism. There is also a short promo film. Case studies are being developed and there will be additional content added to HIE’s website in the coming months.
The slightly clunky requirement to download the booklet is due to the need to capture business details in order to be eligible to receive two-hours of HR consultancy from HIE’s existing framework with Purpose HR. This element is restricted to Highlands and Islands businesses only. The work also links to the national Fair Work Tool.
COSLA
Local authorities are focused on disbursing business support to businesses.
8. AOB
STERG recovery dashboard
The next edition of the STERG Recovery Dashboard will be issued at the end of January.
A trends report covering the period April-December 2021 will be issued by the end of February.
The focus and content of the STERG Recovery Dashboard should be considered at the STERG 2022 Planning Session.
Action: A discussion on the Recovery Dashboard is to be added to the agenda for the STERG 2022 planning session.
STERG Action Plan
The STERG Action Plan will be reviewed by the working group on 18 January. Recommendations on how the plan should move forward in 2022 will be shared with STERG at the Planning Session.
Next Meeting Date | The next meeting will convene on Thursday 27 January, at the later time of 3.00pm-4.00pm.
2021
1. Introductions
• Rob Dickson welcomed guests from Scottish Government, Scottish Enterprise, Highlands & Islands Enterprise and VisitScotland to the call and thanked them for joining.
• STERG’s continued focus on recovery was highlighted to the group and in particular the importance of understanding what businesses and sectors need to achieve this.
• STERG is currently waiting on funding decisions being made by the Scottish Government on the Phase 2 Recovery Recommendations. An update is expected after the Scottish Budget on 9th December.
• CCook advised the group that Ministers continue to see the Tourism and Hospitality sector as a key part of the Scottish economy, and this is evidenced by the level of engagement ministers and officials have had and continue to have with the sector.
It was also noted that ministers recognise the significant hit that the sector has taken and that all are very keen to support the sector to recover as quickly and sustainably as possible. STERG’s ongoing cooperation and collaboration with Scottish Government was highlighted as critically important as this ensures government discussions are informed with the latest sector information.
• RD noted that STERG is an effective coordination point for agencies, industry and Scottish Government and it will continue to play an important role in how we continue to respond to the COVID situation and in addition, lead the sector to recovery.
2. Tourism Funding Market Study – Michelle Kinnaird, Head of Investment Management, SE and Donal Church, Specialist, Growth Investments, SE
• ‘Investment models to support Scottish Tourism Recovery’ – this is one of ten projects currently underway in Phase 1 of the Tourism Recovery programme. The project aims to identify options for viable new future investment models which will support both recovery and Scotland Outlook 2030 ambitions. Scottish Enterprise’s Growth Investments team, led by Michelle Kinnaird, were tasked with supporting this recovery project on behalf of STERG.
Significant work on the project has been undertaken and MK and DC thanked STERG partners, and the tourism sector more broadly, for their cooperation and input into the project so far.
• The presentation by MK and DC outlined the journey that the Growth Investments team had been on. This included: observations from the initial information gathering which was done to understand the investment requirements of the Scottish tourism sector, an analysis of the independent Grant Thornton report which was commissioned and an overview of potential funding options and the associated risk. The presentation concluded that the work done so far indicates that there are no easy investment solutions for the sector and that further discussion was required to determine the next steps for the project. Action: MK to share the presentation and Grant Thornton report with STERG.
• RD thanked MK and DC for sharing progress on the project. It was agreed that STERG should schedule a follow up meeting to further discuss the issues raised in the presentation and the output of the Grant Thornton report and to agree the next steps for the project. Action: KC to schedule a follow up meeting before the next STERG meeting on the 16th December.
3. Tourism Recovery Plan
Phase 1 Priority Projects
• Days out incentive Scheme - There is concern that recent media and Scottish Government messaging surrounding the new omicron variant will hit consumer confidence hard and could result in a significant drop in the uptake of this scheme from consumers. Promotion of the Days Out Incentive Scheme by Scottish Government, highlighting what is open, would be very helpful and would encourage consumers to visit attractions or activity providers over the Christmas break. Reinforcing that the outdoors world remains open would also be beneficial.
Action: JYoung to connect the Scottish Government comms team and the VisitScotland comms team to discuss the promotion of the Days Out scheme and the outdoor sector more broadly.
• The monthly Phase 1 status report is currently being updated. This will be available to STERG w/c 6th December.
• A template for the next Phase 1 budget update will be issued to STERG partners on Tuesday 7th December for return by Tuesday 14th December.
Phase 2 Two Year Recovery Recommendations
• A report by STERG, based on the Phase 2 recovery recommendations which were submitted to the Scottish Government in August, is now available to download from visitscotland.org. Two Year Recovery Recommendations
• An update on recovery funding is expected from Scottish Government at the end of next week, after the Scottish Budget statement on 9th December.
4. AOB
• VisitScotland colleagues have updated the information and resources which are available on wellbeing and mental health.
A paper was circulated to STERG for approval in advance of the meeting. It was noted that all STERG partners approved the paper. The updated details will be made available on visitscotland.org w/c 6th December.
• The latest STERG Tourism Recovery Dashboard was issued on 1st December covering October / November data. Action: All STERG members are to feedback their comments on the dashboard to KC by Tuesday 7th December.
Next Meeting Date
The next meeting will convene on Thursday 16th December, 11.00am-12.00pm.
1. Issues
STERG Sector Call
The STERG sector call was held yesterday (17th). Minutes from the call will be circulated to STERG for reference. Key points are highlighted below.
- • COVID Certification UKH (Scotland) and ASVA expressed a deep sense of frustration that the COVID certification scheme may be expanded without a robust evidence base to support it. The Visitor Attraction sector and Hospitality sector are angry and disappointed that they may be included in the expansion plans given that there is no evidence that the virus is spreading in these sectors.
In addition, the visitor attraction sector has gone above and beyond baseline requirements for COVID mitigations with many businesses still operating with physical distancing, one-way systems, and timed entries. It was noted that a recent survey published by Scotland’s Hospitality trade bodies found that a Covid Certification extension could see over 75% of hospitality business close. (Note – A copy of the press release outlining the findings of the survey was circulated to STERG for information, in advance of the meeting.)
- • Business Ventilation Scheme ASVA and Sail Scotland highlighted that visitor attractions and the marine sector appear to be excluded from the Business Ventilation Scheme. It is hoped that this is an error as many businesses within both sectors are keen to improve ventilation where possible.
ASVA and Sail Scotland are to keep STERG updated on their follow up discussions with SGov officials. It was noted that following the FM’s statement next Tuesday, STERG needs to be clear on the support available for sectors and the potential impacts on visitors / customers.
- • Ongoing Labour & Skills Challenges It is acknowledged that the current labour and skills challenges are not new, however Brexit and the pandemic has accelerated the scale of the challenge. While it is recognised that there is a lot of excellent work being undertaken to address the urgency of the situation, it was noted that there are no quick fixes and that a strategic, medium to long term approach is required.
It was noted that workforce availability, (across all sectors – not just tourism), is a complex challenge within the HIE region and is a key area of discussion within HIE. HIE are keen to establish the role of the - Enterprise Agency in addressing this challenge to complement the role of other public agencies, Local Authorities and other organisations involved in this space. Staff accommodation was emphasised once again as a significant barrier to addressing the workforce challenge.
It was suggested that a national approach to this is adopted. However, it was highlighted that staff accommodation is part of a much broader housing issue and should therefore be part of a much wider discussion on housing needs and how this links to employment, community development and economic development.
Overall it was agreed that a clearer narrative outlining the overarching approach that the tourism and hospitality sector is taking to address the labour challenges would be helpful. Action: RD to pick up with LD to discuss the activities being undertaken by the Tourism Skills Group to address sector recruitment.
Note:- A recent meeting of the Tourism Skills Group reviewed a paper ‘Tourism Labour Market and Recruitment Challenge’ and discussed the issues and possible mitigations. It was noted that one of the thirteen, Phase 2 Recovery Recommendations, specifically sets out a proposal to tackle labour supply and recruitment in the tourism sector.
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It was noted that JY had agreed to explore opportunities within the SGov for a cross sectoral Task Force to look at the recruitment challenge on a national scale. Action: JY / CC (SGov) to update STERG.
2. Future Role of STERG
- • Currently, the role of STERG is to focus on COVID-19 response and recovery. However, it is now recognised that there is also a need to address some of the medium to long term challenges being faced by the sector, such as those identified in Scotland Outlook 2030, e.g., skills & labour and housing.
- • To deal effectively with the longer-term strategic issues requires a different approach - STERG was not set up to do that. It was suggested that there needs to be a discussion about how STERG could evolve into an entity which is designed to deliver Scotland Outlook 2030.
- • It was noted that before Scotland Outlook 2030 was launched in March 2020 work was in progress to address the future governance of the Strategy. Action: KC to source the previous work done on the governance of Scotland Outlook 2030 and share with STERG.
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Note: - The future role of STERG was last reviewed in August 2021. The review concluded that the purpose of STERG meetings should shift more towards recovery, while still retaining the ability to respond to crisis situations should they arise. STERG agreed that there was great value in public agencies and industry meeting collectively on a regular basis and that frequent engagement and communication had facilitated a closer and more collaborative working relationship. In addition, the ability to collectively address sector issues was highly valuable and far more efficient. It was noted that this had never been done pre-covid.
3. Tourism Recovery Plan
Phase 1 Priority Projects
- • Monthly project updates are complete. Eight projects retain a ‘Green’ (On Track) status, two projects move to ‘Amber’ (Risks Identified) status. - Destination Net Zero (Amber): There is concern that there will not be sufficient industry capacity to utilise all carbon reduction funding opportunities by 31st March 2022. - Scottish Tourism Observatory (Amber): Resource constraints on the project remain challenging. Risk to achieving all deliverables by 31st March 2022. - Days out incentive Scheme (Green): Discussions ongoing to ensure funding is utilised most effectively by 31st March 2022.
- • Phase 1 budget updates are required to be submitted to SGov on Monday 22nd November. It was noted that there is confusion over the process for reporting on the £25m Phase 1 project budget vs core funding. Action: CC (SGov) to confirm how the Phase 1 budget reporting is to operate moving forward. It was suggested that the Phase 1 reporting should come from STERG to SGov.
Phase 2 Two Year Recovery Recommendations
- • SGov have asked for the Two Year Recovery Recommendations to be prioritised. STERG recommend that this is done in stages, with a preliminary position submitted to SGov by the deadline of Wednesday 24th November. Following this initial prioritisation, STERG will undertake to review the Phase 2 recommendations in more detail to ensure that they remain valid and that the financial ask to support the recommendations remains appropriate. Action: KC to coordinate a first cut prioritisation which will be submitted to SGov on Wednesday 24th November.
- • A public document outlining the Phase 2 recovery recommendations is almost complete, the final document is expected by the end of the week (19th).
Action: STERG to agree next steps for the document w/c 22nd November.
It was noted that the core narrative could now be updated to reflect the current position of the Phase 2 recovery recommendations.
Action: CC (VS) to update the core STERG narrative with KC and circulate to STERG partners by Tuesday 23rd November.
4. Tourism Recovery Dashboard
- • The latest STERG Tourism Recovery Dashboard was issued on 11th November covering September / October data. STERG requested that a simple one-page headline summary is added to the start of the document to make it easier to use.
Action: All STERG members are asked to feedback their comments to KC by Friday 26th November.
The five questions posed were: - 1. Is the dashboard providing you with the information you require?
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2. Are the indicators included still the right ones?
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3. Are there any indicators that are no longer relevant and therefore can be removed?
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4. Are there any indicators missing?
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5. Do you foresee an endpoint for this Dashboard?
5. AOB
- • The STERG Action Plan has been updated and is ready to be shared on vs.org w/c 22nd November. A review of the STERG Action plan will take place in mid-January 2022 to agree how the Plan moves forward in the new year.
- • It was suggested that the ‘Glasgow Declaration for Climate Action in Tourism’ (and what it means for the Tourism sector in Scotland), should be a future STERG agenda item. It was agreed that a discussion on the Glasgow Declaration at a national level is essential, however it was noted that this is not a STERG issue, this is more aligned to Scotland Outlook 2030. A separate conversation is required.
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Next Meeting Date
The next meeting will convene on Thursday 2nd December, 11.00am-12.00pm.
1. Issues
STERG Sector Call
The STERG sector call was held immediately before the STERG meeting today. Minutes from the call will be circulated to STERG for reference. Key points are highlighted below.
- • Serious concern was expressed across many sectors about a long and hard winter ahead. Businesses have limited or no cash reserves to rely on and there is no further support from Scottish Government.
- • Mental health issues across many sectors continues to be a significant concern. Hospitality Health is the key resource which the STA has been signposting and promoting. https://hospitalityhealth.org.uk/
- Business Gateway has partnered with Public Health Scotland to provide a number of resources to help address mental health and well-being issues. These resources can be found on the Business Gateway website. https://www.bgateway.com/resources/wellbeing-and-mental-health-guide
- Action: RD and MC to discuss off line how the communication of mental health support services to industry could be improved and whether any additional support was required.
- • Further industry survey data is expected shortly from Historic Houses, the Scottish Tour Guides Association and the Scottish Country Sports Tourism Group. The data will be circulated to STERG as it becomes available.
- • The STERG sector group are keen to understand the role that sectors can continue to play and the value that they can add moving forward into 2022. RD advised that VS is looking at their relationships with sector groups, including the role that VS should play with sector groups.
- • Engagement with Scottish Government officials and Ministers is proving difficult for some sector groups. Some groups such as Golf Tourism and the Marine sector have not received responses to various requests.
- Action: JY to follow up with SGov colleagues.
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Sector Recruitment Challenge
- • The UK Tourism Skills Board met yesterday. It was noted that the five areas of focus that have been identified by UK colleagues align very well to Scotland’s priorities. Hospitality Rising presented an update on their initiative to the Board. It was noted that the Board were supportive. The Hospitality Rising initiative has ambition however challenges still remain around how the initiative can be scaled, how the capital will be raised to fund it and what will Scotland get out of it. Springboard have noted their desire to build on what we currently have, (e.g. CareerScope website), rather than open a number of different channels. RD reinforced the point that, one good, robust solution will have far more impact and be more effective than having multiple solutions. It was noted however that the challenge of achieving this should not be underestimated.
- • Recruitment is still slow. Additional staff have been parachuted in from businesses elsewhere in the UK to support their businesses in Glasgow during COP26 and local restaurants are being closed and the staff redeployed into Glasgow city centre businesses. It was noted that international demand is coming, and it would be disappointing if Scotland was unable to service this demand to the standards expected as we do not have the workforce in place.
- • The Economy and Fair Work Committee have launched an inquiry to consider the challenges facing Scotland’s supply chain. The committee will look at the challenges under three themes, People, Places and Product. It was noted that HIE will be submitting a cross sectoral response. It was highlighted that this would be an opportunity to raise the challenges around people in the supply chain within the tourism sector. The inquiry will close on 9th November.
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Ferries
- • Industry have raised concern over the new CalMac timetables which have been released for 2022. The proposed new timetables, which suggest a reduced service on some routes, will result in a drop in capacity which will significantly undermine the recovery of tourism on the islands (the Outer Hebrides specifically are noted to be affected). OHT have written to Graeme Dey MSP, and Ivan McKee MSP to express their concern. The lack of consultation with industry was highlighted as an important underlying issue. It was noted that CalMac ferry services remain high on the HIE agenda – this is an area which is seen as crucial to recovery.
2. Tourism Recovery Plan
Phase 1 Priority Projects
- • Days Out Incentive Scheme - VisitScotland are to launch the Days Out scheme to consumers this week. - Discussions are ongoing with industry partners and SGov colleagues to work through the detail of a proposed Phase 2 of this initiative in early 2022.
- Destination Net Zero - A VisitScotland news release was issued last week (29th) to raise the profile of the programme. https://www.visitscotland.org/news/2021/net-zero-announcement A new dedicated section for Destination Net Zero has been created on visitscotland.org https://www.visitscotland.org/supporting-your-business/responsible-tourism/sustainability/climate-change/net-zero - Further news outlining Destination Net Zero funding opportunities will be issued over the coming weeks. - All Destination Net Zero enquiries for funding should be directed to: netzeroenquiries@visitscotland.com.
- • The RAG status for all Phase 1 projects is currently being updated. This will be reviewed at the Phase 1 partner meeting next week.
- • Phase 1 budget updates will be submitted to SGov on a monthly basis moving forward. The next request is expected on 10th November.
Phase 2 Two Year Recovery Recommendations
- • No further news on funding support for the Phase 2 proposals is available. It is unlikely that any commitments will be made by Scottish Government until after the Scottish Budget on 9th December.
The impact of the UK budget on tourism in Scotland is still unclear, however, at the very least it is hoped that budget support will not be cut. It has been proposed that the financial transactions route should be explored with the Enterprise Agencies as a possible source of investment which could be directed straight to businesses. Action: JY to organise a meeting with SE, HIE and SOSE to discuss further.
3. Funding Updates
- • Inbound Operator Funding Support – Round 2 - The STA are still waiting on a date for a follow up meeting with Ivan McKee MSP. Action: JY to follow up with SGov colleagues to secure a meeting date.
4. COP26
- • VisitScotland will be holding an in-person ‘Destination Net Zero’ event tomorrow morning (4th) at COP26.
- • Tomorrow (4th) will see the signing and launch of the ‘Glasgow Declaration on climate action in Tourism’ to which VisitScotland (along with 300+ others) is a signatory.
5. Future STERG Work
- • Industry Wide Survey Before commissioning any further survey work, STERG agreed to pull together the data that is currently available, this will establish if there are any knowledge gaps to be filled. It was agreed to review the situation again in the new year.
- It was noted that HIE issues a regular business monitoring report. Action: KC to coordinate with relevant STERG partners.
6. Partner Updates Scottish Tourism Alliance
- • MC attended the inception meeting for the new Cross-Party Group for Tourism last week. Unfortunately, the meeting highlighted a distinct lack of sector awareness. It was noted once again that for the CPG to be effective it was essential for MSPs to appreciate the current tourism landscape and support the tourism agenda. It was suggested that a SPICE briefing may be beneficial for CPG members.
- Action: RD to follow up with VisitScotland’s Government & Parliamentary Affairs Manager for a debrief on the CPG. Action: RD and MC to follow up with further discussions.
- • MC attended and participated in the recent VITUR Summit in Malaga - the European event for Holiday Rentals. MC met and took part in many discussions with colleagues from Portugal, Spain, Denmark, Croatia and Italy and also presented the Scotland Outlook 2030 headlines in a panel session alongside Fiona Campbell, ASSC. Key takeaways included, how well the professional short term let sector had performed right across Europe over the past 18 months, significantly increasing its market share of traveller type, and that the future consumer demand for this type of holiday accommodation remains very strong. Many of the presentations showcased the level of innovation going on in the sector to help the property owners and managers overcome some of the operational and management challenges they face, but also how to improve the quality of the guest experience. It was noted that 3 Scottish Business came away with awards.
7. AOB
- • It was noted that an alternative date for the Director of Economic Development, Scottish Government, to join a STERG meeting had not yet been confirmed.
- Action: JY and CC (SGov) to arrange for the Director of Economic Development, Scottish Government to join one of the forthcoming STERG meetings. The 2nd December is proposed as an option.
Next Meeting Date
The next meeting will convene on Thursday 18th November, 11.00am-12.00pm.
1. Issues
STERG Sector Call
- • Minutes from the STERG sector call which was held yesterday (20th), will be circulated to STERG for reference.
Sector Recruitment Challenge
- • The CareerScope website remains the platform of choice for tourism and hospitality sector vacancies and Springboard are keen to develop the site further with feedback and support from industry and agency partners. It was noted that VisitScotland in particular were happy to provide support.
- • Industry are doing what they can to address the recruitment challenge, however, retention of staff is just as much of an issue as recruitment.
- • Although there are a number of good initiatives being put in place to improve the situation, to attract and to grow future talent, (such as the Young Person’s Guarantee), the main issue is that there aren’t enough people available to service the demand – this is a pan economy challenge.
- • Hospitality Rising is a UK wide initiative which started several months ago and is now beginning to gather momentum as the concept has been developed further. The aim is to raise £5m to create and run a hospitality recruitment campaign, supported by a recruitment platform and which will also link to skills training, fair work and technology. UKH have agreed to manage the funds which is reassuring. The target launch date is Q2 2022. Industry is not yet fully supportive however it is important for Scotland to engage although the degree of involvement and the benefits to Scotland still need to be confirmed.
- • Scottish Government are working on a cross-sectoral Labour and Skills Shortages Business Action Plan. Both SDS and the STA have fed into this process. It will be important to remain close to this initiative moving forward.
- • In a period of fierce competition for labour across multiple sectors, the positioning of the tourism & hospitality sector vs other sectors will be very important, as will recognising where the sector can get the best traction. Going it alone under these conditions is unlikely to be successful. Connecting into and ensuring that tourism & hospitality sits clearly within Scottish Government propositions and public agency propositions will be vitally important. It was noted that this must remain on the agenda.
2. Tourism Recovery Plan
Phase 1 Priority Projects
- • Tourism & Hospitality Talent Development Programme (T&HTDP) - Phase 2 of the T&HTDP (a virtual Leadership, Management and Supervisory training programme) will run from January to March 2022 with a target of 1,600 delegates. - Phase 1 of the programme attracted c. 1,900 delegates. - It was noted that industry are very supportive of the programme, however it was highlighted that there may be issues with releasing staff to participate, (Phase 1 was delivered during furlough). The flexibility and online nature of the programme should however help with this. - Discussions are ongoing to utilise a proportion of the T&HTDP budget to also address the labour market shortages.
- • Days Out Incentive Scheme - The scheme has now closed to business applications. 154 applications were received. - It was noted that while this will utilise a significant part of the funding there is likely to be budget remaining. It is proposed that a second phase of the scheme is run in early 2022 to kick start next season. Discussions are ongoing with industry partners to work through the detail of this proposal.
- • ScotSpirit Holiday Voucher Scheme -Last week VisitScotland launched the ScotSpirit Holiday Voucher Scheme to consumers and it was picked up by a few regional titles. VS are working with STV on a potential feature with a family who will be able to take part in the scheme.
- • Net Zero Pathway - Destination Net Zero comms activity will launch on Wednesday next week (27th) with a media release providing an overview of the project and its aims and objectives. This is timed for the run-up to COP26. VS are working on this with comms colleagues from all of the partners involved.
Action: KC to liaise with CC(VS) to provide a progress update on all Phase 1 projects, including the latest position on the budget.
Phase 2 Two Year Recovery Recommendations
- • Further news on funding support for the Phase 2 proposals are not expected until after the UK Budget statement at the earliest.
- • The development of a public document which will outline the two year recovery recommendations continues to progress. The release date for this document is to be agreed by STERG.
Ireland Budget 2022 (Tourism Related)
- • Ireland announced it’s 2022 Budget on 12th October. Details can be found here.
- • It has been noted that significant support has been identified in this Budget for the Irish tourism sector, including for example Tourism Business Continuity Support, international marketing, capital funding for tourism product development as well as a range of other industry initiatives.
- • It was highlighted that Ireland is a close competitor of Scotland and to remain competitive we need to be aware of their actions.
3. Funding Updates
- • COVID-19 Marine and Outdoor Tourism Restart Fund: Round Two (Administered by Visit Scotland) - A narrative outlining the current position on this fund was shared with STERG in advance of the meeting. Any comments on the document should by fed back to RD and CC(VS). Action: Scottish Government colleagues are asked to feedback comments on the narrative to RD and CC(VS). Update: SG have provided feedback and updated narrative has since been circulated to STERG.
- • Inbound Operator Funding Support – Round 2 - The STA and a number of inbound operators met with Ivan McKee on 7th September to present the case for a second round of funding support. - It was noted that since the meeting there has been no feedback from Mr McKee despite prompting for a response. The SGov tourism team were able to confirm that a follow up meeting is to be scheduled. It was reiterated that many sectors across the economy are requesting additional support however currently there are no funds available.
4. COP26
- • MC will be taking part in a HES event on 11th November, ‘Policy to Practice - Responsible Heritage Tourism for Scotland’.
- • VisitScotland has a timetable of events which can be shared with STERG partners.
Action: STERG partners to share details of events / activities being run by their organisations during COP26.
5. Future STERG Work
- • Industry Wide Survey The last industry wide survey carried out by the VS Insight team on behalf of STERG was in November 2020. STERG discussed whether this survey (or similar) should be repeated. It was agreed that there is a genuine need for data to support recovery plans moving forward, however there are concerns about survey fatigue. Careful consideration should be given to the format and timing of any survey. It was proposed that the Industry conference on 24th & 25th November could act as a platform for either launching a survey or for gathering data. Action: RD to discuss options with the VS Insight team. Action: STERG to discuss further and agree any necessary actions at the next meeting on 4th November. It was noted that the Fraser of Allander Institute is conducting its latest Scottish Business Monitor survey for the Third Quarter (July - September) of this year. The survey looks at inflationary pressures facing business and current labour market activity. This is a cross-sectoral survey; however it is hoped that it may be able to provide a robust view of the tourism & hospitality sector. Further information can be found here.
- • COVID-19 Scenario Plans It was recognised that the STERG Scenario Plans, that were completed in 2020, are now out of date. STERG discussed the need to refresh these Scenarios, however it was agreed that this was not a priority right now and that the industry survey should take precedence. It was suggested and agreed that this position be reviewed at a later date.
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6. Partner Updates
Enterprise Agencies
- • SE continue to focus resource on delivery of the Phase 1 recovery projects.
- • SoSE are upweighting their internal Tourism resources. The position of ‘Head of Natural Capital, Tourism and Culture’ is currently being recruited. In addition, reporting into this position (and also to be recruited), will be a ‘Tourism strategy Lead’ under which there will be a team.
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Skills development Scotland
- • The Young Person’s Guarantee employer webinar for tourism & hospitality will take place tomorrow (22nd). The webinar is to be hosted by The Torridon and delivered by the Scottish Government and Skills Development Scotland. There are c. 60 businesses signed up to attend.
STA - • The STA AGM will take place on 9th November.
- • The STA and UKH met with VisitScotland yesterday (20th) to discuss proposals for the new Cross-Party Group for Tourism. It was highlighted that for this group to be effective it was essential for MSPs to actively engage with the sector and support the tourism agenda.
- • The final speaker programme for the industry conference on 24th & 25th November is confirmed. Bookings for both in person attendance and online are going very well. - Day 1 Programme is here / Day 2 Programme is here / View the speaker line up here - Click here to book tickets
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VisitScotland
- • Last week VS launched Scotland’s UNESCO Trail. It was noted that the launch secured good media coverage and it was encouraging to see that the media had a real appetite to talk about something different.
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7. AOB
- • No AOB was noted.
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Next Meeting Date
The next meeting will convene on Thursday 4th November, 11.00am-12.00pm.
1. Issues
STERG Sector Call
- • Minutes from the STERG sector call which was held yesterday (6th), will be circulated to STERG for reference.
Sector Recruitment Challenge
- • The CareerScope website remains a live portal for sector vacancies and continues to be reviewed and refreshed by Springboard. Industry feedback on the site is welcomed. It was noted that VisitScotland may be able to offer support to Springboard which would help to improve the sites effectiveness. The possibility of additional promotional activity to target the c.20k new users of the CareerScope website is being discussed by Springboard.
- • During discussions with Jamie Hepburn yesterday, MC took the opportunity to update Mr Hepburn on the STA’s activity in terms of representation as well as the wide range of activity which is taking place within the Tourism & Hospitality sector to address skills development and recruitment challenges. MC also highlighted the cost associated with recruiting staff from other parts of the world through Home office visas (c.£6k per person), and the time it takes (c. 6 months in some cases) this will be picked up further with Ministers and the Scottish office.
- • An action plan is currently being developed by SGov in collaboration with ILG’s and business organisations to address labour shortages in Scotland (across all sectors of the economy). A draft is currently being reviewed by the ILG’s and business organisations.
- • In response to a request from the Scottish Government Resilience Room (referred to as SGoRR), COSLA has surveyed a number of local areas with questions focused on energy, CO2, food & drink etc. It was noted that the feedback reinforced that recruitment, particularly in hospitality was a key issue. This has been formally raised on the COSLA issues log and will be fed back to the SGov. It was noted that although this is not new news it is important to continue to reinforce the issue.
- It was highlighted that hospitality is not the only sector to be facing recruitment challenges, the health and social care sector is under immense pressure for staff. Without the necessary staff this becomes a huge community problem. This is a significant issue which Local Authorities continue to deal with.
Business Survival
- • There is significant concern about what may happen to businesses over the winter, particularly those businesses who have not been able to build up sufficient reserves and or have had much shorter seasons, there is a risk that businesses will either have to stop operating or fall into a redundancy, bankruptcy situation. It is impossible to judge what the next six months will hold, however it is incumbent on STERG to consider the possible scenarios and shape what a potential response would look like. All STERG partners agreed that STERG should be the starting point for discussions in responding to businesses in need.
Short Term Lets
- • The ASSC recently met with Fergus Ewing and Shona Robinson, Cabinet Secretary for Social Justice, Housing and Local Government. The meeting was very positive and it was suggested that there could be signs that ‘the ship may be turning’. It was noted that the ASSC will meet with SGov officials this afternoon to discuss further.
- • The ASSC’s proposal for an exemption for registered accommodation was shared with STERG. In addition this has also been forwarded to relevant colleagues in COSLA.
Scottish Tourism Workers League
- • The Scottish Tourism Workers League is an organisation which has only recently appeared on the radar, it was noted that no STERG members (with the exception of the SGov) were aware of it.
- Action: JY to cross-check this organisation with the STUC. Action: KC to follow up with AM for further information given the Highland focus of the organisation
2. Tourism Recovery Plan
Phase 1 Priority Projects
- • All ten projects are at green status. The latest project update (4th October) will be published on VS.org imminently. The next update will be at the beginning of October. Click here to read the latest update
- • Project leads have identified potential risks to the green status of some projects. These have been highlighted as: - Industry capacity to fill places on skills development or leadership development programmes. If minimum thresholds are not met, programmes cannot run. - Procurement challenges currently being experienced, may delay progress on projects preventing them from being delivered within the specified timescale, March 2022. - Resource constraints may impact project mobilisation and delivery of key milestones by March 2022.
- Action: Project leads to consider whether any Phase 1 projects should turn to amber in the November status update.
- • Although raised previously at STERG, it was noted that some projects, which are strategic, long term initiatives would benefit from securing multiyear funding in order to plan deliverables across multiple years.
- ScotSpirit Holiday Voucher Scheme - Businesses (accommodation and visitor attractions) can still sign up to join the scheme. Click here to find out more and to register - Over 110 businesses have now signed up - Beneficiaries launch is planned for 13th October.
Scottish Tourism Observatory
- • It was highlighted at the previous STERG meeting that specialist resource was required to support the governance and initiation activities of the Scottish Tourism Observatory. A document outlining the specific roles, their responsibilities and the time commitment required was circulated to STERG for consideration. It was noted that the preference of the Observatory would be to secure expertise from the STERG partner organisations, however it is accepted that if this is not possible then external recruitment would be required. The recommendation of STERG partners was to buy in the external knowledge and expertise required.
Action: HL to consider the document and feedback suggestions or recommendations to KC post meeting.
Phase 2 Two Year Recovery Recommendations (Submitted to SGov August-21)
- • No further progress has been made on sourcing and securing funding from SGov to support the Phase 2 recommendations. It was highlighted that the UK Budget will be announced on 27th October and so no further progress can be made until after that - the Scottish Budget will be announced on 9th December. The SGov team advised that they would continue to do whatever they can to press for support across government.
- • A public document outlining the recovery recommendations is in development and the next draft will be available for review by the end of the week, (8th).
Action: : KC, CC (VS) & CC (SGov) to review.
- • It was noted that the industry conference on 24th and 25th November is a good platform to communicate key messages about recovery planning. It was highlighted that the Scottish Tourism Observatory and the Net Zero pathway projects already have speaker slots. Action: KC, CC (VS) & CC (SGov) are to recommend the key messages which should be communicated on Recovery Planning at the Industry conference
STERG Recovery Dashboard
- • The September STERG Recovery Dashboard was issued on 24th September.
Action: STERG members are asked to feedback any comments or recommendations for improvements to KC.
- • The October edition of the STERG Recovery Dashboard is to be amended to ensure it can be shared with an audience broader than STERG. A submission will be made to Ivan McKee’s office requesting his support for this publication.
3. Funding Updates - • COVID-19 Marine and Outdoor Tourism Restart Fund: Round Two (Administered by Visit Scotland) - Fund is now closed - The number of successful applicants is low, due to a large proportion of applicants being ineligible and the timing of the fund vs the preferred launch of the funds. - A narrative is to be agreed with Wild Scotland and Sail Scotland which summarise the position of the fund. This will be circulated to STERG for reference.
- • It was noted that all underspends from VisitScotland administered funds are to be returned to Scottish Government. The SGov tourism team will push to repurpose this underspend to meet alternative Tourism needs.
- • It was noted on the STERG Sector call yesterday that businesses have faced significant challenges when applying for grant funding due to the complexity of the application process, this was particularly highlighted for the Inbound Operator Collaborative Marketing Fund which is currently being administered by VisitScotland. This has exposed the need to upskill businesses in this area, to improve understandings and capabilities (particularly digital capability). VisitScotland will look at how this can be addressed through business support and business development.
- • It was suggested that SGov are due to publish fund awards on 12th October, the scope of this is not clear and needs clarification.
Action: CC(SGov) to check and confirm what this publication is to CC(VS).
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4. Partner Updates
VisitScotland
- • In response to comments made on the STERG sector call yesterday, VisitScotland are looking at how business support / business development opportunities could be offered to businesses who are already closed or about to close for the winter. It has been suggested that VS colleagues liaise with Business Gateway to ensure any available funding or other options are pursued over the winter months.
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STA
- • The final speaker programme for the industry conference on 24th & 25th November has just been released. - Day 1 Programme is here / Day 2 Programme is here / View the speaker line up here - Click here to book tickets.
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5. AOB
- • The STERG Action Plan has been updated and will be available on vs.org w/c 11th October. View the STERG Action Plan here
- • The last industry wide survey carried out by STERG was in November 2020. STERG are asked to consider whether there is a requirement for a further industry survey.
Action: KC to circulate details of the previous industry survey to STERG. Consideration to be given to this on the next call.
- • STERG completed a set of Covid-19 scenario plans which were converted into an industry toolkit in November 2020. STERG are asked to consider whether it is necessary to revisit and update the scenarios and the supporting industry toolkit.
- Action: KC to circulate details of the STERG scenario plans to STERG. Consideration to be given to this on the next call.
Next Meeting Date
The next meeting will convene on Thursday 21st October, 11.00am-12.00pm.
1. Issues
• Sector Recruitment Challenge - Continues to be one of the biggest challenges across the sector, this was reinforced on the STERG Sector call and at a recent STA Council meeting. - Currently the UK Gov will not act until furlough ends. - The STA and UKH have written to the Secretary of State for Scotland calling for urgent solutions to be put forward from the UK Government to address the current recruitment crisis. A meeting has been confirmed with the Minister for Scotland on 7th October. The key asks include: 1. The UK Government to reconsider the introduction of a Covid Recovery Visa
2. The UK Government to revisit the Skilled Worker Shortage Occupation list with a view to expanding the criteria to support the urgent recruitment needs of our tourism sector and other sectors such as transport and food and drink
3. Review the costs of workforce visas to the employer to make it more affordable for our sector to recruit from abroad 4. Clarity around the government’s plans to support jobs and the economy beyond the end of furlough this month.
- the STA has also written to all Scottish Ministers calling on them to upweight pressure on Westminster.
- The recruitment crisis dominated discussions at the Tourism Industry Council which was held last week (15th).
- Recent feedback from industry has highlighted that staff retention is also an issue. Due to the shortage of staff within businesses, new recruits are not always receiving the induction or support which would normally be provided and therefore are choosing to leave. In addition abuse from customers is also putting off new recruits. This challenge highlights the need for Phase 2 of the Tourism & Hospitality Talent Development Programme to be approved and implemented as soon as possible.
-SDS continue to promote apprenticeships and the Young Persons Guarantee – a Young Persons Guarantee roadshow is planned for October. - Springboard have been active in this area, (Hospitality Apprenticeships week is coming up in October, the ‘Hospitality Sprint’ programme to fast track people into the sector and the Careerscope website is still live).
- • Survival Mode Not Recovery - The STERG Sector call and the recent STA Council meeting, have both emphasised that many businesses across the sector are still in survival mode and not recovery. There is grave concern about the autumn and winter months ahead with continued staffing challenges, supply chain issues, rising costs and the continuing barriers to international travel.
- • International Travel - A decision on the PCR testing requirement for fully vaccinated travellers arriving in Scotland is expected to be announced by the FM imminently. - It is critical that the SGov aligns with the UK’s approach on testing or Scotland will risk business being lost to other markets – bookings have already been lost. A very strong economic case for alignment has been prepared and it is hoped that this will have an influence on the FM’s decision. - The STA and colleagues will meet with Ivan McKee this afternoon to discuss. - It was highlighted that alternative ways to give the SGov what they are looking for (i.e. PCR tests to detect new variants), but in a different way, should be explored.
- • Vaccine Certification - The Nigh Time Industry Association are taking legal action against the SGov’s plans to introduce vaccine certification in night clubs and other similar venues.
- • Ferries - The ongoing disruption to the CalMac service is unacceptable and continues to be a major barrier to being able to trade and recover. In addition, recent CalMac communications to consumers is seriously impacting consumer confidence to travel.
2. Tourism Recovery Plan
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Phase 1 Priority Projects
- • All ten projects are at green status. The latest project update (7th September) has been published on VS.org. The next update will be at the beginning of October. Click here to read the latest update
- • Phase 1 Budget A status update on the Phase 1 Budget was provided to the SGov tourism team on Tuesday 21st as requested. Feedback on next steps is expected from SGov within the next few days.
- • Destination & Sector Marketing Fund (Administered by Visit Scotland) - 108 applications received, 73 awards being made, c. £2.9m to be awarded. - Payments have already been made and further payments will be made this week and next.
- • International Demand Building - The new ‘Scotland is calling’ marketing campaign is expected to launch at the end of September. - Industry webinar held on 15th September to share information about the campaign. Click here to watch the webinar
- • Inbound Operator Collaborative Marketing Fund (Administered by Visit Scotland) - Launched on 14th September, open to applications from 12pm on 23rd September until 5pm on 30th September. - It was noted that there is a lot of interest in this fund.
- • Scotspirit Holiday Voucher Scheme - Businesses (accommodation and visitor attractions) can still sign up to join the scheme. Click here to find out more and to register - The scheme will run from Autumn 2021 to Spring 2022.
- - Applications to the scheme are aiming to open in October
- • Days Out Incentive Scheme - Scheme was launched today (23rd September). - Businesses (Visitor attractions, day tour excursions and activity providers), can register from 5th October 2021 to 12th October 2021. - The promotion will run from 4th November to 18th February. - More details can be found here Click here for more details
- • Leadership Development To Boost Product Innovation - The Scottish Tourism Leadership programme is still open to applications for all three programmes, Introduction to Tourism Leadership, Communities Leading in Tourism and Destination leadership Programme. - More details can be found here www.findbusinesssupport.gov.scot
- • Tourism Observatory - Research is being conducted to provide a clear picture of the needs and wants for data/information from the tourism and events industry. STERG partners and colleagues are encouraged to take the opportunity to input into this short survey which will shape the knowledge resource for our future. Click here to find out more about the survey Click here to start survey - The governance structure for the Tourism Observatory project is currently being scoped and agreed. This has highlighted the need for specialist resource to join a working group. STERG are asked to consider whether there would be resource available in the partner organisations to support this. A spec. outlining the different roles will be circulated to STERG for consideration.
Action: KC to circulate details of the resource requirement to STERG.
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Phase 2 Two Year Recovery Recommendations (Submitted to SGov August-21)
- • Initial steps have been taken by the SGov tourism team to identify funding sources across SGov for Phase 2 recommendations. A further update is expected at the next STERG meeting on 7th October when Colin Cook, Director of Economic Development, Scottish Government, will join.
- • A public document which outlines the recovery recommendations is currently in development and will be published in due to course.
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3. The de Bois Review – An Independent Review of Destination Management Organisations in England
The de Bois report was reviewed by STERG partners and the following observations and comments were made.
- • Overall it was acknowledged that this was a really good document containing some very helpful information and important learnings for Scotland.
- • The challenges outlined are very similar to those being faced in Scotland, however it was noted that Scotland may be in a better position overall.
- • It was noted that the only way the recommendations in the report could be implemented is with funding from central government.
- • Based on the evidence gathered, the report states that DMOs "…are a crucial part of the tourism ecosystem and are not going away…". This is a significant statement which suggests that action needs to be taken now to secure a sustainable future for DMOs in Scotland, not only to support recovery but also to deliver the long term ambitions of Scotland Outlook 2030.
- • It was recommended that further discussions were needed on this topic and it should remain on the STERG agenda.
- • It was noted that VisitScotland would also be following this up with further discussions.
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4. 10 Year National Strategy for Economic Transformation
- • All responses by STERG to the informal consultation were circulated to STERG partners for information.
- • A slide deck, prepared by the Office of the Chief Economic Adviser, illustrates the importance of Regional Economic Partnerships to the delivery of the new economic strategy. A copy of the slides will be circulated to STERG partners for reference.
- • It was noted that HIE continues to feed in additional information beyond their initial submission. This is a big focus area for HIE.
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5. Funding Updates
- • COVID-19 Marine and Outdoor Tourism Restart Fund: Round Two (Administered by Visit Scotland) - Applications for Round Two of the Fund are open until 5pm on Wednesday 29th September. - 22 applications have been received. 11 have been rejected on the basis they are ineligible It was noted that this was very disappointing response.
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6. Partner Updates
COSLA
- • The immediate concern and focus is the crisis on energy prices / CO2 supply issues and the impact that will have on the food and drink supply chain and on businesses.
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Skills development Scotland
- • Labour shortages is the number one issue. Discussions at both individual business level and a regional level are ongoing to try and identify practical solutions.
- • Jobcentre Plus are currently running a campaign with SDS and other partners called Hospitality Scotland. The campaign is to try and match employer vacancies with Jobcentre Plus client groups.
- • Final approval of the funding for Phase 2 of the Tourism & Hospitality Talent Development Programme is still to be confirmed by the SGov.
- • SDS working closely with the Glasgow City Region to develop a Glasgow chef’s academy. This is an employer recruitment incentive to encourage more employers to take on professional cookery apprentices. The programme is due to go live shortly.
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Enterprise Agencies
- • All EA’s continue to focus on delivering the Phase 1 recovery projects
- • HIE’s latest business panel survey has just been published. The business panel is a representative sample of the Highlands and Islands business population and the findings from the survey provide a temperature check of business confidence. The summary headline from this survey would suggest optimism, however it was noted that Tourism was an exception. Overall the findings highlight that there is a proportion of the Highlands & Islands economy which is starting to look up however it reinforces the challenges for Tourism. A copy of the report can be downloaded from the HIE website. https://www.hie.co.uk/research-and-reports/businesspanel/
VisitScotland
- • A press release will be issued today outlining the confirmed awards across all tiers of the Destination and Sector Marketing fund. https://www.visitscotland.org/news/2021/destination-and-sector-fund-update
- • The Days Out Incentive scheme was launched to industry today and a press release will be issued tomorrow (24th). https://www.visitscotland.org/news/2021/days-out-scheme
- • STERG related pages on vs.org have been updated to ensure they reflect current activities.
STA
- • Scotland Food & Drink and the STA launched the new food tourism ambassador programme last week (16th). 25 ambassadors were appointed from across Scotland. It was noted that not only will they raise Scotland’s profile as a global food tourism destination, they will also promote career opportunities within the sector. Further details about the food tourism ambassadors can be found on the Scotland Food & Drink website. https://foodanddrink.scot/regional-food-growth/food-tourism-ambassadors-2021/
- • Scotland's Tourism Industry Conference programme was launched yesterday. The conference, which is being co-hosted by STA, ASVA and HIT Scotland will run on 24th & 25th November at the EICC . This is a hybrid event, however ticket sales so far are demonstrating a preference for in person attendance. Click Here To Find Out More and To Book Tickets
7. AOB
- • No AOB was noted
8. Meeting Close
RG noted that this was his last STERG meeting and that he would like to thank everyone for their input and work over the last 18 months. Despite the difficult challenges and frustrations, STERG has been an exemplar for collaborative working. The STERG partners thanked RG for chairing the group and wished him well in his retirement.
Next Meeting Date
The next meeting will convene on Thursday 7th October, 11.00am-12.00pm. New Chair - Rob Dickson.
1. Issues
STERG sector call
The STERG sector call took place yesterday (8 September), the issues highlighted below also reflect the concerns of this group. Meeting notes will be circulated to STERG for reference.
Sector recruitment challenge
- Staffing / skills shortages continue to be a grave concern across all sectors of tourism and hospitality and across all geographies, urban and rural.
- The recent report from the Ayrshire & Arran Destination Alliance was referenced once again as it highlights the significant staffing challenges across the region and the impact that this is having on businesses and communities.
- A number of meetings are scheduled to take place over the coming weeks to discuss how to address the issues
- SDS will facilitate a session on behalf of the Highland Economic Partnership on 20 September and the Ayrshire Visitor Economy Group will meet on the 28 September to discuss the challenges specific to Ayrshire and Arran.
- MC took part in a meeting with Jamie Hepburn and other business organisations on Monday (6 September) to discuss the future skills strategy. This is a follow up to the Labour and Skills shortage meeting which took place last month with a number of business organisations. It was noted that these are cross-sectoral discussions.
- It was noted that there are many conversations taking place on this issue, not just within tourism and hospitality but across all business sectors.
- The overarching issue which has been highlighted is that physically there aren’t enough people.
- Pressure continues to be put on the UK Gov to relax their position on visas, however it is unlikely that there will be any movement here until the fall out from furlough is known. The CBI will be submitting a national paper to the UKGov – the STA as well as other hoteliers and restauranteurs have contributed to this paper.
- It was noted that a group of hoteliers in the south of Scotland are pooling their resources to sponsor a number of Indian and Filipino Chefs to come to Scotland. It was highlighted that this is a challenging initiative due to the bureaucracy involved and the cost.
- It was highlighted that there has been no further update on the position of Afghans arriving into Scotland.
- It is hoped that as students return to colleges and universities that the labour pool will expand – this will not however resolve the gap for skilled chefs.
- STERG agreed to look at opportunities that could bring additional leadership and coordination to the collective response to this challenge, recognising the magnitude of the situation.
Vaccine Certification
- Industry is disappointed and frustrated that the SGov is not listening or acting on their views on vaccine certification, (particularly the night time economy and events).
- There is concern that Parliament will be voting on this without the detail of what it will entail. - There is concern that the vaccine certification scheme could be extended beyond the current venues / events that have been identified.
International travel
- The complexity of travelling to Scotland for international visitors is deterring people from coming here, the Day two testing has been highlighted as major barrier to inbound travel bookings. It was noted that Ireland is perceived to be more accessible and this is being reflected by the boom in bookings to Ireland.
Business survival
- Business survival through the winter to spring 2022 continues to be a real concern for businesses, particularly for those who have had a limited trading window or for those impacted by the lack of international visitors. Financial support is requested to protect business through to 2022.
Amplifying baseline measures
- Industry are doing whatever they can to amplify the baseline measure which are in place, however this is having an impact, for example, limiting or not opening certain facilities to minimise risk, increases the risk of conflict between staff and customers.
Ferries
- The reliability and consistency of the CalMac service continues to be a major barrier to recovery.
2. Tourism Recovery Plan
Phase 1 Priority Projects
- The monthly status update for Phase 1 projects is complete and will be published on vs.org.
- The international demand building will launch to industry in mid-late September. The launch will demonstrate the benefits of the campaign for industry and how it will help with recovery.
- The deadline for the Phase 1 budget update is w/c 20th September.
Phase 2 Two Year Plan
- Following the submission of the Two Year Recovery Plan to SGov on 27th August it was noted that the proposals were acknowledged in the Programme for Government. The PfG states that SGov will “ …consider the best approach to Phase 2 recovery work, covering the following 2 years…”
- The SGov Tourism Team recently met with the Minister for Business, Trade, Tourism and Enterprise and the Director of Economic Development to discuss the Phase 2 proposals and to agree an approach to securing funding. It was noted that the PfG was just the beginning of the process and not the end, the next step will be to look at opportunities for funding through the spending review which will take place over the next couple of months. Overall feedback on the proposals have been positive.
- The group discussed whether there was a need at this stage to review the budget ask for each of the Phase 2 proposals that were submitted. The group concluded that there will be a need to look at reducing costs, however it was not something that had to happen now. It was noted that a short list or prioritisation list should be considered. Two learnings were highlighted from the Phase 1 projects, firstly, the longer it takes to get to a conclusion on the money that will be available to spend next year the less money will be needed (particularly on capital spend). Secondly, it would be good to have more than one years commitment, particularly for capital spend – the nature of some of the proposals will make it very difficult to be delivered in one year, there needs to be a sensible lead time for development and a realistic period to deliver the projects.
- The Two Year Recovery Plan, which was submitted to SGov, has been circulated to the Tourism Task Force. It was noted that there would be benefit in sharing the submission with the business groups who sit on the economy working group. A document will be created to share the Two Year recovery Plan with industry and other stakeholders.
3. 10 Year National Strategy for Economic Transformation
The STA, VisitScotland and the Enterprise agencies have all submitted a response.
SGov tourism team will confirm whether anything further is required from the tourism sector.
The significance of the National Strategy for Economic Transformation cannot be underestimated as it will govern what we all do in the future.
It was noted that although this will be a national strategy, the regional importance of tourism is significant. It was suggested that a review of the regional economic partnerships / regional economic plans is carried out to identify where tourism is featured – the Enterprise agencies can help with this.
The Director of Economic Development joined the Business Support Partnership Board meeting yesterday and explained that the Advisory Council will be the body who will come up with the ‘what’ and the Economic Development team will turn that into the ‘how’. It was noted that the landscape for business support will continue to change more quickly over the next 10 years. It was also noted that the Enterprise and Skills landscape is expected to play a key role in the strategy.
4. STERG communications
The STERG core narrative and communication plan were approved by STERG partners.
5. AOB
Phase Two of the Covid-19 Marine and Outdoor Tourism Fund opened yesterday (8th). The fund will be open for three weeks to allow businesses sufficient time to apply. The purpose of the fund is to help businesses, who have had no funding support, to survive through the winter.
The programme for the Industry conference, (which is being co-hosted by the STA, ASVA, HIT Scotland and Scotland Food & Drink on 24th & 25th at the EICC), is currently being finalised. This is a hybrid event, however ticket sales so far are demonstrating an appetite for in person attendance.
Next Meeting Date | STERG meetings going forward will now be fortnightly. The next meeting will convene on Thursday 23 September, 11.00am-12.00pm.
1. Future Role of STERG
A revised remit for STERG was approved by the group (bar one small amend).
Action: KC to amend the diagram which illustrates the operational context. Action: CC(VS), to cross-check the one page STERG recovery narrative with the revised remit.
2. 10 Year National Strategy for Economic Transformation
• The closing date for final submissions is 3rd September.
• The STA submitted their response on Friday 27th August and was circulated to STERG for information. The STA response plays heavily to policy areas but also reinforces all of the collaborative work that has already been undertaken in the sector - Scotland Outlook 2030 and the recovery planning work.
• HIE, SE, SDS and COSLA will also be making submissions. These submissions are being made at an agency level. The submissions will be shared with STERG if appropriate.
• The VS submission is being finalised. The submission will focus on responsible tourism including Tourism’s commitment to the Net Zero agenda and business tourism as key opportunities. Once submitted it will be shared with the group.
• It was noted that the Cabinet Secretary has confirmed that all submissions to the Advisory Group on Economic Recovery (AGER), chaired by Benny Higgins, in 2020 will be considered by the Advisory Council appointed for the 10 Year National Strategy for Economic Transformation.
• It was noted that the strategy for economic transformation will need to be radical and transformational in order to address systemic issues in the economy such as low R&D, low innovation, low exports, low FDI, low productivity and low entrepreneurialism. Decades of business support, public sector intervention and economic development have not changed these systemic issues – we cannot do more of the same.
3. Issues
• Sector Recruitment Challenge - Recruitment continues to be one of the biggest issues facing the sector. This was emphasised in a recent report from the Ayrshire & Arran Destination Alliance highlighting the significant staffing challenges across the region and the impact that this is having on businesses and communities. It was noted that this report reflects the challenges being faced by businesses across Scotland.
- A recent survey conducted by Glasgow Life, to better understand the staffing and skills shortages across the city, is now complete. It was noted that when asked about employees on furlough, 80% of businesses responded that they had no staff on furlough.
Action: MC to share the Glasgow survey results with STERG. - Dialogue has now taken place between the Refugee Council and COSLA to look at where Afghans in Scotland could potentially be redeployed quickly into work. An update is expected next week. - There was a request for any intelligence which would show whether the recruitment of staff is becoming any easier in college / university towns as students are now beginning to return. It would be helpful to know if this is easing the pressure at all. The group were not aware of any statistics in this area however the universities have been proactive in this area. - It was noted that Napier University have reported the lowest ever number of applicants for Tourism and hospitality related courses in this coming academic year. - HIE has just approved £1.5m for graduate placements this year. The focus of these placements will be exclusively on food & drink and tourism.
City Performance - City occupancy numbers are improving; however it was highlighted that the rates are very poor. It was noted that volume does not always convert to profit.
Customer Behaviour - Anti-social behaviour from customers is being reported by industry. In some cases this is now leading to staff resignations. Customer attitudes to mask wearing is one of the main challenges.
Transport - Ongoing disruptions to CalMac ferry services continue to impact the sector. The recent CalMac request which stated, ‘Don’t travel to Mull’ and headlined in the media is not helping to build confidence of visitors to travel to the islands. -Additional Scotrail strike action similarly does not build travel confidence.
Vaccine Certification - UKH and the SLTA have written to the FM asking for evidence that a vaccine certificate would reduce the spread of the virus. It was noted that when France implemented a similar scheme in July it prompted c.8m people to get vaccinated very quickly however it was recognised that the culture in France is quite different to the UK.
- Businesses in the night time economy and the events sector are concerned however there is a commitment within SGov to engage with industry on this matter.
Baseline Measures - Businesses are being encouraged to ramp up baseline measures wherever they can to try and mitigate transmission. It was noted that it’s not just about schools as the increases are being seen in the 20-40 years old age group.
4. Tourism Recovery Plan
Phase 1 Priority Projects
The monthly update on Phase 1 projects will be completed w/c 6th September.
- Leadership Development to Boost Product Innovation - Successful applicants are now in the final stages of due diligence. Final approval is expected w/c 6th September.
- • A budget update on all Phase 1 projects has been requested by the SGov. Action: KC to coordinate with SGov Tourism team and the agencies leading on the Phase 1 projects.
Phase 2 Two Year Plan
- • The Two Year Recovery Plan was submitted to SGov on 27th August. It was noted that no funding has been secured to support the proposals which have been submitted. STERG is awaiting feedback from SGov on next steps.
- • The proposed Two Year Plan will be communicated to stakeholders once Ministers have had sight of the document. Format and timing to be agreed.
Tourism Recovery Dashboard
- • V3 was issued to STERG on 27th August.
- • STERG requested a version of the Dashboard which could be shared with industry. It was noted that the STERG Dashboard could not be circulated beyond STERG members due to contractual arrangements with some of the data providers. Action: KC to discuss options with the working group and propose a solution to STERG.
5. STERG Communications
CC (VS) shared a one page core recovery narrative and draft comms plan with STERG in advance of the meeting.
It was noted that comms colleagues across all of the STERG partners will need to be linked into the Plan. Action: STERG partners to email comments on the core narrative and comms plan directly to CC (VS).
7. Partner Updates
Enterprise Agencies
Two Noble Caledonia Explorer ships are expected to return this month to Eyemouth (9th and 23rd September).
Mask wearing is the biggest single issue being faced by businesses in the south of Scotland. Visitors coming across the border from England are not understanding that they need to wear masks, this is causing friction.
Cruise booking numbers to Orkney in 2022 are looking exceptionally high (more than 2019).
STA
Next week the STA will attend a round table with Jamie Hepburn to discuss the future skills strategy. This is a follow up to the Labour and Skills shortage meeting which took place last month. This is a cross-sectoral discussion.
MC had a recent call with counterparts from N.Ireland, Wales and England. The group noted that it is only 5 weeks until EU identity cards will no longer be recognised, and passports will be required for travel to the UK. The group on the call questioned whether there has been sufficient communication about these changes to EU travellers.
Ticket sales for Scotland's national tourism industry conference on 24th and 25th November are going well. The event will be delivered and co-hosted by Scottish Tourism Alliance (STA), the Association of Scottish Visitor Attractions (ASVA), HIT Scotland (Hospitality Industry Trust) and Scotland Food & Drink. This will be a two day hybrid event shaped around the pillars and priority areas of Scotland Outlook 2030.
Skills Development Scotland
Ekosgen has completed an evaluation of Phase 1 of the Tourism & Hospitality Talent Development Programme. Overall the evaluation was very positive. A few issues were identified, and these will be taken forward and addressed in Phase 2.
SDS are facilitating a labour shortage workshop in the Highlands & Islands on 20th September. This will look at all sectors who have been impacted by the labour shortage, including Tourism.
The final report on the tourism recruitment marketing campaign has been received. Broadly this was very positive, and all targets were exceeded. The key issue was that there wasn’t as many employers engaging with the campaign as would have been liked. The careerscope.net website is still live, and employers can still post vacancies on the site. All partners are asked to continue to encourage businesses to advertise their jobs on the site.
SDS currently updating the My World of Work website. The Tourism sector content is being updated to ensure the sector is reflected positively.
8. AOB
- • It was noted that the First Minister will meet with Sadiq Khan, mayor of London this afternoon. Discussions will include how Scotland and London can cooperate on Tourism. STERG are urgently asked to consider this and recommend potential areas of opportunity.
Next Meeting Date
The next meeting will convene on Thursday 2nd September, 11.00am-12.00pm. MC to chair.
1. Welcome
RG welcomed Rob Dickson who has recently joined VisitScotland. Rob will take over as Director of Industry and Destination Development when Riddell retires at the end of September.
It was noted that RD will be meeting STERG partners in the coming weeks for 1-2-1 sessions. It was also noted that RD joined the three STA member forums that were held this week.
2. Future Role of STERG
Following discussions at the previous meeting on 19th August, STERG partners confirmed that: - STERG meetings will continue - VisitScotland will continue as Chair
- The purpose of the meeting will shift more towards recovery
- Frequency of meetings are likely to move from weekly to fortnightly - STERG as a name will be retained, however any comms being issued will ensure the revised focus of the group is clear.
Action: RG and KC to rework the remit of the group.
It was noted at the STERG sector call yesterday that whilst it is inevitable that discussions are shifting towards recovery there is still grave concern, particularly among smaller operators, that there are still a lot of businesses who are not operating anywhere near full capacity and they are worried about the rest of the season and the approach of winter.
Sector leads were keen to press the point that this has not been a bumper year for Scottish Tourism and there are still a significant number of businesses who are struggling or not even operating. It was highlighted that the Two Year Recovery Plan which is to be submitted to SGov, does paint this picture quite clearly and it was suggested that the message is getting through to SGov. It is evident from recent SGov meetings that different sectors of the economy are recovering at different rates and whilst sectors such as Construction and Manufacturing may now be beyond recovery, the point has been made and will continue to be made, that is not the case for Tourism.
It was recommended that STERG make available a single, coordinated narrative, which is agreed by all partners and which articulates the current position of tourism in Scotland. It is crucial that a consistent message is reinforced by all partners when meeting with stakeholders. It is clear we do not have universal recovery and that there are significant challenges ahead to sustain businesses in the coming months.
Action: Using the information in the Two Year recovery Plan submission and any other relevant data and insights, CC (VS) to create a one page narrative to be shared and used by STERG.
3. Issues
International Travel - The continued lack of international visitors remains an ongoing concern. - Testing arrangements for international visitors are not fit for purpose and Scottish Government guidelines are very confusing. - It was noted that an announcement is expected from Scottish Government imminently on the monopoly relationship with CTM for testing.
Sector Recruitment Challenge - The lack of affordable housing / accommodation, particularly in more rural areas is a huge barrier to recruiting and retaining staff. - The lack of staff continues to impact business operations by either forcing closure or reduced service.
Business Survival - There is still a nervousness about survival in the visitor attraction sector. The visitor attraction sector has only had a very small window of opportunity to trade viably (from 9th August) there is real concern about how these businesses will survive the winter months ahead. It was noted that this view is shared with the outdoors sector.
Short Term Lets Licensing - Scottish Government have announced that they will delay the laying of their Licensing Order until November 2021.
FM’s Announcement - The FM’s statement on Tuesday (24th), which referred to the possible re-introduction of restrictions, has caused concern among businesses. Within the historic houses sector in particular, many venues are reconsidering their winter events programme as they don’t want to be in the situation of having to cancel events.
Guidance - It has been raised that the differences between guidance for night club venues and hospitality venues is difficult to comprehend. As the owner of a hospitality venue, you are expected to wear masks and provide whatever protective measures you can, however, clubs seem to be exempt? - It was noted that clarity has been requested on conference & business events guidance.
4. Tourism Recovery Plan
Phase 1 Priority Projects
All ten projects continue to progress. A Green status has been noted on all.
Destination & Sector Marketing Fund - Work is ongoing to deliver this fund. - Due to the overwhelming demand for this fund, individual awards across all tiers have been reduced.
- ScotSpirit Holiday Voucher Scheme - The ScotSpirit holiday voucher scheme was launched to businesses on 10th August. - The scheme is currently being promoted to businesses to encourage businesses to sign up
- • International Demand Building - A comms plan to support the launch of international activity in mid-September is underway. An industry webinar will be part of this plan.
- • Leadership Development to Boost Product Innovation - The panel session for the Tourism Leadership & Recovery Fund took place on Wednesday 25th. - A preferred shortlist has been agreed and will be followed up individually by the Enterprise Agencies. - It was noted that the fund has been oversubscribed.
Phase 2 Two Year Plan
A final draft of the Two Year Recovery Plan was issued to STERG on Tuesday 24th. All feedback has now been received. The final document will be submitted to SGov on Friday 27th PM.
Once submitted, the document will go through all of the available processes in SGov in order to gain support for funding. It was noted that although initial proposals were submitted to the Programme for Government in June, no funding has yet been secured - without funding the proposals cannot be included in the PfG. The PfG is likely to be published on 7th September. Internal SGov meetings will take place this week with the Director of the Economic Development Directorate and the Tourism special advisor to discuss how to move this forward. The spending review for example is another funding route.
It was noted that SGov budgets are very tight, and it was suggested that STERG should consider prioritising the proposals. The importance of articulating the consequences of any prioritisation was highlighted. STERG should therefore have complete clarity on what the current position is in Scottish Tourism, what the requirement is to sustain necessary activity and what are the consequences of not doing that.
It was noted that trying to prioritise the proposals within a constantly changing environment will be challenging. For example, as yet we do not know what the priorities of the 10 Year National Strategy for Economic Transformation will be, nor the impact of the deal which has been done between the SNP and the Greens, nor the impact of a potentially accelerated net zero agenda.
The role and expectations of a public facing document, to externally share the Tourism Recovery Planning process and the Two Year Recovery proposals, is to be discussed further once the submission is made.
5. 10 Year National Strategy for Economic Transformation
- • SGov Tourism team have been asked to coordinate an informal consultation with key tourism & hospitality stakeholders, on the National Strategy for Economic Transformation. A submission date of 3rd September has been set, however, there will be opportunities to continue to engage beyond that date. The Tourism team will also set up meetings with other tourism and hospitality stakeholders.
- • The overarching ambition would be for the work that has been done on the tourism recovery plan and the national tourism strategy, Scotland Outlook 2030, to be embedded and supported within the National Strategy for Economic Transformation.
- • The Tourism team would like to discuss this further with STERG at the next meeting.
- • The Enterprise agencies have all been invited to submit a contribution to the development of the 10 Year Plan.
- • A Local Authority response will be submitted, the key theme of this response is expected to be ‘a just transition to net zero’.
- • VS will submit a response.
6. Funding Updates
- • Outdoor Fund Phase 2. - Guidance will be launched on 1st September - Applications will open from 8th September
7. Partner Updates COSLA
- • As part of the 100 days commitment the Digital Boost Fund was launched on Tuesday (24th). The fund opened to applications at 11.00am and was closed by 5.45pm. The full £25m has been committed to c. 2,600 applicants. It was noted that some concerns had been raised about the application process and these will be looked into.
STA
- • Scotland's national tourism industry conference will be held on 24th and 25th November. The event will be delivered and co-hosted by Scottish Tourism Alliance (STA), the Association of Scottish Visitor Attractions (ASVA), HIT Scotland (Hospitality Industry Trust) and Scotland Food & Drink. This will be a two day hybrid event shaped around the pillars and priority areas of Scotland Outlook 2030. Click here to book your tickets!
VisitScotland
- • RG and RD are presenting at the SOLACE conference next week.
8. AOB
- • RD observed that after two weeks of discussions and learning it was clear that the coming together of senior level representatives from SGov, agencies and other key stakeholders is critically important because of the current fragility of the sector and the pressure it is under.
Next Meeting Date
The next meeting will convene on Thursday 2nd September, 11.00am-12.00pm. MC to chair.
1. Welcome
RG welcomed Karen Slight from VisitScotland who was covering for Carolyn Churchill. 2. Future Role of STERG
• In response to feedback received from the Sector Leads at the end of July and in response to the fact that Scottish Tourism is now in a different place to where it was when STERG first convened, it was agreed that this was the right time for STERG to take action and review the purpose and role of STERG.
• STERG discussed the value of the public agencies and industry meeting collectively on a regular basis and all agreed that there was still great merit in doing this. Frequent engagement and communication has facilitated a closer and more collaborative working relationship. In addition, the ability to collectively address sector issues was highly valuable and far more efficient. It was noted that this had never been done pre-covid.
• It was acknowledged that the initial purpose for coming together 17 months ago had now changed and therefore a new purpose and set of expectations should be set for the group. These could be more focused on recovery while still retaining the ability to respond to crisis situations should they arise.
• It was noted that the fortnightly Sector call, due to its diverse membership, continues to be a very important mechanism to capture and escalate issues in a timely fashion to STERG and Scottish Government. It was also noted that this did not happen on a such a frequent basis pre-covid.
• It was agreed that VisitScotland would continue to Chair STERG.
• Moving forward it will be important to communicate the role and purpose of STERG externally
• The frequency of future STERG meetings is to be agreed. Weekly or fortnightly are to be considered.
• The group agreed to finalise the details at the next STERG meeting on the 26th .
3. Issues
• Ferries Significant issues remain on the reliability and capacity of the ferries. In the last 4 days it has been reported that only 26% of the potential passenger allowance on the Arran route was actually transported due to COVID on one of the vessels, breakdowns, cancellations and technical issues.
These continued disruptions to CalMac ferry services are crippling the recovery of island communities. It is causing significant reputational damage and is resulting in the cancellation of forward bookings into 2022. The consistent failing of the CalMac fleet is not only impacting the communities they serve, it is also having a hugely detrimental impact on other UK based tourism businesses, such as tour operators, (domestic and inbound), who operate tours to the islands and cannot deliver the service that their customers expect. Urgent resilience planning is needed to safeguard services on all routes. Contingencies must be put in place.
It was noted that this issue would also be raised on the business organisations call later in the day with Scottish Government’s Director-General Economy.
• Sector Recruitment Challenge A recent meeting of the business organisations, to discuss labour shortages and skills with Scottish Government officials, tabled a proposal to explore how the Scottish Government and Scottish businesses could support the Afghan refugee community take advantage of the employment opportunities that are available across all sectors of the economy.
It was noted that this could be a short term solution to the current recruitment crisis. Many of the business organisations were supportive of the proposal and SGov officials agreed to take it forward.
4. Tourism Recovery Plan
Phase 1 Priority Projects
• All ten projects continue to progress. A Green status has been noted on all.
• Destination & Sector Marketing Fund - All successful applicants and unsuccessful applicants have been notified.
- There are still a number of applicants who have been asked to provide additional information and work is ongoing with them.
- Due to the overwhelming demand for this fund, individual awards across all tiers have been reduced.
• ScotSpirit Holiday Voucher Scheme
- The ScotSpirit holiday voucher scheme was launched to businesses on 10th August.
- The scheme needs as many businesses as possible to sign up within the next two weeks so that the scheme can be set up in time for the October holidays.
• International Demand Building - A comms plan to support the launch of international activity in mid-September is underway. An industry webinar will be part of this plan.
• Leadership Development to Boost Product Innovation
- The window for applications has now closed for the Tourism Leadership & Recovery Fund.
- A cross-agency team of assessors are now appraising all the applications. 42 applications were received from across Scotland. - The £500k budget is significantly over-subscribed. A request was made to SGov for additional funds to increase the budget, however it was confirmed that no further funds are available at this time.
• It was noted that the SGov Tourism Team will meet with each of the Phase 1 Project leads in the coming days to introduce Caroline Cantin, the newest team member with responsibility for recovery.
Phase 2 Two Year Plan
• STERG working group leads are revisiting the Two Year Plan recommendations to reflect the feedback which has been received from the Tourism Task Force and the Data & Technology group.
• STERG working group leads are working with Traveltech for Scotland to incorporate more technology / digital solutions into the existing recommendations.
• Confirmation is required that the Traveltech for Scotland proposals do not overlap with Digital Boost.
• It was noted that all funding asks for tourism recovery initiatives must sit within the thirteen recommendations that were outlined in the draft two year Plan.
• Timeline:
- Recommendations updated by STERG Partners by 20th August.
- Final draft circulated by 24th August.
- Two Year Recovery Plan Recommendations delivered to SGov w/c 23rd August (latest Friday 27th).
• A public facing document, outlining the Tourism Recovery Planning process and the Two Year Recovery recommendations is to be prepared and published. Timing is to be confirmed.
5. Funding Update
• Outdoor Fund Phase 2 - Revised criteria has been developed in collaboration with Wild Scotland and Sail Scotland.
- Guidance expected to be available from 1st September
- Applications to open from 8th September
6. Tourism & Hospitality Recruitment Campaign
• Awaiting the latest campaign update. Statistics below are the same as those provided last week at STERG.
- 14,000 New Users total to CareerScope since the campaign launch (5 July)
- 7,000 unique page views related to job search functions
- 3,000 visits to Caterer.com by job seekers - 600 unique opens of opportunities on the apply direct tab
- 350 confirmed applications
7. Partner Updates Enterprise Agencies
• Scottish Enterprise and HIE have been asked by SGov Organisational Readiness colleagues, to contribute to a piece of work that is being done for the Deputy First Minister on issues relating to the availability of goods, people and skills caused by the concurrent risks around COVID, Brexit and PfG commitments.
It was noted that the ask was a broad one beyond just the Tourism sector. SGov Tourism Team noted they had also contributed to this piece of work covering labour shortages and shortage of goods, most notably the availability of food & drink within the sector. SGov Tourism team will check and ensure that SDS have been included within this piece of work
• HIE noted that Visitor Management issues remain very high on the agenda in the Highlands. Despite the investment in infrastructure, RTIF, the work of the national Visitor Management Forum and investment locally to support DMOs, issues do not seem to be easing. It was noted that the key issues remain the same, littering and poor behaviour.
• The 10 Year National Strategy for Economic Transformation is currently the focus of attention for HIE’s Corporate Strategic planning department. It was noted that STERG should be mindful about how the Two Year Tourism Recovery Plan and Scotland Outlook 2030 will align to this strategy as it was highlighted that this will be a highly influential document.
It was noted that the STA have been asked to respond to provide a tourism context. The STA were asked by STERG to clarify the context in which they would be responding to the consultation.
The need for a STERG response was discussed and it was suggested that a combined STA / STERG response would be most powerful and reflect a strong partnership approach. Further discussion is required with the STA to agree an approach. Submission date is 27th August.
• SoSE is currently going through a restructure and more recruitment is expected within Tourism.
Skills Development Scotland
• A new Skills Management Tool is available on the SDS Skillsforce website. The tool is aimed at helping small to medium enterprises identify, grow and use people’s skills to overcome challenges and help reach their business objectives. https://www.ourskillsforce.co.uk/skills-management-tool/
• A new Foundation Apprenticeship in Hospitality is now available and will run this year across the country. This is a work-based learning opportunity for school pupils from S3 – S6 who want to get a flavour of the industry while still at school. A key part of this is employer input, it is crucial that employers are involved in developing the content and providing practical experiences.
The SDS team are keen to issue a call to action to employers and would like the support of STERG partners, STA and VS, to help get the message out there. STA
• The STA are working with Glasgow Life to understand the extent of the staffing and skills shortages in Glasgow. Glasgow life issued a survey to the Tourism and hospitality sector in Glasgow on 17th August. The closing date is 1st September.
8. AOB
• No AOB was noted
Next Meeting Date
The next meeting will convene on Thursday 26th August, 11.00am-12.00pm.
1. Welcome
• RG welcomed Caroline Cantin from the SG tourism team and Carolyn Churchill who replaces Barbara as Head of Comms at VS to their first meeting.
2. Tourism Recovery Plan
Phase 1 Priority Projects
• An update had been previously circulated with the agenda which had no red or amber flags with all projects progressing well.
• Net Zero Pathway AM confirmed that from a HIE point of view the NetZero Pathway projects she was involved with were progressing well with legal commitments being completed to ensure spend is made against agreed timetables.
• ScotSpirit Holiday Voucher Scheme The ScotSpirit holiday voucher scheme was launched to businesses on 10th August. This is a new voucher scheme to help low income families, unpaid carers and disadvantaged young people who have been adversely affected by the pandemic enjoy a subsidised break in Scotland. https://www.visitscotland.org/news/2021/holiday-voucher-scheme
Businesses can find out how to sign up and be part of the scheme by following this link: https://www.visitscotland.org/about-us/what-we-do/working-in-partnership/scotspirit-voucher-scheme
• Destination & Sector Marketing Fund
– Update @ 10th August Applications received: Tier 1 - 7 Applications, 2 of which Deferred Tier 2
- 40 Applications, 16 of which Deferred Tier 3
- 61 Applications (currently going through assessment) Final Tier 1 & 2 Panel will be held on 11th August.
Tier 1 & 2 groups that were not deferred will be informed after that session as the budget for the whole tier and what the individual awards are will be known. Groups that were not deferred were cleared by finance on Monday 9th for notification (26 Groups), the plan is to send comms after Wednesday's panel.
Those Tier 1 & 2 Applications that were deferred, if they are successful at the panel on the 11th will then need to go through finance checks it is anticipated they will be informed early next week.
The overall aim is to have all Tier 1 & 2 awarded in August. Tier 3 - this tier is hugely oversubscribed and unfortunately many may require deferment.
These applications will not be awarded until September. Due to the huge demand on the fund, the highest award level in each tier has been reduced and no group will receive the full award they have applied for just to manage expectations. Panel were keen to support more eligible applications rather than focusing on a limited number with the full amount.
Phase 2 Two Year Plan
• The draft Two Year Recovery Plan recommends 13 areas of strategic focus, these recommendations were shared with the Tourism Task Force on 27th July for feedback. All feedback has now been received and circulated to STERG and the STERG working group.
• The draft Two Year Plan recommendations were shared with the Data & Technology group (initially convened for Scotland Outlook 2030, but reconvened to provide a technology overlay for the Two Year Plan). Feedback from this group was also circulated to STERG and the STERG working group.
• Key gaps identified from the feedback primarily focused on Technology, however supply chain support was also highlighted as a gap.
• The STERG working group met on 10th August to review all feedback. STERG working group leads will now revisit the Two Year Plan recommendations and consider how the feedback received can best be reflected.
• Traveltech for Scotland joined the STERG working group meeting on 10th to discuss the Traveltech for Scotland proposal, ‘Collective Technology for Tourism Recovery’. STREG working group leads will work with Traveltech for Scotland over the coming week to discuss the potential for more technology / digital solutions to be incorporated into the existing recommendations. It was noted that potential overlap with existing digital projects should be carefully considered and avoided.
• No feedback has yet been received from SGov on the 13 PfG proposals that were submitted in June.
• The Evidence base is currently being updated by a separate working group, (who are also developing the recovery dashboard), this will be included as an appendix to the final report.
• Revised Timeline: - Two Year recovery Plan updated by STERG Partners by 20th August.
- Final draft circulated by 24th August.
- Final Two Year recovery Plan will be delivered to SGov w/c 23rd August (latest Friday 27th). It is expected that Programme for Government announcements will start being made from September.
Tourism Recovery Dashboard
• RG reminded members of tomorrows deadline for comments back to KC.
• General approval for existing coverage and content within the dashboard. It was noted that some of the content was confidential coming from secured sources.
• AM asked if the material in the dashboard could be put to wider use within each of the agencies or by Destination/Sector bodies or individual tourism businesses. MC felt financial institutions would find the dashboard content really useful.
Action: RG to ask KC to raise with the group responsible for the dashboard to clarify if a more public version could be created.3. Issues •
Potential beer shortages because of a planned strike of draymen was highlighted by MC3.
• Workforce challenges continue to be a major issue for the sector.
• Exclusivity of testing regimes for incoming international visitors to Scotland is a serious issue.
Action: JY to follow this up in more detail with colleagues in the International team.
• Current occupancy levels in city hotels are improving but poor REVPAR.
• Specifically, on Glasgow and COP26, there is concern about the availability of staff to manage the hotel operations during the period of the event. A survey to ascertain staff shortages in city accommodation is in development.
• RG highlighted the ASSC STL briefing paper that was provided with the meeting agenda and outlined the ongoing concerns of several sector organisations.
It was noted by JY that the current consultation was focussed on the Government’s plans for licensing. RG indicated that the ASSC was meeting Ministers in the coming week.
4. Funding Update
• Coach Fund Phase 2
- All payments now being processed.
• Outdoor Fund Phase 2 - Final agreement being made on updated criteria. Fund to launch soon. Comms on the Outdoor Fund Phase 2 is to be handled sensitively to avoid creating the expectation that further money is available when this is simply to ‘wash up’ the original funding which was underspent, as timing meant that the fund was increased after the criteria were set.
This is not a new fund and should not be promoted as a new fund by VS or Wild Scotland/Sail Scotland. It must be clear that this is a targeted second phase of the earlier fund, to complete the original commitment. CC(VS) agreed to liaise with the VS team leading on the fund, and SG comms.
• RG raised the question of follow up survey work for those businesses that had received funding support. HL indicated local authorities had no plans and weren’t resourced to carry this out.
AM indicated HIE already had a process in place as part of their awards to business to track such activity. VS likely to issue a follow up survey for the funds they had administered. All indicated they were already being heavily audited by Audit Scotland and internal auditors on funds.
Action: JY to check if there are any other plans for SG to require follow up data.
5. Tourism & Hospitality Recruitment Campaign
• MC and LD updated on latest campaign figures: - 14,000 New Users total to CareerScope since the campaign launch (5 July)
- 7,000 unique page views related to job search functions
- 3,000 visits to Caterer.com by job seekers
- 600 unique opens of opportunities on the apply direct tab
- 350 confirmed applications
• It was highlighted that there is still work to do to get businesses to upload vacancies.
• Media to run for a further week.
5. Partner Updates Enterprise Agencies
• HIE is recruiting for a new member of the Tourism team. Skills Development Scotland
• Promotional activity is planned to support the Young Person’s Guarantee.
• The SDS results helpline opens on 10th August. https://www.myworldofwork.co.uk/resultshelpline?gclid=EAIaIQobChMIup2LxdC18gIVROvtCh0mrAK EAAYASAAEgJR7vD_BwE
• Tourism Skills Group met this week and discussed Foundation Apprenticeships, Graduate Placement programme in the Highlands and the ASVA storytelling initiative.
VisitScotland
• The launch of ScotSpirit Holidays has received excellent media coverage.
• The comms strategy for the Destination Net Zero project and the International brand building project, has comms activity planned for the end of September.
SGov Tourism & Hospitality Team
• The SGov Tourism & Hospitality team moved to the Economic Development Directorate on Monday 9 th August.
STA
• The industry conference will be held on 24th & 25 th November. This is a joint event between STA, ASVA, HIT and SFD.
6. Goodbye to Barbara Clark
• RG highlighted the fact that this was Barbara’s last STERG meeting and thanked her for all the work her and her team had put in over the past 17 months to support the work of STERG. All members passed on their best wishes for her retirement which commences 13th August.
7. AOB
• No AOB was noted
Next Meeting Date The next meeting will convene on Thursday 19th August, 11.00am-12.00pm.
1. Issues
• Ferries
Further disruption to the Calmac Ferry fleet has been reported in the media again today, this is yet another impact on the sector. Industry are asking that SGov produce the plan that has supposedly been worked up to mitigate the consistent failing of the Calmac fleet. Action: J.Young to follow up with colleagues and provide an update
• Short Term Let Regulation This remains a significant ongoing concern for the sector. It was noted that there are a number of differing views across the sector which SGov need to clearly understand. The views of the ASSC are outlined in the minutes of the STERG Sector Group Call. The SGov consultation is due to close on 13th August. Action: VisitScotland and SGov Tourism Team to arrange a call to discuss further.
• Outstanding Issues
From Previous Meeting No further updates are available at this time. As new information becomes available this will be shared.
• STERG Sector Group Call
The STERG Sector Group call took place yesterday. Minutes from the meeting, (which documents the issues raised for STERG), are attached with the notes of this meeting. There is serious concern, anger and frustration from the Sector leads who attend this call, that the issues which are repeatedly being raised at STERG, have had no response. The growing sense of despair from across the group, is now calling into question the purpose of the fortnightly Sector calls and indeed STERG, if no action is being taken or answers provided.
STERG partners acknowledged and shared the frustration voiced by the Sector Leads. STERG agreed that action should be taken to try to resolve this. It was suggested that the repetition of conversations may be contributing to the sense of fatigue and a review of communication channels to SGov should be done to try and streamline things moving forward.
2. Tourism Recovery Plan
Phase 1 Priority Projects
• An updated status report for the ten Phase 1 projects was prepared for the Task Force meeting on 27th July.
• No exceptions to report.
• Destination & Sector Marketing Fund - Fund is now closed and 105 applications were received across 3 funding tiers.
- Tier 1: City Region Award - £50k - £100k (7 Applications)
- Tier 2: Pan Scotland Sector Groups & Regional Destination Organisations -£40k - £80k (39 Applications)
- Tier 3: Local Destination Organisations, Marketing Groups & non Pan-Scotland Sector Groups - £10k - £20k (59 Applications)
- Total ask £4.7m for a £3m fund - Applications are now moving through assessment and panel processes with the first grant awards expected from w/c 26 July. Tier 1 and 2 awards will be prioritised in August and Tier 3 in September.
• Scottish Tourism Leadership Programme
- The Tourism Leadership & Recovery Fund, which recently opened to graduate leaders from the Destination Leadership, Rural Leadership or Communities Leading in Tourism programmes, will close at 12noon, Friday 30 July 2021. Applications have been / expected to be received from across Scotland covering the HIE, SE and SOSE regions. Phase 2 Two Year Plan
• The Tourism Task Force was convened on 27th July to share STERG’s recommendations for the Two Year Recovery Plan.
• The recommendations consist of 13 interconnected strategic areas of focus which have been developed in consultation with industry and the public sector over the past few months . These recommendations are aligned to and allow for a transition back to delivering the core aims, objectives and ambition as is set out in Scotland Outlook 2030. • It was a constructive meeting and initial feedback would suggest that the Task Force agree in principle with the recommendations outlined. • It was noted that further refinement should be considered.
• Concern was raised about the availability of investment to deliver the Plan. • Written feedback will be provided by the Task Force by Friday 6th August.
• It was highlighted during the meeting that there are still immediate and pressing needs which should be addressed such as, the resumption of international travel and support for sectors whose trading remains restricted or completely closed.
• Mr McKee joined the meeting to hear the update on the Two year Plan and to hear the views of Task Force members.
• It was agreed that B.Sizeland, J.Young and K.Christie are to meet on 30th July to consider how the final paper is to be shaped for Ministers.
• The STERG working group will aim to convene w/c 9th August to consider how to take the feedback forward.
• It was noted that the high level steering group which was formed for the recovery planning process should be reactivated to ensure there is support from across the public agencies for delivery. Tourism Recovery Dashboard • The next iteration of the Tourism Recovery Dashboard will be issued to STERG by close of play Friday 30th July.
3. Funding Update
• Grave concerns remain that the funding for Phase 2 of the Marine and Outdoor Restart Fund will be clawed back by SGov. £800k was committed by SGov, to renege on this commitment now, when so many businesses are relying on this support, is not acceptable and shows complete disregard for the sector. It was noted that the Finance team at SGov have not yet made a decision. The SGov tourism team will continue to make the case for the funding to go ahead as initially planned.
• Money is now being distributed to businesses who applied for Phase 2 of the Coach Fund. • It was noted that there may be potential issues with Local Authority grants. STERG will be notified if these issues will impact tourism and hospitality.
• An issue has recently been identified with the Ski Fund. This is currently being addressed.
4. Tourism & Hospitality Recruitment Campaign
• The campaign continues until 15th August • 130 employers are now registered on the website
• There are now over 12k new users of the website
• There are currently 219 jobs on the site. STERG colleagues are asked once again to promote the site to employers and to encourage them where possible to register their vacancies on the website.
• It has been noted that some employers are having technical difficulties with the website, this has been raised with Springboard.
• Glasgow vacancies are the most advertised followed by Edinburgh. • Unite the union have expressed concerns about some elements of the campaign.
5. Partner Updates Skills Development Scotland
• There is an ongoing push to encourage more employers to sign up to the Young Persons Guarantee. There are some tourism businesses signing up, but there is a need to encourage more. VisitScotland
• Currently working with SE to develop a comms strategy for the ‘Net Zero Pathway for Scotland’s Tourism Industry’.
• Work being carried out to update all of the STERG information on VS.org. • The message ‘Tourism as a force for good’ and the ‘importance of tourism’ has reached 80 million people through the comms activity which has been done. SGov Tourism Team
• The next review of the levels in the strategic framework will take place next week and an announcement is expected on 3rd August. It should be noted that although case numbers are falling there are still a number of outstanding questions to be addressed; How quickly should we lift restrictions? What should the baseline measures be? If we go beyond Level 0, does that mean all sectors will reopen? The sectors this would affect are the night time economy, night clubs and events including capacity numbers. It is not known at this time what the decisions will be.
6. AOB
• ASSC has been working with the Scottish Government, Public Health Scotland, and Infection Prevention and Control on changes to the cleaning protocols. This updated guidance is due to be published today. It was noted that significant changes are expected within this guidance.
• On behalf of STERG, R.Graham thanked B.Sizeland for her invaluable guidance and input at the STERG meetings over the last 18 months and wished her well in her new role as Deputy Director Major Events and Culture.
B.Sizeland thanked STERG partners for their passion, commitment and hard work on behalf of the Sector and noted that although she was leaving the STERG group she would continue to work with partners in STERG as part of the new role.
Next Meeting Date The next meeting will convene on Thursday 12th, 11.00am-12.00pm.
Note: There will be no STERG meeting on Thursday 5th August.
1. Issues
• Impact of Self-Isolation - The impact of self-isolation is being felt across all sectors of the economy and within tourism and hospitality businesses are having to close at what should be the busiest part of the year as sufficient staff are not available to operate the business safely and effectively. There is a call for those who have been double vaccinated to be exempt from self isolation.
- At a recent Business Organisations meeting Kate Forbes advised that they are reviewing different sectors and hadn’t ruled out the Hospitality sector. Clarity is required on whether there is going to be a change and whether this will be reviewed for 9th August.
Action: J.Young to update when further information is known
• Ferries - It was noted that there are still significant issues surrounding reliability and capacity of the ferries. There is an urgent need for industry to understand what is happening and to see a plan from SGov or Transport Scotland which will outline the actions they are going to take to resolve these issues.
Action: J.Young to follow up with colleagues and provide an update
• International Inbound Travel - International inbound travel is a major ongoing concern. A number of businesses have international bookings for groups or conferences in mid - end September from the USA and Europe, however it is still not clear whether these will be able to go ahead. Clarity is needed on whether double vaccinated travellers will be allowed to travel to the UK without a requirement for self-isolation. Confirmation on whether there is going to be a change and when this will be communicated is required. Clarity on a timeline is needed.
Action: J.Young to update when further information is known
• COP 26 – Staffing - There is concern within Glasgow city as to whether there will be sufficient people to staff the hotels to the levels that will be needed to meet visitor demand during COP 26. Glasgow Hotels Association will conduct a short piece of research to understand how many staff may be required. An alternative solution will need to be considered, for example ‘parachuting’ additional staff in from other areas of the country. Staffing for this event needs strategic planning.
Action: J.Young to raise with colleagues dealing with COP 26. • Furlough - Furlough is due to finish at the end of September. Clarity is required on the action being taken by SGov to address this.
Action: J.Young to advise
2. Tourism Recovery Plan
Phase 1 Priority Projects
• July monthly status report has been published on VS.org. https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/tourism-recovery programme • No exceptions to report.
• Destination & Sector Marketing Fund
- All Tier 1 city applications have been assessed and reviewed by the panel, a communication is expected to go out to applicants w/c 26th July.
- 39 applications were received for Tier 2. These have been assessed.
- Tier 3 closes to applications on 23rd July.
- The value of the fund is £3m. So far, the ask so far is for a total of £3.8m. No decisions about the allocation of funds can be made until the total ask for all applications is known.
• Scottish Tourism Leadership Programme
- Two programmes are now open for applications, Communities Leading in Tourism and the Introduction to Tourism Leadership course. Details can be found on www.findbusinesssupport.gov.scot
- The Destination Leadership programme is being finalised and is anticipated to launch imminently.
- The Tourism Leadership & Recovery Fund launched last week to graduate leaders from the Destination Leadership, Rural Leadership or Communities Leading in Tourism programmes. The Fund closes: 12noon, Friday 30 July 2021. https://www.southofscotlandenterprise.com/tourism-leadership-and-recovery-fund Phase 2 Two Year Plan
• The final Toposophy report and Two Year Plan has been circulated to STERG.
• STERG partners are to advise by close of play Thursday 22nd if there any issues with the content of the Toposophy blog which was circulated on 20th July.
• The Evidence Base will be updated over the next two weeks to reflect updated data. • A Task Force meeting will be held on 27th July to share progress and receive feedback. The STERG working group have discussed the agenda at length and a revised version has been agreed.
• The next iteration of the Tourism Recovery dashboard will be issued to STERG by 30th July.
3. Funding Update
• Significant concern was raised that Phase 2 of the Outdoor fund may not be given the green light to proceed by Scottish Government, despite having previously committed to support the fund. It was noted that significant time and effort by a number of different parties including industry and the lead Sector organisations had gone into preparing Phase 2 and to withdraw support at this late stage was not acceptable.
J.Young advised that a decision had not yet been made by SGov Finance and that officials in the Tourism team are continuing to fight to secure the fund. • Taxi and Private Hire Vehicle Driver and Operator Support Fund - Operator applications must now be returned to the local authority by 5pm on 23 July 2021.
https://findbusinesssupport.gov.scot/service/funding/taxi-and-private-hire-vehicle-driver-and-operator support-fund • Guidance is currently being worked through for a soft play grant which could be relevant to the Tourism sector.
4. Tourism & Hospitality Recruitment Campaign
• 9,153 new users have joined the site since the campaign launched on 5th July
• 3,700 new users in one week recorded • Over 2,000 searches in Glasgow, 1,200 searches in Edinburgh
• 117 employers have registered on the site (this includes hotel groups with a number of properties)
• More jobs are needed on the site and all STERG colleagues are asked to continue to do what they can through their own communication platforms to encourage employers to register their vacancies. http://careerscope.uk.net/employer-sign-up/ 5. Partner Updates Enterprise Agencies
• HIE’s Let’s Grow Adventure Tourism programme is to be expanded out with the Highland Council region. This will open up opportunities to many other participants in the Highlands & Islands area in the current financial year. The aim is for this programme to eventually become a national programme.
VisitScotland
• ‘Now is your time’ domestic campaign is currently underway.
• A six week STV campaign launched on 19th which focuses on responsible tourism messaging, ‘look after what you love’ and puts industry representatives at the forefront, the campaign includes a 60 second ad, bumpers and station idents.
• Comms being planned on Phase 1 recovery projects.
• A new ‘Tourism force for good’ campaign is currently running, this is a reminder of how important tourism is to the Scottish economy, sustainability and wellbeing of the population. 10 case studies are currently available.
• Carolyn Churchill, the replacement for Barbara Clark will start on 2nd August. STA
• The STA Council will convene this afternoon to discuss the Scottish Government’s proposed legislation on Short Term Lets. This discussion will inform how the STA will respond to the STL consultation. • Inductions with new members of the SGov’s Tourism Team would be welcomed. It was noted that the STA Forums on 23rd and 24th August could be an opportunity to introduce new members of the team.
• The STA has recruited a new Digital Marketing and Communications Executive, Carol Mackillop. Carol will join on 2nd August.
Scottish Government
• Changes to the structure of the Tourism & Major Events team will take effect from 9th August.
Tourism will split from Major Events and will form an independent Tourism & Hospitality unit within the Economic Development Directorate. Major Events and Culture will remain with Jonathan Pryce and Bettina Sizeland.
• Judith Young will head up the Tourism & Hospitality team reporting to Colin Cook, Director Economic Development. • Caroline Cantin, who joined the team on 19th July, will focus on Tourism Recovery and Business Support. Caroline will be introduced to STERG next week.
• A new organogram will be shared with STERG as soon as it becomes available. Action: J.Young to confirm whether City Region Deals and Regional Growth Deals sit within the Economic Development Directorate.
6. AOB
• No AOB was noted.
Next Meeting Date The next meeting will convene on Thursday 29th July, 11.00am-12.00pm
1. Issues
Arising from the FM’s Statement Plus Outstanding Issues
• The hospitality sector were surprised by the 12.00pm curfew given that there was no consultation or advance notice.
• Self-isolation for close contacts is a concern in the short term as in some cases it is resulting in business closure – this is not sustainable.
• Retaining the 1m physical distancing outdoors continues to impact businesses.
• There is growing doubt that all restrictions will be lifted on 9th August as planned.
• Divergence of rules between Scotland and the rest of the UK is a concern and will lead to significant confusion for visitors and potential conflict between staff and visitors.
• Removing self-isolation for people arriving from countries on the amber list, (provided they are fully vaccinated through a UK vaccination programme and take a PCR test on the second day after arrival), will not help international inbound travel. This should be made clear.
• The wedding industry would like to see changes implemented on a Friday to allow them to capitalise on weekend bookings.
• The events sector requires clarity and guidance on how the 1 m physical distancing rule between groups of up to 15 people will be managed.
• D.Mackay emphasised that officials will continue to put forward all views of industry to government.
Note: Meeting notes from the STERG Sector call on 14th July will be circulated to all STERG members. These notes capture the details of the issues raised by the sector leads.
2. Tourism Recovery Plan Phase 1 Priority Projects
• July monthly status report was circulated to STERG in advance of the meeting and is now ready to publish on VS.org. https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/tourism-recovery programme
• All 10 projects continue to progress
• The Destination & Sector Marketing Fund was opened for applications on 1st June. - Tier 1 closed on 29th June. 7 applications received and assessed. - Tier 2 closed on 13th July. 39 applications received. -Tier 3 will close on 23rd July. - £3m fund. Current ask from the applications received so far totals £3.8m
• The Tourism Leadership & Recovery Fund launched last week. https://www.southofscotlandenterprise.com/tourism-leadership-and-recovery-fund
Phase 2 Two Year Plan
• Toposophy will complete the Phase 2 report and the draft Two Year Plan by 16th July.
• The Task Force will be convened on 27th July to share and gather initial feedback on the project proposals which form the draft Two Year Plan.
The following points were noted for consideration:
- Due to tight time constraints the purpose of the meeting and the expectations of what can be achieved must be clearly outlined and understood by all, a revised agenda will be issued to STERG.
- Ivan McKee will join part of the meeting. A briefing for Mr McKee will be forwarded to SGov team at the beginning of next week. It was noted that this could be a good opportunity to provide an update to the Task Force on business support particularly for those businesses where their trading window is seriously compromised. It is also an opportunity for the Minister to provide a view on the new Advisory Council which has been formed to develop a new 10Yr Economic Strategy.
• SGov advised that no feedback had yet been received on the 13 Programme for Government proposals which were submitted in June.
3. STERG Action Plan
• July update of the STERG Action Plan was circulated to STERG in advance of the meeting and is now ready to publish on VS.org.
https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/national-action-plan 4. Funding Update
• Phase 2 of the Coach Fund – 24 applications received. Two were rejected and further information has been requested on seven.
• Phase 2 of the Outdoor fund is ready to go as soon as it is signed off by the Minister. The fund is now expected to launch in late July. • SGov advised there is no budget currently available for the Agritourism fund. However, it will be considered alongside funding requests from other sectors.
• Taxi and Private Hire Vehicle Driver and Operator Support Fund - Operator applications must now be returned to the local authority by 5pm on 23 July 2021. https://findbusinesssupport.gov.scot/service/funding/taxi-and-private-hire-vehicle-driver-and-operator support-fund 5. Tourism & Hospitality Recruitment Campaign
• The campaign launched on 5th July. • In the first 5 days there was a 500% increase in visits to the careerscope website. More jobs are needed on the site and all STERG colleagues are asked to do what they can through their own communication platforms to encourage employers to register their vacancies. http://careerscope.uk.net/employer-sign-up/
It was noted that many of the employers on the portal would benefit from representing their vacancies in a more appealing way – longer term there is work to be done with employers to help them sell the opportunities that they have to offer. In addition, there is a need to drive younger people to the site who are looking for work. Again, STERG colleagues are asked to share the link to the job portal as widely as possible.
http://careerscope.uk.net/jobs/ 6. Short Term Lets • A briefing paper prepared by Fiona Campbell, ASSC, was circulated to STERG in advance of the meeting. It was noted that this briefing paper was submitted to Ivan McKee in advance of a meeting with the ASSC last week.
• Consultation on the proposed STL licensing scheme is currently live. - VisitScotland will formally respond. - The STA will respond on behalf of the Council. A Council meeting will be held next week to capture views from across the sector.
• Wales is experiencing the same issues with STL legislation as Scotland. A commitment has been made by VisitScotland to keep Wales informed of developments in Scotland.
7. Partner Updates
COSLA / Business Gateway
• As part of the 100 days commitment, £25m has been made available to restart the Digital Boost scheme and as part of that, an additional £420k has been secured for the Digital Boost core programme which will lead to more 1-2-1 activity at a local level. Enterprise Agencies
• P.McCafferty is to meet today with growth investment colleagues who are working on the investment models project. It was recommended that M.Crothall should once again meet with this team particularly given M.Crothall’s recent meetings with representatives of the banking sector. P.McCafferty to set this up. Scottish Government Tourism Team
• Ivan McKee will have an introductory meeting with Nigel Huddleston later today.
• As part of the 100 days commitment to Agritourism, invites will be issued today and tomorrow for a meeting at the beginning of August.
• The Scottish Government Tourism team is to be restructured.
- Tourism and Major Events are to split.
- Major Events and Culture will remain with Jonathan Pryce and Bettina Sizeland and Tourism will move to Economic Development under the new Director Colin Cook.
- Judith Young will continue to head up the team as Head of Tourism and Hospitality Strategy and Delivery. - A replacement is being sought for Duncan Mackay.
- New start, Caroline Cantin will join on 19th July and will focus on tourism recovery.
- Jonathan Ferrier, Linzie Liddell and Lynne Veitch will remain in the team. - A number of others are also being recruited to the team.
- An organogram will be issued once all positions are agreed.
• M.Crothall requested that inductions are set up with the new team members as soon as possible.
STA
• Autumn conference dates have been confirmed as 24th and 25th November at the EICC (with a hybrid stream). This will be an industry conference with the STA partnering with other industry bodies. Evening events are being planned for 23rd and 24th November.
8. AOB • An approach has been made by UK Hospitality (Scotland) requesting representation on STERG. STERG partners agreed that the fortnightly STERG Sector call, remains the most effective and efficient way to capture views from across all sectors.
It was noted that the meeting notes from the STERG sector call will also be attached to the STERG meeting notes.
Next Meeting Date The next meeting will convene on Thursday 22nd July, 11.00am-12.00pm. MC to Chair
1. Issues
- Feedback from sector organisations
- A note summarising feedback received earlier in the week from organisations representing the various industry sectors had been circulated prior to the meeting (copy attached to the minute). All the points raised within the note had been passed to the SG team dealing with business support.
- It was noted that whilst there was no new money available to SG Ministers continued to lobby UK Government for consequential funding to support businesses that continue to be impacted by the virus and related restrictions on operation. The point about seasonal opening was strongly made in the discussion.
- Update on all outstanding and new issues
- Information on bedroom sharing had been shared with STA for wider distribution to businesses. Baseline information collection linked to expected announcements on 19 July and 9 August was underway with STA and STERG would be invited to participate.
- A recent meeting of the Glasgow tourism partnership has raised concerns over the lack of recognition of the impacts the virus was having on the city’s tourism and cultural offering. The chair of the partnership will write formally to STERG to highlight these concerns.
- Recent correspondence between local authorities and the Scottish Hospitality Group have been dealt with in line with agreed guidance.
2. Tourism recovery plan
- Phase 1 recovery projects
- No concerns with any of the projects. SE led projects all now live or at procurement.
- Net Zero project partners meeting confirmed good progress. Outstanding issue around communication of the meaning of Net Zero and the need for consistency.
- SDS working on the content for their project with September roll out planned.
- Funding breakdown of phase one project published on vs.org.
- 7 applications received for city/region part of Destination and Sector marketing fund by closing date. Tier two closing date 13 July, Tier three 23 July.
- Phase 2 Two Year Recovery Plan - Meeting agreed that before any circulation to wider audience that a proper comms plan was needed that knitted all parts together including phase one projects and explained the context of phase 2 plan, which included aspirational projects which did not have funding agreed to support as part of PfG submission for 2022. Minister has been fully briefed on all parts of the recovery plan.
3. Funding Update
- 21 applications received by closing date for phase 2 coach fund.
- Revised guidance for phase 2 outdoor fund in preparation with provisional launch date of 2 August.
- Top up funding linked to businesses unable to operate because of SG levels restrictions now live with weddings funding due to be paid on 14 July and events fund in final development stage.
- SG keen to have an overview of all funding related communications to ensure effective coordination.
4. Partner Updates
SDS
- Has published latest Tourism Sector Skills Assessment (SSA)
- New ‘Beta site’ on My World of Work website for people in-work Take control of your career | My World of Work
5. AOB
- Hospitality recruitment campaign – due to go live on Monday 5 July. BC liaising with SG and STA to ensure press release and content of assets match partner agreements.
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Action: BC to action
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Next Meeting Date
The next meeting will convene on Thursday 15 July, 11am-12pm
1. Issues
- Sharing rooms in visitor accommodation - From 19 July different households will be permitted to share a bedroom in tourist accommodation. Large self-catering properties will still be limited by household numbers at the appropriate level.
- Wedding sector - Progress has been made on a number of issues within the wedding sector. These were announced during the FMs statement on 22 June. The following two points are due to be effective from Monday 28, however the SGov tourism team are pushing to have this brought forward to Friday 25. Confirmation of this is expected this afternoon.
* Live entertainment now permitted at a wedding reception provided all guests are seated
* Suppliers of wedding services will no longer count towards the cap on numbers at a wedding.
It was noted that some businesses and individuals have been using sports guidance on Scottish Country dancing to run ceilidhs at weddings. It was noted that this is not permitted and the position on this will be clarified today.
- Cruise sector - The guidance for cruise is currently being updated. Cruise ships still cannot dock until COVID-19 restrictions in Scotland are reduced to level one. If a Local Authority moves from a Level 1 back to a Level 2 or 3 then the guidance advises that a pragmatic approach must be taken.
- Sector recruitment challenge - Creative development for the recruitment campaign is progressing with the Union marketing agency. The concept is about ‘doing what you love’. The campaign is due to launch in early July- it was noted that the DYW is now linked into the meeting. A comms plan to support the campaign is being developed. The VS team will liaise with comms colleagues within each of the STERG partners.
- Euros - permission for hospitality to remain open for extra time - Further clarity required by the industry. What does ‘Staying Open’ mean? For example, can you continue to serve? Action: JY to confirm with colleagues.
- Ivan McKee attended the Economy meeting on Wednesday morning where he heard feedback from trade organisations about the FM’s statement on Tuesday.
- An announcement is expected later today from the UK Government about travel corridors.
2. Tourism Recovery Plan
- Phase 1 recovery projects - Overall there are no issues to report. All projects are GREEN. The next project update will be w/c 5 July. The Destination & Sector Marketing Fund opened for applications on 1 June. It was noted that there have been a significant number of enquiries about the fund. It was agreed that the funding allocation for the 10 projects could now be shared on VS.org. Action: KC to re-confirm the funding allocations for the 10 projects with each of the project leads. Action: BC to publish the funding allocations with the next project update w/c 5 July. Action: BC to consider opportunities for proactively communicating the details / progress of projects on an individual basis.
- • Phase 2 two year recovery plan - A draft of the Toposophy report and a draft outline of the two year recovery plan was circulated to STERG partners for comment before the meeting. It was noted that to meet the deadline of 25 June, all feedback would need to be received by close of play today, 24 June. It was suggested that once STERG partners were happy with the plan then it would be circulated to the Tourism Task Force for review and comments. In addition, a meeting should be arranged with the stakeholder steering group. A digital / technology overlay is to be considered. It was noted that the Two Year Plan document which has been circulated is not an industry facing document. For industry communication it is proposed that Phase 1 and Phase 2 are packaged together as one Plan. A similar format to the Task Force Recommendations published in 2020 is to be considered. Timing of industry communication is still to be agreed.
3. Funding Update
- The Coach operator Fund Part 2 is now open for applications. This fund is administered through VisitScotland and can be found at the Scotland Coach Operators - COVID-19 Business Support and Continuity Fund - Strand Two.
- Criteria for part 2 of the Outdoor fund is being finalised with Wild Scotland and Sail Scotland. This fund will be administered through VisitScotland.
- Work is ongoing on the VisitScotland Events top up fund.
4. Partner Updates
Enterprise Agencies
- Scottish Enterprise have appointed Adrian Gillespie as its new Chief Executive. Adrian joins from the University of Strathclyde where he was Chief Commercial Officer. Prior to his time at the University, Adrian spent sixteen years at Scottish Enterprise. Adrian officially takes up the post on 1 September 2021.
COSLA
- The SGov have committed to restarting the Digital Boost Programme within the first 100 days. The team at Business Gateway are currently scoping the new programme.
5. AOB
- STERG meetings scheduled for Thursday 8 July and Thursday 5 August will be cancelled.
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Next Meeting Date
The next meeting will convene on Thursday 1 July, 11am-12pm. A new meeting link will be circulated for this meeting.
1. Issues
• Outstanding Issues - It was acknowledged that there are still a number of outstanding issues which the Scottish Government Tourism team are pursuing, for example sharing rooms in visitor accommodation, physical distancing restrictions, household mixing. It was noted that there were no further updates at this time.
• Large Self Catering / Exclusive Use - It was noted that there is no residual money from the Large Self-Catering / Exclusive Use fund which ran at the beginning of the year. The money which was spent on this fund was determined by the demand at the time.
All of the businesses who were eligible and applied, received funding. Once the fund was closed the remaining allocation was redeployed within business support. It was suggested that a new proposal which outlines the current support ask for the large self-catering / exclusive use properties would be very helpful.
It was highlighted that unfortunately further business support is unlikely to be possible without further money from the UK Government.
• Sector Recruitment Challenge - A £100k budget has been approved by the Minister for an urgent hospitality recruitment campaign. The campaign brief, developed by Scottish Government and the STA, was briefed to the Union Marketing Agency yesterday (16 June) and the first creative proposal is expected tomorrow (18 June).
80% of the budget will be allocated to digital marketing, 20% will be allocated to the cost of the creative. The campaign is targeted at 18-30 year olds and will be supported with a tool kit for employers. The campaign is due to go live at the beginning of July.
It was noted that the recruitment campaign is not currently one of the Phase 1 Recovery projects, however, consideration should be given to whether it should be added to the Phase 1 list. - ‘Hospitality Rising UK’ is a hospitality focused, UK wide recruitment campaign to make hospitality a positive career choice.
The concept is being driven by and funded by industry with UKH acting as custodian of funds raised. The aim is to launch in Q4. Supersonic is the agency who are developing the creative. - Pre-COVID creative was developed for a broader tourism recruitment campaign. Although this creative may not be relevant right now it is hoped that the creative may be used later in the year.
2. STERG Sector Call
• The most recent STERG Sector call was held yesterday (16 June). It was noted that all Sector leads expressed their frustration and serious concern about the fact that the challenges being raised on the STERG sector call, do not appear to be getting through to STERG or to Scottish Government, or, if they are getting through, then no response is received.
It was noted that any response, even if it is negative, is better than no response. The Sector leads highlighted that the biggest issue facing tourism businesses, (not hospitality), isn’t staff shortages but survival. Many businesses are unable to operate at a viable level because of the restrictions placed on their operations such as social distancing rules or limits on the number of households who are able to meet etc.
It was noted that many businesses are seasonal and therefore the window to generate any revenue before moving into the winter again is limited and is now rapidly reducing.
As a result, there is an urgent need for funding support to enable businesses to survive. The Scottish Government team advised that they are aware of the issues and assured partners that they do feed them in through the appropriate channels, however the challenge is that so much is dependent on the physical distancing review and the plan beyond level 0 where there has been no movement. It is expected that an announcement on these should be made next week.
It was noted that the group would like to have direct contact with the Minister to inform him first-hand of the issues impacting their sectors. The Scottish Government team agreed that more regular engagement between the Minister and the Sector groups would be valuable and options should be considered to facilitate this moving forward. It was highlighted that the meeting notes from the Sector call documents the points raised.
It was agreed that the STERG Sector Call meeting notes are circulated with the STERG meeting notes.
3. Tourism Recovery Plan
• Phase 1 Recovery Projects
- Overall there are no issues to report. All projects are GREEN.
- The next project update will be 5 July.
- Applications to the Destination & Sector Marketing Fund are now being submitted to VisitScotland. https://www.visitscotland.org/supporting-your-business/funding/destination-sector-marketing-fund
- It was highlighted that the UK Tourism Recovery Plan outlines a project which is very similar to Scotland’s proposed ‘Day’s Out Incentive Scheme’.
The £10m consumer promotion which is to be developed by VisitBritain / VisitEngland and the National Lottery will run from Autumn 2021 to encourage off-season trips to visitor attractions across the UK. VisitScotland and VisitBritain / VisitEngland will explore whether the two projects could dovetail together to avoid unnecessary duplication.
Further discussions are required to establish whether there would be any cost savings with this joint approach.
• Phase 2 Two Year Recovery Plan
- Thirteen recovery project proposals have been completed by STERG partners. All proposals will be submitted to the Scottish Government Programme for Government (PfG) process on 18 June. The submissions outline a funding request for FY2022/23 and FY2023/24.
- Of the 13 proposals submitted, seven are existing projects which will continue beyond FY 2021/22 and six are new projects.
- Scottish Government thanked all of the STERG partners for the huge amount of effort made to submit such detailed proposals.
- STERG partners will meet on Monday to shape the proposals into the Two Year Recovery Plan.
- It was noted that the external communication of the Phase 2 Recovery Plan should be given careful consideration. The project proposals which will appear in the Plan (and have been submitted to the PfG) are currently just proposals as funding has not yet been secured.
• UK Tourism Recovery Plan - The UK Tourism Recovery Plan, was published on 11 June by the Department for Digital, Culture, Media & Sport
https://www.gov.uk/government/publications/tourism-recovery-plan.
- This Recovery Plan replaces the Tourism Sector Deal and the international Business Events Action Plan.
- It was noted that DCMS had not actively engaged Scotland in the development of the Plan.
Action: STERG partners to email B.Sizeland with any reflections that they have on the UK Tourism Recovery Plan by Wednesday 23 June.
• Tourism Recovery Dashboard - Version 1 of the Tourism recovery Dashboard was circulated in advance to STERG for comment. - All comments received so far on Version 1 will be fed back to the working group.
In summary: * The indicators all appear to be relevant * The presentation of the data is good but in some cases confusing * Interpretation of the data would be very helpful, for example a few bullet points to highlight the relevant insights .
- Consider alignment between the Recovery plans and the indicators in the Dashboard.
4. Funding Update • VS Funds
- A report on the final position of all VS funds is expected next week.
- The Coach operator Fund Part 2 has been approved by the Minister and the guidance was launched on 16 June. The fund will open for applications at 12 noon on 23 June until 5pm on 30 June. https://www.visitscotland.org/news/2021/coaches-strand-two-guidance-launch
- The Outdoor Fund Part 2 is still waiting on the approval from the Minister. Minor changes are being made to the criteria with input from Wild Scotland and Sail Scotland.
• Procurement Paper A procurement paper was recently issued for the procurement of administration support for the delivery of future funds. It was noted that VS and other public agencies were mentioned in the paper but not consulted.
5. Partner Updates COSLA
• The Scottish Government have committed to restarting the Digital Boost Programme within the first 100 days. Reassurance is sought from the Scottish Government that there is budget to support this. The Scottish Government advised that the first 100 days is the priority for Ministers and therefore it is expected that the funding would be available Enterprise Agencies
• The 20mph traffic pilot in all towns in the Scottish Borders is providing very good data on traffic. Recent data shows that traffic levels have now returned to pre-COVID levels.
• It was noted that all of the caravan parks in the Scottish Borders were fully booked this week and the forward bookings are looking really good for caravan parks and camping. As a result, the council have opened up their main car parks for overnight stays for motor homes and campervans to ease the pressure. Discussions will take place with Dumfries & Galloway to understand whether there is a similar picture there. Skills Development Scotland
• The two week campaign, ‘#Hospitality Scotland’, will end this week. Feedback suggests that the campaign was very successful with a good attendance at the webinars both from unemployed individuals and career advisors and work coaches.
• SDS has today published its 2021/22 Operating Plan and letter of guidance from Scottish Government. Both can be viewed at the SDS website.
• A Foundation Apprenticeship in hospitality is now available to school pupils and provides another length of pipe to the talent pipeline. More information is available at the Apprenticeships.scot website.
• The Communications team are working with the STA and SGov on the comms plan to support the recruitment campaign.
6. AOB
• It was highlighted that case numbers are rising once again, particularly in the central belt – would a return to Level 3 be considered for these areas? Scottish Government advised that there were currently no communications that would suggest a move to Level 3. Ministers are very cautious and watching the data carefully. Clinicians will be monitoring the situation over the next couple of weeks.
• Availability for STERG meetings in July and August will be reviewed and adjustments made to the calendar if necessary.
Next meeting date: The next meeting will convene on Thursday 24 June, 11.00am-12.00pm
1. Issues
- Meeting With Kate Forbes The STA met with Kate Forbes this morning and appraised her of the current issues impacting the sector. Industry headlines from recent surveys undertaken by ASSC, ASVA, Wild Scotland and Sail Scotland informed these discussions.
Thefollowing issues were raised: - Recruitment was highlighted as the major concern right now, (see 2.0 below for further detail). Not only is this preventing the product being available to the customer it’s also stopping the business from earning revenue and any revenue shortfall is not helping them to repay debt.
- A recent ASVA survey has shown that 71% of the sector is open however only 10% are making a profit. Constraints around capacity continue to challenge viability.
- 84 % of the wildlife, adventure and activity sector is currently open. 36% of those that are open remain unviable and 37% are managing to breakeven with no profit. Forward bookings are still looking poor.
- An upturn in accommodation bookings has been noted (with the exception of B&B’s and guest houses) possibly driven by Portugal’s return to the amber list – those who have multiple bookings may now be cancelling their overseas options and confirming their staycation booking.
- STR data is showing forward occupancy for the cities looks poor. Edinburgh: June 34%, July 29%, August 24%, September 25% Glasgow: June 23%, July 18%, August 16%, September 20% There is concern about what will happen once the leisure tourism market begins to drop off at the end of August / September.
- Business Support The business organisations call this afternoon with SGov Head of Strategic Engagement and Coordination and the economy working group will discuss business support. It has been made clear by the SGov that there is no more money available and therefore a new business support framework may need to be established. The group will address a number of key questions about the effectiveness of the current framework and will also touch on immediate rescue support as well as recovery support. Two areas of tourism where the challenges have been recognised in particular are firstly International – it is most likely that any support that does become available will flow through to those businesses who have been most directly impacted by the international decline.
Secondly, the cities, it was noted that September still remains a cliff edge when leisure tourism begins to drop off and the forward booking data for the Cities demonstrates a very poor outlook. It was noted that if there is no new money available then it would be very helpful if SGov could make a statement to that effect while also outlining the strategic approach to support that will be taken going forward.
- Transport Scotrail Sunday strikes are impacting some of the tour operators as there is no bus provision going to coastal destinations, if the Sunday rail service is removed there are no buses picking up the route. The Caledonian Sleeper is due to strike for two weeks in June. Rail transport is now becoming a more prominent issue.
- Euro 2020 The impact of Euro 2020 on the hospitality sector, particularly Glasgow. 2. Sector Recruitment Challenge.
2) Sector Recruitment Challenge
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- A Small working group has been established to co-ordinate a rapid response to the recruitment crisis.
- Chefs remain the main concern
- Opportunities are being explored to connect the NUS community with vacancies.
- The crisis is impacting the ability of some business to operate with many reducing their operating hours. Restaurants operating 4 days out of 7 and hotels operating below capacity as they do not want to compromise service. It is particularly frustrating because we are now beginning to see demand pick up.
- There are two elements, firstly the skilled workforce such as chefs – skilled chefs are needed now to fill positions and secondly front line work, housekeeping etc where either the applications just haven’t come through or there is a barrier to recruitment for example accommodation.
- A single portal has been established with careerscope.net and there is a call to industry to make sure their vacancies are easy to find.
- An advertising brief has been prepared for a short term campaign to promote job opportunities within the sector.
- HIE has contacted recipients of the Hotel Support Programme to gather evidence of the recruitment crisis. All businesses who responded confirmed significant vacancies for both fulltime and seasonal staff. All of the businesses confirmed that they were running reduced services. It was noted that all businesses are still proactively trying to recruit. Although this exercise has not provided STERG with any new information it has provided illustrative examples.
- B.Sizeland advised that Mr McKee had been briefed on the vacancies crisis and noted that there is a will to see what SGov can do to help. It was advised that a letter could be sent to the Home Office from Ms Forbes or Mr McKee however the team at the SGov would like to know if there is anything else that can be done which doesn’t involve the UK Government
- M.Crothall advised that he had attended a round table earlier in the week with Douglas Ross, MSP, Leader of the Scottish Conservative Party and Murdo Fraser, Shadow Cabinet Secretary for Covid Recovery to push for Home Office support. Kate Nichols (UKH) has been trying to do the same and has been met with push back, citing that establishing the scale of the unemployment situation had to be recognised first.
- The immediate opportunity is a collective push towards a recruitment campaign
- The BrewDog recruitment campaign is a separate initiative which is being explored
- Tourism Recovery Plan
- Phase 1 Recovery Projects
- The latest project update (31st May) has been published on VS.org on the Tourism Recovery Programme page - The next update will be 5 July.
- No issues to report. All projects are GREEN.
- Phase 2 Two Year Recovery Plan - Following recent discussions with the STERG working group it has been agreed that the recovery plan will now focus on a two year timescale and not a five year timescale. Continued uncertainty and a rapidly changing landscape suggest that focusing on more immediate recovery needs will serve industry better. - The two year plan will be delivered at the end of June.
- The STERG working group will deliver initial project proposals to Scottish Government by 16th June which will be submitted to the Programme for Government (PfG) on 18th June.
-A PfG template will be circulated to the STERG working group for completion
- B.Sizeland confirmed that all Phase 2 projects should complete a PfG template for submission.
- B.Sizeland confirmed that although we are facing fiscal constraints the projects and budget requirements should be realistic but should also demonstrate ambition. It was noted that the PfG is only one funding route and that alternative funding routes would also be explored.
- It was noted that the PfG submissions are for FY2022/23 and beyond.
- Seven of the Phase 1 projects will continue into Phase 2. - Up to seven new projects could be added to Phase 2, these are currently being considered by the STERG working group.
- Tourism Recovery Dashboard - Version 1 of the Tourism recovery Dashboard was circulated to STERG in advance of the meeting. - Initial feedback highlighted the following:
* The indicators all appear to be relevant
* The presentation of the data in some cases was confusing (ref direction and colour of arrows)
* Interpretation of the data would be very helpful, for example a few bullet points to highlight the relevant insights .
- It was noted that the recovery plans were not yet aligned to the indicators in the Dashboard. It was acknowledged that this will need to be addressed.
Action: All written comments on version 1 are to be sent to K.Christie, by close of play Wednesday 16 June.
- Cities Recovery Group - The Cities recovery group met yesterday (9th) and have agreed to continue meeting every 6 weeks. The group was initially convened to gather evidence which would demonstrate the devastating impact of COVID on the Cities and to feed into the recovery planning process – this work is now complete. The group raised concern about the new Destination & Sector Marketing Fund and the risk that successful applicants to the fund, (the cities for example) could all be trying to implement their campaigns at the same time, thereby creating a lot of noise, but reducing the impact and effectiveness of the individual campaigns.
Action: R.Graham acknowledged the point raised and agreed to look into it with Vicki Miller.
Critical Assets - The critical assets list brings together all of the assets which are seen to be critical to the success of a region or destination, in to one place, providing a national picture. It was noted that this remains a draft and further work is required to develop it.
- The list in the first instance creates awareness of what is important, however by monitoring the status of these assets it is hoped that we won’t lose sight of any assets that may be danger of collapse. This should also help to prioritise investment
- It was noted that the Enterprise Agencies may have some funding to support these assets, however it is unlikely to be enough and therefore a national approach, supported by the SGov could help to secure investment.
- It was noted that STERG will retain collective ownership of the list until an alternative option is identified.
- Funding Update
- VS Funds - VS continue to wait on approval of the Coach operator Fund Part 2 and the Outdoor Fund Part 2.
- The Agritourism support fund remains on the list for consideration by SGov.
- AOB
No AOB was noted
Next Meeting Date The next meeting will convene on Thursday 17 June, 11am-12pm
Key notes and actions
1. Issues
• Domestic Cruise Industry Work is continuing on this. There is now agreement to start cruising in level 1. Action: SGov team to confirm if this applies to small cruise or large cruise.
• Visitor Management SGov discussions are being upscaled in this area. Ms Forbes is particularly interested in this issue. A meeting is scheduled next week to discuss in more detail. Recent issues in Arisaig and Morar are of particular concern.
• Immediate Business Support Ms Forbes led the debate yesterday, (2nd June) on economic recovery. Ms Forbes’s opening statement included reference to business support. It was noted that there would be support for those businesses remaining in L2, including hospitality (which includes hotels with a hospitality element), weddings and events. It was noted that there is a need to clarify the definition of hospitality, what is included and what is not. Lack of clarity will raise questions. Clarity is required on how the new funds will be distributed to the weddings sector and events, (previously this had been through the Enterprise Agencies and VisitScotland).
• Funfairs Fun Fairs will be allowed to open in level 2 (previously level 1), this will take effect from Saturday 5th . This is unlikely to have an immediate impact on travelling funfairs however it will resolve the issues of inconsistency between theme parks and static funfairs.
• Ongoing Business Support For those Unable To Operate For example large self-catering properties who are still limited to 8 people from 4 households in level 0 or those businesses reliant on international visitors such an international inbound operators. SGov colleagues highlighted that there are no new consequentials and therefore there is no new funding available. Funding that is available will be prioritised according to local outbreaks. Funding has been pulled together from savings to help those businesses who should have transitioned to Level 1 but instead remain in level 2.
At this stage there is no expectation that additional funding will be available. M.Crothall noted that there is a meeting on Monday 7th with the SGov business support team and business organisations to discuss business support in the broadest sense. it was highlighted that some form of support is essential. It was recognised that moving forward there is a balance to strike between ongoing business support and supporting recovery. It is important to recognise our critical assets and the need to protect our competitive position, however it also must be recognised that with limited or no money available prioritisation to ensure future sustainability becomes essential.
• Physical Distancing The physical distancing paper is currently with the First Minister. There are a number of options on the table. SGov tourism team have already made the case that businesses continue to be unviable and that removing physical distancing restrictions as soon as is possible is the number one priority. This needs to be balanced with the rising case numbers and concern over the transmission of the new variant. An announcement is expected on 7th June. It was noted that there is a sense from industry that a cautious approach will continue to be taken.
• Spread Bookings Not a SGov issue, but is a concerning industry issue. People are booking more than 1 accommodation provider and then cancelling at the last minute.
• International Visitors The lack of international visitors means that some operators have had no business at all this year and support would be welcome
- SGov trying to take a 4 nations approach to travel restrictions (i.e. approach to quarantine / traffic light system). It was acknowledged that this will continue to be an issue.
- SGov would like to understand which businesses have been able to adapt to the absence of international visitors and which haven’t and understand the reasons for that.
- There are no consequentials at the moment and therefore no funding available.
- SGov will continue with a two pronged approach, trying to lift restrictions as quickly and safely as possible, meanwhile continuing to speak to the UK Gov on this issue.
• Large Self-Catering Properties SGov are receiving increased correspondence from businesses concerned about the restrictions on the number of households and the inconsistency between who can stay in a hotel room and who can stay in self-catering. Work is going on to clarify the guidance. The aim is to have consistency across accommodation providers.
• Anti-English Commentary It was noted that anti-English commentary seems to be on the rise again, particularly online with unnecessary commentary from journalists fuelling it in some cases. The message that everyone is welcome to Scotland is critical and needs to be heard loud and clear
• Camping Issues Continues to be an issue. The challenges experienced for example at Glen Etive last year are now happening again. This clearly remains an issue and anything additional that can be done to address this would be good.
• Workforce Availability Lack of workforce is the biggest challenge that the sector is facing. As an example, every relief chef listed was working last weekend, @ c. £25-£30 per hour which is unsustainable for any business. Hotels are searching for staff in order to be able to deliver the level of service required, in some cases they are having to operate below capacity as they don’t have the staff to be able to deal with the full occupancy levels that they could achieve, some restaurants are only trading 4 days out of 7.
This situation has arisen due to a lack of EU workforce, employees who have joined and then left due to the movement in and out of the levels, those who have been on furlough and decided not to return to the sector and those who are looking for job security from other sectors. The STA will continue to push on improving the visa situation, conversations are ongoing with the Scottish Office and there is a round table with Douglas Ross on Monday 7th . It was noted that the solution is not to run an advertising campaign to get people to join right now, that’s a longer term requirement and won’t address the immediate need. It was highlighted that If businesses cannot trade because they don’t have the staff then that has a knock on effect on the ability to repay debt etc.
2. Sector Recruitment Challenge
• Collating Evidence of the Tourism and hospitality recruitment challenge - It was noted that there are many people operating in this space but no one appears to be leading. There is a lot of anecdotal information which indicates a significant challenge for the sector but there is no quantitative evidence. Survey fatigue levels are high, so issuing a survey would not be the right approach. Evidence gathered through current sector surveys (ASVA, ASSC, Wild Scotland and Sail Scotland) will be helpful to draw on, as will the current FSB survey which has 3 or 4 relevant questions around recruitment and retention.
- HIE is in the process of approaching HSP recipients to collect intelligence about the level of vacancies, what roles are more / less easy to fill and the challenges to filling those vacancies. It was noted that this can be done quite quickly. This intelligence can then be combined with others such as UKH. - It was suggested that SOSE and SE also approach recipients of the HSP to gather the same intelligence.
- It was noted that the regional VS teams are increasingly reporting recruitment issues for example people are coming off furlough, resigning and getting a job in another sector, housing is a factor, public transport dependency is another factor, depending on where people live and work. - The SDS evidence base team has pulled together Burning Glass vacancy data. For example in 2020 there were 2,000 vacancies in January – May 2021 there have been 786 vacancies. Areas with the highest number of vacancies are, Kitchen and Catering Assistants, Chefs, Receptionists, Waiters and Waitresses.
- SGov noted that this is an area where we should aim to be as proactive as we can. It was highlighted that a question had been raised on whether furlough should be stopped and converted into a bonus scheme or golden hand shake, it was suggested that this concept be tested if possible, as perhaps this could open up the recruitment process.
- Access to a skilled workforce is the issue. There is a need for someone who can cook in the kitchen now not someone who requires weeks of training. It was noted that the only way the sector will get those workers is to look at a visa solution on a short term basis which has to be a collective effort from Scotland and England where the challenges are the same. This is a UK issue which needs a UK wide solution.
- It was suggested that a formal structure / subgroup should be set up to drive this initiative forward given the immediate urgency.
• Recruitment Campaign Update - SDS are coordinating a meeting with the SGov marketing team to discuss a recruitment campaign. A campaign was developed pre-COVID but was never implemented. Funding is now available to support a campaign through combining the resources of SDS, Springboard and Job Centre Plus.
Action: L.Durden and B.Clark to follow up on the campaign. It is agreed that a recruitment campaign is a longer term solution and will not address the immediate need however it could still make a difference the short term. It was highlighted that BrewDog are creating a recruitment campaign to encourage people into the sector. It was noted that if all strands of activity could be pulled together then a more powerful impact would be made.
4. Funding Update
• VS Funds - All VS funds are nearing completion.
- A small number of outstanding queries remain. - Launch dates for the Coach operator Fund Part 2 and the Outdoor Fund Part 2 are to be confirmed.
- Next steps on the Agritourism support fund are to be confirmed. Currently there is no money available however it remains on the list.
- Once the final queries have been dealt with VS will be ale to reconcile the funds which have been distributed vs the total amount received initially from SGov, there won’t be a huge amount available but there should be some underspends
- it is expected that there may be underspends from other, non VS funds. D.Mackay is to confirm with Business Support colleagues whether that is the case and whether underspends will be redeployed to those most in need.
• Hospitality Grants It was highlighted that a number of Hospitality grants have still not been paid. M.Cothall will forward the details to H.Lightbody.
5. Tourism recovery Plan
• Phase 1 Recovery Projects - The new Destination & Sector Marketing Fund launched on Friday 28 May. The Fund opened to applications on Tuesday 1 June.
- All Phase 1 projects are progressing. No issues to report.
- The latest status update on the ten projects can be found on VS.org on the Tourism Recovery Programme page and the National Action Plan page.
• Phase 2 Five Year Recovery Plan - Phase 2 is now working to a revised timeline. The Five Year Plan for SGov will be delivered by 25 June.
- The target audience in the first instance is SGov Ministers. Further discussions will take place to agree how the Plan can be communicated most effectively to industry and to investors.
- The STERG working group and Toposophy will meet over the next few days to work on shaping the final list of proposals, these will then be scoped in further detail and indicative funding requirements will be identified.
- It was noted that one source of funding for the recovery plan is the Programme for Government, however it has been highlighted that resources are limited and therefore alternative investment options will need to be explored, particularly for some of the larger initiatives.
- It was highlighted that there are a number of organisations already involved in some of the spaces that the recovery plan is looking to address therefore it will be important to bring other organisations to the table to ensure their input is captured.
- Further discussion is required on the ‘Investor prospectus’, purpose, content etc. The intention is that this would set out opportunities for investment in Scottish tourism beyond Scottish Government.
• Tourism Recovery Dashboard - The first set of recovery indicators will be available by close of play today. Recovery Indicators will be circulated to STERG for feedback.
-It expected that there may be several iterations before the final set of indicators are agreed.
- It was noted that the Dashboard should be discussed at the next STERG meeting.
6. Partner Updates COSLA
• It was noted that COSLA / Business Gateway have not been involved in recent discussions about business support and are therefore currently getting up to speed with the latest position. Skills Development Scotland
• From 7 June a new two week campaign, ‘#Hospitality Scotland’, will launch. The campaign is being led by Jobcentre Plus in partnership with Springboard, SDS, STA, UKH and other industry partners. The campaign has been developed to promote the sector to Jobcentre Plus clients. Enterprise Agencies
• Difficulties have been experienced at St Mary’s loch over the past few days when the weather was warm. SoSE will be attending a Destination Management meeting which is being convened by D&G council to discuss whether some of the actions from that group can be accelerated to address the issues.
• It was noted that the Cairngorms National Park at the weekend was extremely busy with visitors however there was a good visual presence of rangers - there were people monitoring the car parks, there were people on the beach with high vis on addressing issues such as real flame BBQs, there was also much more educational information around such as information boards.
Overall, there was a good visual presence of people attempting to manage the situation. Anti-social behaviour unfortunately was recorded. The increasing volume of visitors and campervans around hot spots is picking up strongly. VisitScotland • A call is being held this afternoon with Kate Forbes, specific conversations about the Arisaig and Morar situation will take place – it was noted that this is a mirroring of the situation which happened last year.
• A Visitor Management call will take place next Thursday. Scottish Government
• Euro 2020 will start at the end of next week. SGov team are working with hospitality stakeholders on what type of Euro events can be held. It was noted that a lot of good work has been done by the beer & Pub Association across the UK and that SGov are looking to adapt and develop this for Scotland. Guidance on this will be issued imminently. STA
• It was noted that it is getting busier and some businesses are doing well however we need to mindful of the bigger picture where there are still businesses who are unable to trade viably.
• It was noted that the Islay ferry has been taken out and a communication sent to island businesses today that there will be no movement off the island until Saturday – this once again highlights the challenges of the infrastructure.
7. AOB
• No AOB was noted.
Next Meeting Date The next meeting will convene on Thursday 10 June, 11am-12pm
1. Issues
• Domestic Cruise Industry Confirmation has been received that the cruise sector will not be able to operate . Discussions are ongoing about when it will be able to operate once again. It was noted that there is a lot of work going on behind the scenes on this. SGov team are looking to confirm a date for a further update.
• Sharing Rooms in Visitor Accommodation Guidance is to be updated to make it clear that the same rules apply in a hotel bedroom, hostel bedroom as applies in the hotel or hostel itself, i.e. household groups must physically distance 2m (not 1m as it is not a hospitality space). Bedroom sharing therefore between households should not take place. The exception is domestic settings, where it is permitted, (domestic settings include self-catering).
• Physical Distancing Review The review is expected on 7th June. • COVID Certification Work is continuing.
• Sector Recruitment Challenge Discussions are ongoing with the SGov about a recruitment campaign. It was noted that the creative work for this was completed last year and should therefore be ready to go. Evidence to support the need for the campaign has been requested by SGov.
Action: J.Young to engage with SGov colleagues to understand the scope of the evidence required.
Action: J.Young and B.Clark to discuss whether the campaign could be delivered in partnership with VS. Collating Evidence of the Tourism and hospitality recruitment challenge
- At the previous STERG meeting it was agreed that VS would look at an industry survey to establish the scale of the recruitment challenge. Following discussions with the Insight team, it was noted that in the last three STERG surveys issued by VS, 75% of respondents didn’t employ any staff, this therefore is not the right audience to ascertain recruitment challenges. Alternative options need to be explored.
- It was noted that there are a number of sector surveys which are live at the moment, however, on closer examination these surveys do not have specific issues about recruitment.
- It was highlighted that the FSB are currently carrying out a survey in the HIE region, this includes specific questions on recruitment. FSB are willing to share the findings. FSB are however reporting lower than normal response rates, this could be due to survey fatigue.
- In addition to the FSB findings it was suggested that the Enterprise Agencies consider contacting the recipients of the Hotel Support Programme to try and get a feel for the current recruitment challenges.
Action: A.Miller to work with HIE research colleagues to prepare a list of questions which could be directed at the businesses who received HSP funding. The questions will be shared through HIE, SE and SOSE. It as noted that this will be done sooner rather than later.
- It was noted that anecdotal feedback suggests that recruitment remains a challenge. As an example, SDS held an event with the Scottish Chambers recently, 45-50 tourism businesses attended and overwhelmingly one of the key issues was the challenge to recruit staff.
- The SDS Evidence Base team are investigating the latest vacancies within the sector and will attempt to drill down to regional vacancies however there is always a time lag on this information. Hospitality Scotland Campaign - From 7th June a new two week campaign, ‘#Hospitality Scotland’, will launch.
- The campaign is being led by Jobcentre Plus in partnership with Springboard, SDS, STA, UKH and other industry partners. - The campaign has been developed to promote the sector to Jobcentre Plus clients Young persons Guarantee
- It was noted that now is a good time to promote the Youngs persons Guarantee
- Link to information on the Young Person’s Guarantee https://www.myworldofwork.co.uk/youngpersonsguarantee#anchor--12546 from the SDS My World of Work website which includes a specific section for employers which includes links to resources for businesses to: engage with education, advertise a job, advertise an apprenticeship, find business support and link to the Kickstart programme.
• Ferries The ongoing ferry situation continues to impact island communities and the tourism economy. An update on progress was requested. Action: SGov team to provide an update to STERG partners.
3. Funding Updates
• Local Authority discretionary funds - Clarity to be sought on whether a business or individual can receive a grant from a VS fund and a grant from a Local Authority discretionary fund. An inconsistent approach is being taken to this across Local Authorities. It has been agreed that VisitScotland will make their grant awards and notify the appropriate Local Authority. As the discretionary fund is discretionary, each individual Local Authority will decide on whether that busines or individual can receive grants from both funds.
• VS Funds - Over £70m of funding has been awarded so far through VS. - Final appeals are being dealt with. - Launch dates for the Coach operator Fund Part 2 and the Outdoor Fund Part 2 is to be confirmed. Next steps on the Agritourism support fund to be confirmed.
Action: J.Young to liaise with K.Massie on the proposals for the Coach operator Fund Part 2 and the Outdoor Fund Part 2 in order to secure the necessary approval to progress.
4. Tourism Recovery Plan
• Phase 1 Recovery Projects - The new Destination & Sector Marketing Fund is expected to launch on Friday 28th May. The Fund will be open to applications from Tuesday 1 st June.
https://www.visitscotland.org/supporting-your-business/funding/destination-sector-marketing-fund
- All Phase 1 projects are progressing. No issues to report. - A status update on the ten projects can be found on VS.org https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/tourism-recovery programme https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/national-action-plan
• Phase 2 Five Year Recovery Plan - STERG convened a meeting with the Scottish Tourism Task Force on Friday 21st May. The purpose of the meeting was to provide an update on Phase 2 of the tourism recovery planning process
– development of the Five Year Recovery Plan. During the meeting Toposophy shared their findings from the consultation work undertaken and presented their recommendations on the priority areas that the recovery plan should focus on. Toposophy’s presentation was circulated to the Task Force for feedback.
- The STERG working group will continue to develop and shape the five year plan over the next three weeks. A paper will be ready to submit to Scottish Government w/c 21st June. The revised timing is in line with the timing of the PfG which starts in June and carries on through to September.
- It was noted that there are three eventual audiences for the five year plan, Scottish Government & Ministers, Industry and potential investors. This plan will be submitted to Scottish Government & Ministers in the first instance.
- The ask is to provide as much detail as possible on the recovery proposals by w/c 21st June. The more detail that is available, the greater the opportunity to secure funding. Project proposals can be made on internal templates that are currently used within each organisation.
5. Partner Updates
Scottish Government
• SGov tourism team this week have been focused on briefing Mr McKee and supporting meetings with stakeholders.
• Key messages coming through from initial meetings with Mr McKee are:
- Ministers are looking to move on from immediate business survival towards longer term recovery, having recovery plans in place therefore will be really important.
- How tourism can support and grow export markets
- Improving productivity
- Digitalisation
- Skills development
- Supporting Fair Work and low carbon transition. It was noted that any support provided is likely to have conditionality attached to it.
Skills Development Scotland
• The Fair Work Convention are launching an enquiry into the Hospitality sector. L.Durden has already had discussions with the team leading on this. L.Durden has recommended extending the scope of the enquiry to include tourism, noting for example that visitor attractions have cafes or restaurants on site.
• Phase 1 of the Tourism & Hospitality Development Programme is now complete. An external consultant will be commissioned to pull together all of the evaluation work that has been done. 1,570 responses to the survey were received (1,900 completed the training).
• Phase 2 of the programme is now being developed with input from a broad range of contributors. TravelTech for example have provided guidance on the priorities for digital training. Priorities for the programme are now agreed and include for example, low carbon, fair work, cultural awareness and language skills, mental health and wellbeing, chef’s skills training. Also included is a campaign to promote the sector. The priority is to use exiting training provision.
• The Scottish Employer Skills Survey 2020 provides an insight into employer views on skill shortages, skill gaps and employer led training activity. It also includes questions on the skills related impacts of COVID 19 on employers. It was conducted during the pandemic of course. Results from the 2020 survey were published this morning and are available at: - Scottish Employer Skills Survey 2020 Official Statistics Report - https://www.gov.scot/isbn/9781800049604 (note that excel data tables and a slide pack of Figures from the report are included as “supporting files”) - Scottish Employer Skills Survey 2020: Technical Report - https://www.gov.scot/isbn/9781800043251 In terms of data on the Hotel and Restaurant sectors, a few findings drawn out are:
- In 2020 57% of employers provided training in the last 12 months (down from 69% in 2017)
- 82% of staff were furloughed by the sector.
- Hotels and restaurants make up 11% of all Scottish business establishments and employ 8% of the workforce.
6. AOB
• No AOB was noted
Next Meeting Date The next meeting will convene on Thursday 3rd June, 11.00am-12.00pm
1. Scottish Government Cabinet and Ministerial appointments
• STERG partners welcomed the appointment of Ivan McKee as Minister for Business, Trade, Tourism and Enterprise.
• Although disappointing to see Tourism lose its seat at the Cabinet table, it was noted that the move into Kate Forbes’s Finance and Economy portfolio was significant and supports tourism as a key contributor to Scotland’s economy. Strengthening ties between Tourism and the Economy is important.
• It was acknowledged that Kate Forbes has been very supportive of Tourism and that there already exists a good relationship to build on moving forward.
• It was recognised that there is an onus on all STERG partners to ensure that Tourism becomes a priority for Mr McKee and that a strong, collaborative relationship is built. An early meeting with Mr McKee to position Tourism is essential. • It was noted that Tourism now sits with the three Enterprise Agencies under the same Minister – it was agreed that this was a positive move and should help recovery.
• It had been hoped that Tourism and Events would be brought together under one Minister or Cabinet Secretary however that has not been the case.
• It was highlighted that there were a number of new Ministers to engage with, as all have a role to play in Tourism. In particular, Cabinet Secretary for Rural Affairs and Islands, Mairi Gougeon, Minister for Environment, Biodiversity and Land Reform, Mairi McAllan, Minister for Transport, Graeme Dey and Minister for Higher Education and Further Education, Youth Employment and Training, Jamie Hepburn. Effective ways to engage across different portfolios should be considered.
2. Issues Arising
• Sharing Rooms in Visitor Accommodation Bedroom sharing is not regulated in a hotel setting or a self-catering domestic setting and therefore it is allowable, but, in both settings the guidance (SGov) advises against it due to the risks of virus transmission. Non compliance with the guidance could force regulation however this is not expected to happen. • Domestic Cruise Industry A submission has gone to the First Minister. A response is expected imminently.
• Social Distancing Review A review of Social Distancing policy is underway; reporting is expected to be in line with England.
• COVID Certification Work is underway on COVID Certification. This work is in the early stages but will look to understand what approaches could be taken and in what context it could be used.
• Chef Recruitment Challenge VisitScotland are in discussions about possibly running a campaign to support the recruitment of chefs into the sector. Industry and SDS will be consulted on this.
• Returning European Workers - Could any exemptions be agreed for the return of European workers, in particular exemptions from managed quarantine. There is an exemption in place for fruit pickers who are allowed to quarantine on the farm. This issue is also being raised at Westminster.
- It was noted that there is no current mechanism in place to gather evidence of what jobs are being impacted and where those jobs may be. It would be helpful to be able to gather that information in order to build a case for exemption.
- Intelligence coming through from HIE would suggest that workforce availability particularly in the west coast is the number one challenge for the tourism & hospitality sector and this is linked to returning EU staff . There is concern that this could impact industry’s ability to deliver the tourism or hospitality product this year. In the Highland rural areas, the visitor demand is there but the ability to deliver may not be.
- It was suggested that the public sector may need to intervene and commission a piece of work to understand the scale of the issue. A simple survey was recommended, this could also be helpful in collecting more regional data, however there is recognition of the risk of survey fatigue. The Evidence base team at SDS produce the Sector Skills Assessments on a quarterly basis. This contains data from Burning Glass, a data source for vacancies, Lawrence Durden will be discussing how vacancy data could be gathered more closely to real time – there is information available, but the challenge is breaking this down to a regional level.
Action: K.Massie to discuss an urgent and brief survey option with the Insight team at VS which aims to find out what are the job vacancies and where are they.
Action: L.Durden to update K.Massie following discussions this afternoon with the SDS Evidence Base team. After the STERG meeting it was noted that contact is being made by HIE with FSB who may be about to undertake a similar piece of employment/recruitment research.
• Forward Bookings Remain Poor - Industry continue to report poor forward bookings.
• Double Booking of Accommodation - Industry and the media are reporting concerns about the double booking or spread booking phenomenon which has become evident. It is not clear what can be done about this. The impact of this is being felt across the sector but particularly the B&B and Self-Catering sectors due to reliance on advance bookings • Surplus Monies from Previous Funds - Clarity required on whether any surplus money from closed funds could be redeployed - Could surplus funds be directed to critical assets that have been unable to receive funding due to eligibility criteria?
• Accommodation Stock Within The Cities - Concern has been raised that some corporate hotel groups may continue to keep their hotels closed in the cities rather than reopening. There is also growing concern in Glasgow about how many of the hotels will survive until COP26 and therefore there is potential for a shortage of accommodation stock for COP26.
3. Funding Updates
• Local Authority discretionary funds - Clarity is still being sought on whether a business or individual can receive a grant from a VS fund and a grant from a Local Authority discretionary fund. An inconsistent approach to this across Local Authorities has recently come to light and needs to be resolved. H.Lightbody advised that the guidance issued by the Scottish Government is not clear and therefore has been open to interpretation by local authorities.
Action: J.Young to address the lack of clarity in the guidance with SGov colleagues and provide an answer. • VS Funds - Outstanding appeals continue to be dealt, very few now remain.
- £68.76m of funding has been awarded so far through VS.
- Launch dates for the Coach operator Fund Part 2 and the Outdoor Fund Part 2 is to be confirmed. Next steps on the Agritourism support fund to be confirmed.
4. Tourism Recovery Plan
• Phase 1 Recovery Projects
- All ten projects continue to progress.
- A status update on the ten projects can be found on VS.org
https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/tourism-recovery programme https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/national-action-plan
- Subject to SGov approval, the new Destination & Sector Marketing Fund will be launched on Monday 24th May.
- A response to the questions raised with the SGov Subsidy Control team is urgently need to progress the development of the projects being led by SE.
Action: J.Young to follow up with colleagues
• Phase 2 Five Year Recovery Plan - The STERG working group continues to work with Toposophy on the development of the five year recovery plan.
- Toposophy will share progress, including the findings from the consultation activity, with the Task Force at a meeting on 21st May. Feedback from the Task Force will help shape the Plan further.
- A one page summary of Tourism’s pathway to recovery will continue to be developed for the final plan.
- Could surplus funds be directed to critical assets that have been unable to receive funding due to eligibility criteria?
• Accommodation Stock Within The Cities - Concern has been raised that some corporate hotel groups may continue to keep their hotels closed in the cities rather than reopening. There is also growing concern in Glasgow about how many of the hotels will survive until COP26 and therefore there is potential for a shortage of accommodation stock for COP26.
3. Funding Updates
• Local Authority discretionary funds - Clarity is still being sought on whether a business or individual can receive a grant from a VS fund and a grant from a Local Authority discretionary fund. An inconsistent approach to this across Local Authorities has recently come to light and needs to be resolved. H.Lightbody advised that the guidance issued by the Scottish Government is not clear and therefore has been open to interpretation by local authorities.
Action: J.Young to address the lack of clarity in the guidance with SGov colleagues and provide an answer.
• VS Funds - Outstanding appeals continue to be dealt, very few now remain.
- £68.76m of funding has been awarded so far through VS.
- Launch dates for the Coach operator Fund Part 2 and the Outdoor Fund Part 2 is to be confirmed. Next steps on the Agritourism support fund to be confirmed.
4. Tourism Recovery Plan
• Phase 1 Recovery Projects - All ten projects continue to progress. - A status update on the ten projects can be found on VS.org https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/tourism-recoveryprogramme and https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/national-action-plan - Subject to SGov approval, the new Destination & Sector Marketing Fund will be launched on Monday 24th May.
- A response to the questions raised with the SGov Subsidy Control team is urgently need to progress the development of the projects being led by SE.
Action: J.Young to follow up with colleagues
• Phase 2 Five Year Recovery Plan - The STERG working group continues to work with Toposophy on the development of the five year recovery plan.
- Toposophy will share progress, including the findings from the consultation activity, with the Task Force at a meeting on 21st May. Feedback from the Task Force will help shape the Plan further.
- A one page summary of Tourism’s pathway to recovery will continue to be developed for the final plan.
5. Partner Updates
Skills Development Scotland • Shirley-Anne Somerville has been appointed Cabinet Secretary for Education and Skills.
• The research commissioned by SDS into Fair Work has now been completed. An Executive Summary will be shared with STERG.
• The Fair Work Convention are launching an enquiry into Fair Work in Hospitality. SGov has been in touch with Lawrence Durden to discuss this – it will be important to share the Fair Work research report which SDS have just completed.
• The Sector Skills Assessment provides information on job vacancies and postings (latest data Feb 2021 - due to be updated within the next couple of weeks). Top areas for vacancies are
1. Kitchen & Catering Assistants 1,400 job postings
2. Chefs 900
3. Waiters & waitresses 500.
Main areas with the most job vacancies in tourism were:
1. City of Edinburgh
2. Glasgow City
3. Highlands.
• Springboard, SDS and STA are working with Jobcentre Plus on a campaign called ‘Hospitality Scotland’ to promote vacancies and jobs within the sector, this is expected to launch in June and run for 2 weeks. Enterprise Agencies
• Ferries continues to be a major challenge, and no one is proposing any solutions at the moment. This is a huge issue for the islands. It was noted that this should be the top priority for the Islands Minister and the Transport Minister to resolve. VisitScotland
• The next meeting of the Visitor management Steering Group will take place next Tuesday (25th). An update will be provided at the next STERG meeting on 27th . • The Glasgow Language School have enquired about funding support. SGov advised that they have explored options with colleagues and the only route available would be the Local Authority Discretionary Fund. J.Young will confirm in writing.
6. AOB
• No AOB was noted.
Next Meeting Date The next meeting will convene on Thursday 27 May, 11.00am-12.00pm.
1. Issues Arising
• Sharing Rooms in Visitor Accommodation Given the further relaxation of household mixing in private dwellings and the position on hugging, there should now be no further barriers to people being able to share twin bedrooms.
Outbreak Management need to respond with a robust justification as to why that cannot happen. It was noted that these restrictions are having a significant financial impact on many businesses who are trying to get up and running again. An urgent response from Outbreak Management is required. it was noted that the self-catering guidance has now been updated to reflect the recent relaxations on household mixing.
• Domestic Cruise Industry An interim update has been provided to the sector, however, a further update given recent announcements is now required.
• Event Guidance Now that capacity guidelines have been issued for events, urgent clarity is required on what an operator can or can’t do at an event. The SGov advised that Guidance applicable from 17th May should be published tomorrow (14th). It is expected that guidance for after the 8th June will not be published until nearer the time as decisions won’t be made until closer to the date. • International Travel This remains the key missing link for all which needs addressing.
• Large Self-Catering Properties Properties which cater for large groups (not necessarily families), are looking for guidance on when they will be able to reopen.
• Staycation Boom Myth It was noted that the STA over the last 48 hours has been working hard to ensure that there isn’t an assumption by MSP’s and the public that Scotland is ‘full’, this is absolutely not the case, there is plenty of availability across the country and recent media coverage is now beginning to reflect this.
It was noted the SGov Tourism Team will also emphasise in their briefing to new Ministers that the sector is not experiencing a ‘boom’. It was highlighted that the ‘Scotland is open’ messaging from English sources is not coming through strongly enough. It was highlighted that hoteliers in the south of Scotland are picking up on a reluctance to travel to Scotland due to the uncertainty of the welcome they may receive. Hoteliers are having to reassure their customers in England that it is ok to visit. More needs to be done to reassure potential visitors.
• Recruitment The STA have been emphasising the recruitment challenges being faced within the industry and in particular chef’s. It was noted that there are many contributing factors to this, European staff exit, people who do not want to return to work under the same conditions they were working to pre COVID, people who have changed careers due to the uncertainty and perceived lack of security in the tourism and hospitality sector, furlough regulations and loss of students. The concern is that staff shortages may impact the businesses ability to trade.
• Islands It was highlighted that recent communications about the islands have failed to mention Arran, Cumbrae and Bute. Clarity is required on the restrictions which will apply to them. • Ferries The ongoing situation with the ferries is now getting worse and there are longer term concerns about the future service.
• Increasing COVID Case Numbers In Glasgow The increase in COVID case numbers in Glasgow has raised concern that it may remain in Level 3. It was noted that the impact of this would be significant on businesses.
• Moray Clarity on travel in and out of Moray was requested – will travel restrictions be put in place? Will there be compensation for businesses where bookings are cancelled as visitors are not able to get to them? It was noted that this was an agenda item for the business organisations call this afternoon. SGov suggested that travel restrictions were to be expected and if that is the case then business support could be expected.
• Business Support It was highlighted that the need for short term financial support continues to be a priority for many businesses in the industry.
2. Funding Updates
• Local Authority discretionary funds -Clarity is still being sought on whether a business or individual can receive a grant from a VS fund and a grant from a Local Authority discretionary fund. An inconsistent approach to this across Local Authorities has recently come to light and needs to be resolved.
Action: H.Lightbody pursuing an answer on this.
• VS Funds
- All VS funds are nearing closure.
- Outstanding appeals continue to be dealt with on an ongoing basis.
- All businesses who have received VS funding will be contacted within 6 months to review how the grant money has helped them.
3. Tourism Recovery Plan
• Phase 1 Recovery Projects - All 10 projects continue to progress well.
- Official confirmation of the transfer of funds from Scottish Government to the agencies is urgently required in order to progress necessary procurement.
Action: J.Young to confirm with SGov colleagues that funds are being released to the agencies.
• Phase 2 Five Year Recovery Plan
- The STERG working group are working with Toposophy to begin to shape the five year recovery plan. Findings from recent consultation activity and the robust evidence base review conducted by Toposophy are informing this process.
- It was noted that the Task Force Recovery Recommendations are the foundation to this recovery plan https://scottishtourismalliance.co.uk/tourism-recovery/.
Phase 1 identified the 10 priority projects where immediate funding was required, in order to deliver benefits in the next 6-24 months.
Phase 2 will build on Phase 1 and address any necessary gaps.
- A Task Force meeting has been scheduled for Friday 21st May to share progress on the plan.
- Following submission of the five year plan at the end of May (beginning of June), Outline Business Cases will be developed by end of June.
- It was acknowledged that ongoing business support and creating the right conditions for recovery will remain a priority.
4. Tourism Recovery Dashboard
• A paper outlining the proposed approach to developing the Recovery Dashboard was shared with STERG for comment. Feedback received from HIE will be considered by the working group as they progress with the approach outlined in the paper. It was noted that HIE’s research team have offered to be involved in discussions moving forward.
5. Partner Updates Enterprise Agencies • SoSE has been receiving a number of enquiries recently from farm businesses looking to diversify into glamping as well as other types of accommodation. In the last fortnight there has been a massive influxfrom farms in D&G and the Borders. Visit Scotland • Rob Dickson, Executive Director, Corporate Improvement & Economy at Scottish Borders Council has been announced as Riddell Graham’s successor when he retires in September. Rob will take over as Director of Industry and Destination Development at VS on 11th August. Rob will also take over as Chair of STERG.
6. AOB
No AOB was noted
Next Meeting Date The next meeting will convene on Thursday 20th May, 11.00am-12.00pm.
1. Sector Reopening
– Issues Raised • Outstanding issues from previous meetings A written response to the outstanding issues has been received from SGov tourism team.
• Additional business support for large self-catering properties Further support has been requested for large self-catering properties who continue to be impacted by COVID restrictions. It was noted that an analysis of the grants awarded to large self-caterers can be found in a report published by SGov. This report also outlines the support received from other funds administered by Local Authorities. COVID-19 BUSINESS SUPPORT EXPERIMENTAL STATISTICS
• Wedding Guidance Updated guidance on weddings will be published imminently. This will provide greater detail on the future phases beyond 17th May. It is not possible to provide full details, however guidance can be given on what will happen at a wedding in line with other changes being implemented in the wider environment such as music or dancing.
Two issues will not be included in this updated guidance at this point:
1. Wedding receptions in a private house / garden. Currently these are not permitted, wedding ceremonies can take place but not receptions. The Outbreak Management team are currently considering whether wedding receptions will be able to take place in private gardens.
2. Weddings on public land Weddings on public land has always been legal but the guidance has been silent on that up until now. Due to the way public land is defined in the regulations you can have a wedding on land which is not considered part of the dwelling house.
The aim is to include details in the guidance which would set out the basis on which this should operate, e.g. having a designated responsible person to manage the function. It was highlighted that wedding venues are currently very frustrated as they are not in a position to advise the brides / grooms etc on what they can or can’t do when planning weddings in the future and the venues are being increasingly challenged by the public to provide answers.
Clarity is sought on whether a wedding being held on a green field site, such as a farm, could legally consider a contract caterer to manage the event.
• Business events guidance Venues require clarity on what they can or can’t do with regard to business events. When will guidance be made available for the operators of business events? It was noted that this is beyond just the numbers that can attend. The lack of clarity is preventing bookings being made. SGov advised that while physical distancing is in place that will continue to impact what you can and cannot do and that unfortunately it is not clear right now.
• Small ship domestic cruise industry It was noted that the sector is still waiting on a response from SGov that will help the sector to get back up and running again.
• Social Distancing It is anticipated that social distancing in England will no longer apply from 21st June. It is understood that the 4 nations have been involved in discussions on this and clarity is sought on Scotland’s current position. Social Distancing continues to be a challenge for many parts of the sector such as visitor attractions, large self-caterers, activity providers.
It was noted that a submission is being made to the First Minister on a number of issues one of which includes physical distancing. It was highlighted that recent feedback from clinicians has suggested that there is no clinical evidence to support removing physical distancing, this is different to the approach in England and does not reflect the progress of the vaccination programme. SGov tourism team will keep STERG updated on progress.
• Ongoing business support The STA have issued a survey to gather data on performance and the forward outlook as well as data on the workforce. It was noted that the data so far indicates that current levels of business are very low. City hotel occupancy for the next 3-4 months is no greater than 20%-25% in any one month.
In rural hotels performance varies, smaller hotels appear to be performing better than the larger hotels. The survey data will be consolidated at the beginning of next week. It was emphasised that there is still a need for ongoing business support as many businesses are now in a worse position than they were last year, businesses no longer have a cushion of reserves that they would normally have had at the beginning of the year, they have exhausted all of their reserves, they will have borrowed money and spent their grants and the banks are unlikely to be willing to lend further.
It is critical that the rescue need is recognised and remains a priority. The SGov tourism team advised that it was very aware of the need for business support, a recent analysis by the SGov has shown the level of peril that businesses are in and demonstrates how cash poor and over stretched they are. It was requested that this analysis is shared with STERG.
Currently within Scottish Government there is not enough money to support all sectors of the economy moving forward unless something radical changes with the money received from the UK Government - this is not expected to happen. It was noted that the future focus of business support within SGov has been identified as taxi drivers and culture as these were the two areas highlighted in the manifesto.
The STA will be producing a report based on the survey results and will include insight from most sectors. This will be reviewed and updated on a regular basis. This document will be key to ensuring that MSPs have an appreciation of the impact of COVID on the sector. It will also be key to dispelling the myth of the staycation boom.
2. Funding Updates
• Local Authority discretionary funds Clarity is required on whether a business or individual can receive a grant from a VS fund and a grant from a Local Authority discretionary fund. An inconsistent approach to this across Local Authorities has recently come to light and needs to be resolved.
Action: H.Lightbody pursuing an answer on this.
• VS Funds - International Inbound Operators fund is nearing completion. Significant financial awards have now been made with the final few being assessed tomorrow 7th May. There are a number of appeals outstanding and these are being dealt with on an ongoing basis.
- VS will be conducting a review of the funds that they have administered to identify the key lessons to be learned. VS are keen to understand whether a common approach is being taken to audit among the other public agencies. It was noted that Audit Scotland are currently reviewing fund delivery in HIE. In addition, HIE’s business improvement audit function has been looking at all funds delivered by HIE. Audit Scotland are also reviewing the work done by Scottish Enterprise in administering business support funds. it is expected that the Business Support function will also conduct a review of the funds.
It was noted that SoSE have set up an information exchange between the two local authorities and SoSE to share lessons learned, this will then feed into Business Gateway in terms of business support. Local Authorities have been discussing with SGov, the learnings from the last year and what they might do differently, should they need to respond quickly in the future.
A logical approach from a Local Authorities point of view, would be to issue funding on a rates-based system, accompanied by a discretionary fund for those who may fall through the gaps.
3. Tourism Recovery Plan
• Phase 1 Recovery Projects - All 10 projects are progressing well.
- Outstanding issues regarding business case requirements for the Tourism Observatory have now been resolved. - An official confirmation of the transfer of funds to the agencies is urgently required in order to progress necessary procurement within the projects.
Action: J.Young to confirm with SGov colleagues that funds are being released to the agencies.
• Phase 2 Five Year Recovery Plan - All stakeholder engagement activity is now complete. The last consultation session with the Sector organisations took place yesterday (5th May) and the deadline for submitting any written responses has also now closed. It was noted that a list of those who were invited to participate in the stakeholder activity will be made visible for information
- The output from the engagement activity is now being consolidated, analysed and distilled by Toposophy and an initial set of proposals presented to the STERG working group on 7th May.
- The STERG working group will filter and develop the proposals over the coming week ready to share with The Task Force w/c 17th May.
- It was suggested that the Task Force membership be reviewed as the group may benefit from representation from other businesses or organisations such as the FSB.
- It was confirmed that the source of funding for the Phase 2 Five Year plan should aim to target the Programme for Government, however there may be other opportunities over and above the PfG to secure funds.
- It was noted that this five year plan will play an important role in informing new Ministers on the priorities for Tourism recovery.
-It was noted that the Phase 2 five year plan should articulate funding requirements beyond year 1 for the 10 priority recovery proposals as well as for any new projects. It was advised that in the past PfG has committed funding up to 3 years.
- Securing people resource to implement the projects will be critical. Consideration should be given to how the lead organisations responsible for implementation and delivery allocates the right peoople resource. It was suggested that this could be articulated in the letter of strategic guidance.
6. Partner Updates Enterprise Agencies
• A.Miller advised that HIE will be publishing its organisational operating plan imminently and thought will need to be given as to how Phase 1 and Phase 2 of the tourism recovery plans fit with the HIE plan. COSLA
• A piece of work is currently being undertaken to look at the service design of Business Gateway, what does the future Business Gateway service need to look like, where does it fit, etc. this will be developed over the next few months with a view to having a refreshed service in place for next year.
• A new Business Gateway campaign is now live and has recently featured on TV. VisitScotland
• A communication is being developed to raise the profile of the 10 priority recovery proposals which will go alongside the STERG National Action Plan. STA
• The STA have offered to facilitate a discussion between UKInbound, SDMA and HES regarding HES’s new policies towards hosting groups of visitors after a letter outlining the impact of these policy changes to the travel trade was sent to Fergus Ewing.
7. AOB
• For information, H.Lightbody informed the group that an issue raised at the end of March, regarding a publican in south Lanarkshire, who had not received any funding support has been raised once again. The issue was being dealt with by South Lanarkshire council and they will be asked to look at this once again.
• M.Crothall advised that a further update is required on the progress of discussions around international travel.
Next Meeting Date:
The next meeting will convene on Thursday 13th May, 11.00am-12.00pm
1. Sector Reopening – Issues Raised
• Outstanding issues from previous meetings A list of the outstanding issues gathered from previous meetings was provided to STERG in advance of the meeting. A written update from the SGov Tourism team was requested on all points.
Action: J.Young to respond with a written update.
• Guidance for sharing bedrooms in visitor accommodation Urgent clarity is required on the guidance for sharing bedrooms across all accommodation providers, but particularly for hotels. It was requested that the Q&A document is updated ASAP to reflect the outcome of the discussions which are currently taking place.
• Ferry capacity Serious concern has been raised about Calmac ferry capacity. Lack of ferry capacity is already directly contributing to lost revenue for island businesses. It was noted that this should be addressed now before the summer season.
Action: STA to coordinate a call with SGov and industry representatives to discuss the impacts of reduced ferry capacities. It was noted that there are also issues with group bookings and travel trade bookings with Northlink Ferries. Northlink do not want to take group bookings until clarity on the guidance is provided. This issue remains outstanding.
• Campsites not opening facilities It has been noted that some campsites have not opened their toilet or shower facilities. This may be as a result of misinterpreting the guidance and this could become a real problem if not dealt with. Local Authorities and VistScotland should be able to help here with communications.
Action: J.Young to email the issue to R.Graham and H.Lightbody to be addressed
2. Sector Reopening – General Industry Feedback
• STA will be issuing a short industry survey next week to get a snapshot of the tourism and hospitality landscape since restrictions were eased on 26th April.
• It was highlighted that there are quite a lot of vacancies within the sector and this is proving a huge challenge.
• It was noted that in general it has been a slow reopening so far, however this expected to change as the bank holiday weekend approaches.
• Anecdotal feedback from the hospitality sector suggests that Hotel occupancy remains low c. 30%-35%, only c. 35% of pubs have been able to reopen – this is a sector which remains hard hit. Restaurants are ok.
• Forward accommodation bookings from mid June, July and August are looking better.
• It was highlighted that recent EHO feedback is suggesting good compliance so far. 3. Funding Updates
• Local Authority discretionary funds Clarity is required on whether a business or individual can receive a grant from a VS fund and a grant from a Local Authority discretionary fund. An inconsistent approach to this across Local Authorities has recently come to light and needs to be resolved.
Action: R.Graham to follow up with H.Lightbody • Eligibility of Visitor Attractions for Hospitality Top Up Grant H.Lightbody requested confirmation on whether new guidance has been issued on this.
Action: J.Young to confirm to H.Lightbody whether the guidance has been updated and re-issued to local authorities.
• VS Funds - International Inbound Operators fund is nearing completion. 127 applications were received, 92 were approved and 36 rejected. Grant award letters for the successful applicants will be issued this week and next week. It was noted that 26 awards are above the £150k threshold and require rapid SGov approval.
- Launch dates for Phase 2 of the Outdoor fund and Phase 2 of the Coach fund will be confirmed after the election. No issues are anticipated
- It was noted that there is currently no funding available for the Agritourism fund. This fund required approval by the Cabinet Secretary for Finance prior to purdah, this was not forthcoming. A new funding request will need to be made for FY 2021/2022.
3. Tourism Recovery Plan
• Phase 1 Recovery Projects - VS projects continue to progress well
- A business case and options appraisal for the ‘Tourism Observatory’ has been submitted to SGov team. Confirmation that the project can now progress and that nothing further is required is urgently sought.
Action: J.Young to discuss internally with colleagues and confirm to R.Graham.
- The ‘Net Zero Pathway’ project will require key decisions to be made over the next two weeks. All opportunities are currently being explored with the expectation that a shortlist of priorities will be agreed between the EA’s, VS and SGov.
- Clarity is sought from SGov Tourism Team on the classification of the funding that has been allocated to the ‘Leadership to Boost Product Innovation’ and the ‘Net Zero Pathway’ projects. The classification of the funding will have a bearing on the criteria for the business support elements of these projects.
Action: J.Young to discuss internally with colleagues and confirm to P.McCafferty.
- Funding for the Skills Development project is coming from two sources, the £25m recovery fund and the National Transition Training Fund, work is underway to identify what activity can be supported by which fund.
• Phase 2 Five Year Recovery Plan – Progress Update - Stakeholder engagement activity is almost complete. The final industry workshop will take place on 30th April and a consultation session will be held with the Sector organisations on 5th May.
- The output from the engagement activity will be consolidated, analysed and distilled by Toposophy and an initial set of proposals presented to the STERG working group by 7th May. The Task Force will review a shortlist of proposals w/c 10th May.
- It was noted that the recovery proposals outlined in the Task Force report are the foundation for the five year plan and there should be a clear line of sight between those proposals and Scotland Outlook 2030. It was acknowledged however that there could be gaps and if there are, then they should be highlighted separately.
• Phase 2 Five Year Recovery Plan – May Report
- It was highlighted that the level of detail included in the different proposals may vary depending on how far each proposal can be developed in the time available to the end of May. - Outline Business cases are not expected by the end of May, however, these will be required in due course in order to secure funding support. The level of detail required in the OBCs will be dependent on the level of funding being requested and the source of the funding.
- To ensure a robust set of proposals at the end of May it was noted that it would be helpful to provide as much detail as possible. - The timeline for requiring OBCs will depend on whether these will feed into the PfG or other SGov processes such as additional consequentials, or opportunities through green recovery or economic recovery – the turnaround time for these can be very short.
- It was noted that there is no SGov template for an OBC. Each agency should use their own appraisal documentation. A SGov overlay at the front of the document would be added.
- The next set of commitments will be the PfG at the beginning of September.
- It was noted that more time could be given to the investment work as this is critical to funding within the next few years and in the longer term. The public sector will be unable to finance all of these projects and business owners will not be able cover their losses so alternative sources of funding, with the right public / private balance must be found. More detail on this will be needed by the end of May so that engagement can start with potential investors and a longer term investment plan can be developed.
- The UK government is getting ready to invest in Scotland through 3 new funds, the Levelling Up fund, the UK Community Renewal Fund and the Community Ownership Fund. These funds will bypass the Scottish Government and go directly to Local Authorities. The importance of joining up national and local thinking to avoid duplication will be key. 4. New MSP Engagement
• The STA advised that it would be keen to initiate early engagement with the new MSPs. A face to face, industry driven event, which will educate and showcase the tourism sector in Scotland is currently being discussed. The event would take place at the end of June, before the summer recess.
• It was noted that this event would provide a platform to update the sector on the initial 10 recovery proposals and if possible, share the SGov’s response to the five year plan that was submitted.
• It was suggested that VisitScotland should also consider an event, for example a parliamentary reception
5. Tourism Recovery Indicators
• The working group met on 28th April to agree the approach to creating a tourism recovery dashboard. • A phased approach will be outlined in a paper and will be submitted to STERG w/c 3rd May.
• The initial phase will seek to bring together a set of short term recovery indicators into an accessible and useable format.
• Future phases will look to bring in longer term recovery indicators linked more directly to the strategy, Scotland Outlook 2030. 6. Partner Updates COSLA
• Final work on the business support funds are being completed.
• Discussions with SGov are taking place about restarting and potentially what we would need to do if things declined again. Enterprise Agencies
• A.Miller advised that she is compiling an overview of the funding provided by HIE to tourism businesses in FY20/21. It is hoped this will be made public when completed. Skills Development Scotland
• Phase 1 of the T&HTDP is now complete. Evaluation is currently underway. Many positive stories are surfacing and people are keen to share the difference that the training has made.
7. AOB
• No AOB was noted
Next Meeting Date The next meeting will convene on Thursday 6 th May, 11.00am-12.00pm
1. Reopening Roadmap / Tourism & Hospitality Guidance
– Outstanding Issues A list of issues, gathered from previous meetings and from the STERG Sector call which took place on 21st April, was provided to STERG in advance of the meeting.
Updates were provided on the following points, on all other points a written update will be provided by the SGov Tourism team.
• Ongoing business support for those business who will not be able to operate at full capacity or operate at all. The SGov Tourism team advised that the need for ongoing financial support is recognised and that a proposal for support has already been put forward to business support colleagues by the Tourism team.
• Resumption of international travel Discussions are ongoing. The key message is the adoption of a four nations approach, including consideration of the UK traffic light approach. Although out with the Tourism team’s hands, the Tourism team will continue to advocate for a lockstep approach with the rest of the UK. It has been suggested that Scotland is c. 2 months behind the rest of the UK on international travel resumption based on where the airlines have placed their aircraft and the commitments that they have in place - purdah is likely to be influencing this slower pace.
It was noted that it is not just the businesses who are heavily dependent on international travel that will be the worst affected, there are many businesses who have domestic tourism but need the international market to become viable, if the international market is not there then the domestic product is weakened.
• Island travel – Lateral Flow testing SGov confirmed that carrying out a lateral flow test prior to travelling to any of the islands is a voluntary scheme and you will not need evidence of a negative test to travel to a Scottish island. It was suggested that additional comms around this issue should be considered.
Action: J.Young to pick up with VS. It was highlighted that lateral flow tests could enable sectors such as the small ship cruise sector to resume.
Small ship cruise sector Discussions to reopen this sector are still ongoing. A meeting will take place next week with the Scottish Chambers of Commerce, the STA and the SGov Tourism team to discuss progress and next steps.
A six point plan, which would allow the charter and small cruise sector to operate, has been submitted to the Scottish Government by Sail Scotland. Currently the plan is sitting with the medics. A response is urgently required.
• Local Authority discretionary funds Clarity is required on whether a business or individual can receive a grant from a VS fund and a grant from a Local Authority discretionary fund. An inconsistent approach to this across Local Authorities has recently come to light and needs to be resolved. Action: COSLA checking this and will clarify
• Test & Protect Data Collection Test & Protect guidelines for hospitality now require contact details to be taken for every customer / visitor, not just a ‘lead’ person. Clarity is required on how children (12 years and above) are to be treated. Is data expected to be collected from them? Action: SGov Tourism team to clarify.
2. Tourism Recovery Plan
• Phase 1 Recovery Projects - The six VS recovery projects are progressing well.
- A provisional launch date for the Destination & Sector marketing fund has been set for 19th May.
- SE recovery projects continue to progress. Weekly meetings with key partners are pushing things forward.
- SDS recovery project is now being developed in more detail. Feedback from the 2,000 delegates who participated in Phase 1 of the Tourism & Hospitality Talent Development Programme is helping to shape Phase
2. - The issue previously raised about the additional evidence that was required to secure a release of funds has now been resolved.
- A monthly meeting of the key project leads will take place on 4th May, initially on a monthly basis, to ensure opportunities across the projects can be maximised and duplication can be avoided.
- The STERG Action Plan will track the progress of all 10 projects. The next refresh of the STERG Action Plan is due to be published w/c 26th April.
• Phase 2 Five Year Recovery Plan - Stakeholder engagement activity is continuing. 1-2-1 and small group consultations are in progress. Industry workshops are being held w/c 19th and w/c 26th April. Consultation with Sector Leads and the Tourism Task Force will be scheduled for early May.
- It was agreed that it was important for the participants in all stakeholder activity to be made visible.
- It was noted that the five year plan will be a key document for the new government. Not only will it provide context on the importance of tourism to Scotland’s economy, the impact of the pandemic and the needs of the sector moving forward, it will also outline the priorities for tourism over the next two - five years.
- Given the tight timescales to deliver the five year plan by the end of May, further clarity is to be sought on the level of detail that is expected to be seen in the plan.
Action: SGov Tourism team to clarify the level of detail required in the May submission and whether a May deadline is absolutely essential.
• Tourism Recovery Indicators - A STERG working group is continuing to scope out the approach that should be taken to the Tourism Recovery Dashboard. A paper will be presented to STERG at the end of April.
- It was noted that the paper should consider other work that is being undertaken, the five year plan for example, other work that is going on within government.
- Consideration should be given to the role that the tourism observatory could play in delivering a Tourism Recovery Dashboard.
- Next meeting of the working group is 28th April.
3. Funds Update
• The International Inbound Operators fund is almost complete
• Discussions are ongoing with the SGov about the ‘live’ dates for the remaining funds, Phase 2 of the Outdoor fund, Phase 2 of the Coach fund and the Agritourism fund which still requires clarity in relation to budget. It is hoped these will now go live after purdah.
4. Partner Updates
• No additional partner updates were noted.
Next Meeting Date:
The next meeting will convene on Thursday 29 th April, 11.00am-12.00pm.
1. Reopening Roadmap – Outstanding Issues
• STGA Request for Special Dispensation to Complete Tour Guide Training No relaxation beyond 2m will be approved at this time. It was noted that the STGA secured funding from SDS to help address the higher costs associated with training at 2m (need to have more coaches etc.)
• Social Distancing Restrictions in Visitor Attractions / Activity Providers No relaxation is expected at this time.
• Clinicians Meeting with ASVA SGov team to organise as a matter of urgency.
• Agritourism Businesses to Offer Camping Facilities for up to 2 Months Without Planning Permission. A response has been received from the Chief Planner’s office and has been forwarded to Caroline Miller as the Agritourism lead. In summary, the Chief Planner has asked that Local Authorities adopt a relaxation of planning control where appropriate, for example, in circumstances that could help businesses and services to diversify and continue to operate safely during the pandemic; in effect, by authorities using their discretion not to take enforcement action against breaches of planning control that are considered acceptable in the current circumstances.
• Hostel Sector Restrictions - Clarity required around the use of communal areas such as kitchens and lounges. - Confirm whether school groups and mixed households will go ahead in England. SGov team are discussing with clinicians and Public health Scotland. A final position on this has not yet been confirmed.
• Small Ship Domestic Cruise Industry Two proposals are about to enter the Four Harms process: - Boutique cruises (vessels carrying up to 12 passengers). The proposal being submitted is to allow these vessels to operate under the Tourism & Hospitality guidance. Industry are currently validating whether this would be viable or not. If it is viable then it will be entered into the Four Harms process. If it is not viable then alternative ways of operating will need to be considered. - Domestic only cruises (vessels carrying up to 1,000 passengers), includes England and Wales. Protocols agreed by the UK Gov are being proposed and are currently sitting with Public health Scotland. This proposal will enter the Four Harms process on Friday 16th.
- SGov Tourism team are not currently dealing with International cruise ships. - SGov advised that the small ship domestic cruise operators who carry c. 50 passengers will fall into the category of cruise ship carrying up to 1,000 passengers, however in the proposal which is submitted to the Four harms process it will be clear that vessels can vary significantly in size.
• Eligibility of Some Outdoor Catering Companies for Business Rates Relief It was noted that SGov guidance on this is not clear. SGov to follow up.
• Update on Tourism & Hospitality sector Guidance SGov advised that the updated guidance should be published on Friday 16th April.
• Resumption of International Travel It was noted that a roadmap for the resumption of international travel was urgently needed and in addition clarity on the availability of future financial support for those businesses who continue to be impacted by the lack of international travel. SGov advised that progress is being made in this area albeit very slowly. It was noted that future financial support would be a post new administration discussion.
2. Tourism Recovery Plan
• Phase 1 Recovery Projects A brief progress update was provided on all projects.
1.0 International Demand Building - Media planning underway - Activity expected to be in market July - March
2.0 Destination & Sector Marketing Fund - Criteria being finalised - Fund expected to launch on 19th May
3.0 Holiday Voucher Scheme – Social Tourism - Project in development - Discussions taking place with potential partners - Launch timing to be agreed with the charities involved.
4.0 Day’s Out Incentive Scheme - Project in development - Further consultation with industry required to agree the most effective mechanic and the most appropriate launch timing.
5.0 Strategic infrastructure Plans - Applications have been invited from local authorities and National Parks to submit ideas for pilot projects with 6 to be chosen from long list, application deadline is 19th April. - Successful applicants will have until December to present their detailed funding plan.
6.0 Tourism and Hospitality Talent Development Programme 2021/2022 (Phase 2) Several priority areas have been identified and are being developed:
- Development of an industry training App/platform/portal
- THTDP Phase 2. Blended learning programme focusing on management, leadership and supervision. Content informed by industry and feedback from phase 1.
- Industry Wide Induction Programme
- Industry Alumni programme (future industry think tank) - Industry Masterclasses - Annual learning & talent conference - Additional programmes also being considered, (Language, cultural awareness, carbon literacy, Mental Health and Wellbeing training and awareness, WorldHost Training support, Tourism/Hospitality Fair Work Charter (building on Hoteliers Charter), Disability programme)
7.0 Leadership development to boost product innovation - A collaboration between the Enterprise Agencies and SDS to professionalise destination leadership across Scotland. There are two components to the project. - The first component is leadership programmes, a combination of short, introductory leadership programmes and much bigger programmes under the Destination Leaders Programme and Communities leading in Tourism programme. Focus will be destination and place leadership. - The second component is a fund targeted at the alumni of the leadership programmes to collaborate on recovery ideas.
8.0 A Net Zero Pathway for Scotland’s Tourism Industry - Agencies are currently building a picture of existing sector support and what the demand for that looks like, this should help identify any barriers to carbon reduction. - Exploring options across the Enterprise network for business support. - Exploring options for Destination support.
- Work going on to understand what Sector organisations and other partners are doing in this space for future collaborations.
9.0 Scottish Tourism Observatory - Business case in development as requested by SGov - Clarity required on the requirements for the release of fund
10.0 Investment models to support Scottish Tourism recovery - In progress
- An update on the 6 VisitScotland led Projects and the SDS led project will be circulated to STERG post meeting. - The next publication of the STERG Action Plan will include an update on the 10 recovery projects - The key contacts for the 10 recovery projects will meet on 19th April to discuss and agree the ongoing alignment, monitoring and reporting of the projects.
• Phase 2 Five Year Recovery Plan - Stakeholder engagement activity is now underway. 1-2-1 consultations are in progress and industry workshops will be held over the coming two weeks. - The Cities Tourism Recovery group continues to meet. The output which is being generated will be shared with Toposophy and included in the overall recovery planning process.
3. Funding Update
• VisitScotland Funds - The International Tour operators fund is almost complete - Final approval required for the Agritourism fund - The Phase 2 launch of a small number of funds is to be confirmed by SGov. - Successful recipients of funding from two of the recent VisitScotland funds will be published on VS.org by Friday 16th April.
4. Partner Updates
VisitScotland
• The next publication of the STERG Action Plan will include an update on the 10 recovery projects, a communication will be issued to demonstrate the progress that is being made.
5. AOB
• No AOB was noted
Next Meeting Date
The next meeting will convene on Thursday 22nd April, 11.00am-12.00pm.
1. Reopening Roadmap – Outstanding Issues
• The most significant issue which remains unresolved is clarity on travel restrictions between the mainland and the islands from 26th April. A decision is urgently needed on this to allow businesses the time they need to prepare to reopen. The current uncertainty is causing thousands of pounds worth of cancellations every day for island tourism businesses. In addition, it has been made clear that there is no further funding support available after the final SFBF payment and the restart grant, this is causing much frustration, anger and worry.
The SGov team advised that a decision had not yet been made on this and unfortunately there is no visible timeline for a decision being made. The SGov tourism team recognises the anger and frustration this is causing and continues to press for an urgent decision.
• Following the STERG Sector update call yesterday (7th) a list of the outstanding issues was forwarded to the SGov Tourism team for a response. It was noted that the Meeting Notes will be circulated to STERG for information. The following updates were provided: 1. STGA Requesting Special Dispensation to Complete Tour Guide Training STGA requesting special dispensation on 2m social distancing to allow for the completion of Tour Guide training. SGov team advised that 2m social distancing will remain the default position for the foreseeable future.
Advice from Outbreak Management is that businesses will need to look at how they can adapt in order to operate at 2m physical distancing R.Graham agreed to re-confirm with STGA which elements of the training couldn’t be delivered at 2m social distancing
2. Social Distancing Restrictions in Visitor Attractions ASVA have requested that social distancing within visitor attractions reduces from 2m to 1m. It is not logical to have 1m social distancing in the café and 2m social distancing within the visitor attraction itself.
It was noted that in hospitality, the 1m social distancing rule is only applicable if it is accompanied by other mitigations i.e. 1m plus. If additional mitigations are not possible then the 2m rule must apply. It was confirmed that a strong case has been made to Fergus Ewing and to Fiona Hyslop on reducing the 2m rule to 1m for visitor attractions. SGov Tourism team are currently waiting on a response.
Concern was raised that the success of the vaccine programme is not being taken into account when decisions are being taken about restrictions and therefore for many businesses they are no further forward in terms of being viable.
3. Agritourism Businesses to Offer Camping Facilities Scottish Agritourism has requested that Agritourism businesses be allowed to offer camping facilities for up to 2 months without planning permission. No response has been received from SGov. R.Graham has raised the issue directly with the Chief Planner and is awaiting a response. Action: J.Young to liaise with colleagues at SGov to ensure that a response is issued to Scottish Agritourism.
4. Hospitality to-up grants for eligible visitor attractions Inconsistencies noted across local authorities in awarding the Hospitality top up grants for some visitor attractions who have a hospitality offering. SGov team advised that this issue should now be resolved. All eligible Visitor Attractions should receive the Hospitality top up grant.
5. Hostel Sector Restrictions The Hostel sector have expressed concern that there are inconsistencies potentially emerging between the rules in England and Scotland, two specific issues were raised, 1. Can groups of school children be allowed back into the hostels? (It would seem that groups of up to 30 young people will be allowed to come together in England. 2. Can more than one household share a room, again it would seem that this may be the case in England.
SGov team advised that hostels are currently allowed one household per room, however clarity was required around the use of communal areas such as kitchens and lounges. Action: SGov team agreed to confirm whether school groups and mixed households will go ahead in England.
6. Small Ship Domestic Cruise Industry It was noted that the evidence submitted to the 4 harms assessment process covered 2 scenarios, vessels carrying <12 passengers and vessels carrying up to 1,000 passengers. It was noted that a third scenario must also be included, the small ship domestic cruise operators who carry c. 50 passengers. It was noted that detailed information about this third scenario has been submitted to the Outbreak Management team for consideration via the Business Organisations calls. Action: SGov Tourism team to pick up directly with a small ship domestic cruise operators to develop the evidence base for submission to the 4 harms process, (M.Crothall to supply contact details).
7. Meeting with the Clinicians In a previous STERG meeting it was agreed that that a collective session, with the relevant sector organisations and the clinicians should be set up as soon as possible. This would not guarantee change but would give the sector organisations the opportunity to make the case directly for the relaxation of 2m physical distancing Action: J.Young to liaise internally with colleagues to set this up initially with ASVA.
2. Funding Update
• VisitScotland Funds - Payments are progressing across all funds, so far c. £52m has been distributed to businesses. - The International Tour operators fund is still being finalised - Phase 1 of the Coach fund is complete. The launch of Phase 2, which extends the eligibility criteria, is to be confirmed by the Cabinet Secretariat due to purdah Action: R.Graham to send details of the Coach Fund and the Outdoor fund to J.Young for submission to Cabinet Secretariat. - It was noted that the beneficiaries of the funds will be published on VS.org in due course.
3. Tourism Recovery Plan
• Phase 1 recovery Projects
- VS are progressing the 6 recovery projects that they are leading on. The intention is to launch the projects after purdah.
- A final draft of the Destination & Sector Marketing Fund is nearing completion. Once signed off it can be circulated to STERG. Of particular note is a specific strand which will focus on cities.
- SoSE, HIE and SE are progressing discussions about the development of the Innovation Recovery Fund which is part of the Leadership Development project. - Scottish Enterprise are progressing with the development of their projects - Discussions are ongoing about the transfer of funds from Scottish Government to the agencies and particularly if there are any conditions attached to the transfer, for example the Tourism Observatory.
• Phase 2 Five Year Recovery Plan - Stakeholder engagement activity is now underway starting with a set of 1-2-1 consultations. - It was noted that colleagues involved in the Gaelic Language Plan would be keen to be involved in the recovery planning process.
• National Recovery Dashboard - A working group met this morning to discuss the feedback received from STERG members on the draft Recovery Indicators. This feedback will help scope the overall approach to developing the Dashboard as well as defining the role and purpose. A proposal from the working group will be shared with STERG next week.
4. Partner Updates
Enterprise Agencies
• SoSE are doing a lot of work on Visitor Management with the two local authorities in the region, in particular, relaxing overnight stays in council car parks for campervans and motorhomes to mitigate against some of the challenges experienced last summer. It was noted that recipients of a grant from the campervan and motorhome fund will be required to communicate responsible tourism messages to their customers to educate and keep them informed.
• All Enterprise agencies are focused on feeding into and developing the recovery projects.
VisitScotland
• The Comms team are currently considering a number of initiatives: - Communication opportunities for the 10 recovery projects.
‘Get Tourism ready’ messaging - ‘Tourism as a force for good’ messaging, looking specifically at the key advantages tourism can bring.
STA
• The STA will host a hustings on Monday 19th April for core STA members. Questions will be forward looking and focused on the Scotland Outlook 2030 Strategy.
• Positive feedback has been received on the ‘Topical Questions’ which was published by VS last week. It was requested that details on dining for hotel residents is added – this information was provided by James Johnston, SGov.
• ASVA and Wild Scotland will both be commissioning surveys to determine what will be open and what won’t be open in the future. It was noted that some hotels will be opening later in May due to low demand.
5. AOB
• No AOB was noted
Next Meeting Date
The next meeting will convene on Thursday 15th April, 11.00am-12.00pm.
Key Notes & Actions
1. Reopening Roadmap
It was noted that a number of issues remain unresolved and clarity is required urgently.
- Reopening of the Islands - Island industry groups are extremely disappointed that a decision has not yet been made on reopening. The impact on businesses in terms of cancellations and customers hesitating to book due to the uncertainty is significant. Responses received to date from Scottish Government have not provided the much needed clarity that businesses need. This issue is critical. It was noted that the SGov Tourism team are pursuing this aggressively to get an answer as quickly as possible. The timetable is not clear and therefore it is not possible to say when a decision will be made Concern was raised as to whether enough was being done by island businesses to reassure communities about the return of visitors. It was highlighted that island businesses / DMOs have been involved in their local community conversations and that community engagement was far better than last year. In many island destinations it has been accepted that tourism is a very important part of the local community and while there were still some reservations about bringing the virus in, overall there was much support for the islands being treated in the same way as the mainland. It was noted that if there is a communication issue then it is our responsibility to address that. It was highlighted that VS have planned a series of community engagement events between now and 26 April.
- Cross Border Travel Between England and Scotland - the industry needs to know as soon as possible if cross border travel will be allowed from 26 April. This will allow businesses both to plan and if necessary to release or reschedule any bookings on hold. It was noted that there was no further update at this point.
- Small Ship Domestic Cruise Industry - small ship domestic cruise operators are requesting clarity on where they fit within the reopening roadmap. Currently they are not referenced at all. It was suggested that these smaller cruise ships are treated as hospitality. It was noted that evidence is being submitted to the 4 harms process. 2 scenarios are being submitted for consideration. It was highlighted that once the submission is made into the process the tourism have no control over when a decision may be made. The tourism team will however continue to press for an answer. It was requested that marine be explicitly mentioned in the roadmap update. It was highlighted that the marine sector is very complex from leisure yachts to cruise ships and therefore each segment should be reviewed and addressed separately.
- Tourism & Hospitality Guidance - a timetable for the publication of the updated guidance for tourism and hospitality businesses was requested urgently. It is not clear why this has not been published yet. It was noted that much of the guidance will remain the same however there are updates being made that require final sign off. It is expected that the guidance will not be available until c. w/c 12 April at the earliest. It was recommended that a communication is issued highlighting that the current guidance is still relevant and can be used. It was noted that VisitScotland are today publishing a list of FAQs in relation to guidance for the tourism and hospitality sector. It was recommended that a push on the ‘Good to Go’ messaging would be worthwhile as this will reinforce what needs to be done to be ready to open.
2. Funding Update
- Local Authority Funds - many grants are now coming to an end so these are being prepared to close. Emphasis will soon shift to the restart grants.
- VisitScotland Funds - only two funds remain live, the Scotland Inbound Tour Operators Fund and the Campervan and Motorhome Rental Operators Fund. - C. £49m was distributed last week. - The Agritourism Fund is in the final stages of development. Good progress has been made and a launch date will be announced shortly.
3. Tourism Recovery Plan
Phase 1 Recovery Projects - following confirmation of funding last week, all 10 recovery projects are progressing.
- It was noted that some of the projects are quite well developed such as the Destination & Sector Marketing Fund, whereas other projects, such as the Net Zero Pathway and the Scottish Tourism Observatory have a lot more development work to be done
- Project leads will share progress on the development of the projects to ensure we can maximise synergies and minimise duplication across the projects.
- Progress on the 10 projects will be tracked in the STERG Action Plan and an update will be provided to STERG at the weekly meetings from mid-April
- It was agreed that a communication which provides a summary of each of the 10 recovery projects and which outlines the ‘Next Steps’ for each of the projects would be beneficial. Action: B.Clark to consider communication options and advise STERG
Phase 2 Five Year Recovery Plan
- Stakeholder engagement activity is now underway. This will be completed over the next 4 weeks.
- The filtering, prioritisation, development and costing activity will be completed in May.
- The final report is scheduled for delivery at the end of May.
- The high level tourism recovery plan steering group met yesterday to discuss Phase 2. It was noted that Scotland Outlook 2030 and the Tourism Task Force recommendations should be the foundations of the recovery plan and we should look to build on these. It was also noted that the development of an investment model is a priority in this process. It was highlighted that we do not need to reinvent the strategy or the recommendations.
- The Large Cities Tourism Recovery Group continues to meet and is working to deliver city specific proposals which are essential to city recovery. These proposals will feed into the filtering and prioritisation stage. It is recognised that there are many groups working across the city agenda for example, the City Centres Task Force and it is key that we are able to join the dots to avoid duplication. A mapping exercise may need to be done to ensure that the tourism agenda from this group leads the way for other groups. It was noted that B.Sizeland sits on the City Centres Task Force.
- It was noted that the new Destination & Sector Marketing Fund will have a separate strand for cities in recognition of their needs.
4. Measuring Tourism Impact and Recovery
- HIE are currently having discussions about the intelligence that will be required to establish a baseline for Tourism (and other sectors) as well as design something to monitor the recovery of the economy within the HIE region. It was noted that it would be helpful to understand the plans for the national tourism recovery dashboard or plans for monitoring recovery from any of the other STERG partners.
- It was noted that more work has to be done on the national recovery dashboard. As a starting point, to help define the role and purpose of the dashboard, some key questions were posed in a recent document ‘STERG Recovery Indicators - Initial Thoughts’. Feedback from STERG on some of those key questions would help shape the initial scoping. Action: STERG to provide feedback on the questions posed in the document which was circulated, ‘STERG Recovery Indicators - Initial Thoughts’. Responses to be returned to K.Christie by Wednesday 7 April AM.
- The Tourism Sector Skills Assessments are updated quarterly utilising all our key national data sources.
5. Partner Updates
Skills development Scotland
- Phase 1 of the Tourism & Hospitality Talent Development Programme continues to run. A significant amount of data is being captured from each of the participants, including their views of future training needs which will feed into Phase 2.
- Work is continuing to develop Phase 2 of the programme
Enterprise Agencies
- The final claim for the Hotel Support Programme in the HIE region was completed yesterday.
- HIE recently held a session to review the past year and concluded that a significant amount had been achieved, more than anyone could have forecast.
VisitScotland
- VisitScotland is to conduct a lessons learned piece of work (particularly around the funds) to identify what went well and what could have been done differently.
- Currently working with SGov team to produce a set of Topical Questions to address the misinformation that is out there.
- Working on the idea of Tourism as a force for good, looking specifically at the key advantages tourism can bring.
STA
- Some outdoor catering companies, with fixed premises such as kitchens, but service green field events, are not able to claim business rates relief as they are not classified as hospitality although it is clear that they are. It was noted that this issue is sitting with SGov colleagues, it is unclear whether this will get resolved over the next 5 weeks due to purdah, however it is hoped that it can be addressed.
- On a positive note there is a lot of recruitment happening across the sector, there are some good jobs being advertised and we are now seeing the workforce returning.
- Bryan Simpson, Unite joined the Tourism Skills Group meeting this week. All the work that is being done to address our People agenda has been shared.
- The STA will be hosting a leadership hustings on Monday 19 April for core STA members.
6. AOB
No AOB was noted
Next Meeting Date
The next meeting will convene on Thursday 8 April, 11.00am-12.00pm.
1. Reopening Roadmap
It was noted that there have been many issues raised relating to the reopening roadmap and that a progress update would be welcomed. Priority issues were highlighted as:
Cross Border Travel Between England and Scotland - Businesses remain unclear about whether they should accept new bookings, or keep existing bookings, from English guests for 26th April and beyond. It is not clear when confirmation of cross border travel will be given – this uncertainty is having a significant impact on businesses - clarity is urgently required.
- SGov team advised that the position on this has not changed since the FM’s statement on 16th March:
"…We hope that restrictions on journeys between Scotland and other parts of the UK and the wider common travel area can also be lifted, if not on 26 April, then as soon as possible thereafter. However, we need to keep this under review, as part of our efforts to reduce the risk of new cases being imported into Scotland and we will update the position during April.”
There is no further update at this point.
Islands Consultation - Island tourism businesses want to remain in lockstep with the mainland, they do not want to be in a separate level which would result in travel restrictions between levels. Being in lockstep with the mainland will allow fluidity of travel and will prevent those businesses from being compromised.
- It was highlighted that no island tourism destination received the consultation directly. - The islands consultation closes today. The timescale for turning around the results of the consultation is urgently required.
Review of 2m Physical Distancing - Current 2m physical distancing rules, if they remain in place, will prohibit some businesses such as Visitor Attractions and activity providers from operating viably. There is a risk therefore that some businesses will not reopen.
Physical distancing restrictions must be reconsidered, particularly in light of the submissions that have been made to Scottish Government outlining the mitigations that the sectors would put in place to protect staff and customers and reduce the risk of transmission.
- SGov advised that the current 2m physical distancing is likely to remain and will be one of the last restrictions to be removed due to the strong clinical evidence which supports these measures. - It was agreed that a collective session, with the relevant sector organisations and the clinicians should be set up as soon as possible. This would not guarantee change but would give the sector organisations the opportunity to make the case directly for the relaxation of 2m physical distancing.
Action: J.Young to liaise internally with clinicians in SGov and with M.Crothall to set up a meeting.
Restrictions in Shared Accommodation - Self-catering and hostels, which are shared accommodation with shared facilities, have been lobbying for the relaxation of these rules to allow their businesses to operate viably. No satisfactory response has been received. Reassurance is required that these issues are being picked up and considered. - SGov advised that this issue could be added to the list of issues which would be considered by the clinicians.
Levels Table - This is due to be published w/c 29th March.
Tourism & Hospitality Guidance - Up to date and clear guidance is urgently required to allow businesses to plan for reopening. - It was noted that the current guidance is misleading as it is not up to date and this is a major issue. - SGov advised that guidance is currently being revised to ensure it is up to date, easier to use and not open to interpretation. Final consultations will take place next week and the final guidance should be published by w/c 5th April.
2. Tourism Recovery Planning
Phase 1 Recovery Proposals - £25m to support the Phase 1 recovery proposals was announced by the FM at the STA conference on 24th March. - All proposals have now been given the green light to progress.
- It was noted that the recovery proposals will not detract from the need for ongoing business support or for the need to create the right conditions for recovery through the strategic framework and the roadmap.
- Consideration is to be given to how we ensure that the recovery proposals don’t cross-over or duplicate. This was recognised as particularly important for some of the less developed projects such as the Net Zero Pathway which currently has the potential to go in a number of different directions.
- It was noted that the Net Zero Pathway proposal would need to also consider the low carbon projects which are happening across Scottish Government to ensure there is no duplication of effort.
- Within VisitScotland the project leads will ensure any overlap is minimised across the six projects they are delivering and will share progress of the projects with other leads from the other agencies.
- SGov team are to be involved in project scoping where possible, in particular the Net Zero Pathway.
- As these are STERG recovery proposals and not business as usual, it is recommended that a monthly exception report is prepared for STERG which could highlight key questions or challenges.
Action: K.Christie to advise how information could be shared most efficiently to minimise duplication across projects and to assist in the development of the projects. A monthly exception reporting mechanism for STERG is to be established. Action: K.Christie to build the 10 recovery proposals into the STERG Action Plan.
- A recovery dashboard is to be developed to steer the recovery planning work. In addition, the critical asset list should be kept as a live document.
Action: K.Christie to convene the Evidence Base working group to develop the dashboard with a set of key indicators.
Phase 2 recovery Planning
- Stakeholder engagement activity is currently being scoped this is due to take place from early – mid April.
- It was confirmed that leisure events and festivals were out of scope for Phase 2 as these areas are being addressed by parallel workstreams. The 5yr plan should signpost the work that is being done in this area.
- It was confirmed that business events should be in scope for Phase 2 as this area is an important contributor to the hospitality sector, in particular hotels where the revenue contribution can be significant. In addition, it was noted this area is not being picked up elsewhere.
3. Funding Update
VisitScotland Funds - An overview of all the VS funds was sent to STERG in advance of the meeting. - All VS funds are now closed. -Work is continuing to complete assessments, manage any appeals and distribute the money as quickly and efficiently as possible. - it was noted that due to last minute complications the launch of the new Agritourism fund did not go ahead as planned. Action: R.Graham and B.Sizeland to resolve outstanding issues with the Agritourism fund off-line.
Local Authority Funds - Work continues on the administration of the business support funds, it was noted however that these will be drawing to a close shortly. - The role of Local Authorities in the recovery process is to be considered.
4. Partner Updates
Enterprise Agencies
Hotel Support Programme - Information about recipients has now been published on the Scottish Enterprise website.
The SoSE board meeting today will discuss the 2021/2 budget and potential funding resource for business support. Further update to be provided next week.
Skills Development Scotland
Tourism & Hospitality Talent Development Programme is going well and work is now underway to evaluate the programme.
Funding for Phase 2 of the Tourism & Hospitality Talent Development Programme has been confirmed and work continues to scope and develop this next phase. SDS will work closely with SE to ensure this programme and the Leadership Development to boost Product Innovation programme are aligned and there is no duplication of effort.
5. AOB
No AOB was noted
Next Meeting Date
The next meeting will convene on Thursday 7th April, 11.00am-12.00pm.
Funding Update
Local Authority Funds - Falling through the gaps list: Work is ongoing to provide answers to the outstanding questions raised on this list. Local Authorities are currently checking whether there are funds available which would be applicable to these businesses or indeed if the Local Authority Discretionary fund is an option.
It was noted that the SGov Tourism team are also waiting on answers from their business support colleagues on the ‘falling through the gaps list’. In addition it was noted that the ‘falling through the gaps’ list is being provided to the business support team to help guide their future thinking. It was noted on the STERG Sector Update call yesterday (10th) that there still a number of outstanding issues on the ‘falling through the gaps’ list which have not yet been resolved.
Action: SGov Tourism Team to provide a response to all outstanding issues. VisitScotland are considering introducing a scheme to support those businesses who have had no funding at all particularly those in the agritourism sector. This support would be taken from VisitScotland’s core funding. Action: R.Graham to confirm to SGov Tourism Team if this will go ahead.
Discretionary fund: Local Authorities are at various stages of incorporating the additional top up into their discretionary funds, every effort is being made to expedite this process at a local level to ensure the money flows out to businesses as soon as possible. The City of Edinburgh council are currently revisiting their criteria for the Discretionary fund, this could be an option for business types such as holiday letting agencies. It was requested that chauffeur hire businesses are also considered in discussions with Edinburgh Council.
Action: J.Fowler to raise these specific examples with City of Edinburgh Council Representatives of the night time economy in Glasgow have queried what new or additional funding will be available for them or what existing support is available that they could tap into.
It was noted that Glasgow City Council have not yet finalised their Discretionary fund however it is expected that it will focus on the city centre economy – it is assumed that the night time economy would be covered within this.
It was highlighted that the rules for the Discretionary Fund are determined by the individual Local Authorities and therefore the criteria for this fund could vary across the country. - Small Accommodation Providers Paying Council Tax Fund (SAP-CTF): Businesses who successfully applied to the B&B Hardship Fund or the Creative, Tourism and Hospitality Hardship Fund last year are now being invited to register for this fund. New entrants to the fund will be able to apply between 15 and 22 March 2021.
- Hospitality top up grant: It was noted that some businesses, such as visitor attractions or activity providers, who have hospitality elements to their business, are still waiting on confirmation of payment from their Local Authorities.
Action: J.Fowler to raise with Local Authority colleagues.
VisitScotland Funds
- 3 funds remain live:
*The Hostel – COVID-19 Business Support and Continuity Fund (Strand 2 >£50k RV), * Scotland Inbound Tour Operators - COVID-19 Business Support and Continuity Fund and the *Campervan and Motorhome Rental Operators Fund. - The fund leads are noting positive feedback from businesses who have received funding. In addition the industry sector leads are also receiving positive feedback. The VS team will be capturing this feedback and reporting back.
Action: R.Graham to share positive feedback on the funds with the SGov tourism team.
- VS will be contacting everyone who has received funding to ask them
1. Did it make a difference?
2. Did they survive?
3. In the Destination & Sector Fund did you use the money for the purpose it was awarded. - The funding process has been the subject of a very detailed review through the VS audit & risk committee who want to ensure that the funds are being administered in the right way. - Discussions are ongoing with the Sectors leads about possible underspends in the funds that they helped to develop and options to address this.
2. Tourism Recovery Plan
A final draft of the Phase 1 Tourism Recovery paper was circulated to STERG in advance of the meeting. It was noted that final feedback from STERG is to be sent to K.Christie by close of play today (11th).
10 priority recovery proposals will be submitted to SGov ministers. It was highlighted that the funding ask for these recovery proposals is over and above the need for ongoing business support.
It was noted that the total funding ask outlined in the proposals stretches beyond the current indicative consequentials, a second option is to be prepared which is within the limits of the consequentials.
The final paper is expected to be submitted by the end of the week (12th). It was noted that the paper will be circulated to a wider audience in due course.
A response to the paper is expected before Parliament goes into recess on 25th March.
B.Sizeland thanked everyone for the immense amount of work that had been put into the preparation of the Phase 1 papers.
Phase 2 of the Recovery Panning process will start w/c 15th March and conclude by 28th May 2021. Phase 2 will deliver a five year costed recovery plan.
3. Future Priorities for STERG
It is unlikely that the current situation in the sector will change in the short term and therefore business support and creating the right conditions for reopening will continue to be a priority for STERG.
STERG must continue to ensure that sector issues are being represented to the right people.
The STERG Action Plan is a good tool for capturing activity, however, the audience for the Plan and the content should be reviewed and refreshed as appropriate to ensure it remains relevant. Consideration also to be given as to how the STERG Action Plan will transition to the 5 Yr Recovery Plan.
A coordinated approach to delivering sector recovery through STERG will be essential in order to avoid duplication and to minimise the risk of inefficiencies.
STERG must provide the direction of travel from where we are now, through recovery and back to Scotland Outlook 2030.
4. Government Announcements – An Industry Perspective
Two key issues need addressed:
1. Business support - In particular, what does the restart grant announced by the Chancellor mean for Scotland? Urgent clarity is required from Kate Forbes on the support package for Scottish businesses.
Recent data shared with business organisations illustrates that:
- 35% of businesses in the sector are at severe to moderate risk of insolvency in the next 3 months
- 43% of businesses in the sector will be cashless within the next 3 months
2. Roadmap for reopening – It is hoped that the FM’s announcement on the 16th will provide dates. In addition, concern has been noted about the following: - Travel restrictions – level 3 travel restrictions are the biggest blockage. - WHO scaling of levels.
The number of cases per 100k have been amended, if this scaling is implemented it will be much more difficult to move down the levels from Level 3 than it was previously. - Rule of 6 / 1 household
The key points raised by the Sector leads on the STERG Update call on Wednesday were: - Outstanding issues on businesses ‘Falling through the gaps’ - Loosening of restrictions within the levels of the Strategic Framework, in particular travel and the rule of one Household which severely impacts the viability of many businesses.
- Alignment between Scotland and the rest of the UK on reopening - Vaccine certificates / passports - Travel restrictions - 1 Household rule Action: K.Christie to circulate the Sector call meeting notes to STERG.
5. Partner Updates
Enterprise Agencies
The senior management team at SE were very supportive of a recent paper presented to them outlining progress on the Tourism Recovery Plan and SE’s role within it.
Frazer Coupland, chief executive of Lochaber Chamber of Commerce, has been appointed Chair of the Highland Tourism Partnership.
Skills Development Scotland
The Tourism & Hospitality Talent Development Programme is now in week 4 of delivery and feedback continues to remain very positive. Discussions are ongoing about the evaluation of the programme. Phase 2 of the programme is being prepared and has been proposed as one of the Recovery proposals in the Tourism Recovery paper. Procurement discussions are now starting for Phase 2
Lawrence Durden will attend the Scottish Rural Parliament this afternoon (11th).
VisitScotland
The second Visitor Management Summit, led by Fergus Ewing and Malcolm Roughead, will take place on Friday 19th March.
Scottish Gov Tourism Team
A letter to businesses has been prepared by Jamie Hepburn which encourages them to support their workers through self isolation STERG are asked to circulate the letter throughout their networks.
STA
Mr Ewing met with the STA Destination Forum on 8th March and the Hospitality Forum on 9th March. The Tourism Sector Forum will take place on 12th March. Mr Ewing is also meeting a number of Sector organisations and DMOs on a 1-2-1 basis.
STA Board to meet with the First Minister on 22nd March and with Mr Ewing on 24th March.
6. AOB
No AOB was noted.
Next Meeting Date
The STERG meeting on Thursday 18th March has been cancelled. The next meeting will convene on Thursday 25th March, 11.00am-12.00pm.
1. Funding Update
VisitScotland Funds - An update on all funds being administered by VS was circulated to STERG in advance of the meeting. - All funds are progressing well and money is flowing - The funds which remain live are as follows:
* The Scotland Day Tour Operators - COVID-19 Business Support and Continuity Fund - applications open until 5pm on Thursday 11 March.
* Scotland Inbound Tour Operators - COVID-19 Business Support and Continuity Fund - applications open until 5pm on Thursday 18 March.
* Scotland’s Tour Guides Fund - applications now open until 5pm on Wednesday 10 March. * Campervan and Motorhome Rental Operators Fund - guidance available, applications open 11 March - To ensure that any large payments can still be made to businesses through purdah, VS will agree with the SGov team a process for authorising payments.
Local Authority Funds - Strategic Framework payments are ongoing. It was noted that a business can apply to the SFBF at any point.
- The majority of top up grants have now been paid out
- Large Self-catering, Exclusive Use grants: Both funds are live and Local Authorities are beginning to make payments. The launch of this fund has uncovered the fact that a number of eligible businesses had not previously applied to the SFBF, these businesses will now also be applying to the SFBF.
- Small Accommodation Providers Paying Council Tax Fund (SAP-CTF) will be launched today targeted at bed & breakfasts, guesthouses, small serviced accommodation providers and other self-catering businesses that pay council tax.
Local authorities will identify and invite eligible businesses who were previously supported by either the B&B Hardship Fund or the Creative, Tourism and Hospitality Hardship Fund to register for payment. There is no need for these businesses to apply.
New entrants to the fund will be able to apply between 15 and 22 March 2021. - Discretionary Fund: local Authorities are at various stages of amending and agreeing how their discretionary funds are to be used. It was noted that it is up to the individual Local Authorities to decide how this fund will be allocated and therefore inconsistencies across Local Authorities are to be expected.
Outstanding Funding Issues - VisitScotland and the STA have been compiling a list of businesses or sectors that continue to fall through the gaps. This list is being shared with SGov colleagues and COSLSA however no response has yet been received, there is an urgent need to get feedback on this list.
Some of the outstanding issues include, accommodation letting agents and diversified businesses such as those within the Agritourism sector.
Action: J.Fowler to review the list and provide a response, where possible, on each of the issues highlighted in the list. Response to be channelled through J.Young in the SGov Tourism Team. Action: K.Christie to issue an invite to J.Fowler for the next STERG meeting on 11th March.
Wedding Sector Fund - Fund has now closed (c. £22m awarded through SE, £2m through HIE and £1.6m through SoSE) - Overall, the feedback on this fund has been very positive.
2. Tourism Recovery Plan
An update on the recovery planning process was provided.
Phase 1: - All 9 recovery proposals are in the process of being further refined following feedback and will be completed by the end of the week. - The evidence base will be completed by the end of the week. - The narrative for the paper is currently work in progress. - The final Phase 1 paper will be submitted to SGov Ministers w/c 8th March. - It was noted that further thought will be given to the purpose and role of the project ‘advocates’ or ‘ambassadors’ before individuals are approached.
Phase 2: - A selection panel met today to review the responses received to the brief. Toposophy have been confirmed as the consultants who will support STERG deliver the 5 yr costed recovery plan. An inception meeting will be planned for w/c 15th March. - It was noted that Phase 2 will involve a programme of stakeholder engagement and STERG’s support will be required to ensure the right stakeholders are involved.
A high level recovery steering group is in the process of being formed with senior representatives from the Enterprise Agencies, VisitScotland and the Scottish Government.
3. STERG Action Plan
An updated version of the STERG Action Plan was published on VS.org yesterday. https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/national-action-plan
The aim is to review and refresh the content of the Action Plan before the next update which will be due at the end of March. Action: STERG to review the Action Plan and feedback any comments or recommendations which could improve the Plan to K.Christie.
Action: B.Clark to provide website stats for page views and downloads to share with the group.
4. Chancellor Rishi Sunak – Budget Statement
The following observations were made
The extension to furlough is good however it should be noted that furlough is still a cost for businesses and the later that Scotland reopens the more pressure will be put on businesses and redundancies will inevitably follow.
An extension to the current VAT rate of 5% for the hospitality and tourism sectors until the end of September while welcome does not go as far as was hoped. The STA will continue to make the case for VAT not returning to 20% beyond March next year to stay competitive as a destination.
Scotland has fared better than England on the 100% business rates relief which Kate Forbes announced through to March 2022
Challenge is expected around the restart grants (worth up to £18,000 for the largest businesses) – there will be an assumption that this grant will also apply to businesses in Scotland. Urgent clarity will be required from Kate Forbes on the support package for Scottish businesses
It was noted that many businesses have fed back that they would prefer to have a lump sum payment to help them restart (e.g. to order stock, etc) rather than smaller payments spread over a longer period of time.
It was acknowledged that the budget addressed some of the Task Force asks.
General feedback on the Eat Out to Help Out scheme is that industry would prefer not to do it.
The budget for the recovery proposals, if given the go ahead, should be secure. The challenge will be securing the necessary budget for ongoing business support. It was noted that the SGov team are currently looking at a number of options for business support.
Action: SGov team to seek clarity on the implications of the budget on Scotland.
5. Partner Updates
Enterprise Agencies
SE and SoSE have received a FOI request on the Hotel Support Programme. Information is currently being pulled together to share with the enquirer.
A paper will be submitted next week to the senior management team at SE providing an update on the progress being made with the recovery plan and setting out the role for SE.
A paper was presented to the HIE leadership team this week on Visitor Management. This is an area where HIE are particularly keen to play a role.
A Borderland inclusive growth deal sign off will take place in a weeks time, the specific tourism projects such as the mountain bike innovation centre, bike park and the destination Tweed project will require significant comms activity.
Skills Development Scotland
The Tourism & Hospitality Talent Development Programme is now in week 3 of delivery and feedback remains very positive.
VisitScotland
Following the Visitor Management summit which is to be held on the morning of the 19th March, VisitScotland will launch its Visitor Management campaign.
STA
The STA’s first virtual national conference was launched yesterday. It will take place on 24th March from 10.00am – 1.00pm. The event is free to attend – delegates can register using the link below. https://www.eventbrite.co.uk/e/sta-spring-virtual-conference-2021-looking-forward-tickets-143977317031
Also during March (STM) there will be a number of other online events, including the ASVA eForum
Mr Ewing will meet with the STA Member Forums w/c 8th March
The STA Board will meet with the First Minister on Monday 22nd March
6. AOB
No AOB was noted
Next Meeting Date
The next meeting will convene on Thursday 11th March, 11.00am-12.00pm.
1. Funding Update
Sector Organisations – Fortnightly Update Call - The fortnightly update calls were set up to improve communication and develop stronger relationships between STERG and the Sector organisations.
The purpose of this meeting is to listen to the concerns of Sector leads and escalate to STERG / Scottish Government and to update Sector leads on STERG activity. - The main concern raised by the Sector organisations on the call yesterday (24th) was the urgent need for additional funds to enable businesses to survive.
The expectation was that the current round of funding was intended to get businesses through to the end of March / beginning of April, however, now that the reopening of the sector is likely to be much later, there is grave concern about business survival. - A number of specific Sector funding issues were also raised on the call, these have been captured in the meeting notes and will be circulated to STERG to follow up on. Action: K.Christie to circulate meeting notes to STERG.
Outstanding Funding Issues - There are a number of funding issues which have been raised previously through the Sector organisations call and through STERG partners directly that remain unresolved, for example holiday letting agencies, tour operator businesses who deal in both inbound and outbound travel, hostels with >£50k RV, Agritourism issues etc. Responses need to be provided.
Action: R.Graham, M.Crothall and SGov Tourism team to resolve offline so that responses can be provided to all issues raised.
Local Authority Funds -
Large Self-catering, Exclusive Use grants: Scottish Government issued updated grant offer letters to Councils last Thursday (18th February), along with guidance, and template letters for Councils to begin contacting eligible businesses. Councils are now working with their assessors and business rates teams to identify and make contact with the eligible large self-catering and exclusive use businesses in their areas.
- B&B grants: The scope of this scheme is being widened to make it available to a larger number of businesses therefore no grant offer letters or guidance have yet been issued to Councils. Further details and decision from SG on this is expected shortly.
It was noted that a revised funding proposal for council tax paying B&Bs and Self-catering accommodation has been submitted to Ministers today (25th).
- Discretionary Fund: Allocations for the additional funding for the Discretionary Fund are due to be agreed at COSLA leaders tomorrow (26th) and SG will issue grant offer letters immediately after this agreement. SG will also provide an updated guidance document to go along with the grant offer letter confirming the additional funds.
Councils are listening to their local business communities as well as the concerns from business and sector organisations as they design and adapt their local discretionary funding, but as it is discretionary the decision on which sectors / types of businesses to support ultimately rests with individual councils.
It was highlighted that inconsistencies in the application of discretionary funds across Local Authorities is causing concern and confusion among businesses and it would be helpful to have a direct response to the specific examples that have been raised. It was noted that the lack of consistency was raised this morning at the Chief Officers meeting within COSLA and this has also been raised with the project group.
Action: R.Graham to follow up with H.Lightbody offline to review the specific examples.
- Mobile and Home-Based Close Contact Services and Newly Self Employed Hardship Funds: These scheme have gone live and are being delivered by a private contractor on behalf of Scottish Government. The majority of applications are being processed successfully and grant are being paid out to those eligible.
There are issues with the rejection / feedback process for applicants who are unsuccessful who have felt they have no way to appeal a decisions, and this has led to significant levels of enquiries to Councils and elected officials. Scottish Government have advised that they are aware of this and are working to resolve and implement a means for applicants to feedback, as well as reviewing earlier rejected applications. - Strategic Framework Business Fund: Grants for eligible businesses continue to be paid out on a 4 weekly basis.
Top up grants for retail, hospitality and leisure have been paid out. There remain a small number that remain on hold pending decisions on eligibility being confirmed by Scottish Government.
- Taxi and private hire drivers fund: We have asked Scottish Government to confirm the closure date for this scheme, with the suggested date of 28th February being looked at. Scottish Government are to review this and confirm the closure date for the scheme.
- Contingency Plus (brewers, travel agents, indoor football centres): Councils have worked with Scottish Government and local rates teams and identified lists of eligible businesses. Scottish Government has now issued grant offer letters for this scheme and Councils are beginning the process of contacting those eligible to arrange payment.
VisitScotland Funds - All live funds are operating well.
- 3 funds are in the final stages and will be signed off by the end of the week. - Significant issues have been identified with the guidance for the Inbound Tour Operators fund. This guidance is being reviewed urgently with industry with the aim to resolve as quickly as possible.
Wedding Sector Fund - Fund has received over 3,000 applications across all three enterprise agencies.
- Due to close on Thursday 25th February at 5.00pm.
2. Tourism Recovery Plan
An update on the recovery planning process was provided.
Phase 1: - STERG feedback on the draft evidence base will be shared this afternoon with the team who are developing it. The evidence base is due for completion next week.
- Further drafts of the 8 recovery proposals were shared with STERG this morning. A review meeting with STERG is scheduled for 1st March. All proposals will be refined w/c 1st March following feedback from STERG and Task Force members. All proposals are due for completion next week.
- The narrative for the paper will be shaped and consolidated next week. The final paper will be submitted to SGov Ministers w/c 8th March. - It was noted that the paper will be viewed as a bid for funding support.
Phase 2: - Phase 2 has been extended to 28th May. - Responses to the brief that was issued to support STERG deliver the 5 yr costed recovery plan are expected on 1st March. - The aim is to have a resource in place at the beginning of March.
It was noted that following the meeting with the Task Force on 11th February a note was sent to Mr Ewing updating him on progress. A further note will be sent this week to ensure Mr Ewing is kept up to speed with developments.
There is an urgent task to scope out business support requirements for the next few months. This should look at the tailoring and tapering of funds to aid recovery.
There is concern that Scotland’s critical assets, on which our tourism offer depends, could be at risk. These assets could be in public ownership, charity ownership or private ownership and could range from visitor attractions and hotels to airports or ferries etc.
Fundamentally however these assets are the reason why people would visit a particular destination or the only way in which our visitors can reach our destinations. There is a need to urgently identify our critical cultural and tourism assets to ensure they are protected. Action: As a first step the VisitScotland team will collate a list to be reviewed by STERG. A further decision can then be taken as to how this information can most effectively be presented in the March paper for SGov Ministers. An initial list will be available w/c 1st March.
It was noted that HIE have 2 potential sources of information that may help to inform the list. HIE will work with the VS team on this.
A meeting between SGov and the CEOs of VisitScotland and the Enterprise Agencies took place yesterday to discuss the current state of Tourism in Scotland and what needed to be done in the short, medium and longer term. It was noted that it was a very positive meeting with all agencies showing support for the sector. A note of the meeting will be circulated.
3. Scottish Government Roadmap
The industry response to the FM’s statement on Tuesday has been one of real anger, never before has an anger such as this been seen. It was highlighted that this sentiment was fed back to Liz Ditchburn and Joe Brown, Scottish Government, on the Business Organisations call, it was also noted that this sentiment was echoed across the different business sectors.
The PM’s statement, although still frustrating for industry at least provided hope, this was lost in the FM’s statement. It was noted that the FM’s statement on Wednesday was more positive with the hope that there could be a potential opportunity to accelerate processes if the conditions are right.
There are still serious concerns about the restrictions on movement once we move back to L3.
There is likely to be serious problems for the sector as a result of the divergence from England’s route map to reopening. It was noted that there has already been a backlash of cancellations.
It was noted that there is real concern from the outdoor sector as they are unable to plan for reopening. Outdoor businesses require time to prepare before opening, for example, training for instructors, which can’t take place in Level 4.
The priority message is that the industry needs clarity. In addition a strong marketing message which says that Scotland is open and bookings can be taken.
It was noted that the same sentiment was voiced by the Sector organisations on the call yesterday. Details can be found in the meeting notes which will be circulated to STERG.
4. VisitScotland Domestic Recovery Programme
Two proposals were shared last week with STERG :
1. A responsible tourism campaign (linked to the visitor management work), to educate visitors on the issues that were experienced in the countryside last year. An urgent decision is required on this otherwise the opportunity will be lost.
2. A domestic staycation campaign which would encourage people to consider Scotland when planning their staycation later in the year. It was noted last week at STERG that the decision on this campaign may need to come from the FM but this had to be clarified.
It was highlighted that this wasn’t a marketing campaign to get people to come to Scotland or travel around Scotland it’s about keeping Scotland top of mind for when it is time to plan their staycation later in the year. Action: VS to submit the latest proposal with the most up to date deadlines for submission to Ministers. The proposal should be set out in a way which highlights that this isn’t about moving things quicker than what has been set out, rather it’s about the preparation that is required to ensure a successful summer season.
5. Partner Updates
Enterprise Agencies
Visitor Management is an important topic for HIE. It is key that HIE are connected with conversations on this across the different agencies to ensure no duplication of effort. It was noted that VS, (Malcolm Roughead and Vicki Miller) will keep HIE updated on activity in this area.
COSLA
A programme of national webinars are continuing to be received well. A recent tourism webinar done in partnership with VisitScotland was particularly well received. The programme will continue to be promoted to encourage people to get involved.
Skills Development Scotland
The Tourism & Hospitality Talent Development Programme is now in week 2 of delivery and feedback remains very positive. Additional funding for the programme has now been secured.
VisitScotland
Communication focus remains on funding announcements.
STA
STA will hold a virtual conference on Wednesday 24th March. The conference, 'Leading Scotland's Tourism Recovery Together' will be themed around the four key priorities of the Tourism Strategy 'Scotland Outlook 2030':
Work has begun behind the scenes to start bringing together the STA Tourism Hustings event which will take place mid-April
Mr Ewing will meet with the STA Member Forums w/c 8th March
The STA Board will meet with the First Minister on Wednesday 3rd March
6. AOB
Hugh Lightbody will be on annual leave for the next two weeks.
Next Meeting Date
The next meeting will convene on Thursday 25th February, 11.00am-12.00pm.
1. Tourism Recovery Plan
An update on the recovery planning process was provided.
Phase 1: Priority short term recovery proposals for submission to SGov Ministers in March. - 8 proposals are in development following universal support from the Tourism Task Force.
A common template for submission has been agreed for all proposals. - Additional supporting narrative is being developed and will cover 3 areas, 1. The requirements for ongoing business support beyond 31st March, 2. Views on how the exit strategy could be shaped and 3. A summary of potential investment options to be explored to support recovery. This narrative is expected to be a high level summary of progress in these areas. - A working draft of the evidence base to support the recovery planning process is now available for STERG to review, this includes a set of draft indicators which will be used to track progress.
Action: STERG to review and feedback comments by Wednesday 24th February.
It was confirmed that this Phase 1 paper will be submitted to the Cabinet by Fergus Ewing at the beginning of March.
Phase 2: Short & medium term recovery proposals for submission to SGov Ministers in May. - This phase is due to kick off at the beginning of March - A brief to support STERG deliver the 5 yr costed recovery plan is currently out to tender. - The aim is to have a resource in place by the beginning of March.
2. Funding Update
Tourism & Hospitality Talent Development Programme - The programme went live this week - On day one 691 people started their courses (with a small % of ‘no shows’) - Feedback so far from those who have started is very positive
Local Authority Funds - Self-catering / B&B grants: SGov are re-issuing the grant offer letters with correct version of the funding allocation table, and letters / declaration templates that LAs can use to contact eligible businesses. A definition for “registered serviced accommodation” has been confirmed by SGov.
This is based on the definition that was used in the application form for the B&B fund last summer. “registered service accommodation” means membership, accreditation, registration or simple listing with a recognised hospitality or tourism agency, representative body or marketing organisation (national or local) prior to March 2020. This can include a listing on digital or online marketing platforms, such as Booking.com or a community website.
However, this is restricted to only those businesses marketing B&B type provision not holiday, room or property letting. Alongside demonstrate a digital presence or other listing, other criteria are; must provide breakfast; be able to demonstrate at least 35% of individual income is from affected business; evidence of active trading up to March 2020 and the intend to continue trading; trading profits below £50,000 in financial year 2019-2020; in business for at least a year and filed trading accounts for 2018-2019.
- Mobile Close Contact Services and Home Based businesses and Newly Self Employed Hardship Funds: These funds went live on Tuesday 16th and have so far (Wed 17th) received just over 4,000 applications, there are a number of LAs reporting that they are receiving enquiries about these from applicants who have been unsuccessful or who need to upload or change the evidence they have submitted. Any enquiries should be directed back to the information pages on the findbusinesssupport website and for contact to EFRS using the email address on the FBS website. No appeals process is in place, this is being raised with SG.
Discretionary Funds: Provisional allocations for the additional funds to be distributed to LAs have been agreed. Final approval needed at COSLA leaders on 26th Feb but no issue or challenge to the split is expected.
Additional guidance from SGov is currently being drafted. The maximum funding available through LA Discretionary funding varies - some councils (Glasgow, North Lanarkshire) and a few others have put in place a tiered system, where the grant increases according to size of business or number of employees. In others it is a flat rate of £2k per business - although that may change or increase with the additional funding.
- Strategic Framework: Issues log sitting with SGov at the moment and pressing them for answers to some key questions, particularly on state aid and applications from national chains. - Contingency Plus (brewers, travel agents, indoor football centres): Guidance has been issued and grant offer letters based on Council info returns are being drafted. - Taxi and private hire driver support fund: SGov have been asked to confirm the closure date for this scheme. An update on this is expected later this week.
Wedding Sector Fund - 3,131 applications received so far - 2,664 SE, 253 HIE and 214 SoSE - Applications are still being accepted
VisitScotland Funds - An update on the funds being administered by VisitScotland was provided (@ 16th February).
|
Fund |
Guidance launch |
App Form Launch |
Closure Date |
Commentary |
|
Pivotal Events Fund |
|
12 Jan |
29 Jan |
Panel meets 17th. Applicants advised w/c 22 Feb Budget to be increased from £6m |
|
Sector / Destination Operational and market Readiness fund
|
18 Jan |
18 Jan |
26 Jan |
Offer letters out and funds being disbursed
|
|
EISF 2 "top-up" |
27 Jan |
27 Jan |
w/c 1 Feb |
£3.1m due to 504 applicants |
|
Marine and Outdoor Tourism Restart |
27 Jan |
02 Feb |
09 Feb |
Fund closed and assessments underway
|
|
Country Sports tourism restart |
17 Feb |
24 Feb |
03 Mar |
Criteria sign off 16 Feb Guidance due out 17 Feb. |
|
Coach Operators
|
03 Feb |
16 Feb |
23 Feb |
Applications live 16 Feb |
|
Visitor Attractions Support |
04 Feb |
11 Feb |
18 Feb |
Applications process live |
|
Hostels |
09 Feb |
17 Feb |
02 Mar |
Applications live 17th Feb |
|
EISF 2 "new applicants"
|
W/C 8 Feb
|
18-Feb
|
26-Feb
|
Budget increase linked to extra £8.5 million
|
|
International Inbound Tour Operators
|
19 Feb |
25 Feb |
05 Mar |
Funding pot agreed at 12m |
|
Tour Operators (Day or multi day operators with limited turnover)
|
19 Feb |
04 Mar |
11 Mar |
Guidance agreed 15 Feb and live 18 Feb
|
|
Tour Guides
|
03 Mar |
11 Mar |
18 Mar |
Guidance being developed with STGA Possible issue with Day tour fund |
|
Campervan and Motor Home Rental Operators
|
10 Mar |
17 Mar |
24 Mar |
Budget agreed at £1million Guidance in development via CAMPA |
|
SERF |
Active now |
|
|
Total budget £2.7m |
Hotel Support Programme - An element of the HSP was capital funding, however due to current restrictions the companies who were successful in receiving this haven’t been able to do the projects, it has now been agreed that the funding can be carried forward until the next financial year.
It was noted that discussions are continuing within SGov to look at providing additional support funds to other sectors, including some accommodation providers. It was also noted that consideration is being given to additional top-ups to existing funds.
It was noted that in Wales there is just one fund for Tourism & Hospitality, a link will be circulated.
3. VisitScotland Domestic Recovery Programme
A detailed presentation from VisitScotland was circulated to STERG in advance of the meeting outlining a proposal for two pieces of work. The first is directly linked to the Visitor Management work which is ongoing and sets out the need for a responsible tourism campaign to address the types of issues that were experienced in the countryside last year such as over-crowding, littering, fire hazards, etc.
The second is a domestic staycation campaign targeted almost entirely at Scotland but may also include the rest of the UK, which would encourage people to consider Scotland when planning their staycation later in the year. The presentation was put before STERG to gain their endorsement and in addition, to confirm who in SGov needs to approve these campaigns.
It was noted that STERG fully supported both campaigns. It was advised that if the activity associated with Visitor Management was clearly positioned as an educational campaign then this would firmly align to the many educational campaigns which are taking place and would not necessarily require high level approval from the SGov.
It was highlighted however that the campaign to keep Scotland top of mind may require high level approval however this would need to be confirmed. Action: JYoung to confirm approval process for the VisitScotland campaigns.
4. Visitor Management Re-Opening Issues
It is critical that the organisations who are managing visitor facilities such as car parks, public toilets etc. are given sufficient time to open them up properly, in advance of any reopening to visitors, this will avoid the issues which happened last year. Indications show that at least two weeks’ notice is required.
This applies to countryside access, National Parks, Forestry and Land Scotland land etc. It was noted that the SGov tourism team continue to push for advanced notice of any changes, however it was highlighted that this information can be very difficult to get hold of.
5. FM Announcement & Scottish Government Roadmap
Clarity on the timings for re-opening is urgently requested by businesses.
Sufficient advance notice of reopening is key to allow businesses to plan and prepare to re-open safely.
It was highlighted that businesses are calling for a joined up UK wide approach to reopening - this particularly affects businesses close to the English border. If Scotland and England have different restrictions in place it is incredibly difficult to manage. It was noted that there is a need to plan for the eventuality that Scotland and England have a different set of rules as this seems to be the direction of travel currently.
6. Partner Updates
Enterprise Agencies
It was noted that a Regional Recovery Revenue Fund has become available for local Authorities this week. Proposals for projects must be submitted by the end of the week. The funding pot varies depending on the region.
HIE’s strategic destination fund is progressing well. Strategic relationships are now in place with all known organisations, the final approvals will be put in place over the coming month and these will be for 3 years. It was noted that this was not an open fund. It was noted that applications to the VisitScotland Sector / Destination Operational and market Readiness fund were cross checked with HIE to ensure no duplication.
Visibility of any planning for England opening before Scotland would be helpful. SoSE are receiving a large volume of enquiries on this which are currently being collated. Confirmation is required as to whether this is a comms issue or if something is being planned nationally otherwise SoSE will need to respond at a regional level. It was noted that RGraham would raise this today in a meeting to see if anything can be picked up from a STERG point of view.
STA
Finance Secretary, Kate Forbes MSP joined the STA Council for a virtual meeting on Tuesday (16th). Ms Forbes provided an update on 3 areas, the Strategic framework, the Budget update (announced on the 16th) and ongoing business support. Ms Forbes emphasised that there was an ongoing commitment to business support with no cliff on the 31st March.
Ms Forbes also noted that there was a strong case to be made for additional business support particularly if the industry isn’t able to trade at Easter and would be open to considering what further sectoral support is needed to help businesses get through the Easter seasonal lack of trade. A Q&A with Council members followed.
7. AOB
No AOB was noted
Next Meeting Date
The next meeting will convene on Thursday 25th February, 11.00am-12.00pm.
1. Funding Update
Weddings Sector Fund - Fund opened on 28 January. - Applications are still being accepted and processed on an ongoing basis. Payments are being made. - A steady demand has been noted across HIE and SE. - Feedback from applicants suggests that the fund has been positively received.
Tourism & Hospitality Talent Development Programme - Applications closed on 5 February - c. 2,000 applications were received, double the number of places that were available - Additional funding has been secured to accommodate the extra numbers - Programme kicks off w/c 15 February
VisitScotland Funds - A revised allocation of the funds being administered by VisitScotland has been confirmed.
- Destination and Sector Support Fund closed on 26 January. All applications have been assessed and final decisions were made on 9 February at the panel meeting. All award letters will be issued this week. - Marine & Outdoor Tourism Restart Fund closed on 9 February. 460 applications were received. - A new Country Sports fund is in development, criteria will be completed by the end of the week.
- The new International Tour Operators, Day Tour Operators, Tour Guides and Motorhome funds are in the final stages of agreeing the criteria. - It is expected that the new funds will all be launched by end of February / beginning of March.
Local Authority Funds - Information on the three funds which address Self-Catering (7 beds or more) (Large Self Catering Grant), Exclusive Use (Exclusive Use Grant) and B&B’s who pay council tax (Small Accommodation Providers paying Council Tax Fund) is now available. Read the news story.
- Cabinet Secretary for Finance, Kate Forbes announced yesterday (10 February) that the Local Authority Discretionary Fund is to double to £120m.
It was noted that every Local Authority will have its own Discretionary pot and each individual Local Authority will determine how that fund should be distributed based on the particular priorities or issues that are emerging in their own local economies, the fund therefore will differ across Local Authorities. Not all Local Authorities have launched their Discretionary Fund as some are waiting to see what the other available funds will cover and therefore identify the gaps that need to be filled.
It was acknowledged that the Discretionary fund should be used for businesses / sectors that don’t fit into any of the other funds that are available, however it will be dependent on Local Authorities recognising that.
It was noted that the wholesale sector for example are not receiving any support and it was acknowledged by all that this needs to be addressed. The Discretionary fund was suggested and confirmed as a possible solution. This will be written into the guidance.
2. Falling Through The Gaps
A list of businesses / sectors who are currently falling through the gaps has been compiled and shared with COSLA in order to help target businesses / sectors for support. This list will continue to be supplied to COSLA. It was noted that the list was very useful and that a decision has been taken to review and update the guidance that has been provided to local authorities to take into account the issues that are being raised.
It was highlighted that Local Authorities will always strive to provide funding to businesses who have not received anything, particularly to businesses who are in Sectors which are important to the Local Authority. It was highlighted however that it will not be possible for all businesses to receive funding. Although COSLA will update the guidance the fund will remain at the discretion of the Local Authority.
It was confirmed that visitor attractions with an eligible hospitality component within the visitor attraction, should be able to access the hospitality top-up through the Local Authority.
3. Tourism Recovery Planning
STERG held a meeting with the Tourism Task Force this morning to provide an update on the Task Force recommendations and to share a number of priority recovery projects which will require Scottish Government funding in the coming 6-24 months.
It was noted that it was a very positive and optimistic meeting. Many Task Force members offered their support to work with STERG partners to develop and prepare a final set of proposals which will be
submitted to Ministers in early March. The content of the paper to Ministers is to be agreed, however, In addition to the recovery proposals the paper should set out business support needs, a roadmap and possible investment options.
4. Sector Organisations – Fortnightly Update Call
The STERG update call with Sector organisations took place yesterday (10th).
The meeting notes will be circulated to STERG
Riddell Graham will follow up with STERG partners individually to address some of the specific issues that were raised.
Issues raised included:
- Funding issues
- Plea for early information about changes to lockdown and any roadmap which would support that
- Test and Go / Vaccination passports - Digital Boost funding
There is an urgent need to provide clarity on whether the sector is likely to re-open for Easter or not. Businesses have bookings for Easter, many of which have been carried over from the previous year which they will need to either move again or cancel. There also businesses who are promoting Easter and they need to know if Easter will happen.
It was noted that this decision cannot wait until the last minute, businesses need time to prepare for re-opening particularly at this time of the year and after the recent bad weather.
It has been recognised by Scottish Government that the current lead times given to industry, i.e. announcement on a Tuesday for implementation on the Friday is not practical.
The route map for Tourism & Hospitality could be addressed now, regardless of whether there is a date for re-opening. If we assume that we will move back into the levels framework then we can be thinking about what that might look like now.
Considerations such as any differences between Scotland and England, levels of International travel and domestic travel restrictions within the levels framework will be really important.
5. Scottish Tourism Month
This year Scottish Tourism month will not be celebrated in the usual way and the STA will not hold its usual Signature Conference. However, the 4 March is the anniversary of the launch of Scotland Outlook 2030 and this should be acknowledged. It’s been an unprecedented tough and challenging year for all and yet there are some really good, positive and uplifting news stories out there to share with everyone.
It was agreed that a virtual event in mid-March would be considered.
6. Partner Updates
Skills Development Scotland
The latest Tourism Sector Skills Assessment has just been published. https://www.skillsdevelopmentscotland.co.uk/media/47431/tourism-ssa.pdf
The Sectoral Skills Assessments (SSAs) are a product produced by the Skills Development Scotland Evidence and Investment Planning Team which look at current and future skills demand in the Key Sectors across Scotland.
The aim of the SSA infographics is to provide a high-level evidence base to inform future investment in skills, built up from existing datasets. The SSA Infographics focus on:
The Economy
Employment
Vacancies
Job Openings
Current and Future Demand.
STA
ITIC held its virtual conference, ‘Leading the Tourism Recovery’ yesterday (10 February), Marc Crothall attended as a panellist alongside other industry leaders in Ireland. C.3,000 people registered for the event. It was noted that this was an excellent event with great speakers and a varied agenda.
7. AOB
A correction to the STERG Meeting Notes, 4 February, was requested, “Island Equivalent Payment: The cut-off date for applications is now 22 February”. Please note that this has been corrected and now reads, “The cut-off date for island tourism businesses to register for the strategic framework fund support has been extended to 22 February”
Next Meeting Date
The next meeting will convene on Thursday 18 February, 11.00am-12.00pm.
1. Funding update
A £25 million top up has been confirmed today (4 February) for the funds currently being administered by VisitScotland. Final confirmation is required on which funds will cover country sports, domestic tour operators and motorhome hire businesses.
|
Fund |
Initial |
New |
Uplift |
|
Scotland Tour Operators: International Inbound Tour Operators Fund |
£6m |
£12m |
£6m |
|
Scotland Tour Operators: Day Tour Operators Fund |
£0.8m |
£3m |
£2.2m |
|
Scotland Coach Operators – COVID-19 Business Support and Continuity Fund |
£5m |
£10m |
£5m |
|
Marine and Outdoor Tourism Restart Fund |
£2.5m |
£4m |
£1.5m |
|
Visitor Attractions Support Fund |
£5m |
£10m |
£5m |
|
Tour Guides Fund |
0 |
£3m |
£3m |
|
The Sector Destination Operational & Market Readiness Fund |
£1.2m |
£1.5m |
0.3m |
|
Scottish Country Sports Tourism Restart Fund |
0 |
£1m |
£1m |
|
Campervan and Motorhome Rental Operators Fund |
0 |
£1m |
£1m |
|
Hostels |
£2.3m |
£2.3m |
- |
|
TOTAL |
£22.8m |
£47.8m |
£25m |
Hotel Support Programme
- Still live and continues to progress.
Weddings Sector Fund - Fund opened on 28 January.
- Applications are being processed on an ongoing basis and payments are already being made.
- A steady demand has been noted.
Ski Centre Fund
- Enterprise Agencies have contacted all eligible recipients, due diligence is now underway on the applications and payment is expected to begin within the next 10 days.
Local Authority Funds
- Island Equivalent Payment: The cut-off date for applications is now 22 February
- B&B fund: Final guidance expected shortly. Anticipated live date is mid-February.
- Self Catering (7 beds or more), Exclusive Use and B&B’s who pay council tax – Guidance agreed for all 3 strands of this fund. This is not an open application process; eligible businesses will be contacted directly by the local authority. Target delivery date 15 February.
- Discretionary Fund: Every local authority now has a scheme some are live some are not.
A list of the sectors and businesses who are currently falling through the funding gaps was prepared by STERG and submitted to SGov last week. This list will be shared with COSLA to help inform the discretionary funding.
Action: RGraham to forward the updated list to HLightbody.
Tourism & Hospitality Talent Development Programme
- Applications close on 5 February
- Over 1,700 applications have been received
- Discussions are ongoing to try and accommodate the extra numbers
- Applications are from a good cross section of Tourism and Hospitality businesses
VisitScotland Funds
- Destination and Sector Support Fund: 52 eligible applications. Final decisions will be made next week when the panel sits.
- International Inbound – Good progress. 165 EOI received
- Outdoor Fund: Progressing well. 200 applications received
- Visitor Attractions Fund: Guidance launched today
- Coach Operators Fund: Guidance launched today
- Hostels: Launching 17 February
- Tour Guides / Small Tour Operators: Discussions underway with industry representatives, (STGA and SITOA) on funding criteria.
2. Task Force Recommendations and Tourism Recovery Plan
Phase 1 of the recovery planning process kicked off this week. STERG partners reviewed the Task Force recommendations and have agreed a list of priority recovery projects which could be accelerated now if additional Scottish Government funding could be secured.
The project list will be shared with the Tourism Task Force at a meeting on 11 February, thereafter the projects will be developed, jointly with Task Force representatives and other industry stakeholders, into a set of proposals which will be submitted to Ministers in early March.
Note: There will be a further opportunity to present additional short term (up to 2yrs) and medium term (2yrs-5yrs) recovery proposals in May.
A Tourism Task Force meeting has been convened to provide an update on the Task Force recommendations and to share the priority recovery projects which will require Scottish Government funding to deliver in the coming 6-24 months.
3. Quarantine Hotels
No further update available at this time. Work is continuing to look at a number of different options and discussions are ongoing with the UK Gov and the devolved administrations.
4. Partner Updates
Skills Development Scotland
Funding support has been secured for the following initiatives:
- The development of Springboard’s Ambassador programme
- A new online training programme with ASVA
- Training support for the STGA
COSLA
Local Authorities will gradually begin to shift focus from managing grant support to supporting businesses with the many other services that are offered.
- An improved ‘Planning to start’ tool to help stat-ups will be launched in April.
- A new digital assessment tool on the Digital Boost programme aims to launch in May.
VisitScotland
A follow up to the STERG industry survey, (conducted at the end of 2020), is being considered for March 2021.
Action: STERG to discuss how this survey could be best shaped at the next STERG meeting.
Short Term Lets
- The Local Government and Communities Committee which met on 3 February voted in favour of introducing a licensing system for the regulation of short-term lets.
Recovery planning
– A recent VS document, outlining regional plans may provide interesting insight for the recovery planning process.
Action: RGraham to share the document with STERG.
A report from the Visitor Management Forum was circulated to STERG for information.
The results of a recent sentiment tracker by BVA BDRC was shared with STERG for information.
STA
ITIC will be holding a virtual conference, ‘Leading the Tourism Recovery’, on Wednesday 10 February, 10.00am-12.45pm. Marc Crothall is attending as a panellist alongside other industry leaders in Ireland. CLICK TO REGISTER
5. AOB
No AOB was noted.
Next meeting date
The next meeting will convene on Thursday 11 February, 11.00am-12.00pm.
1. Funding Update & Issues
VisitScotland Funds (9) - All VisitScotland funds are progressing well. The funds have either launched, are about to launch or are in the process of finalising the criteria. - The Destination Operational and Market Readiness Fund (COVID-19), closed on 26th January. C. 100 applications have been received however only c.50 were eligible. Final decisions are expected quite quickly. - No major issues have been reported on any of the other funds.
The STERG Sector Update call was held on 27th January. One of the key issues highlighted is that there are still a number of businesses who are falling through the gaps. It was noted that all Sector leads are to notify Riddell Graham of any sectors, businesses or individuals who are known to be excluded from funding support so that this can be fed to the SGov team. Examples highlighted on the call included: -
Diversified businesses: Pre COVID this is a model which would have been encouraged by Scottish Government however these businesses are now finding it very difficult to meet the eligibility criteria of many of the funds, for example Agritourism businesses or historic houses. - Country sports: Excluded from the Outdoor Tourism Restart fund and require clarity on whether Sporting Agents will be covered by the Inbound Tour Operators fund.
It was suggested that Local Authority discretionary funding should be considered as an option to address these anomalies. It was noted that every Local Authority has a discretionary fund and a significant amount of work is undertaken at a local level to establish what these funds should be used for, that is what’s not been covered by existing schemes or grants that are available. Some of the discretionary funds are up and running, others are not.
COSLA would welcome a formal proposal from STERG which highlighted the sectors or businesses that are falling though the gaps and should therefore be considered for discretionary funding. However, before this is done there is a need to review the existing funds on offer to see whether they can be expanded to include more businesses, only then can we see where the gaps are and how the discretionary fund should be used.
Action: STERG to coordinate a list of genuine gaps in the current funds in order to inform the allocation of discretionary funding within Local Authorities (RGraham)
In addition, the Sector leads stressed that the current funds, whilst very welcome, will be heavily oversubscribed and will not be enough to support the sectors properly and that additional funding was urgently required. Action: Meeting notes from the STERG Sector update call are to be circulated to STERG for reference.
Tour Guides / Domestic Operator fund - It has recently been agreed that this fund will now be administered by VisitScotland. - The budget for this fund is currently limited to £800k. Criteria for the fund is still to be scoped. - It was noted that smaller tour operators, many of whom are sole traders and who are not bonded, (but could be generating up to £2m T/O), do not fall into the International Inbound fund and are currently falling through the gaps.
These operators have recognised that they do not have a collective voice and are now coming together to create a group to represent their concerns. - It was highlighted that £800k will not be sufficient to support the overhead costs of some of the bigger tour operator businesses.
Self-Catering and B&B fund - It was noted that clarity on this fund is required urgently - It was confirmed that draft guidance is now available for this fund and the necessary work will now be undertaken urgently to get it live as quickly as possible.
Strategic Framework Business Fund - There are now positive stories indicating that businesses who have applied to the SFBF are now beginning to see the payments coming through including the top up grants - Further clarity is still required on top-ups, guest houses and exclusive use properties. - Holiday accommodation booking businesses is a recent example of a business type who needs clarity. - It was highlighted that the SGov tourism team need to be made aware of these anomalies in order to have a response.
Wedding Sector Fund - Administered by the Enterprise Agencies - £25m fund available - The fund will open at 12pm on 28th January - Demand is expected to be high - The fund will be administered on a first come first served basis
Ski Centre Support fund - Administered by the Enterprise Agencies - Expected to go live from 1st February - an appraisal process will be in place for this fund.
The SGov acknowledged the businesses that are falling through the gaps and it was noted that there is a degree of confidence within the SGov tourism team that further funding will be available which would allow for a top up of the existing funds. It is recognised however that this may mean changes to the existing funds rather than new funds.
It was recommended that a review of the funds which are currently on offer is carried out to identify the key inconsistencies. In the future funds should be much simpler and more consistent and should avoid the level of complexity which is currently in play.
Hotel Support programme - c.£1m has now been distributed across the Highland and Islands
Find Business Support website - Positive feedback has been received from businesses on the updated Find Business Support website.
Final changes are still being made however it was noted that there is a marked improvement
2. Task Force Recommendations and Tourism Recovery Plan
The timeframe for the Recovery Plan has been reviewed in order that it meets with the decision making process in SGov. With the election being held on 6th May and a period of purdah in place c. 6 weeks before that, there is a need to have initial proposals submitted to Cabinet before mid-March, if that is not achieved then no decisions will be made by Ministers until early June. Examples of areas where decisions may be needed are, a simplified structure for delivering the required future business support, an exit strategy – can we get to a position where we know what we need to align to in terms of reopening and business as usual. In addition, what could a low carbon proposal look like or a skills proposal and what do we want to do in the marketing space.
The development of the Recovery Plan will take a phased approach to align with the SGov decision making process. The first phase will focus on the prioritisation and scoping of the Task Force Recommendations which the SGov responded to on 21st December. Over the coming 4 weeks the Task Force recommendations will be prioritised, developed into a set of proposals and then costed. The proposals will be submitted to Cabinet for their support by 8th March. This will be a collaborative process between STERG, members of the Task Force and other industry representatives.
Action: KChristie to schedule a STERG session(s) for w/c 1st February to review, prioritise and propose the top Task Force Recommendations for development.
Phase 2 (March-May 2021), will develop the Recovery Plan, building on the proposals submitted to Cabinet in Phase 1. Phase 2 will continue to be a collaborative process with industry, public agencies and the SGov working in partnership. Further details will be confirmed.
Concern was noted that the Task Force may not have a broad enough representation from all sectors or destinations within the visitor economy, for example cities where the forward outlook is poor. The Glasgow Tourism Partnership has requested that STERG convene a discussion with the cities to agree the role that they can play within the Recovery Plan and more broadly to look at cities as destinations.
It was confirmed that in Phase 1 there is scope to bring in additional expertise to help develop the proposals for Cabinet.
It was also highlighted that Phase 2 will allow for a greater breadth of industry representation and will include destinations and sectors. It was noted that engaging with our city destinations is essential. It was also noted that a SGov Task Force for the cities has been created – Tourism will form a part of that and we must ensure there is no overlap.
3. Strategic Framework Restrictions
Conversations are taking place both around the business group table and within industry as to how the Strategic Framework restrictions may be adjusted according to the reopening of the sector, as and when that starts to happen and the roll out of the vaccination programme, i.e. as more categories are vaccinated could that provide the opportunity to lessen some of the current Framework restrictions, e.g. restrictions on the service of alcohol, or the number of people that can attend controlled events such as weddings. Clarity is required on when we can start to have those discussions. There is a need to start considering and discussing possible adjustments to the Strategic Framework now.
It was advised that the Strategic Framework review work is going on now in SGov. It was suggested that consideration is given to what the priority ask is, the lessening of restrictions as we reopen or timescales towards reopening, i.e. the exit strategy.
4. Partner Updates
STA
During the STA’s call today with WildScotland, ASVA and Sail Scotland, clarity on the progress of the passport/proof of vaccination mechanism was requested from SGov. It was suggested that discussions on the vaccine passport could be resurrected if international travel restrictions are to continue across the summer and beyond. Currently there are very mixed messages on this within SGov.
The Tourism & Hospitality Talent Development Programme, which opened on 12th January, has now had over 800 applications. Applications close on 5th February. Training starts on 16th February. So far there is a relatively even gender split and a good balance of applications across, Leadership, Management and Supervisory.
VisitScotland
The VS news story about the funds has been viewed 15k times on the VS website.
The STERG Industry survey webinar took place yesterday (27th). 250 people attended. The results presentation will be published on VS.org. A follow up survey is being considered in order to reflect an updated industry position.
The Short Term Let Regulation was raised on the STERG Sector update call yesterday (27th) highlighting the concerns for the self-catering sector and B&Bs. Concerns have also been raised by a number of Destination organisations who are having it raised on a daily basis by their members.
The make-up of STERG has been questioned and suggestions made that there should be additional industry representation. It was noted that a review of STERG was carried out in November and it was agreed that the STERG partners would remain unchanged however industry engagement with sectors and destinations would be increased. It was noted that industry will be a key partner in the development of the Recovery Plan.
5. AOB
No AOB was noted.
Next Meeting Date
The next meeting will convene on Thursday 4th February, 11.00am-12.00pm.
1. Funding support update and issues
Wedding Sector Fund
- It is expected that the fund will launch w/c 25 January. The criteria will be shared in advance of the launch.
Local Authority Administered Funds
- Different interpretations of the eligibility criteria is causing confusion, this is an issue to be resolved
- There is no guidance available from SGov for the top up grants, this has been raised by the project group and requires urgent resolution
- Eligibility criteria for the Newly Self-Employed Hardship Fund to be re-confirmed to STERG
It was highlighted that clarity is required on which funds would be applicable to tour guides and outdoor activity guides.
Action: Riddell Graham to provide clarity on tour guides / outdoor activity guides to STERG
VisitScotland Funds (9)
- Sector & Destination Operational and Market Readiness Fund (COVID-19), opened for applications on 18 January and will close on 26 January.
- Hostels Fund, launch 16 February
- Visitor Attractions Fund, launch 11 February, criteria available from 4 February
- Coach Operators Fund, launch w/c 1 February
- Scotland Inbound Tour Operators - COVID-19 Business Support and Continuity Fund – Expressions of interest open 22 January - Linda McAllister, VS, will attend the SDMA meeting on 28 January where the detailed criteria for the Inbound Tour Operators Fund and the Coach Operators Fund will be shared with their members.
- It was highlighted that across all VS funds applications cannot be restricted to a particular membership organisation
- It was noted that the industry representatives who had contributed to the scoping of the criteria for the funds had been excellent.
Action: Riddell Graham to share the VS fund matrix with STERG
Exclusive Use Venues
- £10,000 for exclusive use accommodation venues has been announced
- Criteria and delivery mechanism is being finalised
Large Self-Catering Grant - Criteria is being finalised
Tourism & Hospitality Talent Development Programme
- Launched 12 January
- Application deadline 5 February
- c. 975 places available
- c. 500 applications have been received to date from many different sectors across the industry
- Programme has been received well. It is expected that all places for the programme will be filled.
VisitScotland highlighted that the Scottish Government’s communication of the funds that were announced yesterday (20) was very poorly managed.
VisitScotland were excluded from the communication and as a result were unable to respond to the many enquiries received, it was noted that this is unacceptable. It was agreed that the flow of information from the Economy team to Tourism stakeholders needs to be improved – this is currently being actioned.
Action: Riddell Graham to forward any outstanding issues that cannot be answered to SGov team.
The importance of communication and the need to get it right has been frequently stressed on the Business Organisations calls with Liz Ditchburn and Joe Brown from Scottish Government.
Recent enquiries to VisitScotland have identified two areas that are not covered by the funds, firstly caravan and camping parks and secondly motorhome / campervan hire companies. It was noted that caravan and camping parks are eligible for the Strategic Framework Business Fund.
Discussions are ongoing about the motorhome / campervan hire companies. In addition, it was highlighted that there are a number of businesses within the outdoor sector, who would normally be open at this time of year but cannot operate due to current restrictions and yet are not eligible for the Strategic Framework Business Fund.
It was confirmed that a press release has been issued by the SGov confirming that island businesses will receive support equivalent to Level 4 and top-up payments for Hospitality, Retail and Leisure. Local authorities will administer these payments. Full details are to be published shortly.
Hotel Support Programme
- Almost all of the contracting has been completed
- Just under 100 hotels will receive support through the programme
2. Tourism Recovery Planning
Discussions are ongoing to progress the recovery planning process. Following a Recovery Planning meeting which took place this morning, the following was agreed:
- The 5 Year Tourism Recovery Plan is a National plan which will be developed collaboratively with STERG partners and industry representatives
- A Recovery working group to reflect this collective approach is to be established as quickly as possible
- The Task Force recommendations will form the foundation of the Plan, however it was noted that these should be reviewed and amended if necessary to ensure they are still relevant
– The Plan will be key to securing funding for future recovery
- An evidence base demonstrating (and quantifying where possible) the impact of COVID-19 on the sector is to be produced. This will provide a starting point for scoping the journey of recovery and for articulating where we want to get to in 2025.
- An update on the Recovery Plan with indicative funding requirements will be presented to Cabinet in February / March
- Additional resource requirements are to be considered and scoped
- Comms support is to be considered
Funding for the recovery plan will be allocated under Mr Ewing’s Tourism portfolio. Discussions on this are ongoing. There is an expectation that further consequentials will be received from UK Gov and that recovery funding should be ring-fenced from there.
Timescales will be dependent on when the UK Government announce any consequentials, in addition the spending review is also being considered as an option for securing funding for recovery. In the first instance it will be important to have a collective, national view of the strategic priorities and the investment needs for sector recovery, allocating resource across SoSE, SE and HIE would then follow – this could be done in the same way as the hotel support programme.
It was noted that the priority will be to secure an allocation of the anticipated consequentials, it was highlighted however that the longer-term bids which were submitted to the spending review are reviewed annually.
It was noted that Finance Secretary, Kate Forbes MSP joined the STA Board yesterday to offer an overview of her proposed Budget approach. In relation to the Tourism Taskforce recommendations, Ms Forbes said that she had discussed these with Fergus Ewing and in terms of breakdown of the asks, there is a timing element that is critical to this. Some of the asks focus on recovery, some on resilience; she highlighted that we are still in resilience mode but she is aware of what is needed for recovery.
It was noted that Local government at the spending review are seeking, fair funding in order to ensure services are not diminished. Funding to support tourism recovery within local government is discretionary spend therefore any budget received will in the first instance focus on statutory services and within that, the most vulnerable in our communities. It is not known whether there would be any remaining budget available for tourism / economic development.
It was highlighted that COVID has delayed capital projects, this may suggest that SGov has capital that could be invested. SNIB should be reviewed as a possible source of financing. The recovery of the sector will be over a long time period requiring patient capital and that is what SNIB is all about.
3. Partner Updates
Enterprise Agencies
- SE have extended their commitment to support ETAG for a further 6 months.
- The Glasgow Tourism Partnership Group will meet for the first time next week. This is a new partnership in Glasgow between agencies and industry.
Skills Development Scotland
- Funding support has been secured for the following initiatives: - The development of Springboard’s Ambassador programme - A new Storytelling training programme with ASVA - A new Scottish Agritourism programme in the south of Scotland in partnership with SoSE - Training support for the STGA
- Representatives from businesses on the Hotel Support Programme will attend a Skills Masterclass on 25th January. A range of speaker will outline the support that businesses can access on skills.
VisitScotland
- Comms were recently issued on the VS funds as well as the other funds which are available
- The Scotland Inbound Tour Operators - COVID-19 Business Support and Continuity Fund will launch tomorrow (22).
STA
- Discussions with counterparts in Northern Ireland and England have highlighted that Scotland is much further advanced with the funding that is being made available across the sector.
- A meeting is scheduled later today with a representative from Iceland’s tourism industry to discuss their response to the pandemic and their approach to recovery.
Scottish Government
- Thanks were expressed to STERG for their input and support throughout the grant process.
- The second Culture, Tourism, Europe and External Affairs Committee Meeting took place this morning. Overall it was noted that the tone of the meeting was very positive and the MSPs were supportive of Mr Ewing.
4. AOB
No AOB was noted.
Next meeting date
The next meeting will convene on Thursday 28 January, 11.00am-12.00pm.
Riddell Graham, on behalf of STERG, welcomed back Bettina Sizeland. Due to an accident the previous week Bettina was hospitalised and the group were delighted to see her back on the call and on the road to a full recovery.
1. Funding Support Update & Issues
Strategic Framework Business Fund - It was noted that a number of issues on the Strategic Framework Business Fund (SFBG) have already been raised with the Scottish Government for resolution. - The biggest concern that has been raised over the last few days, particularly by Self-Catering, B&B’s and Hostels, has been the confusion and frustration caused by the language used in the recent communication of the top-up grants for Hospitality, Retail and Leisure.
The Scottish Government team advised that work is ongoing to address this issue. It was acknowledged that this fund had been announced in isolation and not in the context of all of the funds that will be available, this was not ideal. A range of options to rectify the situation have been submitted for approval, once agreed a remedial comms plan will be put in place.
Action: Scottish Government to advise the approved solution as soon as possible.
Sector leads on the STERG Update call yesterday (13th), highlighted a real concern about the casual use of the word ‘Hospitality’ and how it can be interpreted in many ways. Also highlighted was the need for a clear definition of ‘Tourism and Hospitality’ as potentially this could include hundreds of different types of businesses. Moving forward all communications must be very clear about what is in and what is out.
Action: Scottish Government to issue a communication as soon as possible to rectify the current situation. - The requirement for a business bank account is an ongoing issue. The new VS funds will not ask for a business bank account instead business insurance will be required. Consistency across all funds is required.
Current Local Authority guidelines ask for a business bank account or a personal account by exception. Confirmation is required from Scottish Government that Local Authorities can accept alternative evidence which can still satisfy fraud prevention. Action: Scottish Government / COSLA to advise a decision as soon as possible.
VisitScotland funds (9) - The final criteria and application forms for all funds are now very close to completion. Once signed off by the industry groups they will loaded onto the digital online process and launched. This could take a few weeks. - It is expected that the Destination / Sector fund will be launched ahead of the other funds as it is a paper based application process. An announcement is expected next week. To ensure this funding does not cut across funding already awarded by HIE or SoSE a final draft of the criteria has been shared with HIE and SoSE for comment. It was noted that there is likely to be very little crossover with the HIE fund. A cross-check has been put in place whereby HIE will review applicants to ensure no double dipping. - The VS funds will not be operated on a ‘first come first served’ basis. Funding received by applicants prior to 21st December will be discounted. Applicants will not be allowed to receive funding from more than one of the new funds that were announced on 21st December. Action: R.Graham to share details of the Destination / Sector fund with STERG as soon as possible.
Wedding Sector fund - Enterprise agencies are administering the Wedding Sector fund - The final set of criteria is waiting on approval. - Applications will be made on findbusinesssupport and then channelled to SoSE, SE or HIE. - It is expected that the fund will launch w/c 25th January - It was noted that an automated system has been developed for the application process.
Digital Boost Development Grant - Designed to have a simple application process and simple administration. - Promoted to a broad audience - Launched 12.00pm Tuesday 12th and closed 5.30pm Tuesday 12th due to the volume of applicants meeting the budget available. - It is not clear whether additional funds will be made available.
It was emphasised that an overview of all of the available funds was now critical.
Action: Scottish Government to advise when this will be available.
£2m Training and Development Fund (£0.5m FY20/21, £1.5m FY21/22) £500k has been secured from the Scottish Government to deliver a new online Tourism & Hospitality Talent Development programme, focussing on Leadership, Management and Supervisory skills. HITScotland are coordinating the programme with support from Scottish Tourism Alliance, SDS and others from the Tourism Skills Group. 975 places are available. The programme launched this week and the deadline for applications is the 5th February, the first programme will run from the 16th February. https://hitscotland.co.uk/talent-development-programme It was noted that this is one of the first Tourism Task Force recommendations to be implemented.
Action: L.Durden to send details of the programme to B.Sizeland
Action: All STERG partners to promote the programme across all platforms in order to reach the workforce.
2. Tourism Recovery Planning
- An updated draft of the Terms of Reference and the Project Initiation Document for the Tourism recovery plan was circulated to STERG for final comment. A STERG meeting is to be scheduled w/c 18th January to discuss and progress. Action: K.Christie to schedule a STERG meeting w/c 18th January. Action: STA to propose details of a Stakeholder Group to support STERG with Recovery Planning
- The Director of Economic Development, Scottish Government, will meet with senior Enterprise Agency stakeholders on 20th January where tourism recovery will be a key point for discussion.
3. STERG Action Plan
The next update of the STERG Action Plan will include updates on all business support funds, the Task Force recommendations and the Tourism Recovery Plan. It is expected that the Plan will be published w/c 18th January.
4. Partner Updates
Enterprise Agencies
- HIE has approved c. £1.5m in grant funding to support community led tourism capital infrastructure developments in advance of April 2021. These grants are intended to support communities and places to prepare for visitors and build back better. There is a direct link to RTIF via Lyn Hamilton of VS.
Skills Development Scotland
- Applications are now open for the SDS Apprenticeship Employer Grant, a new Scottish Government initiative developed in response to the pandemic. The scheme offers £5,000 for employers taking on or upskilling a 16 to 24-year through a Modern of Graduate Apprenticeship, and for those aged up to 29 years who have a disability, are care experienced or are from a black, Asian or minority ethnic background and £3,500 for employers taking on or upskilling an individual aged 25 and over through a Modern or Graduate Apprenticeship. All information and grant grant conditions with FAQs, guidance and a link to the application form can be accessed on apprenticeships.scot.
STA
- Marc Crothall, STA, Malcolm Roughead, VS and Jane Martin, SE, provided evidence to the Culture, Tourism, Europe and External Affairs Committee Meeting this morning on the impact of Covid-19 on Scotland's tourism sector. Many questions were discussed including, the availability of grant support and the urgent need for ongoing support (it was highlighted that the timing of the funding announcement on 21st December has been challenging to resource, however the industry have been closely involved in developing the criteria), vaccination certificate / passport, STERG, the recovery planning process. The collaborative nature of the tourism sector’s response to the pandemic was highlighted.
- It has been highlighted that businesses cannot apply for the SFBF through their ‘home’ council, if they have multiple businesses then they need to apply to each of the Local Authorities where the businesses are located. Communication to businesses is not clear on this.
- The STA Forums took place this week. The calls focused primarily on business support. However there is also concern about when the door is likely to open and when they do, what restrictions will be faced. Particular points raised included, avoiding a cliff edge on furlough on 31st March, continuation of the current VAT reduction, continued Business Rates relief. Flexibility on finance e.g. extension to loan repayments for CBIL, Bounce Back loans etc. - it is hoped there will be movement on this.
Clarification on Scotland’s position on a vaccine passport / certificate is required, it is recommended that STERG consider this. Action: Scottish Government agreed to confirm the latest position on this.
VisitScotland
- Round three of the Rural Tourism Infrastructure Fund is complete. Successful projects were advised w/b 11th January. https://www.visitscotland.org/news/2021/rural-tourism-infrastructure-fund-round-three
- It was noted that if additional capital expenditure was available, there are a number of RTIF projects, which just missed out on the round three funding, that could benefit.
- VS comms team continues to support Scottish Government funding update announcements
- The STERG review document is ready and will be published imminently.
- The STERG update call with the Sector organisations took place yesterday (13th). The meeting notes will be circulated to STERG for reference.
5. AOB
No AOB was noted.
Next Meeting Date
The next meeting will convene on Thursday 21st January, 11.00am-12.00pm.
1. Funding Support Update
VisitScotland Funds:
- The two Events funds are well advanced.
- The Pivotal fund started accepting Expressions of Interest before Christmas, this fund will continue to progress.
- An additional event industry support fund for smaller events will be launched later in January.
- It was noted that these funds are not included in the list of new funds announced on 21st December.
Outdoor Tourism fund (Marine & Land)
- Criteria are being prepared by sector organisations Sail Scotland and Wild Scotland and are now at final draft stage.
- An application form for each element of the fund is in development.
Sector / Destination fund
- This is an operational and market readiness fund, not a marketing fund. It is to ensure organisations are in the best possible place when ready to market.
- It is important that this funding does not cut across funding already awarded by HIE or SoSE. A final draft will be shared with HIE and SoSE for comment.
- This fund is likely to be launched ahead of the other funds.
Visitor Attraction fund
- Final draft of the criteria is almost complete
Hostels fund
- Final criteria proposals received from hostels sector this morning (7th January)
- International Inbound, coach tourism and domestic tour operators fund
- Final proposals for international fund received this morning (7th January). Ongoing work with CPT recoach operators fund and domestic operators fund being drafted
Next steps:
- Teams (with an agreed lead) have been set up within VS for each of the different funds.
- The aim is to have consistency across all funds and to simplify the application process significantly to minimise the evidence required - this should help to speed up the process.
- It has been emphasised to industry group representatives that if the application process does not specify ‘first come first served’ then it must be ensured that it is specified that the money awarded will be ‘up to’ a certain value. This will help to manage expectations where the anticipated number of applicants is difficult to forecast.
- Once all of the criteria and the application forms are signed off by the industry groups they will loaded onto the digital, online process and launched. This is likely to take several weeks.
Enterprise Agency Funds:
Hotel Support Programme
- The new lockdown restrictions, (travel restrictions etc.) are impacting the ability of contractors to complete agreed work with some hoteliers, this could impact the flow of funds to some businesses, potentially risking the ability of monies to be paid out by the end of the Financial Year. These challenges are being discussed urgently with the Scottish Government to find a resolution.
- All money has now been paid to the successful businesses in the SoSE region.
Wedding Sector fund
- Daily meetings are taking place to progress the development of the fund
- Criteria agreed pre-Christmas has been forwarded to Scottish Government for sign off
- Fund expected to be open to applications by the end of January
- A further update will be provided to STERG next week including the approved criteria
Ski Snow Sport fund
- HIE to provide an update to STERG next week
Other support:
- Skills Development Scotland has secured £500k in the current Financial Year for the development and implementation of a new ‘Tourism & Hospitality Talent Development Programme’. SDS in partnership with the STA, HIT Scotland and a number of others have formed a management group to ensure the online programme is up and running by the beginning of February at the latest. The programme will initially focus on Management & Leadership training and aims to secure c.1,000 people on the programme from February to May / June 2021. A further £1.5m has been secured for the next Financial Year to continue the programme.
HIT Scotland will coordinate the activity and David Cochrane, CEO, will attend the STA Member Forums
next week to share details of the programme.
2. Funding Support Issues
A number of concerns were raised regarding the funding support.
- Consistency across funds is the main concern:
- Ensuring consistency of the eligibility criteria and exclusions across all new funds is key. It was noted that this could be challenging given that there are a number of organisations involved in administering the funds, e.g. VisitScotland, Enterprise Agencies and 32 Local Authorities.
- Exclusions need to be clear, consistent and need to be kept to a minimum to ensure the funds can be administered at pace. The more exclusions there are, the more cross checking is required which can delay the funds paying out to the businesses that need it.
- Specifically, clarity is still required on whether businesses in receipt of previous funding are to be excluded or not from these new funds, for example those in receipt of PERF or other funds.
VisitScotland has recommended to SG colleagues that barriers to the application process for the new
funds be minimised and that funding received previously should not prevent a business applying to the
new funds. It is recognised however that controls need to be in place to ensure that a business cannot
apply for more than one of the new funds.
It was noted that in a meeting on Monday afternoon (5th January), MS Hyslop advised that any exclusions
to funding were based on the fact that there is a limited pot of money and the risk therefore that there is
not enough to go around, there is however recognition that businesses need access to support.
The Scottish Government acknowledged that consistency was important and advised that there are still a
number of issues to be resolved.
Action: Scottish Government to advise on any noticeable inconsistencies across the funds once they
have visibility of the final criteria for all funds.
The Scottish Government confirmed that the exclusion linked to PERF has now been removed from the
Hospitality top up fund which is being administered by local authorities. To remove this exclusion from
other funds will require Minister approval.
Action: Scottish Government to confirm whether this exclusion could be removed from other funds.
- The timing of the Hospitality top up fund and the wedding sector fund is a concern. Businesses need to be made aware of the criteria for both funds to allow them to make the decision about which fund to apply for particularly if the funds are running at different times.
Action: SoSE to raise this issue today on the wedding sector call.
It was noted that Business Support colleagues in the Scottish Government are preparing a table which
outlines all of the new funds that are available. This will be available in the public domain.
- Criticism has been received from politicians and industry that access to the new funds is not being delivered quickly enough. It was noted that once again the Scottish Government has announced the money (21st December) without the funds being in place. It was stressed that this must be avoided in the future, the funding criteria and application process must be in place before the money is announced.
- VisitScotland will be clearer on when the funds will be available for application by the end of this week. The aim is to open all funds for applications as early as possible, it is estimated this will be end of January beginning of February. A VisitScotland funding table will be prepared and shared with STERG as soon as it is complete.
- It was recommended that STERG provide an update on the target dates when the funds will be open to applications as soon as possible.
- It was noted that where available an update on the timing of funds will be provided to the STA Member
Forums on 11th & 12th January.
- Strategic Framework Business Fund
- Clarification is required on whether a business must have a business bank account in order to be eligible for this fund, this is causing major delays and requires confirmation from the Scottish Government.
- It was noted that some new funds will not require a business bank account, e.g. Wedding sector fund,VisitScotland funds, this illustrates a clear need for consistency across funds.
Action: Scottish Government / COSLA to confirm their position on this.
- Businesses e.g. accommodation providers in level 3, (currently Island communities), cannot access this fund despite travel restrictions preventing their customer base from mainland Scotland level 4 / rest of UK travelling to them which is causing business disruption. This approach needs to be amended.
- Although discretionary funds have been mentioned as a possible source of funding it is recommended that a blanket fund is made available to all island accommodation providers given the travel restrictions in place.
Action: Scottish Government / COSLA to advise whether exemptions could be made for these
businesses.
- Scottish Agritourism has raised the concern of discrepancies between how rates assessors have rated different businesses as this impacts the grants that can be claimed from the Strategic Business Fund, for example, one large business may be rated as one whereas a smaller business may be rated separately. In addition there is discrepancies between local authorities on how these issues are dealt with.
Action: Scottish Government / COSLA to advise if this can be covered by the discretionary fund?
- It was noted that Boris Johnstone implied yesterday (6th January) that the £375m of new money would be forthcoming to Scottish Government. Clarification is required from Scottish Government as to where this money will be channelled.
Action: Scottish Government to clarify the position
3. Impact of Lockdown on Businesses
- The new lockdown restrictions have forced some businesses to extend their periods of closure, Gleneagles for example will not reopen until 15th March, it is expected that others will follow.
- It was noted (and highlighted to Ms Hyslop at a meeting on Monday 5th January) that the fixed costs for many businesses are much greater now, i.e. in the winter, than they were in the spring of last year, for example utility bills are higher and there are now additional furlough costs.
- Managing overhead costs is a huge concern as grant support is limited. Conversations need to happen with Banks about possible support, for example extending mortgage holidays.
- It was highlighted that there are now no forward bookings for conferences or events and it is unlikely that any February mid-term holiday bookings will be realised.
- It was noted that Scottish Agritourism had submitted a list of issues, gathered directly from the
- Agritourism sector, to be addressed at STERG, these issues have been forwarded to the Scottish
Government team for a response.
- The mood is incredibly sombre, genuine business failure is imminent. It is critical that there is a marker in the sand for businesses to aim for in terms of when they could realistically begin to take bookings again.
4. Tourism Recovery Planning
It was noted at the previous STERG meeting on 17th December that a round table discussion with senior
agency stakeholders would be proposed for January in order to conclude discussions on agency support
for the Tourism Recovery Plan.
It was confirmed that the Director of Economic Development, Scottish Government, will meet with
senior Enterprise Agency stakeholders on 20th January where tourism recovery will be a key point for
discussion.
5. STERG Industry Survey
- VisitScotland are preparing a presentation to share the results of the survey. The presentation is expected to be available w/c 11th January and will be shared with STERG.
- VisitScotland will hold an industry webinar to share the results of the survey and host a Q&A at the end of January, exact date TBC, (provisional date 27th January).
Additional work is underway to split the survey data by geography and by sector.
6. STERG Action Plan
- The most recently updated STERG Action Plan was published on VS.org on 18th December.
- The next update is expected to be published w/c 18th January.
- It was recommended that next update of the STERG Plan provides a status update on the new support funds and progress with the Tourism Task Force recommendations in particular the Recovery Plan.
7. Partner Updates
Skills Development Scotland
- A research project on Fair Work has been commissioned by SDS. The research will seek to understand the issues and challenges faced by businesses across a number of key sectors (including Tourism) in implementing fair work. EKOSGEN have been awarded the contract and will begin work next week. The project will run until March 2021. It was noted that some of the STERG partners may be called to be involved.
Enterprise Agencies
- Delivering funding support is the current focus of activities.
VisitScotland
- All VisitScotland Marketing activity is on hold, however VS is ready to go when allowed to so.
- VS comms team continues to support Scottish Government funding update announcements
- The STERG review document is ready and will be published w/c 11th January.
STA
- It has recently transpired that the Short-Term let legislation will also impact on B&Bs. This has come as a surprise to the sector who have not been involved in the consultation process. The Scottish B&B Association has been notified. VisitScotland plan to mail the details of this to all B&B’s on its dadatbse.
- An Extraordinary UK Industry Council meeting has been convened for this afternoon to discuss lockdown support and Brexit.
STA Member Forums will take place w/c 11th January
8. AOB
No AOB was noted.
Next Meeting Date
The next meeting will convene on Thursday 14th January, 11.00am-12.00pm.
2020
1. New Funding Support
- Ongoing discussions are taking place between the Scottish Government, STERG partners, trade associations and sector organisations to agree the criteria for some of the new sector specific rescue funding packages. It was noted that much progress had been made in the last few days and a revised proposal will be presented to Mr Ewing later today for approval.
- It was agreed that details of the final funding packages would be circulated to STERG once approved.
- It was noted that if businesses are to be excluded from the new funding packages (as they have received money from previous funds) then there should be a common ‘exclusion’ list which can be applied across all of the new funds.
- A funding announcement is expected from Kate Forbes on 18 December. Details of the application process for the different funds are expected in January.
- It was highlighted that signposting businesses to the right funds will be challenging, ensuring that businesses apply for the funds that best suit them is important and will avoid frustration and wasted time.
- It was noted that it was important to recognise that these funds are being designed to address business survival and not recovery.
- It was acknowledged that clear communication of the funds, including eligibility, application process and timing is essential to avoid confusion.
- It was suggested that findbusinesssupport would be the best platform to host the funding packages.
2. Tourism Recovery Planning
- To deliver the tourism recovery plan will require a commitment of support from the public sector agencies. This commitment to support tourism must go beyond operating plans and business as usual, it requires a distinctive uplift in support, warranted by the need to help one of Scotland’s most important sectors of the economy to recover.
It was noted that discussions are ongoing to secure this support from the agencies.
It was proposed that a round table discussion with senior agency stakeholders is convened in January to progress these discussion to a conclusion.
- The draft Terms of Reference and the Project Initiation Document for the Tourism recovery plan were circulated to STERG for comment. In the draft it is proposed that a steering group and a stakeholder group are created to support STERG, it was agreed that further discussion was needed on this and that this should be the focus of STERG when the group reconvenes in January.
It was also noted that project support needed to be discussed further as did the support and resource that could be offered by the Scottish Government.
Action: STERG to feedback comments on the ToR and PID before the next STERG meeting on 7 January.
3. Scottish Government Guidelines
- Visibility and clarity on what businesses can expect from 28 December is critical to enable future planning. It was noted that Wales has already announced that it will enter a full level 4 lockdown from 28 December. It is essential that businesses in Scotland are given as much notice as possible of what is likely to happen after Christmas.
4. STERG Industry Survey
- A draft of the top-line results were circulated to STERG for information.
- It was noted that the initial results highlight the devastating impact of the COVID-19 pandemic on the tourism sector but what can also be seen is that there is a lot of innovation and inspiration coming from industry indicating that there is a sense of optimism for the future.
- The results will be published on Friday 18 December accompanied by a press release and a blog post.
- A webinar will be held in January for anyone who is interested in understanding the detail. Further details will follow.
- It was confirmed that different cuts of the data could be provided as required.
- The verbatim comments have still to be analysed, this should provide an understanding of the sentiment behind the quantitative responses. This will be available in January.
- It was noted that it would be of value to share the findings of this survey with the CET committee which is taking evidence today and on 14 January on the impact of COVID.
- It was noted that the responses to the questions around access to long term financial support were polarising and would be investigated further.
Action: STERG to forward any questions on the survey to Riddell Graham.
5. STERG Action Plan
- The most recently updated STERG Action Plan will be published on VS.org by 18 December. This will be the last update of 2020.
- The next update is expected to be published w/c 18 January.
- It was noted that visibility of the progress being made on the Task Force recommendations agreed by the Scottish Cabinet is important and therefore it is recommended that next update of the STERG Plan provides a status update.
6. Partner Updates
VisitScotland
The STERG review document is almost complete. The latest draft will be forwarded to Duncan Mackay in the SGov team to cross check the information included. The review will be available for circulation next week or alternatively in the new year. It was noted that if possible an Enterprise Agency split on funding awarded would be helpful.
Skill Development Scotland
The new Talent Retention Training Programme is likely to be up and running in the new year. It was noted that there is a significant amount of work and creative thinking underway to make this happen.
Additional Sector funding has been secured this week for Springboard, HIT Scotland and ASVA to specifically address training requirements related to COVID.
Enterprise Agencies
Money has now started to flow through to the businesses who were successful in securing funding from the Hotel Support Programme. It was noted that all money has now been paid to the successful businesses in the SoSE region.
SE and SDS are progressing talks on skills funding and where rural leadership and destination leadership might fit within that.
HIE Strengthening Communities Directorate has approved c. £1.5m investment in capital projects across the Highlands & Islands for tourism infrastructure. These funds will be released before 31 March 2021.
The list of approved projects will be shared with STERG if possible to do so.
It was noted that there are a number of other funds operating in this space:
- NatureScot green places recovery fund.
- Local level funds are also available to support communities, tourism and place initiatives.
Scottish Government
The Scottish Government team thanked the STERG partners for the huge effort that they had made this year in what has been an incredibly difficult year for all. The commitment to responding to the pandemic has been appreciated and the team looks forward to continuing to work together in the new year.
STA
The STA echoed the thanks of the Scottish Government and acknowledged that the hours of work which they had put in were sometimes not recognised. It was highlighted however that unfortunately the worst is still to come for the industry in the next couple of months and that shouldn’t be forgotten. It therefore remains the responsibility of this group to collectively move forward into the next phase.
7. AOB
No AOB was noted.
Next Meeting Date: The next meeting will convene on Thursday 7 January, 11.00am-12.00pm.
1. Tourism Task Force Cabinet Paper
An update was provided by the Scottish Government team on the next steps following the Task Force paper discussion at Cabinet on 1 December.
Feedback from Cabinet has been documented and circulated to STERG for information. It was noted that this document was confidential and not for onward circulation. The feedback indicates a particular interest in aiming towards a future which is low carbon, supports fair work and supports communities. Cabinet was clear that we shouldn’t be looking to return tourism to what it was pre-COVID. Cabinet wants the sector to be stronger and more resilient, but they don’t want to see the same issues that we have had in the past.
Since the Cabinet meeting, further work has continued on the financial requests to support the sector. An updated paper was provided to STERG during the meeting. It was noted that this paper was confidential and not for onward circulation. The paper details the latest breakdown of the budget. It was noted that the Task Force recommendations had been the starting point, however further additions have now been added to try and support as many areas as possible, particularly businesses that haven’t been supported in the past.
The budget is set out sector by sector and includes related sectors which are not core tourism or hospitality. Importantly it was noted that the Ministers focus for the consequentials in this financial year was on supporting business and in particular businesses that hadn’t received support before or needed extra support to survive. On that basis it was agreed to defer any decisions on marketing support for VisitScotland.
A number of initial observations were noted:
- Given the number of funds that are likely to be available at the same time, some form of overarching coordination will be essential to ensure that the funds are all joined up and that the eligibility criteria for the different funds are not developed independently of each other.
- Clarity on the number of funds that a business can apply for will be key.
- The timescales for designing the funds and eligibility criteria and then distributing the funds needs to be realistic given the current pressure on resource.
- There is an expectation that funds will be delivered as quickly as possible acknowledging resource constraints.
- As an example of the resource requirement to effectively manage a support fund, VisitScotland advised that the Events fund that they have been administering over the last 6 weeks has involved 50 staff members.
- The time involved in successfully developing the criteria for a fund should not be under estimated, it is noted that there is a requirement to deliver the funds at pace, however the complexity of eligibility criteria can be very challenging and can significantly impact timelines.
It was acknowledged that STERG required time to review the updated budget proposal and it was agreed that a follow up session be scheduled for 11 December to provide feedback directly to SGov.
Action: STERG to review the budget proposals and provide feedback at a separate session to be scheduled for Friday 11 December. (KChristie to schedule)
It was noted that the Task Force recommendations and the Cabinet paper has successfully secured Cabinet Ministers support for tourism, (both response and recovery) and has helped them to understand the current status of tourism in Scotland.
A formal response to the Task Force recommendations is expected to be issued by the Scottish Government imminently, this will include a request for the Public Agencies to provide a detailed plan outlining resource and financial commitment to sector recovery over the next five years.
It was noted that STERG will coordinate the recovery plan addressing the Task Force recommendations and that there will continue to be an inclusive and collaborative approach between industry, the public agencies and the Scottish Government to shaping and delivering tourism across Scotland.
It is now critical for STERG to work together to get the business support out as effectively and efficiently as possible.
2. STERG communication and engagement
The STERG ‘report card’ is nearly complete, further information is required from the Scottish Government and from COSLA. Communication activity will be planned for the new year.
Last week VisitScotland published a list of the most frequently asked questions on both the current guidance and Christmas guidance to try and provide much needed clarity to businesses. VisitScotland will meet with the SGov at the end of this week to talk about any further actions that could be taken to ensure the guidance is clear particularly given the ongoing changes which are happening.
A number of additional points related to restrictions were highlighted as needing further clarity or visibility or stronger messaging:
- What you can do in Scotland over the Christmas period, for example permission to travel from a level 2 area to another Level 2 area to stay in a hotel.
- Visitors travelling from south of the border are not aware of the restrictions that apply in Scotland. Similarly, inbound visitors are not aware of the restrictions that apply.
- Although it is appreciated that bookings from visitors south of the border cannot be taken at the moment, it is important to understand when businesses could begin to take bookings for example Easter. Businesses want to forward plan.
- Current uncertainty is making it difficult for inbound tour operators to secure future bookings for clients as businesses are hesitant about taking bookings.
- Could a new year bubble be considered for Scotland? It was acknowledged that the SGov team had been very helpful last week in responding to the specific questions that had been asked, it was also noted that the answers had been very good and provided the necessary clarity. It was recommended that the same approach is adopted for these additional questions that have been raised.
3. STERG industry survey
The STERG industry survey closed on 6th December.
2,972 responses were received.
Top line results will be shared with STERG on 17 December and then published on VS.org on 18 December. Insights from the survey will also be shared through a wider programme of communication.
4. Funding updates
Hotel Support Programme - Almost all contracts have now been issued to the successful applicants. - Once the final list of supported companies is clear then this will be communicated. It is expected that this final list will be available within the next couple of weeks.
New Events Fund - VisitScotland is to launch a new events fund. The fund will be open to Expressions of Interest from 18 December with funds being delivered in the new year.
The new £15 million support fund for the wedding sector and its supply chain, which was announced by Finance Secretary Kate Forbes on 9 December is to be administered through the Enterprise Agencies. The design and eligibility criteria for this fund is currently being developed.
5. Impact of Government restrictions
It was highlighted at the STA Destination Forum that access to funds for businesses that have had to close is not consistent across local authority areas. These businesses have not been required to close or restrict their business by law and therefore they are not eligible for the Strategic Framework Business Fund, however they have been forced to close as it is not viable to keep the business open. Local authorities should have a consistent approach to tourism in terms of discretionary payments to businesses that have had to close due to the impact of travel restrictions.
6. Partner updates
Business Gateway / COSLA
A number of new funds were announced by the Finance Secretary on 9th December, many of which will be administered by local authorities, this is in addition to funds which are already being managed, c. 90% of local authority resource on the ground is now focused on grant support work and c. 10% on the day job however the day job has not reduced, this is causing enormous pressure on local authority staff across Scotland.
Skills Development Scotland
The Tourism Skills Group meeting was held on 9th December. The key focus of discussions was the funding for the Emerging Talent Training and Retention programme, which was proposed in the Task Force recommendations. £500k will be made available initially until end of March 2021 to provide a Leadership and Management programme. Further funding has been secured beyond March 2021 to develop the programme further to support future recovery.
Enterprise Agencies
The tourism team within SE is involved in a significant amount of activity which is not directly related to STERG work or sector recovery, for example, regional partnerships, business cases, city deals, growth deals etc, it was noted that this work is ongoing and has not decreased.
STA
Clarity is required on the vaccination roll out, specifically what is the ambition in terms of likely timeline. It is appreciated that there may be vaccine availability issues however we need to look at how we can optimise delivery to ensure this can be delivered as quickly as possible.
Ongoing discussions are taking place to look at alternatives to quarantine and testing at airports, this work is being led by Transport and Mr Matheson. A dedicated STERG session will be required once the proposals become clearer.
7. AOB
No AOB was noted.
Next Meeting Date: The next meeting will convene on Thursday 17 December, 11.00am-12.00pm.
1. Outcome of Tourism Task Force Cabinet paper discussions
The Tourism Task Force recommendations were discussed by the Scottish Cabinet on 1 December. The following update was noted.
- The Cabinet paper was well received by Cabinet
- Ministers were supportive of the proposals and the need to support the sector in the short, medium and long term.
- It was recognised that the enterprise agencies would have a key role in developing a 5-year recovery plan.
- We will continue work with the sector to ensure that tourism recovery is consistent with our climate change ambitions.
- The Scottish Government continues to explore the funding requests and will respond on these shortly.
The following next steps were shared:
- Scottish Government Tourism team continue to work on the SGov response to the Task Force. It is hoped that the publication of this document will align to the announcement of a financial support package.
- Work is to start on the public agency recovery plans. Availability of resource is being looked at by SGov.
- Tourism summit: SGov are looking at the possibility of Nigel Huddleston meeting with a select group to discuss task force recommendations.
- Vaccination roll out expected to start in December.
It was noted that Mr Ewing joined the final half hour of the STA EU Exit round table discussion which took place yesterday with the STA Board, Council and Scottish Government officials. Mr Ewing updated the group on the Tourism Task Force proposals that were discussed at the Scottish Cabinet. Mr Ewing advised that an announcement on a further support package should be expected within the next week.
The following points were noted on future funding packages:
- Clarity on the criteria for accessing the funding is critical and needs to be available upfront at the time of any announcement
- Clarity on the conduit for delivering the funding needs to be confirmed as soon as possible
- The process of getting the money direct to businesses should be kept as simple as possible. An update on the progress of funding (both immediate business support packages and sector specific support as outlined in the Task Force recommendations) was requested urgently. Mr Ewing also commented on Tesco’s announcement to repay the rates relief they have received. Mr Ewing said that he would be making enquiries to find out if other supermarkets would be doing the same and if that money could be redirected. It was noted that similar comments were made on the UK’s Tourism Industry Council to Nigel Huddleston.
2. STERG communication and engagement
STERG COVID-19 Tourism Industry Survey reminder email will be issued today.
STERG Scenario Planning toolkit was launched last week and so far has had good engagement.
Work continues to consolidate STERG activities for communication activity.
3. Funding update
Hotel Support Programme
- All Enterprise Agencies have now issued the majority of contracts to all successful applicants.
- Partner discussions on the broader business support package for successful applicants is being progressed.
- Discussions will take place between SE and VS on potential support that could be offered to applicants who were unsuccessful.
4. Impact of government restrictions
Two areas of government restrictions were highlighted as urgently requiring greater clarity and visibility:
- Can a Festive Bubble of three households stay in self-catering accommodation, given that the Scottish Government have classified self-catering as a private dwelling? It was noted that further clarity on this point was provided in the updated festive guidance, which was issued on 2 December, it was also noted that these changes were made based on equality issues whilst also aiming to minimise transmission. It was highlighted that industry would like to challenge the changes made.
- Travel to Scotland from England, Wales and N. Ireland between now and 23 December. Although the Scottish Government website advises against travel to Scotland from the rest of the UK, this message has not been made loud enough or clear enough. In addition, there is no clear, visible communication from the UK Government advising against travel to Scotland and therefore the travel restriction messaging is not reaching visitors who may come from south of the border. This has to be addressed and made clear.
It was noted that as yet there is no indication of what may happen after 27 December. It was stressed that industry needs to be given as much advance notice as possible so as to prepare for the restrictions that might be put in place.
It was highlighted that in general Scottish Government communications on guidance are not providing the necessary clarity for industry or for visitors and it was emphasised that this needs to change. It is vital that communications are clearly understood by businesses and are not left open to interpretation or misinterpretation. More needs to be done to sense check communications in advance of publication to ensure the messaging is clear and to ensure that the communication covers all the likely questions which will arise from industry. It was suggested that VisitScotland are more actively involved in sense checking communications.
It was acknowledged by SGov that the communication process wasn’t working and that the complexity of guidance and the number of different parties involved in agreeing the guidance didn’t make the process easy. It was agreed that improvements could be made.
Action: It was noted that the issue on clarity of communications has not been resolved however in the first instance VisitScotland and STA will provide clear responses to the questions which have recently been received from industry on travel restrictions and the Festive guidance.
5. EU Exit round table discussion with industry
The STA hosted a round table EU Exit discussion with the STA Board, Council and Scottish Government officials on 2 December. The note of meeting will be circulated to STERG when available.
Issues raised included:
- Workforce / labour concerns
- The loss of expertise for example language skills
- State aid implications
- HMRC lack of engagement
- The risk that additional costs could be incurred by those wanting to travel to the UK / Scotland will impact Scotland’s competitiveness
It was suggested that the challenges and concerns of COVID have over shadowed preparation for Brexit and businesses may therefore be ill prepared.
Action: Note of meeting to be circulated to STERG by Karen Christie
6. Partner updates
Skills Development Scotland
Funding has been granted for the emerging talent retention and training programme, work continues to scope out and agree the detail of the programme to ensure that it’s up and running as quickly as possible.
A new Apprenticeship Employer Grant will be open for applications in January. This grant aims to encourage more employers to take on an apprentice or upskill an existing staff member through Modern or Graduate Apprenticeships. The funding includes:
- £5,000 for employers taking on or upskilling a 16 to 24-year through a Modern of Graduate Apprenticeship, and for those aged up to 29 years who have a disability, are care experienced or are from a black, Asian or minority ethnic background.
- £3,500 for employers taking on or upskilling an individual aged 25 and over through a Modern or Graduate Apprenticeship. Discussions about which businesses will be eligible is ongoing however it is likely to apply to most employers. More information is available here, https://www.apprenticeships.scot/for-employers/apprenticeship-employer-grant/
Business Gateway / COSLA
Local authorities are currently focused on delivering grant support
Brexit is increasingly on the radar and there are likely to be implications for tourism. A recent survey completed by DCMS has shown that data flows under Brexit is a key issue which businesses are not up to speed on. This could apply to a hotel for example who has a booking system running on a server in Holland which is easy to post data to but will be difficult to get data back post Brexit.
An additional £11.8 million has recently been announced to help businesses adopt digital technologies and improve their digital capabilities, (£800,000 will be given to HIE to extend its Digital Enablement Grant scheme, £1 million will go to Data Lab to help businesses to invest in more advanced technologies such as data analytics and artificial intelligence and £10 million will be available to build on existing digital support programmes, discussions are ongoing to agree how this funding could best be deployed, it is likely that it will be in a grant format.
Three Brexit webinars will take place over the coming 3 weeks on leaving the EU
A Brexit survey will be issued imminently on the subject of Brexit which follows a survey in September.
STA
Priority must be given to providing clarity to industry on the following:
- Christmas messaging for the sector, this is critical, particularly on self-catering. The conditions laid out in the guidance are not acceptable and there is a need to challenge this.
- Travel guidance, particularly for those travelling to Scotland from the other 3 nations. It should be considered whether there is a need for the First Minister to explicitly say Scotland isn’t open right now.
Action: VisitScotland to work with SGov team to put together a clearer communication for industry.
7. AOB
No AOB was noted.
Next meeting date: The next meeting will convene on Thursday 10 December, 11.00am-12.00pm.
1. Tourism Task Force Recommendations and Cabinet Paper
An update was provided on the Task Force Cabinet paper. The following points were noted:
- 1 December remains the target date for the Task Force paper to be discussed by Cabinet.
- The paper has now been circulated to all Cabinet Ministers, the Deputy First Minister and the First Minister for comment, this process has identified additional issues which will need to be addressed.
- Regarding APD, concern has been raised that whatever we do regarding the aviation sector it must be in line with climate change targets and environmental expectations, this also applies to international connectivity and international marketing.
- Regarding the Financial asks that are outlined in the paper, progress is being made on funding support for parts of the sector that have not received as much support as others. Consideration is currently being given to the delivery mechanism for dispersing any such funding. Slower progress is being made on the top up funding proposals. Tourism unfortunately is competing with other sectors of the economy for a share of the consequentials, (consequentials cover health costs, social welfare costs as well as business support costs). The Task Force paper however has given Tourism a head start, discussions on this are expected to conclude over the coming week.
- Concern about the timing of any international marketing has been raised.
- Phase 2 of the Low carbon fund was reviewed yesterday. This included a review of the bids, Tourism has been included in the bids.
- Confirmation of funding from the Transition Training Fund has been received for the emerging talent retention and training programme. Detailed design of this programme can now proceed with stakeholders.
- Discussions are ongoing with the Enterprise Agencies, VisitScotland, and Skills Development Scotland to ensure public sector agencies are able to plan the recovery work and then deliver it. This will be done with industry bodies, however it will be a different approach to that taken with Scotland Outlook 2030 and the Task Force paper, as this is a public sector response to the recommendations that have been set out, it is the public sector that will take the lead.
It was noted from the spending review yesterday that DCMS only secured an additional £5m. The next opportunity will be the Budget review in March
- that should be the next target for support. It was acknowledged that lobbying activity directed at DCMS may not be having the necessary effect. Longer term money is required to support the recovery plan and therefore we also need to look at possible public / private approaches. It was noted that there is a growing sense of frustration from industry with the UK Government. UKH press releases which have followed the UK Government’s recent announcements about the tier structures for example, have stated that they are savaging the sector. It is thought that with a vaccine in sight, support for the sector should be accelerated to ensure a strong position for the sector, it was also noted that the roll out of a vaccine should be as rapid as possible, (it was highlighted that there appears to be a stronger push behind vaccinations in England as opposed to Scotland.) The STA Board raised concern yesterday that Scotland is not seeing the potential opportunity that a rapid vaccine programme could have, this could help Scotland get up and running much more quickly, giving Scotland a real competitive edge and helping to get the international market moving again. It was noted that the importance of international markets cannot be underestimated and will be critical to recovery.
It was stressed that the main concern right now is the immediate support package and confirmation of when this is likely to be announced. The other concern is, will the scale of support offered be sufficient enough to meet the sector’s needs. It was highlighted that it is not just businesses in level 3 or level 4 that are impacted by current restrictions, businesses in level 1 or 2 are also impacted and in some cases have been forced to close as their business is not viable, currently these businesses are excluded from the funding currently being dispersed through the Coronavirus Strategic Framework Business Fund.
It was noted that the language being used to describe business or sector performance should be checked, in particular any reference to a business or sector ‘having done well’. There are some businesses or sectors that have done better than others, however it should be noted that these businesses will have lost a lot during the initial lockdown and will not have done well enough to fully recover - support therefore will still be required.
It was noted that a second letter from five of Scotland’s Hospitality Industry bodies was sent to the Scottish Government on 24 November pursuing a number of assurances and undertakings regarding restrictions on the hospitality sector. It is assumed that the Scottish Government are progressing discussions with these bodies independently.
Mr Ewing will be joining the end of an EU Exit Round Table discussion which is to be hosted by the STA on 2 December, it is hoped that Mr Ewing will provide attendees with an update on discussions which will have taken place at Cabinet on 1 December.
It is expected that the Christmas guidance published today should allow businesses to make the decision about whether they will trade or not over the coming weeks.
It was noted that in France President Macron has adopted the Irish approach to grant funding and has stated that “all businesses forced to remain closed during the restrictions, such as restaurants, bars and sports halls, would have the choice of receiving up to €10,000 (£8,900) from a "solidarity fund" or the payment of 20% of their turnover”. The question was asked if this was something that we could look to match in Scotland.
It was highlighted that there are currently many different voices lobbying the Scottish Government which is causing confusion amongst Ministers and delaying the funding process. The sector now appears very fragmented and no longer speaks with one voice. This means that there is no longer any clarity about what the ask is. The Task Force paper was an attempt to get alignment on sector requirements but the lobbying has continued. It was noted that it would be very helpful to have just one representation of what is needed which is proportionate and evidenced and not just a long list of asks. It was questioned whether conflicting industry messages were also happening in England and that could be why progress is not being made there either.
It was acknowledged that the voice of the sector may have become disjointed, however this has probably happened because of the gap between the Task Force recommendations being concluded in August and the Task Force paper going to Cabinet in December. This delay has created a sense of frustration as many of the Task Force recommendations were identified as immediate rescue needs.
The Task Force paper is a great document to focus on, however, it should be accepted that the goal posts have changed over the last eight weeks since the recommendations were put together. (It should be noted however that the VAT extension and the furlough extension have already been delivered).
To improve communication and engagement the STA will encourage one channel of communication rather than many different channels.
It was noted that the purpose of the STERG industry survey was to cut through the anecdotal evidence and get to the real detail of how different sectors have performed and how different geographical areas have performed, hence it is so important to get a robust and representative sample.
2. STERG Industry Survey
- The STERG industry survey was issued on 19 November.
- Over 2,000 responses have been received so far.
- The largest sector response so far has been from self-catering businesses.
- The largest regional response so far has been from the Highlands.
- Concern was noted on the response rate from hotels. STERG partners were asked to encourage responses from hotels, particularly as this was part of the sector who faced some of the biggest challenges.
Action: Riddell Graham to circulate a sectoral and regional breakdown of the responses received so far to STERG partners.
Action: All STERG partners to encourage further survey responses from hotels. Find out more about the survey in our news story.
3. Funding update
Hotel Support Programme - It is likely that all Enterprise Agencies will have issued contracts to all successful applicants within the next week, subject to the receipt of all supporting documentations from applicants.
Events Industry Support Fund - All offer letters will be issued before the end of next week
It was noted that one of the key learnings from administering the grant funds is the need to ensure that the eligibility criteria is crystal clear and is set out at the beginning of an application process. This learning will be carried forward to any future funds.
4. STERG Scenario Planning Toolkit
The STERG COVID-19 Scenario Planning Toolkit for tourism was launched this week on VisitScotland.org. Before launch the toolkit was tested with a number of sector organisations to ensure that it was fit for purpose.
The toolkit is intended to help businesses with their planning in times of great uncertainty.
5. Good To Go
There are 7,150 businesses now signed up to the Good To Go scheme.
VisitEngland have recently issued a survey to all accredited businesses to understand how the scheme has worked for them. Results are expected pre-Christmas.
The future of the Good To Go Scheme is currently being considered. It was noted however that it will continue into the new year.
Action: All STERG members to feedback their views to Riddell Graham. It was noted that the governance group, which is made up of representatives from VisitEngland, VisitWales, VisitScotland and the Northern Ireland Tourist Board meets regularly so all comments and suggestions can be fed into those discussions.
6. STERG communication and engagement
Information is being collated about the initiatives undertaken by each of the STERG organisations for planned comms activity. A summary of this activity will be circulated to STERG once complete.
Communications to encourage completion of the STERG Industry Survey will continue. Feedback captured in the survey will inform STERG’s priorities over the coming months.
A STERG update will take place at the STA Destination Member Forum on 12 January 2021.
A regular STERG update call with Sector organisations is to take place on a fortnightly basis from January 2021.
7. Partner updates
Business Gateway / COSLA
The priority is delivering the most recent grants on behalf of the SGov. It was noted that one of the biggest issues that local authorities are having to deal with is questions about eligibility. It was noted that guidance on this is being sought from Scottish Government.
Skills Development Scotland
- Now that funding has been agreed for the emerging talent retention and training programme, work is underway to finalise the mechanics of the programme. The timing of the programme is particularly important as this will have an influence on the content. A draft programme has already been put together by industry however it is essential that the programme is realistic and meets the needs of individuals and businesses within the agreed timeframe.
- A new landing page for the Young Persons Guarantee has gone live on myworldofwork. This includes a section for employers on how they can engage with the Young Persons Guarantee and the kickstart programme.
- Approval has been given to proceed with a research project on Fair Work across some of the key sectors (which includes Tourism). The research will seek to understand the issues and challenges faced by businesses, particularly small and rural businesses in implementing fair work. The aim is to commission the project in December for a January 2021 start.
Enterprise Agencies
- HIE DMO support fund – The first projects are beginning to come through from the Area teams and are starting to be scoped up and developed. No financial support has been awarded yet.
- HIE were recently involved in the Visitor Management Infrastructure sub group meeting with the National Parks and are also involved in the RTIF process.
- HIE has developed a short term intervention to support capital investment in community led tourism infrastructure. This is being delivered now through anchor organisations and anchor community groups across the Highlands and Islands. Where there is a known infrastructure need for visitors which is led by communities then there is money available for capital spend.
- HIE Tune into Tourism podcasts are continuing.
- HIE Let’s Grow Adventure Tourism programme – the new cohort are now in week 3.
- HIE will be joining VisitScotland on the Cruise webinar which is coming up.
STA
A number of businesses have highlighted that furlough is not available to new employees taken on after 31 October. There have been instances where new employees have been taken on and then the business has been forced to close and they have been unable to put the people on furlough. If further restrictions are put in place in January or February, then more businesses are likely to be in that position. This has been raised with Helena Bennett, Head of Scotland Stakeholder Engagement at HM Treasury. UKH has also raised this as an issue.
Clarity is urgently required on how much notice the current level 4 local authority areas will get before they transition to new levels on 11 December. The current process, (Cabinet agreement on the Tuesday for implementation on the Friday), is not believed to be sufficient. It is also not clear on whether the changes will apply from 6am or 6pm. Confirmation is required on whether a further review is to be expected between Tuesday 8 December and the Christmas period. Further changes within this period could make the difference between a business remaining open and being able to trade and having to close. Further clarification is required on whether any changes to level 3 hospitality restrictions, (trading hours or dinks service) can be expected over the Christmas period.
A number of issues have arisen from the Christmas guidance that was published today which has highlighted the need for even greater clarity.
- Urgent clarity is sought on whether a Festive Bubble of 3 households can stay in self-catering accommodation. The Christmas guidance states that, "Your bubble can meet in a private home, in outdoor public places or in places of worship". Given the Scottish Government’s classification of self-catering as a private dwelling for the purposes of Household regulations it would suggest that this is acceptable. It was highlighted however that the Christmas guidance in relation to tourist accommodation states that, “…During the Christmas period those who are part of a bubble should not stay in tourist accommodation. Only those not part of a bubble should plan on staying in tourist accommodation and should follow the tourist accommodation, socialising and travel rules in the local authority area you are staying. For example: You should only stay with your own household (or extended household) in self-catering accommodation…” This would appear to be conflicting. It was noted that in England, Festive Bubbles can stay in self-catering accommodation.
- Greater clarity is required on cross border travel guidance over the period pre, during and post-Christmas.
- Strong messaging to visitors travelling from outside of Scotland is needed to ensure that restrictions, (especially around travel), are understood.
- The channel for raising questions and managing the responses on the Christmas guidance needs to be made clear.
The next Tourism Cross-Party Group will take place on Tuesday 1 December. Marc Crothall will be providing an update.
Scottish Government
Scottish Government is having weekly meetings with the hospitality sector to discuss the framework restrictions and how they can be further refined. Latest discussions have been focused on trading hours and not on lifting the alcohol restrictions. The proposed changes in trading hours in level 3 would allow for a second dinner sitting and is more reflective of the time when people would want to eat at lunchtime and dinner time. Although any changes will be very difficult to get through this is where the focus currently lies.
It was noted that the rules around what you can and can’t do pre and post-Christmas can be confusing and that it would be helpful for all if this was clearer.
VisitScotland
The VisitScotland regional team met this week and reported that in each of their areas they are still seeing significant investment going on, not necessarily on the accommodation sector but on some other significant projects, some of which are a part of city deals for example in the south of Scotland Borderlands.
There were also good future projects noted in the Highlands and the east of Scotland. The regional team will capture this going forward as this is very positive news for the future and will be good to share.
8. AOB
It was noted that on a recent call to discuss the Modern Apprenticeship programmes, it was very encouraging to hear that a growing number of businesses have been putting their employees onto Modern Apprentice programmes, demonstrating a commitment by business to invest in their people in order to develop and grow their human resource and talent despite the difficulties being faced.
Next meeting date: The next meeting will convene on Thursday 3 December, 11am-12pm.
1. Actions from previous meeting (12 November)
The Role & Remit of STERG
The future role & remit of STERG was agreed by all. It was also agreed that the STERG name would not change. The final version will be hosted on VisitScotland.org.
It was noted that the two Scottish Government actions arising last week from discussions about STERG’s operating context, (1. To establish a reference group within Scottish Government, and 2. To create a reference group with the CEOs of the public agencies), were premature and that these actions should be reconsidered once the Cabinet paper is finalised and the asks of the agencies are clearer.
It was noted that a meeting had recently taken place with the Agencies and VisitScotland to discuss the roles and responsibilities of the agencies in supporting recovery. The same discussion will take place next week with SDS and SDI.
Tourism Task Force Recommendations and Cabinet Paper
Bettina Sizeland expressed her thanks to all STERG members for their input into the Cabinet paper. All changes have now been incorporated and a revised version, which now includes the financial asks, is currently with Cabinet Secretary Fergus Ewing. The revised version will be circulated to STERG following feedback from Mr Ewing.
It was noted that nothing further was required from STERG at this point, however there may be a need to respond at pace to any asks from Cabinet Ministers once they have reviewed the paper.
Clarification was requested on the process and timing for decisions being made on additional business support for the sector. It was noted that there are two processes running in parallel. The first is the business support submission, this is being progressed separately and is part of a broader submission which is directly related to the consequentials. This will not have to wait to the 1 December when Cabinet will review the Task Force recommendations.
The second is the Cabinet paper itself, this will reflect the asks outlined in the business support submission but will not be reviewed until 1 December. It is not clear which of these processes will land first. Consideration is being given to grants for those businesses who have not received the same level of support as others, top ups for those businesses who have support but continue to be impacted or restricted and there are also businesses who will require longer term investment.
STERG communication and engagement
To improve STERG communications and engagement, activity is being planned to share the work that STERG has been doing with a wider audience. To support this activity STERG are asked to provide information about the initiatives being undertaken by each organisation.
Action: STERG to send Barbara Clark a summary of what each organisation has delivered through STERG to support businesses and organisations in the last six months, what’s happening now and what is planned to be delivered in the future. Contributions to be received by Friday 20 November.
2. Roadmap to Scotland Outlook 2030
A proposal outlining the process, timescales and resources required to transition back to a long term strategic plan, focused on the ambition of Scotland outlook 2030, was considered by STERG. The proposal also included a recommendation to consolidate the three sets of industry Scenario Planning work into one set, which would then be used as a tool to challenge the Scotland Outlook 2030 strategy.
It was noted that separate discussions had taken place recently to gain commitment to developing a Recovery Plan, based on the Task Force recommendations. It was highlighted that this Recovery Plan is to be developed at pace for presenting to the Scottish Cabinet by December 2020 / January 2021.
Given the urgency of the Recovery Plan and the high levels of uncertainty that we continue to operate in, it was agreed that this was not the right time to look at a longer term plan. Simplicity, clarity and focus is what is required and it was agreed therefore that there should be one plan only.
It was highlighted that the demand to consolidate the Scenario Plans was unclear and therefore should not be progressed at this time. It was noted for information that there are some very good commercial scenario plans available.
In summary it was agreed that the long term roadmap to Scotland Outlook 2030 would be put on hold and all efforts focused on the Recovery Plan which will be driven by the Task Force recommendations. It was noted that the Recovery Plan will be aligned to the Outcomes in Scotland Outlook 2030 and therefore should be the start of the roadmap back to the long term strategy vision. This position can be reviewed again once the Recovery Plan has been completed.
3. Partner updates
Business Gateway / COSLA
The focus remains on delivering the most recent grants on behalf of the SGov. It was noted that better clarity is required up front on eligibility criteria as this continues to cause issues.
It was noted that it would be helpful if grant schemes were launched by the First Minister once the detail of the schemes had been agreed and not before as local authorities do not currently have the capacity to respond to enquiries about new grants where the detail is not available.
Skills Development Scotland
SDS are continuing to promote the National Transition Training Fund for individuals who have been made redundant.
The flexible workforce development fund has been expanded in terms of what businesses can apply for. The big change is that SMEs can now access the fund when previously it was only for employers who were paying the apprenticeship levy.
As part of the Hotel Support Programme SDS are preparing a Skills Masterclass promoting the support that is available for skills development. Timing for the delivery of this will be discussed with the Enterprise Agencies.
Information about what SDS is doing to support the National Mission for Jobs was forwarded to the SGov team for reference.
Enterprise Agencies
HIE Digital Enablement Grant update - @ 12 November £277,000 awarded to 19 tourism applicants (out of a total of 106 applicants c.18%) - Further funding has still to be issued
The Hotel Support Programme is progressing. SoSE has issued contracts to most applicants and SE are expected to start issuing contracts this week. Discussions will take place within the next couple of weeks to look at the requirements of businesses for the wider support package.
STA
On 17 November Marc was a panellist on the Kickstart webinar hosted by Harri, Springboard and UKH. Over 100 businesses from across the UK took part.
Concern has been raised by some hoteliers about the time it’s taking for the Hotel Support Programme to release funds. There was an expectation that this would happen quite quickly, but this doesn’t seem to be happening.
Continuing to hear that hotels are taking the decision to close their doors until a later period because of the implications of travel, uncertainty of customer confidence to book and not being able to commit to delivering the experience customers expect. This then presents the challenge of knowing what’s open and what’s not open. This also leads to a significant impact on the supply chain on whom we will need to rely on in the future to get back up and running again.
It was noted that the STERG business survey will pick up what is open and what is closed. It was also noted that VS iCentre staff will be picking this up too. A recent piece of work with the SSDA has provided a comprehensive list of businesses that are open and closed in the Borders and Dumfries & Galloway and this will replicated in other parts of the country.
On 18 November Marc joined the Peach 2020 conference, (renowned for insight into hospitality and food & drink sector globally). The conference showcased incredible innovation being delivered by hospitality businesses south of the border and demonstrated how businesses are adapting to the future COVID environment. It was noted that this best practice should be shared where possible.
One of the key challenges highlighted for businesses as they emerge from lockdown in England / Level 4 restrictions in Scotland will be the ability of businesses to get their teams back up and running for the period prior to Christmas. It was noted that VisitScotland will be running activity around innovation in the industry either pre-Christmas or in the new year and would welcome any great examples which could be shared.
STA will convene an EU Exit round table discussion on 2 December with the STA Board and Council and Scottish Government officials. Cabinet Secretary Fergus Ewing will join the call for the last 30 minutes to provide an update on the Cabinet meeting which is to be held on 1 December.
STA will provide an update on the Task Force recommendations at the next CPG meeting on 1 December.
VisitScotland
The STERG business survey will be launched today. STERG are asked to share across all platforms. The survey will also be shared through the Economy Comms group.
The Scenario Planning toolkit will be launched on Wednesday 25 November.
#STERG to be used on Twitter
Today VisitScotland joins the Tourism Declares Initiative. VisitScotland will the first national tourism organisation to join the Tourism Declares initiative setting out its commitment to responsible tourism and addressing climate change.
Scottish Government
SGov team to come back to STERG for further discussion on the UK summit.
SGov team are considering different funding streams including the Low carbon fund. A revised tourism proposal will be submitted to this fund for capital investment in the coming weeks.
It was noted that currently there is no fixed timescale for announcing further industry support.
An updated Cabinet paper will be issued to STERG tomorrow.
4. Redundancy update
No further updates were noted.
Action: Redundancy updates from all partners are to be forwarded to Karen Christie prior to the next meeting. Confidentiality of this information is assured
Next meeting date: The next meeting will convene on Thursday 26 November, 11.00am-12.00pm.
1. The Role & Remit of STERG for the Next 6 Months
A revised draft of the role and remit of STERG was circulated in advance of the meeting. It was noted that STERG’s responsibility for delivering the Task Force recommendations was now reflected in that remit. The revised version was agreed by all. The final version will be hosted on VisitScotland.org.
Further work is required on the diagram which illustrates the operating context of STERG. The following comments were noted:
- Scottish Government officials on STERG will continue to be from the Tourism team only.
- To progress the Task Force recommendations engagement is required with Scottish Government officials and Ministers with portfolios beyond Tourism & Events, for example, Economic development (who have offered a reference group for STERG to work with), Skills, local government, Health, Transport, Fair Work and Climate Change. Currently there is no mechanism in place to bring these portfolios together, it was noted that this would need to be created.
Action: The SGov team will look to establish a reference group in Scottish Government that STERG could engage with.
- Currently there is no forum for the CEOs of the public agencies involved in STERFG to come together to discuss Tourism and its priorities. To progress the Task Force recommendations, it would be beneficial for STERG to be able to engage with a group like that. It was agreed that this would be proposed in the task Force paper that will go to Cabinet.
Action: The SGov team will put forward a recommendation in the Cabinet paper to create a group with the CEOs of the public agencies for STERG to engage with, (it was noted that this group should also include Transport Scotland).
- Barbara Clark (VisitScotland) is part of the economic comms group which also has representatives from SGov, HIE, SE, SoSE etc. Good relationships are being built here and a good understanding of tourism has developed.
2. Tourism Task Force Recommendations
The lead organisation for each Outcome identified in the Task Force report, was reviewed and further discussion took place on assigning the lead for Outcome 4. The following is agreed:
- Outcome 1 – SDS Lead
- Outcome 2 – VS Lead on Demand and Sustainability / Business Gateway Lead on Digital
- Outcome 3 – SE Lead
- Outcome 4 – Scottish Government Tourism Team
It was agreed that Outcome 4 should sit initially with the Scottish Government Tourism team. In preparing the Task Force paper for Cabinet, many of the recommendations in Outcome 4 have already been discussed and responses are being drafted in collaboration with colleagues in other departments across government.
It was noted that the Cabinet paper is work in progress and that further detail was required from STERG members. A draft of the Cabinet paper will be circulated to STERG imminently for input.
Action: STERG to provide additional detail as appropriate to be included in the Cabinet paper. STERG are asked to respond directly to Bettina Sizeland by close of play Tuesday 17 November – earlier if possible.
It was noted that a common template for each of the leads to complete would be helpful. This need will be re-assessed once STERG have had sight of the Cabinet paper as this may already contain an appropriate format.
It was noted that it will be important to commission the public agencies to do a formal delivery plan and this will be part of the request that goes into Cabinet.
It was advised that the Scottish Government’s budget will be published on 28 January 2021. It was noted therefore that any indication of what recommendations will or won’t be supported would be helpful to have as soon as possible.
It was noted that given the extreme fiscal constraints of the Scottish Government the funding required to deliver the Task Force recommendations will come from existing and new consequentials. It was noted that over the next couple of weeks it will become clear what can and can’t be covered by the Scottish Government and what we would need to press the UK Government for.
Following the four-way Ministerial call that was held last week, SGov officials have been working this week with UKGov officials on the proposed summit. The summit will not only cover the support and investment that is needed for the sector (which will require Treasury to be at the table), but also the clinical aspects and the refinement of restrictions.
The target date for this event will be December and it is hoped that the outcome will an agreed set of actions which all four nations support. It was noted on the Tourism Industry Council call earlier in the week that a four nations aligned approach would be appreciated. It was also noted that Treasury have been in contact with the STA to set up an initial introductory call. This will take place next week with a public affairs representative.
3. STERG Communication and Engagement
A number of activities are underway to improve STERG communications and engagement:
- A new, simple branding design is to be considered for the group
- A summary of activity completed STERG is to be collated and communicated
- There are a number of initiatives that VisitScotland is currently leading on which will be ready to share in the coming weeks: The Scenario toolkit, the Visitor Management activity and the new business survey.
- VisitScotland website statistics show 60,000 visits to STERG pages and 14,000 to the STERG Action Plan
- Partner communication channels will be audited to see how VS can help provide information for them.
- Links with the Economy comms group are to be strengthened
4. STERG Action Plan
It was agreed that once the actions have been identified from the Task Force recommendations they will be integrated into the STERG Action Plan.
5. Roadmap to Scotland Outlook 2030
A detailed proposal is currently being developed and will be presented to STERG for final sign off.
6. Partner updates
Enterprise Agencies
- The Hotel Support Programme is progressing and due diligence is continuing.
- HIE are now receiving proposals for DMO support funding. It was noted that this is not an open call for applications and normal funding conditions will apply. HIE is currently working with partners in the region on visitor management activities in preparation for next season.
- A recent survey carried out by the SSDA has highlighted the incredibly challenging position of businesses in the south who are sandwiched between the tight restrictions of Level 3 local authority areas in the central belt and the north of England which is currently in lockdown. It is expected that there will be further hotel closures. It was noted that the extension of furlough has lead to some hotels in the south closing over the winter and reopening in spring.
Business Gateway / COSLA
- Work continues on delivering the most recent grants on behalf of the SGov. It was noted that the eligibility criteria is causing a significant number of issues however local authorities are doing what they can to get the funds to businesses as soon as possible.
- Additional resource for Digital Boost in the current financial year is still to be confirmed. STERG discussed whether a general Digital Boost programme meets the needs of the tourism sector or whether a different dedicated Tourism programme was needed. All agreed that there should be one mainstream Digital Boost programme, however there are ways in which this could be tailored to meet the needs of tourism and work is ongoing on this between Business Gateway and VisitScotland.
- COSLA requested that the timeframe for the allocation of the consequentials needs to be shared as soon as possible. It was noted that the SGov is working on proposals for business support packages and the economic modelling to support these proposals is also underway. Packages being considered include business support top ups and support for businesses who have received no support or very limited support so far – further work is still to be done on this. It was highlighted by SGov that there is also a need to consider longer term investment over and above short term business support, this work is also ongoing. SGov advised that there was no confirmed date for agreeing this.
Skills Development Scotland
- The working group who developed the emerging talent retention and training programme proposal, recently met to review the proposal in light of the fact that furlough has been extended and will be redrafting the proposal to reflect two issues:
- The £2.5 million which is potentially available is part of the national transition training fund, this is focused on those who have been made redundant or are facing redundancy and this needs to be highlighted in the proposal.
- Staff who are on furlough, if they are directed by their employer to undertake training then they need to be remunerated for that. This needs to be looked at – should it be a voluntary training scheme? It was highlighted that the SGov team would need the revised proposal as soon as possible, in particular the revised costings to be able to feed into the Cabinet paper.
Action: Lawrence Durden to feedback any known changes to the SGov team by the beginning of next week.
- The flexible workforce development fund – for employers who are paying the apprenticeship levy, they can access funding up to £15k for training, this fund has been increased and will be opened up to SMEs, non levy paying employers. The understanding is that SMEs should be able to access funding up to £5k per business
- SGov asked about progress on the national mission for jobs and what was being done here.
Action: Lawrence Durden to discuss with colleagues at SDS and respond to SGov
STA
- Marc Crothall and Stephen Leckie had a private call with the First Minister on 11 November. During the call the FM referenced the fact that grants were being considered and recognised that the sector needed more support from the consequentials.
- Regarding the Emerging Talent proposal, it was noted that businesses need to know as soon as possible what and when decisions will be made on this. Businesses are having to make decisions at pace, particularly around people, to manage cost.
- Furlough implications have had an additional impact on business. Furlough is not being seen as a benefit to business, it’s seen as a cost.
- It was highlighted that a number of hotels are now closing. Gleneagles will be closed until February, the Hilton on William Street in Glasgow is also closing, all IHG properties are closing and many other hotels. The outbreak in Arran is seeing a voluntary level 4 closure for businesses on the island.
- It was noted that businesses on the Hotel Support Programme would welcome a letter providing reassurance that funds will be forthcoming, this would allow for decisions to be taken and commitments made and allow businesses to plan for the future.
- The first Scottish Agritourism conference is in progress with 150 people attending.
VisitScotland
- The Visitor Management strategic framework has been signed off and the individual workstreams are populating their parts. It is expected that a report will be presented to the Cabinet Secretary in December.
- The business survey will be issued next week (19 November). STERG members are encouraged to promote the survey through their own channels to encourage responses from a broad range of businesses within the sector, in particular hotels.
- Work will be undertaken by VS to identify the businesses that will or will not be open to ensure that up to date information is available for visitors who are able to travel.
7. Redundancy Update
- No further updates were noted.
Action: Redundancy updates from all partners are to be forwarded to Karen Christie prior to the next meeting. Confidentiality of this information is assured
8. AOB
- No AOB was noted.
Next meeting date: the next meeting will convene on Thursday 19 November, 11.00am-12.00pm.
1. Scottish Government Framework
STERG members discussed the current issues and concerns around the Scottish Government Framework. The following points were raised:
- The impact of travel restrictions is one of the biggest concerns. Despite restrictions being relaxed for businesses in Level 1 and Level 2, these businesses, in many cases rely on a customer base from Level 3 areas (or other areas of the UK) and therefore are not seeing sufficient footfall to make their businesses viable. It was noted that some businesses in Level 1 and Level 2 have announced that for the first time they will be closing for the winter as it is not sustainable to keep the doors open. It was also noted that this is impacting not only hospitality but activity providers and visitor attractions. The travel restrictions are also having an impact on Level 3 businesses where footfall is again severely limited. It was acknowledged that the First Ministers recent clarity on travel restrictions has been helpful for consumers and businesses.
- The timely flow of grant support to businesses is a concern.
- It was noted that an extraordinary meeting of the Tourism Industry Council was held on Tuesday 3 November with Nigel Huddleston to discuss the national lockdown in England. Mr Huddleston accepted harsh criticism from industry on the lockdown measures and a letter that had been sent to the Chancellor from a number of hospitality trade bodies was discussed. The letter proposes a six month package of meaningful support for hospitality businesses, breweries and supply chain.
- It was highlighted that going forward, as we move between Levels, the guidance on what businesses can and cannot do must be clear and issued in a timely way.
- The Scottish Government team is continuing to engage with industry to define the detail of the guidance for tourism and hospitality. It was noted that further recommendations are expected from Industry about potential changes that could be made to meet the needs of business. It was highlighted however that government is still being guided by the medical professionals and therefore there are limits to what can be achieved.
- It was noted that consumer confidence should not be underestimated, not just about whether they will or won’t catch the virus but also the ongoing uncertainty about what you can and can’t do.
2. The role and remit of STERG for the next six months
A recent survey issued to STERG members and a limited number of sector and destination organisations, captured feedback on the work of STERG over the last seven months. Findings from the surveys, as well as the original remit of STERG, were considered when discussing STERG’s future role.
Discussions considered a number of different questions, should STERG continue as a Response Group or should it become a Recovery Group? Should STERG continue its coordination and communication role or should it now all be about delivery?
The following points were noted during discussions:
- Coordination and communication has been a core role for STERG and there is a need for this to continue.
- Many of the STERG partners highlighted that they are still in response mode and therefore there is still a need to continue with this role.
- It was recognised that STERG also needs to look forward and there is an expectation in the Task Force report that STERG will deliver the Task Force recommendations. Delivery therefore must be considered a part of STERG’s role.
- It was acknowledged that the work currently being done to support industry survival and recovery is vitally important however it is also important not to lose sight of the future. There is a need for an ‘entity’ to be taking the long term view also.
- The current dynamic of STERG is working well, frequent meetings and the size of the group allows it to be fleet of foot and this is seen as a key strength.
- It was highlighted that there are different levels of seniority within STERG and therefore it was important for senior leaders from partner organisations to be aware of STERG activity and the potential expectations placed on their organisations.
An update was provided on the current status of the Task Force report
- A call with UK Ministers will take place 5 November. The Task Force report and recommendations have been circulated to them and a request has been made for a joint political and industry discussion with the Treasury.
- The Cabinet paper will be presented on 1 December. This is to allow for financial modelling work to be completed and submitted alongside the Cabinet paper. This timing meets the timeline for the spending review.
- In terms of Delivery the current STERG members are the right organisations however it is recognised that engagement with senior leaders is vital.
- Going forward the focus needs to be on delivering the Task Force recommendations to get us back on track to delivering the 2030 Strategy.
Overall it was agreed that STERG still had a role to play in continuing to respond to the immediate impacts of the pandemic and therefore those elements of the current remit should still stand.
It was also noted that it was important for the coordination and communication role to continue, although it was recognised that improvements could be made here.
Finally, it was agreed that the role of STERG did need to evolve to also focus on the delivery of the Task Force recovery recommendations.
Action: STERG remit to be refreshed to reflect the agreed evolution of the group. Updated version to be signed off by STERG on 12 November.
Action: STERG to review how it can improve engagement levels with more senior leaders in partner organisations, the Task Force representatives and the broader industry in general.
3. Tourism Task Force recommendation
STERG discussed the outcomes and recommendations outlined in the Task Force report and agreed that a lead organisation from STERG should be assigned to each outcome. The lead organisation, in collaboration with other STERG partners, will scope out the recommendations into actions.
Each lead should review the recommendations under each of the outcomes and clarify:
1. Is it already being addressed in the STERG Action Plan?
2. Do any of the STERG partners have activity going on in this space?
3. If it’s not being addressed in the STERG Plan, or by a STERG partner then there is a need to identify what should the action be, who should lead on it and what other partners / organisations should be involved and what the approximate cost would be.
It was highlighted that the Enterprise Agencies typically take a cross sectoral approach rather than a sector specific approach and therefore it may be challenging to have a specific focus on tourism. However, although support may be generic, it is often tourism businesses who are benefiting from this support it’s just that this is not immediately obvious. There is possibly a lot of cross sectoral activity underway which would support the recommendations from the Task Force.
It was highlighted that a meeting was required between the Scottish Government and senior leaders of the Enterprise Agencies to ensure that the expectation of the role of the Agencies in supporting the delivery of the Task Force recommendations is clear. It was noted that progress in this area was underway.
It was noted that the recommendations targeted at the UK Government will be the responsibility of the Scottish Government Tourism Team and the STA with its lobbying role on behalf of industry.
Outcome 1: We will attract, develop and retain a skilled, committed, diverse and valued workforce.
Assigned lead, SDS (Skills Development Scotland)
A lot of work is already in progress within SDS which will help to address this Outcome – this needs to be identified.
The proposal for a ‘Scottish Tourism Emerging Talent Employee Retention and Training programme’, which was submitted by a Task Force Working Group, is still being considered by the Scottish Government. Funding has been identified for the training element of the programme however no progress has been made on identifying funding for the wage subsidy element.
The Task Force working group will reconvene on 9 November to review and develop the proposal particularly around access to funding.
It was noted that a lot of the work SDS undertakes is cross-sector and therefore the particular challenge within SDS will be ensuring a focus on tourism and addressing the areas that the Task Force report highlights.
It was agreed that a direct instruction from the Scottish Government to SDS detailing the need to support the tourism sector would be helpful. This would ensure that budgets are repurposed for the sectors that need it most, i.e. tourism.
Action: Scottish Government to set up a meeting with SDS to discuss the repurposing of budgets
It was highlighted that the Task Force report outlines asks for industry as well as the Scottish and UK governments. For this particular outcome it was noted that the adoption of fair work principles was key. It was acknowledged that this is also at the heart of Scotland Outlook 2030 and this is what the sector is working towards.
Outcome 2: We Will create and develop a sustainable destination together.
Boosts demand for tourism sectors: Assigned lead, VisitScotland
Many of the recommendations outlined here are already underway with VisitScotland
Boosts investment in the tourism sectors for growth and environmental sustainability: Assigned lead, Business Gateway.
Business Gateway will work in partnership with VisitScotland on the recommendations which relate to Digital solutions to support tourism.
VisitScotland will liaise with the Scottish Government Tourism Team and contacts at Scottish Enterprise and Highlands & Islands Enterprise on reducing carbon emissions.
It was noted that there is no commitment to any kind of coordinating mechanism for developing sustainable destinations, e.g. a DMO, this seems like an obvious gap, there should be something included.
Outcome 3: We will provide the very best, authentic and memorable experiences.
Assigned lead, SE (Scottish Enterprise)
SE is current lead for the Destination Leaders Programme (DLP) programme however it was noted that funding for this programme is due to come to an end.
Regarding support for innovation, it was noted that SE have moved away from sector specific support.
Outcome 4: We will build business resilience, sustainability and profitability.
Due to the diversity of recommendations under Outcome 4, it was agreed that further consideration should be given to who would be best placed to lead in these areas.
It was noted that some of the recommendations would sit with the Scottish Government e.g. NDR (Non-domestic rates) work, tax work. It was highlighted that some of the recommendations such as the re-evaluation of rates or NDR holiday will have a significant implication for local authorities and therefore local authorities will need to play a key role in these discussions.
In terms of enforcement it was suggested that it would be good to have a view from Local Authority / Industry perspective and therefore a Local Authority representative would be better to lead. The only issue to flag here however is that there will be Brexit implications to deal with and therefore there could be resource issues.
Clarity was required on who would be the right contact to help further develop what a reasonable working capital package might look like. In particular, additional insight from the economic development teams at local authorities or finance colleagues.
It was noted that grants issued through local authorities were in effect working capital. Based on lessons learned it is important to recognise two points, firstly that grants get to the right business, i.e. the business that needs it and secondly that the eligibility criteria is kept simple to avoid mass confusion.
It was recommended that a longer time is spent planning what it is that is trying to be achieved, it was also recommended that more resources are made available to assist this and finally it was noted that support packages should not be announced until the support is actually available.
Investment prospectus
The Task Force recommendations and the subsequent delivery plan will support survival and recovery and includes asks for financial support from the Scottish and UK governments, however, in addition, the sector needs to move to a more sustainable footing in terms of long-term financing and investment.
The current approach to the development of inward investment could be seen as piecemeal and consideration should be given to a better more coherent investment strategy and a first step towards this would be putting together what the investable offer is.
Typically, it has been the Enterprise Agencies who have developed investment prospectuses. Historically SE and SDI have developed an investment prospectus for each of the key sectors, this is no longer the approach being taken. The approach now being considered is a regional investment prospectus which brings together all of the partners from a place perspective, across all sectors and showcases the investment opportunities for that place.
Following the meeting a recent presentation on Scotland’s new Inward Investment strategy was shared with the group. It is noted that Tourism is not one on the nine areas of opportunity identified for inward investment.
It was noted that in terms of sector recovery and survival there is a gap between what industry is asking for and what is affordable by the public sector and therefore there is a need to bring in other investors to help us achieve what we need to do.
Transition to a low carbon economy (see outcome 2)
There is a need to understand what the requirement is in this area.
It was highlighted that there is potential budget available from the low carbon fund to support low carbon initiatives in the tourism area.
It was noted that there is specific resource within the Scottish Government tourism team with expertise in this area. It was also noted that there is resource within SE looking at how tourism can contribute to this agenda.
It was noted that VisitScotland is doing a lot of work in this space and therefore would take a coordinating role here with the Scottish Government team, SE and HIE input.
Asks of Cabinet
“Commission further work by the Enterprise agencies and VisitScotland to develop the priorities as a five year recovery programme for Scottish Government spending review consideration dependent on availability of additional funding from UKG.”
It was recommended that this is progressed and that ideally a draft should be presented to Cabinet alongside the Cabinet paper on 1 December.
It was noted that the leads identified for each of the outcomes will first need to scope out the actions, including a lead organisation and an estimated cost for delivery. Following that all STERG partners around the table will work together to pull together a delivery plan outlining how the Agencies and VisitScotland will support the sector.
4. STERG Action Plan
It was recognised that the STERG Action Plan contains a significant level of detail about the activities that are in progress across all of the STERG partners and that it was important for this detail not to be lost.
It was noted that a working group meets regularly to ensure the plan is kept up to date and as new information is received, new actions are added.
It was highlighted that the current Plan already contains actions which respond to the Task Force recommendations and therefore there is a logic to tying both of these documents together. This could be done by relating the actions in the STERG Plan back to the outcomes identified in the Task Force report.
Action: Karen Christie to integrate the STERG Action Plan with the Task Force Recommendations, this will ensure we don’t lose sight of what we’ve got but it also identifies the gaps that need to be filled in terms of funding, allocating responsibility etc.
It was noted that the value of the current plan is not clear, nor is the readership. Feedback from the STERG surveys suggests that it is difficult to navigate and difficult to pick out what is relevant to the reader. This is a communication challenge and should be addressed.
The question was raised as to whether STERG should now solely focus on the delivery of the Task Force recommendations which would negate the need to capture other activities that are taking place?
5. STERG communication
Feedback from the recent STERG surveys which were issued to STERG members and a number of sector and destination organisations, highlighted that the communication of STERG’s role and the activities that STERG is involved with could be improved.
With regard to communicating the role of STERG in delivering the Task Force recommendations it was noted that STERG, as a priority, needs to agree a number of key messages - the role of STERG moving forward, what it is STERG going to deliver, what is the funding that will be available and what is the timing. It was noted that this information may not become available until after Cabinet has discussed the recommendations on 1 December.
It was noted that there are many tactics that can be employed across various different platforms to raise the profile of STERG and bring STERG to life, video content, webinars etc. however getting the key messages right first were the most important.
It was agreed that interim communications should be considered to highlight some of the work that STERG is already undertaking in response to the Task Force recommendations or in response to other challenges which have been faced by industry. This should provide reassurance that STERG is continuing to progress key actions.
Action: VisitScotland to look at an interim comms plan.
6. STERG engagement
It was agreed that the current make-up of STERG would not change in the short term. However, it was acknowledged that STERG does need to look at how it can better engage with senior representatives in all partner organisations as well as with a broader section of the industry, in particular sector groups and DMOs.
It was recognised that it was important to have closer engagement with key industry stakeholders in this next phase and that the STA was well placed to facilitate this.
STA member Forums were noted as a good, existing platform that could be used by STERG to bring organisations together to seek views and opinions on recovery / Action Plans. There a three Forums, Hospitality Member Forum, Destination Member Forum and Tourism Sector Member Forum. Forums have the flexibility to be convened when needed.
It was also acknowledged that although the Task Force was a short life group, specifically established to provide recommendations on the essential actions to support tourism and hospitality recovery, there should be a mechanism to keep the Task Force engaged with the progress being made on the recommendations and to look at how willing Task Force members could play an active part in the process.
7. A Roadmap to Scotland Outlook 2030
A proposal outlining the process and timescales for segueing back to Scotland Outlook 2030 was circulated to STERG members in advance of the meeting. All STERG members agreed with the approach outlined and agreed that the proposal should now be scoped in further detail to understand resource commitment.
Action: Karen Christie to scope a detailed proposal for STERG approval.
It was noted that there is no longer an active Tourism Leadership Group (TLG) and it was proposed that a new governance structure should be considered over the next six months. It was highlighted that when the time is right this new structure could be the group that would take ownership of the longer term recovery plan and the transition back to Scotland Outlook 2030.
8. AOB
A new COVID-19 industry impact survey is to be launched by VisitScotland during November. This survey, which follows on from the two industry impact surveys that were conducted in March, will be targeted at all businesses across the sector.
A draft of the questionnaire was circulated to STERG members for comment.
Action: STERG members to feedback comments to Karen Christie by Friday 6 November.
Next meeting date
The next meeting will convene on Thursday 12 November, 11.00am-12.00pm.
1. Scottish Government Framework
STERG members shared recently gathered feedback on the government’s new framework. The following comments were noted:
Following the Strategic Framework announcement by the First Minister on Friday 23rd, the STA and trade body representatives from the hospitality sector met with Director-General Economy Liz Ditchburn and other government officials late Friday afternoon to provide feedback on the framework.
During the meeting the industry highlighted it’s disappointed that engagement on the framework was taking place so late in the process. Hospitality trade body representatives put forward a set of recommendations late on Friday night for consideration. A further meeting took place on Saturday morning with Fergus Ewing, Jason Leitch and a number of trade bodies from the wider tourism sector.
It was noted that very little from the recommendations proposed by the hospitality trade bodies had filtered into the framework that was presented on Tuesday 27.
Major concerns raised are as follows:
- Tier 3 restrictions. Even although pubs are now allowed to open their doors, without selling alcohol, the viability of doing so is questionable, many may not have a food offering and there is still the issue of background music and ambience. The impact of not being able to sell alcohol is still disappointing particularly for hotels.
- In Tier 2 the additional trading hours are not going to be a game changer for many.
- The impact of travel restrictions, for example, any potential benefits gained in Tier 2 will potentially be eroded if the custom base (which could predominantly be coming from Tier 3) cannot travel, so the dependency will be on a local customer base.
- The level of grant support available to those businesses who are not forced to close as they won’t qualify for the full grant that is available. There is also concern about the impact of the Job Support Scheme. At the last meeting with government officials, Liz Ditchburn committed to going back to the Economists to have a look at what level of grant support could be made available.
- Concern about how the banks may view the current situation of Scottish hospitality business. In addition it has been noted that energy providers to the hospitality sector are reconsidering their contracts.
- Visitor attractions will be allowed to operate on Tier 3
- The rule of 6 for self-catering remains a concern
- NDR business operators who fall outside of the current grant scheme which has been presented are extremely worried as are those businesses who have never been allowed to open in the first place.
- Increasing negative impact on people’s mental health and well being
Although the engagement with Liz Ditchburn has been welcomed it was noted that it could have been more timely.
There is an understanding that the recommendations from the hospitality trade bodies will be taken forward and considered over the coming weeks.
Understanding the measures that will be used to inform movement between Tiers and how long you could stay within a Tier will be very important
It was noted that Willie Rennie MSP, Claire Baker MSP and Oliver Mundell MSP attended 2 STA Forums at the beginning of the week and they are all very aware of the challenges that the industry face and the significant concerns around grant support.
Comments expressed today at the VS Board meeting succinctly summed up the mood of industry right now, “… there has been a dramatic loss of confidence in government… the mood has changed dramatically… huge negativity and concern about a significant number of businesses not lasting through until next year and therefore the ability of the industry to deliver anything should it be opened up…”
Clarity is urgently needed on travel between tiers – will it be prohibited to travel from a Tier 4 to a Tier 3 or from a Tier 3 to a Tier 2 to stay in accommodation or to visit? In order to communicate a clear message this is the level of detail required.
It was noted that Mr Ewing is aware of this issue and appreciates the potential impact of travel restrictions. Announcements this afternoon from the FM should make this clearer.
It was also highlighted that the views of communities also need to be taken into account, some communities may not want visitors from an area that’s in a higher Tier, there is the potential therefore for anti-tourism sentiment rising. In addition, from a business’s perspective can they take bookings from areas in a higher Tier than them regardless of where they are in the UK? Overall what will be the grant support available to reflect the implications of these restrictions?
The importance of local authorities having the right resourcing levels to be able to manage and deliver grant payments will be critical.
2. Tourism Task Force Report
The Tourism Task Force report was published on Friday 23rd October and was widely distributed across industry and stakeholders. The website stats showing the following engagement to date:
Page views - 1,987
Unique page views - 1,817
Time spent on page - 03:12
https://scottishtourismalliance.co.uk/tourism-recovery/
The report was discussed at the STA Forums with the MSPs who attended and overall they thought it was very thorough and provided a good, positive framework.
Disappointment has been expressed that the report does not explicitly refer to the outdoor sector. It was noted that the published document is a summary version of the full report. The full report will be submitted to the Scottish Cabinet at the beginning of November. This report is a segue back to Scotland Outlook 2030 where outdoor and rural are highlighted as very important.
The STA has written to the First Minister requesting a meeting to discuss the priority recommendations in the report, (in addition to other topics such as Short Term Lets).
Fergus Ewing is meeting with the other Tourism Ministers on Thursday 5th November and the Task Force report will feature on the agenda – a copy of the report has been sent to all Ministers
Further comms will be undertaken this week to raise the profile of the Task Force document even more.
3. Taking Stock
A short survey was issued to STERG members and a limited number of Sector and Destination organisations to capture feedback on the work of STERG over the last 7 months. The lessons learned from this exercise will help shape the work of STERG over the coming months.
From the responses received so far, there are some key points to note:
- Role and remit of STERG should be reviewed in light of the changes that have taken place since STERG first reconvened in March.
- A coordinated and collaborative approach across public agencies, Scottish government and industry has developed closer relationships - Improved communication and engagement with a broader representation of the tourism and hospitality sector will improve outcomes.
- Deliver on the Task Force recommendations
4. STERG Planning Session
An agenda for the planning session next week will be circulated shortly for input by STERG members.
An initial area for discussion will be the role of STERG moving forward, this will be informed, in part, by the insight gained from the recent surveys.
In addition, STERG’s role in the delivery of the Task Force recommendations should be discussed and agreed. It was noted that the full Task Force report does not go to Cabinet until the beginning of November. It was also noted that many of the Task Force recommendations will be dependent on the Scottish Governments budget and as yet we do not have clarity around a date for the Scottish Budget.
It was agreed that the session next week should aim to identify where STERG’s area of focus should be.
It was highlighted for information that each of the public agencies represented on STERG all have their own Strategic plans which informs how they will deliver on their own organisational ambitions, this could impact on what the agencies can or cannot do.
5. STERG Action Plan
The next update of the STERG Action Plan will be published on VS.org w/c 2nd November.
It was noted that the Plan contains a huge amount of detail and that there is a need to consider how the key points within the Plan can be effectively communicated without the need to read the whole document.
The STERG working group will meet this afternoon to scope further actions / interventions that could be taken to mitigate the impact of the implications identified from the STERG Scenarios.
6. Scenarios Toolkit
VisitScotland is continuing to progress the industry toolkit. This is expected to launch in November.
7. Partner Updates
Enterprise Agencies
The priority focus continues to be the Hotel Support Programme. Due diligence is continuing with all eligible applicants. It is anticipated that formal offers and awards will take place in October and November 2020.
It was noted that SoSE are being approached by a few hotels recently for crisis funding – this will be monitored.
Skills Development Scotland
National Training Transition Fund for individuals has gone live for the over 25’s. The Youth guarantee and Kick Start programme are targeted at those under 25.
The Tourism Skills Group met on Tuesday 27th. Discussions focussed on: - The future skills landscape and what the future skills issues will be, e.g. workplace transformation, fair work, the impact of technology. Further work will be done to flesh out these thoughts into a useful document which can be fed in for consideration.
- The emerging talent and training & retention programme, this proposal is currently sitting with the Scottish Government. It was suggested that the group who developed the proposal reconvene to look at the changes that have taken place since the proposal was presented and agree whether any amendments need to be made to reflect this.
Scottish Government Tourism Team
Work is continuing on the Tier structure. Currently waiting on the detail of the travel restrictions so that the guidance and the Q&A can be updated.
STA
The STA online AGM will be held on 4th November. The second part of the agenda will focus on the recommendations outlined in the Tourism Task Force report. A letter regarding Short Term Lets has been sent to Kevin Stewart MSP, Minister for Local Government, Housing and Planning which includes the additional signatories from some of the key business organisations such as CBI and SCDI. This now has support from areas out with the Tourism sector.
The STA have requested a meeting with the First Minister, some of the agenda points will include, Short Term Lets and the Emerging Talent fund.
Concerns have been raised by industry around the Hotel Support Programme, particularly around the timing, administration and getting the cash out to the businesses as this is now urgent.
8. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. It was noted that south of Scotland data is now included. Action: Redundancy updates from all partners are to be forwarded to Karen Christie prior to the next meeting. Confidentiality of this information is assured.
9. AOB
No AOB was noted.
Next Meeting Date
The next meeting will be an extended planning session on Thursday 5th November, 10.00am-12.00pm.
1. Government Announcements – Communication
It was stressed that any information relating to the new tiering structure due to be announced on Friday, must be provided as quickly as possible to VisitScotland so that it can be shared on VS.org. allowing businesses to understand the implications and to help answer any questions that may arise. Industry consultation on the new tiering structure was discussed.
Significant concern was raised that there hasn’t yet been any meaningful dialogue with industry on the tiering structure.
It was noted that industry engagement is due to take place at the beginning of next week. 6 Economy Ministers will be contacting key industry contacts to consult on the tiering structure from Monday 26th.
Further concern was raised that this may be too late, at that stage it is difficult to see what degree of consultation will be possible. It is critical that there is an opportunity to discuss the detail and shape the conditions around the tiers and not just accept what has already been decided.
It was highlighted that James Johnston, who has been taking the lead on the Tourism and hospitality guidance and who has fed into the tiering proposals, has had conversations with a number of representatives from the sector to discuss this and this has been part of the consultation process.
It was noted that the biggest issue to consider will be the additional grant support that will be available to compensate for the any additional restrictions in the future, it was highlighted that the current support packages are not sufficient and do not compensate businesses adequately. For industry clarity around grants will be fundamental.
2. Taking Stock and the Forward Plan
To ensure that the work of STERG in the coming 6 months continues to support industry in the most effective way and continues to add value, it was agreed that some research would be carried out with both Industry and STERG members.
The aim of the research is to review the previous 7 months and capture any lessons learned. A survey has been issued to STERG members for completion by 26th October. The VisitScotland Insight team are currently designing a similar survey for industry, for launch in November.
All learnings will help to shape STERG’s forward plan. Action: The STERG meeting on 5th November will be extended to accommodate a planning session. The session will run 10am-12pm.
3. Scottish Tourism Recovery Task Force Report
The final Task Force report is complete and has now been submitted to Cabinet Ministers. A response to the report from Scottish Government is expected in November. It was noted that Scottish Government economists are looking at potential funding packages for Cabinet to consider alongside the recommendations.
A public facing Task Force report has been produced and will be launched by the STA on Friday 23rd October, accompanied by a press release from the Scottish Government.
It was agreed that Barbara Clark, VS will liaise with the Comms teams from each of the partner organisations on the press release.
It was recognised that the recommendations set out in the Task Force publication address many of the key issues and frustrations that are being felt right now and therefore the importance of socialising the publication with stakeholders as soon as possible was critical. It was noted that the STA will be sharing the Task Force publication widely, including with opposition party MSPs and UK Ministers. The publication will be discussed at the STA Forums next week and at the STA AGM.
STERG will hold a planning session on Thursday 5th November to consider the recommendations of the Task Force and to look at how the priority actions can be integrated into the STERG Action Plan. The future integration with Scotland Outlook 2030 will also be considered.
4. STERG Action Plan
STERG Action Plan continues to be updated to reflect the current activities being undertaken by all partners. Next update expected w/c 26th October.
The STERG working group are to meet w/c 26th October to further develop the Action Plan based on the implications identified from the STERG Scenarios.
5. STERG Scenarios – Industry Engagement
VisitScotland is progressing with the industry engagement plan for the STERG Scenarios. Sector engagement sessions were scheduled w/c 19th October. An industry toolkit is expected by the end of October.
6. Partner Updates Business Gateway
Local Authorities are focused on administering the new Coronavirus Restrictions fund, (£48m, increased from £40m). Local authority websites opened for applications at 9am on 20th October and will close to applications at 5pm on 3rd November. The fund includes a business closure fund and a business hardship fund.
It was highlighted that clarity around the eligibility criteria for the funds is critical to avoid confusion and delays. It was noted that Local Authorities are significantly under resourced however they will continue to prioritise the processing and delivery of these funds to businesses.
Discussions are ongoing about the criteria for the discretionary fund and a submission will be put forward to ministers imminently to help define this. The furlough top up scheme is also under discussion.
Business Gateway will be hosting a ‘Business Survival Webinar: Preparing your business for future restriction’, on Tuesday 27th October.
Enterprise Agencies
The key priority focus for all agencies is the Hotel Support Programme. Due diligence is continuing with all eligible applicants. It is anticipated that formal offers and awards should begin to take place w/c 26th October.
SoSE and VisitScotland are currently undertaking work with hotels and venues where their primary product is weddings to understand the challenges that they have faced and the access to funding that they have had. Further information will be shared with STERG when it becomes available. It was noted that there is still confusion over the restrictions placed on private estates for weddings.
It has been highlighted to SoSE that businesses are experiencing challenges with visitor behaviour, in particular visitors heading across the border to do their drinking and then coming back over the border to their accommodation.
The team at SE have been working with Creative Scotland on the Grassroots Music Venues Stabilisation Fund and the Culture Organisations and Venues Recovery Fund.
Skills Development Scotland
Ongoing delivery of PACE
A new service is about to be launched on MyWoW for adults, this will provide careers guidance and skills development advice to people who are in work.
October information on the impact of COVID on the Scottish labour market has just been released: www.skillsdevelopmentscotland.co.uk/what-we-do/skills-planning/covid-19-labour-market-insights/
Information on the National Transition Training Fund for Scottish Government is now available. This is targeted at over 25’s who have been made redundant or who are under threat of redundancy. https://www.skillsdevelopmentscotland.co.uk/news-events/2020/october/new-national-transition-training-fund-offers-fresh-support-for-people-facing-redundancy/
Work is ongoing with the hospitality sector in particular to support apprentices who may be subject to redundancy and may not be able to find alternative work to complete their apprenticeship through creating a record of achievement which captures their learning and can be taken to other employers.
It was noted that under 25’s who are not on an apprenticeship programme, would be eligible for support through: - Kick Start scheme https://www.gov.uk/government/news/uk-government-launches-kickstart-scheme-for-youth-in-scotland - Employability Fund delivered through local authorities - Individual Training Accounts https://www.skillsdevelopmentscotland.co.uk/news-events/2020/october/individual-training-accounts-to-remain-open-until-28-february-2021/
Support through Developing the Young Workforce programmes
Support through SDS Careers Advisers and PACE Advisers and the range of My World of Work services https://www.myworldofwork.co.uk/redundancy-help-scotland - Support through college programmes
STA
The STA Forums will be held on 26th and 27th October. On the 26th Willie Rennie MSP, Claire Baker MSP and Oliver Mundell MSPs will be joining the Forums and the cabinet Secretary will be joining the Forum on the 27th.
The STA online AGM will be held on 4th November
It was noted that there have been no announcements from the Scottish Government on restrictions around Halloween, it was questioned whether any announcements around this were to be expected. (Wales have prohibited Halloween or bonfire celebrations because of their new lockdown rules).
VisitScotland
Ensuring visibility of guidelines
Supporting the communications for Events Industry Support Fund which is expected to be completed by first week in November.
7. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. It was noted that south of Scotland data is now included.
Action: Redundancy updates from all partners are to be forwarded to Karen Christie prior to the next meeting. Confidentiality of this information is assured.
8. AOB
No AOB was noted.
Next Meeting Date
The next meeting will convene on Thursday 29th October, 11.00am-12.00pm.
1. Government Announcements / Local Lockdowns – Communication
A brief update was provided on current Scottish Government thinking on COVID-19 restrictions - Work is continuing to look at a tiered approach to the pandemic in Scotland and how that could possibly operate. It is unclear what this could finally look like, however it is anticipated that this approach could provide more clarity particularly on specific trigger points which would result in movement between different tiers. It was noted that there is an intention within the Scottish Government to align to UK thinking. - It is recognised that there are a lot of discussions ongoing about travel restrictions, especially cross-border travel restrictions however there is no clarity yet around next steps.
Further clarity on the £40m support fund was provided: - Local authorities will be administering the funds, (COVID-19 Restrictions Fund £10m and a Hardship Fund £11m) - Final details are being confirmed however businesses will be able to apply on local authority websites from 9am on Tuesday 20th October and will close at 5pm on Tuesday 3rd November. Further details can be found online https://www.gov.scot/publications/coronavirus-covid-19-restrictions-fund/
2. Scottish Tourism Recovery Task Force (STRT)
The final Task Force report is complete and will be submitted to the Scottish Cabinet imminently. A response to the report from Cabinet Ministers will be sought.
A final draft of the streamlined, public facing document is now complete and awaits final approval from Ministers and the Task Force. It is planned to launch the report by the end of w/c 19th October.
3. STERG Action Plan
The refreshed STERG Action Plan is live on VS.org - https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/national-action-plan
The STERG Working Group, along with key stakeholders are to consider the sector ‘innovation’ challenge. Next steps are currently being scoped.
It was noted that the STERG meeting on Thursday 5th November will consider the recommendations of the Task Force and look to integrate the priority actions into the STERG Plan.
4. Scenario Planning
VisitScotland is progressing with the industry engagement plan for the STERG Scenarios. Sector engagement sessions are expected w/c 19th October. An industry toolkit is expected by the end of
October.
The implications identified from the STERG Scenarios are helping to inform the development of the Action Plan. A final session with the STERG working group is to be scheduled.
Discussions are continuing with Scottish Enterprise to look at how the three sets of tourism scenarios can be brought together to help shape a pathway back to the ambition that was set out in Scotland Outlook 2030.
5. The Forward Plan
It was noted that the ongoing uncertainty that is being faced by industry and the even greater uncertainty about what is coming next is extremely tough for all and requires plans for the next c. 6
months to be re-focused to ensure that we can be prepared for whatever might lie ahead.
The STERG Action Plan, the Scenario Planning work and the recent recommendations from the Scottish Tourism Recovery Task Force will be key to this and will be discussed in depth at the STERG session on 5th November, however there are other actions which STERG agreed to consider and discuss further:
- A review of the last 7 months to identify lessons learned and build these into the forward plans.
- A review of summer 2020 to get a true understanding of how different sectors and geographies across Scotland have fared, what worked and what didn’t work?
- Are the necessary actions being taken now to address the issues and challenges that current intelligence has already identified?
6. Partner Updates
Enterprise Agencies
The Hotel Support Programme continues to be the key focus. All agencies are now working through the detailed due diligence stage with eligible applicants. It is anticipated that formal offers and awards will
take place in October 2020.
Business Gateway
Work is ongoing to quickly confirm the details of the new support funds. Local Authority websites will be open to applications from 20th October. The Digital Boost programme secured additional resources this year from the Scottish Government.
These resources are focused on what are the new things that we could do with the programme to set it up for additional funding for next year to continue the programme. Part of the funding is a £700k capital grant support specifically for digital projects. All current and previous clients of the Digital Boost portfolio were contacted which has resulted in a significant number of Expressions of Interest being received, all EOIs are currently being assessed.
The process is being done at pace to ensure that success can be demonstrated quickly as there may be an opportunity to secure additional funding. It was noted that this fund is not about trying to keep businesses going, this is targeted at businesses who have an opportunity to do something in the digital space to help their business.
VisitScotland
The Visitor Management Strategic Group, created during the summer to address issues of wild / dirty camping and over tourism, is making good progress, all three sub groups are working well. A
presentation date with the Cabinet Secretary in November is proposed. Communicating the progress of this group and the initiatives which communities and local authorities are working on together is
recognised as important.
The RTIF will meet at the beginning of December to make their final decisions.
£6m Events Industry Support Fund
- 837 applications received.
- All assessments are complete.
- An appeals process is in place.
- Fund expected to be completed by first week in November.
Scottish Government Tourism Team
Focus is on anticipating and advance preparation for future Scottish Government announcements.
STA
The STA launched a survey on 8th October (closed 14th October) to capture the financial impact of the latest restrictions. The survey captured evidence in four key areas, total fixed costs if your business has
to close for the 16 days, loss of room revenue due to cancellations, loss of revenue for food & beverage outlets and the impact on employment.
Headlines from the survey are below:
- A total of 350 businesses responded, 180 of which have had to fully or partially close aspects of theirbusiness
- 47% of businesses said having to close fully/partially between 10th - 25th October would incur fixed costs of up to £5,000 still having to be covered
- 5% said that despite zero income, more than £50,001 in fixed costs would still have to be covered
- 30% businesses who responded said they expected to lose up to £5,000 in revenue due to not being able to operate their food and drink outlets normally due to new restrictions
- 9% of businesses said they expected to lose more than £50,001+
- 38% of activity operators and visitor attractions who responded said they expected to lose up to £5,000 in total revenue due to new restrictions
Full report can be found on the STA website: https://scottishtourismalliance.co.uk/sta-snap-survey-onthe- impact-of-the-latest-restrictions-on-hospitality/
The STA have submitted their response to the Scottish Governments Short Term Lets Consultation.
7. Redundancy Update
It was noted that the SLAED tourism group will feed in appropriate insight to the redundancy tracker document.
Action: Redundancy updates from all partners are to be forwarded
8. AOB
It was highlighted that there was a need to ensure that any activities or events that may take place next year should be staggered so that there is a series of activities happening across the country at different
times allowing for more places to benefit.
It was noted that VisitScotland are considering focusing on more event support towards community related events which would allow for more events to be supported on a broader geographical scale.
Next Meeting Date
The next meeting will convene on Thursday 22nd October, 11.00am-12.00pm.
1. Government Announcements and Updated Scottish Government Guidance
Updated government guidance and the detailed FAQs which will reflect the First Minister’s statement on 7th October, is currently being finalised and will be published today (8th October).
It was noted that it was regrettable that the guidance and FAQs had not been available immediately after the FM’s statement, however, the final details of the announcement were not known sufficiently in advance to allow for accurate, detailed documents to be produced as the content of the statement had continued to evolve to reflect the latest scientific evidence.
It was acknowledged that this delay had angered and frustrated industry as the lack of clarity had had an immediate impact on businesses. Many accommodation providers for example saw significant cancellations following the statement.
Moving forward it was agreed that the process needed to be improved and while we may not know when further changes or restrictions may happen we can anticipate certain situations such as further national or local lockdowns. It was proposed therefore that STERG should prepare a core set of questions which would be developed in advance to reflect the many different possible situations, this should help to provide clarity in a more timely fashion.
Details of the £40m financial support package are being developed. At this stage it is possible that the fund will be administered through the local authorities. A number of options are being considered including a model similar to that used during the temporary lockdown in Aberdeen, furlough top up options, discretionary local authority grants and future reserves. Scottish Government officials are arranging calls with key stakeholders to discuss options.
It was highlighted that the impact of these latest restrictions will be felt widely across the sector, not just hospitality but the adventure sector and other sectors including the supply chain. It was noted that it has been made very clear to ministers that the £40m will be a drop in the ocean compared to what is required to break even.
The STA will launch a survey today (8th October) to capture the financial impact of the latest restrictions. The survey will capture evidence in four key areas, total fixed costs if your business has to close for the 16 days, loss of room revenue due to cancellations, loss of revenue for food & beverage outlets and the impact on employment.
2. Scottish Tourism Recovery Task Force (STRT)
The final Task Force report for the Scottish Cabinet will be completed by Friday 9th October. A draft has already been approved by the Cabinet Secretary for Rural Economy and Tourism and the Minister for Business, Fair Work and Skills.
A streamlined, public facing document will be produced and published in parallel. Date of release in
October is to be confirmed.
3. STERG Action Plan
The STERG Action Plan has been updated and circulated to STERG for sign off by Friday 9th October. The format of the Plan reflects the key priorities of Scotland Outlook 2030 while still focussing on the Scottish Government’s Restart and Recover phases of the four-step economic plan. It was noted that the Plan is
an evolving document which continues to respond to scientific evidence and government advice.
Updated STERG Action Plan to be published on VS.org w/c 12th October.
Following discussions at STERG on 1st October and further discussions with the Insight team at VS, it was agreed that no further industry surveys would be undertaken at this time due to the number of sector surveys which are ongoing. This will be reviewed once the output of sector surveys are known.
Following a review of the STERG Scenarios by the working group it was agreed that ‘Innovation’ could be one of the key components of sector recovery. A gap has been identified in sector specific Innovation /
New Product Development support and it was agreed that action should be taken to address this.
Action: STERG working group to scope out the actions required.
4. Scenario Planning
Discussions are continuing with Scottish Enterprise to look at how the three sets of tourism scenarios canbe brought together to stress test Scotland Outlook 2030.
STERG Scenarios
- The implications identified from the STERG Scenarios are helping to inform the development of the Action Plan. A final session with the STERG working group is to be scheduled w/c 19th October.
- VisitScotland continues to progress with the industry engagement plan for the Scenarios. An industry toolkit is expected by the end of October.
Scottish Tourism Industry Leaders’ Scenarios
- The Scottish Tourism Industry Leaders’ Scenarios will be circulated to Ministers with the final Task Force report and will be shared publicly when the Task Force recommendations are published.
5. Public Health Data
Cabinet Secretary Fergus Ewing and public health officials held a meeting on 5th October with Tourism and Hospitality representatives to review the public health data in more detail.
The evidence base which the Scottish Government is using to guide it’s decision making was published on 7th October along with the FMs statement. It was noted that while this provides transparency of the data it doesn’t necessarily provide complete clarity.
6. Short Term Lets – Scottish Government Consultation
Although not specifically COVID related, a number of points were raised around the Short Term Lets Consultation:
- It was noted that there is significant concern from the self-catering sector about the timing of this. Industry’s view is that this should be put on the back burner as there is concern that these proposals
have not been looked at through a COVID lens and are being forced through, at pace, unnecessarily.
- In addition, concern has been raised about the proportionality and focus of these proposed regulations. Are the additional levels of bureaucracy and cost necessary and are the issues concentrated in specific geographic areas as opposed to the whole country?
- It was highlighted that no one is contesting the reasons that initially prompted the need for regulation, however, time should be taken to explore alternative solutions which could result in a better outcome.
STERG were asked to consider the feedback which should be taken back to ministers, including whether the additional regulations, to help create a level playing field, could actually help the sector to recover?
STERG were also asked to be mindful that these regulations have a reach which is far wider than tourism and the impact on other areas should also be considered.
7. Partner Updates
Enterprise Agencies
The Hotel Support Programme continues to be the key focus for all agencies. All applicants have now been notified of their eligibility to proceed to the next stage. It is anticipated that formal offers and
awards will take place in October 2020.
Skills Development Scotland
September PACE figures have just been released and show a marked increase in the number of hospitality businesses and individuals seeking redundancy support. In August 375 individuals were
seeking support and in September 1,183 individuals were seeking support.
VisitScotland
Primary focus is working with the Scottish Government team to communicate the updated guidance to industry as soon as possible.
£6m Events Industry Support Fund
- 837 applications received.
- All assessments are complete.
- An appeals process is in place.
- Fund expected to be completed by the end of October.
Scottish Government Tourism Team
Immediate focus is completing the guidance update and FAQs.
STA
The STA and key inbound travel trade representatives will hold a meeting with Cabinet Secretary Fergus Ewing on 19th October to present the findings from a recent travel trade survey which has looked at the impact of COVID-19 on this sector and incudes insight on revenue this year vs last year and the impact.
8. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. It was noted that South of Scotland data is now included. Confidentiality of this information was assured.
Action: Redundancy updates from all partners are to be forwarded to Karen Christie prior to the next meeting.
9. AOB
No AOB was noted.
Next Meeting Date
The next meeting will convene on Thursday 15th October, 11.00am-12.00pm.
1. Public Health Data
Kevin Brady, senior Economist, Office of the Chief Economic Adviser, joined the meeting to update STERG on the work that is being done to make public health data available at a Scotland level, (particularly around hospitality) and to share concerns about the way the Public Health England data is being represented.
Scottish Government is receiving regular data through the track and trace system around exposures that people are having in different settings when they have tested positive for Coronavirus. Through the trace and protect system people are asked to report where they have been within the last 2-7 days before their symptoms have manifested or they have tested positive, that includes settings like pubs, restaurants, hospitality venues. It should be noted that this is slightly different to the data that is being circulated on social media for acute respiratory infection incidents that Public Health England are publishing which relate to sites where identifiable outbreaks of acute respiratory infections (which includes COVID-19) have taken place.
The statistic which is being quoted, 3%-5% of incidents are taking place in food service and hospitality settings – relate to outbreaks, they aren’t exposures. (It should be noted that the number of outbreaks reported in the PHE data does not reflect the number of people who were infected in that outbreak so doesn’t show the scale of transmission.) Scottish Ministers and Officials recognise that there is a gap on the public availability of this type of data in Scotland so are working at both an Official level and ministerial level to establish what data can be made available on a regular basis (and particularly how it relates to hospitality) in order to provide transparency of the data that is informing decision making. These discussions are ongoing.
It was noted that industry would welcome visibility of data / evidence in a similar format to the recent weekly pie chart representation of Public Health England data which is being actively shared by individuals and organisations, it is understood however that the correct interpretation of the data, i.e. what the data is actually telling us is critical. Ultimately industry would like to demonstrate that the restrictions that are being put in place are showing improvements as a result of diligence by the industry.
It was highlighted that the data currently available does not prove causality and this is due to the nature of COVID and how it is transmitted. Unlike food poisoning for example where it can be relatively easy for an outbreak to be traced back to a single location, with COVID it takes time for symptoms to manifest themselves.
There are therefore two sets of data. The first, (e.g. the pie chart) derived from Public Health England, shows the number of outbreaks that have had confirmed cases that link back to a particular setting, (P18-20 in the weekly Public Health England publication). The second data set is from contact tracing. That’s where people who have tested positive are contacted and asked about the places they have been and what they have been doing in the days before symptoms appeared or received a positive test. This does not prove where they got the virus from, it only shows what they were doing in the period where the virus was potentially incubating. It has been found that eating out appears as a relatively high percentage of the activity being undertaken during that time period.
Public Health colleagues have advised that this is the data which is guiding the thinking and informing decision making but would not necessarily say that it proves causality. What it does say is where people who have tested positive have been going. It was noted that both sets of data should be viewed together. It was also noted that neither data set tells us how many people are catching COVID from a hospitality setting.
2. Recent Government Announcements and Updated Scottish Government Guidance
It was noted that the recent changes to restrictions on hospitality, which were announced last week, (w/c 21 September), by the Scottish Government, has identified a number of challenges with the process of engagement and communication between industry and Scottish Government. It was acknowledged that everyone is working at pace and striving to get the best result for the sector however it was recognised that improved partnership working and closer, continuous engagement would help to address these challenges moving forward, particularly around areas such as development and timely delivery of sector guidance and FAQs.
Misinformation on social media regarding sector guidance in Scotland is a growing concern, particularly when it is confused with guidance from other parts of the UK. The importance of STERG partners signposting the Scottish Government guidance as the single source of truth cannot be underestimated.
www.visitscotland.org/supporting-your-business/advice/coronavirus
Public conversations are continuing around ‘circuit breakers’ and the potential impact of this. While Boris Johnson has said that he wants to see the hospitality restrictions announced last week take effect before any other changes are made, Jason Leitch on GMS today commented that the October holiday period was an area that was being looked at. These comments have immediately sparked a reaction form industry keen to understand the potential implications. While we do not know what is likely to come down the track we need to be ready to respond rapidly and to provide intelligence around the potential business impacts if we were to shut the doors or slow things down again. We need to identify the actions required to protect businesses and jobs as well as be clear about the package of support that would be required to compensate for any such measures.
3. Scottish Tourism Recovery Task Force (STRT)
The final draft of the Tourism Task Force report will be issued to the Task Force working group leads, the Cabinet Secretary for Rural Economy and Tourism and the Minister for Business, Fair Work and Skills, today (1 October). The final report will be circulated to the Task Force thereafter.
It was noted that despite the budget deferral, the Tourism Task Force report was still a very live and relevant document and in order to maintain profile a version for general publication will be produced. It was noted that a supporting communication plan for the Task Force publication was necessary.
The Task Force report will be put forward for discussion with Cabinet Ministers as soon as possible. The earlier this can be done the more flexibility there is in support that can be provided both in Scotland and the UK. The fiscal constraints that Scotland is under is a challenge and therefore there is a need to lever in the UK. On that basis the proposal for a ministerial summit should continue to be progressed and should take place within the next month or so. This should be a joint exercise between the Scottish Government and Industry.
It was highlighted that in parallel to the Task Force activity the STA (with other trade associations across the UK), continue to press for immediate asks to be addressed by the UK Government as a matter of urgency. The STA has had productive engagement with Alistair Carmichael MP, and meetings are planned next week with Minister Ian Stewart MP (Scottish Office) and Douglas Ross MP. The recent letter to Boris Johnston (29 September), led by trade associations, the British Beer & Pub Association, UKHospitality and the British Institute of Inn keeping and signed by over 100 hospitality businesses and organisations including the STA, was referenced as an example of a collective UK voice, it was noted that this letter asks for a meeting with sector leaders to draw up sector specific support.
It was noted that the Task Force report will be the basis for UK Government engagement and that garnering support for the Asks within the report from a broad political base could be very helpful.
4. Scenario Planning
STERG Scenarios: The Action Plan working group and the Scenario Planning working group completed their review of the scenarios and implications were identified for each. In light of these implications an initial assessment of the Action Plan was carried out and areas for intervention were discussed, for example innovation - it was agreed these areas should be explored further.
VisitScotland is progressing the industry engagement plan for the Scenarios. A toolkit is currently being designed and will be tested with key sectors and association leaders to ensure it meets industry needs. Industry toolkit is expected by end-October.
Scottish Tourism Industry Leaders’ Scenarios: The Scottish Tourism Industry Leaders’ Scenarios will be circulated to Ministers with the final Task Force report and will be available to share publicly when the Task Force recommendations are published.
SE / SGov Recovery and Renewal Scenarios 2020-2025: Discussions are ongoing with Scottish Enterprise to establish a process where we can bring together all 3 sets of scenarios to stress test Scotland Outlook 2030. Next meeting 8 October.
5. STERG Action Plan
A revised format for the STERG Action Plan was circulated to STERG in advance of the meeting. Action: STERG to feed back any comments by close of play Monday 5 October. Updated STERG Action Plan to be published w/c 12 October.
The requirement for a survey to gather industry data on season to date performance and projected confidence and occupancy data, was discussed. It was agreed this would be helpful to support the Task Force recommendations and the proposed ministerial summit towards the end of the month, however it was acknowledged that the methodology and timing of this would be key to ensure the right information is collected.
Action: Ken Massie to have initial discussions with the VS Insight team and update at the next STERG meeting.
6. Funding Packages Update
£14m Hotel Support Programme
-The Hotel Support Programme was launched on Wednesday 26 August and closed at 5.00pm on Wednesday 9 September.
-All Expressions of Interest are currently being appraised and evaluated by the Agencies. Industry were informed that they would be contacted by the relevant Agency by 7 October. Process is currently on track.
£1m Coronavirus Support Scheme for self-catering businesses
- Applications for this scheme closed on 10 August.
- 144 grant awards have been issued.
- Final appeals are being worked through this week.
- Scheme expected to be complete w/c 5 October.
£6m Events Industry Support Fund
- Applications for the fund opened on Monday 31 August 2020 and closed on Monday 14 September 2020.
- 836 applications were received.
- All assessments are now complete.
- All communications have now gone out to applicants, including those who were rejected.
- Fund expected to be completed by the end of October.
7. Partner Updates
Skills Development Scotland
Ongoing delivery of SDS services. SDS continuing to work with the Scottish Government on the development of the transition training fund and the apprenticeship support programmes.
Raising the awareness of the dire challenges that the industry is facing and ensuring that there is an understanding of this within SDS is a priority.
An urgent response is required to the Task Force proposal for a Scottish Tourism Emerging TalentEmployee Retention and Training programme given the redundancies that are likely to be seen soon. Alternative funding routes need to be explored.
Enterprise Agencies
The Hotel Support Programme continues to be the key focus for all agencies.
HIE have discussions planned with Nature Scot to look at preparations for Spring next year in terms of visitor management, infrastructure and engaging with communities.
Work is ongoing within HIE to look at how the £3 million planned investment in tourism destination management organisations (DMOs) will be delivered to support the sector’s recovery.
VisitScotland
65 Expressions of Interest were received for the Rural Tourism Infrastructure Fund. A panel session will take place next week to review all EOIs.
New Visitor Management Group, which includes all key stakeholders met two weeks ago and 4 subgroups have been created to address 1. Communications, 2. Investment, 3. Infrastructure, 4. Enforcement
Continuing to monitor changes in the guidance to ensure Marketing activity can be delivered at the right time. Autumn and winter content is currently being filmed in order to be ready to use when the time is right.
STA
The STA will hold a round table discussion with Minister Ian Stewart MP (Scottish Office) next week as well as a session with Douglas Ross MP.
The UK Visitor Economy Working Group will transition back to the UK Tourism Industry Council at the end of October. The UK Visitor Economy Working Group has two remaining meetings.
Monthly discussion with Welsh, Irish and English counterparts will take place next week.
Marc Crothall to take part in the Welsh Government Cross-Party debate later this month.
8. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured.
Action: Redundancy updates from all partners are to be forwarded to Karen Christie prior to the next meeting.
9. AOB
No AOB was noted.
Next Meeting Date
The next meeting will convene on Thursday 8 October, 11.00am-12.00pm.
1. Scottish Tourism Recovery Task Force (STRT)
The latest draft of the Tourism Task Force report was issued to STERG for comment on 15th September. Further comments are expected from Task Force members and Scottish Government colleagues in other portfolios. The Investment Recommendations paper will be available by 18th September and will be incorporated into the overall report. It was highlighted that more data was required to substantiate the industry challenges which have been identified in the report. Several data sources were noted: STR data which may paint a picture of the cities, recent internal research carried out by HIE which looks at the economic impact of COVID-19 and it was also noted that the SG team are looking at data sources which could help understand what’s happening in the rural areas.
Action: all STERG members are asked to help provide additional data to Bettina Sizeland as soon as possible. Action: STERG members to review the latest draft and forward all comments to Bettina Sizeland as soon as possible. Recommendations on roles & responsibilities have not yet been included. These will need to be set out for STERG. The report will continue to be refined. Following STERG sign off it is expected that sign off from the Task Force will take place at the final meeting on 23rd September. The report will be submitted to Cabinet w/c 28th September.
It was noted that there are three key deliverables expected under the umbrella of the Task Force: 1. The Task Force report – A detailed set of recommendations for the Scottish Government and the UK Government which will be submitted to Cabinet w/c 28th September. Note: A published version of the Task Force recommendations should also be made available. 2. The Task Force letter – A letter to the UK Government setting out the key priorities for Tourism in Scotland and requesting a call with DCMS and the Treasury to discuss.
3. A prospectus for investment - An opportunity to emphasise the opportunities within the sector and to reinforce the fact that this is a sector which is worth investing in. Note: Work is currently underway on regional prospectus for investment – these documents should be aligned. Action: STA to develop a document outlining the Task Force recommendations which can be published. Action: STA and SGov team to progress the Task Force letter ASAP
The final Task Force meeting is scheduled to take place on Wednesday 23 September.
2. Scenario Planning
STERG Scenarios - The Action Plan working group and the Scenario Planning working group will meet today to complete their review of the Scenarios. This includes detailing the implications of each of the Scenarios, assessing whether the Action Plan is sufficiently robust to address the possible opportunities and challenges and recommending further actions or interventions as necessary. - The STERG Action Plan will be restructured and further refined this week. - VisitScotland is progressing the industry engagement plan for the Scenarios. A toolkit is currently being designed and will be tested with key sectors and association leaders to ensure it meets industry needs. Publication is expected by mid-October.
Action: Karen Christie to update on progress at the next STERG meeting.
Scottish Tourism Industry Leaders’ Scenarios - The Scottish Tourism Industry Leaders’ Scenarios are complete and the final report has been published. - The report looks at plausible futures for 3 years and beyond - 4 scenarios have been identified with the implications for Scottish Tourism clearly outlined
In addition, there are common themes across all scenarios that have emerged as strategically important for tourism in Scotland.
It was noted that the common themes identified in these scenarios could be cross-checked with the recommendations in the Task Force report. Action: Karen Christie to circulate the report to STERG with the meeting minutes.
SE / SGov Recovery and Renewal Scenarios 2020-2025 - Discussions are ongoing with Scottish Enterprise to establish a process where we can bring together all 3 sets of scenarios to stress test Scotland Outlook 2030. Action: Karen Christie to update on progress at the next STERG meeting.
Funding Packages Update
£14m Hotel Support Programme - The new Hotel Support Programme was launched on Wednesday 26th August and closed at 5.00pm on Wednesday 9th September. - Overall there has been a good number of EOIs received from across the SE, HIE and SoSE regions - Before the formal appraisal process begins all applicants will be issued with an EOI further assessment template to gather additional information and will receive a call from a front line appraiser to discuss the template, this will ensure a fair and robust appraisal process.
An appraisal session with Partners will be held w/c 21st September.
£1m Coronavirus Support Scheme for self-catering businesses - Applications for this scheme closed on 10th August. - The final appeal session will take place today (16th September)
£6m Events Industry Support Fund - Applications for the fund opened at noon on Monday 31st August 2020 and closed at noon on Monday 14 September 2020. - 836 applications were received. - Applicants who are not eligible are being notified immediately - Applications are continuing to be assessed and further information is being requested by the VisitScotland teams.
4. New Scottish Government Guidelines
It was highlighted that the recent announcement by the FM on 10th September, which outlined changes to the rules around indoor and outdoor gatherings, caused confusion initially resulting in a surge of calls from businesses seeking clarity, (i.e. maximum of 6 people from no more than 2 different households, indoors and outdoors with children under 12 being exempt but must still not be from more than 2 different households).
The confusion was not helped by the fact that the updated guidance was not available to direct people to. It was noted that clarity has now been received from the SGov on all outstanding issues. Updated guidelines are now available. https://www.gov.scot/publications/coronavirus-covid-19-tourism-and-hospitality-sector-guidance/pages/exemption-to-1m-for-hospitality/ The current cross-border differences between Scotland and each of the other 3 nations makes it very difficult and quite confusing for businesses and visitors and this is resulting in cancellations. It is recognised however that this has to be managed.
It was acknowledged that the interpretation of a ‘lockdown’ situation and a situation where there are ‘restrictions’ in place, are being confused and is leading to uncertainty and the cancellation of bookings within the sector. There are currently 7 local authority areas in central Scotland under additional restrictions, however they are not in lockdown. Clarity of this within communications is essential however it is recognised that this confusion is most likely being driven by the media.
5. Partner Updates
Business Gateway
There is still concern that businesses are not seeing further support through local authorities. £100m has been committed to employment support and training however no further clarity has been received regarding the underspend on the coronavirus (COVID-19) business support fund grants which were disbursed by local authorities which could have offered support to local businesses.
The recent research conducted by Business Gateway with start-ups and existing businesses was once again reiterated. The findings included: - New start-ups wanted support to start their business, not run their business - For existing businesses COVID had actually brought positive changes such as improved efficiency and resilience. Many existing businesses felt that COVID had made them stronger. - Brexit is not helping anyone
Skills Development Scotland
SDS are continuing to work with Scottish government to develop programmes of support based on the recommendations of the Enterprise and Skills Strategic Board report and the recommendations of the Advisory Group on Economic Recovery.
Currently working with sector colleagues to commission a piece of research into fair work, specifically looking to understand what fair work looks like across different sectors and also what are the issues or barriers to fair work across different sectors.
Enterprise Agencies
The Hotel Support Programme continues to be the key focus
STA
The STA members Council will meet on 22nd September and will be attended by Cabinet Secretary Fergus Ewing.
Scottish Government
Completion and submission of the Task Force report to Cabinet continues to be a priority.
6. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured. Action: Kate Pearson to follow up with colleagues in SoSE to confirm whether there are tourism related redundancies that have been captured for the South of Scotland and which could be included within the STERG document. Action: Redundancy updates from all partners are to be forwarded to Karen Christie prior to the next meeting.
7. AOB
It was noted that Kate Pearson will permanently replace John Evans as the South of Scotland Enterprise representative on STERG.
Next Meeting Date
There will be no meeting held on Thursday 24th September.
The next meeting will convene on Thursday 1st October, 11.00am-12.00pm and will be chaired by Marc Crothall.
1. Scottish Tourism Recovery Task Force (STRT)
Work continues on the Tourism Task Force report following additional feedback from STERG. Further input is requested from STERG members to help position the digital capability of the sector, including the recommendations from the DTS report (April 2019), case studies demonstrating digital adoption (there are many positive examples from across the sector including hospitality, tour operators and activity providers) and grant support available.
Action: Riddell Graham to follow up with the team at VS for views on digital capability including examples. It was noted that HIE have announced (10th September), a Digital Enablement grant for businesses, communities and social enterprises with an existing HIE relationship.
This grant forms part of their COVID-19 recovery support. https://www.hie.co.uk/support/browse-all-support-services/covid19/support-and-funding-for-businesses-and-third-sector/ Additional resources are being made available to Business Gateway to develop new ideas which could help SMEs to improve their digital capability. Tourism and hospitality have been identified as one of the specific sectors which should benefit from this.
The next draft of the report will be circulated to STERG by 11th September. A final version of the report, (which will include input from the Investment working group paper), is expected to be available for STERG sign off by 18th September. Following STERG sign off the report will be circulated to the Task Force. The Tourism Task Force report will be submitted to Cabinet before the end of September
The final meeting of the Investment working group took place on 8th September. It was noted that discussions with the Scottish National Investment Bank, to address some of the recommendations from the Investment working group, should start now and that STERG should be represented in these discussions.
The Task Force letter to DCMS and Treasury requesting a call is to be progressed. It is proposed that the letter will be more powerful if it is a joint request from Scottish Government and businesses. It is essential however that the ‘asks’ outlined in the letter are refined to focus on only 3 or 4 key priorities. 2. STERG Action Plan
The updated STERG Action Plan (1st September) was published on VS.org on 8th September.
Further work to refine the content of the Action Plan and to address feedback from STERG members will be done over the next two weeks before the next update.
The Action Plan working group and the Scenario Planning working group came together on 4th September with the purpose of looking at how the STERG Scenarios could begin to shape further development of the Action Plan. The implications of each of the Scenarios were captured and implications around workforce, business support and Marketing in particular were identified A further session will be scheduled w/c 14th September to progress.
It was acknowledged that the input received from the SLAED Tourism Group via Tracey Martin has been welcomed.
VisitScotland is continuing to progress the industry engagement plan for the Scenarios. A toolkit is currently being designed and will be tested with key sector associations to ensure it’s the right thing. Publication is expected in early October.
3. Scottish Tourism Industry Leaders’ Scenarios
The industry scenario planning project, which is being led by Consultants Waldencroft, held its final meeting yesterday to discuss the implications of the Scenarios they had developed. A final report will be completed by 11th September and shared with STERG w/c 14th September. It was noted that the industry leaders involved came from a very broad cross section of the tourism sector.
It was highlighted that this set of scenarios, (with a c. 3 year timeframe) will compliment both the STERG Scenarios (c. 6-9 month timeframe) and the Scottish Enterprise / Scottish Government Recovery and Renewal scenarios for Consumer-facing industries 2020-2025 ( which includes implications for Tourism).
It was recognised that the industry scenarios were a very valuable piece of work and that they should be factored into the Task Force work. It was noted that once the final report was available it would be easier to see where they could feed in to the Task Force recommendations and in particular the detailed stand-alone Task Force paper which will accompany the report for Cabinet. (N.B. The STERG scenarios with a 6-9 month timeframe could actually be valid for up to 2 years given certain circumstances and should also feed into the Task Force thinking).
Action: Karen Christie to follow up with SG team and partners when the Industry Scenarios are published. Consideration to be given to the Scenarios forming the context to the detailed stand-alone Task Force paper.
It was also recognised that there was a need to bring the 3 sets of scenario planning work together. Action: Karen Christie to consider options with partners and put forward recommendations for bringing the Scenarios together.
It was noted that any communications regarding the Scenario work that has been carried out must have a consistent message.
4. Funding Packages Update
£14m Hotel Support Programme - The new Hotel Support Programme was launched on Wednesday 26th August and closed at 5.00pm on Wednesday 9th September. - Overall there has been a very healthy number of applicants for the programme. - An initial sift of the EOIs is currently taking place. This check will identify if an applicant is eligible or not and secondly, for those applicants who are eligible, it will check if further information is required. This process should take c. 10-14 days. - A partners meeting will take place on 11th September to review progress so far.
£1m Coronavirus Support Scheme for self-catering businesses - Applications for this scheme closed on 10th August. - The deadline to appeal has now passed. - Final appeals are being considered by the review panel.
£6m Events Industry Support Fund - Applications for the fund opened at noon on Monday 31st August 2020 and will close at noon on Monday 14 September 2020. - 791 applications have been received from a broad cross section of the events sector. - Applicants who are not eligible are being quickly notified - The first offers of funding have now gone out - Applications will continue to be assessed by the VisitScotland team.
5. Funding Gaps
It was noted that a request had been received from Scottish Independent Hostels for support to help mitigate the impact that COVID-19 has had on this sector.
It was recommended that STERG submit a list to Scottish Government of any known businesses / groups / sectors who are still severely at risk or are suffering as they have not been eligible to receive any support.
Action: STERG members to advise Bettina Sizeland of any known businesses / groups / sectors who continue to be at risk.
6. Partner Updates Business Gateway
The new Business Gateway campaign went live on 7th September. The core message is, …if you are in the dark we are here to shed some light…
Recent research conducted by Business Gateway with start-ups and existing businesses showed the following findings: - New start-ups wanted support to start their business, not run their business - For existing businesses COVID had actually brought positive changes such as improved efficiency and resilience. Many existing businesses felt that COVID had made them stronger. - Brexit is not helping anyone
The SGov team highlighted that there has been a recent rise in correspondence from successful businesses who are now finding themselves in a desperate situation and urgently need to be able to talk to someone for support. It was noted that Business Gateway, who support a broad range of businesses across Scotland, including existing businesses can be contacted for support. (Note for info: Calls to Business Gateway in this quarter from existing businesses were c. double the number of calls from start-ups) https://www.bgateway.com/coronavirus-business-support-across-scotland In addition, Hospitality Health, the charity which supports the mental health and well-being of those working in the hospitality industry can be contacted by anyone in difficult circumstances or struggling. http://hospitalityhealth.org.uk/
Skills Development Scotland
Work is continuing to formulate a response to the Scottish Governments Youth Guarantee.
Work to support apprentices continues – displaced apprentices / individuals coming out of school
PACE service has been ramped up – A helpline and online support is available
A proposal was recently submitted to the rural skills fund identifying support required for tourism specific skills.
Discussions are continuing with the Enterprise Agencies regarding the support SDS can offer to the new Hotel Support programme.
Enterprise Agencies
The Hotel Support Programme continues to be the key focus.
A new green stimulus fund is being discussed at HIE for rural and tourism infrastructure investment.
Action: Anna Miller to send details of the fund to Bettina Sizeland in order to clarify whether this is part of the low carbon fund
Visit Scotland
Working on the announcement for the new events fund which will be launched next week.
Working with marketing colleagues on the autumn / winter campaign which will have a cities focus. As noted previously, countryside searches are for the first time ever ahead of searches for cities.
STA
Elaine Townsend retires from the STA on 14th September.
The next 2-3 months will very much depend on what we hear today at the FM’s briefing. This will determine whether concern within the industry will escalate.
The cities still need help
Scottish Government
The Task Force report continues to be a priority, it is essential that this is submitted in time to be considered in the spending review.
Internal updates are ongoing to ensure SGov colleagues and ministers are aware of the rapidly changing industry situation and can respond accordingly.
6. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured.
Action: Karen Christie to confirm with John Evans whether there are tourism related redundancies that have been captured for the South of Scotland and which could be included within the STERG document.
Action: Redundancy updates from all partners are to be forwarded to Karen Christie prior to the next meeting.
7. AOB
No AOB noted.
Next Meeting Date
The next meeting will convene on Wednesday 16th September, 11.00am-12.00pm.
1. Scottish Tourism Recovery Task Force (STRT)
Feedback from STERG on the first draft of the Tourism Task Force report has been collated and is currently being reviewed. Work on the draft has continued, particularly on the prioritisation criteria which will be used to sort the proposed recommendations. It was noted that it was critical for STERG to get the prioritisation criteria right. A further draft is in progress and will be circulated to STERG later in the day.
Action: STERG members to review the second draft and forward all comments to Bettina Sizeland by close of play Monday 7th September.
It was highlighted that none of the Food tourism recommendations, which were submitted with the Recovery Working Group’s paper, feature in the draft report. It was agreed that they will be added and scored alongside the other recommendations.
It was suggested that key industry requests are laid out in a letter to the UK Government. The letter would be directed to DCMS and the Treasury from the Scottish Government. It was proposed that the letter would be progressed this week.
It was acknowledged that for Cabinet and the Scottish Government all recommendations should be segmented into immediate actions that need to happen now and more medium term actions that will support the sector moving forward. It was suggested that once the prioritisation criteria is agreed the recommendations will be reviewed by the three Task Force working groups.
It was noted that available funding sources such as the low carbon fund are being eroded quickly and there is an urgent need for Tourism to develop a robust business case to support recommendations.
2. Programme for Government
The Programme for Government was announced by the Scottish Government on 1st September. It was noted that there were was nothing unexpected within the PfG for Tourism.
Highlights of the PfG, specifically relating to Tourism can be found on the STA website: https://scottishtourismalliance.co.uk/scottish-government-outlines-new-plan-for-2020-2021/
It was noted that the actions outlined in the PfG were aligned to Scotland Outlook 2030, the national tourism strategy and that the continued importance of sustainability came through strongly
Concern was raised about access to funding for the Tourism sector, particularly to implement the recommendations of the Task Force as this was not mentioned in the PfG.
SDS has been asked by the Rural Economy Division to submit a proposal, by 4th September, which addresses the need for specific rural skills as there is potential funding available for this. SDS has consulted with ASVA, HIT and Springboard. It was noted that Marc Crothall would try to quickly gather some additional input from Agritourism and Food Tourism however given the tight timelines this may not be possible.
Action: Lawrence Durden to share the headlines of the proposal to ensure these can be reflected consistently in other documents or proposals.
Action: Fiona Cook to organise a call with the Rural Economy Division to ensure the SG Tourism team can
feed into this.
Multi-year funding for digital has been received well, however it is not clear whether this will apply to the Digital Boost initiative. Strategic planning and procurement is very difficult without multi-year funding being in place.
It was noted that the there is a strong emphasis on employability which is welcomed, however this needs to be balanced with equivalent business support to ensure jobs can be safeguarded and new jobs created.
3. Funding Packages Update
£14m Hotel Support Programme
- The new Hotel Support Programme was launched on Wednesday 26th August.
- A steady flow of expressions of interest are being received.
- All expressions of interest must be received by 5.00pm on Wednesday 9th September.
- A partners meeting will take place on 4th September to review the submissions so far.
£1m Coronavirus Support Scheme for self-catering businesses
- Applications for this scheme closed on 10th August.
- Successful and unsuccessful applicants have all been notified and many of the successful applicants
have already received funding.
- An appeals process is in place for unsuccessful applicants.
- A review panel currently meets daily to respond to all appeals received.
£6m Events Industry Support Fund
- Applications for the fund opened at noon on Monday 31st August 2020 and will close at noon
on Monday 14 September 2020.
- 697 applications have been received from a broad cross section of the events sector.
- Applications are currently being assessed by the VisitScotland team.
4. STERG Action Plan
The updated STERG Action Plan (1st September) has been circulated to STERG for approval. Minor
updates were noted. The updated Plan will be published on VS.org w/c 7th September.
The need for additional actions in the Plan to address localised lockdowns was discussed. It was agreed that the current protocols in place were sufficient.
Further work will be done on the Action Plan over the coming weeks to refine the content.
The Action Plan working group and the Scenario Planning working group will come together for a joint session on 4th September to stress test the Plan against the scenarios. Output from this meeting will drive the next stage of the Plan’s development. A summary of the session will be shared at the next STERG
meeting on 10th September.
VisitScotland is progressing the industry engagement plan which aims to share the STERG Scenarios more broadly across the sector.
The industry scenario planning project, which is being led by Consultants Waldencroft, recently held a 2 day online workshop to progress the development of the scenarios. A raw version of the scenarios will be sense checked on 4th September and the final scenarios presented to the group on 9th September. The representatives involved are from a cross sector of the industry and are keen for this work to feed into the recovery plans.
5. Partner Updates
STA
The UK Visitor Economy working group meeting with Nigel Huddleston took place yesterday. Feedback from industry highlighted the following points:
- Expedia reported that initial signs of recovery are now tailing off and that forward bookings for autumn are behind where they were expected to be. Booking windows have shortened, there is little interest in cities and enhanced cleaning and safety practices are ranking highly in search criteria.
- VisitBritain presented an overview of the new £5m UK wide campaign ‘Escape the everyday’. The campaign will launch in September and will have a strong presence on channel 4. The campaign will also have a strong cities focus.
- Bourne Leisure commented that despite high demand, social distancing rules was severely impacting the ability to make a profit. This is a common issue across all major operators within the sector and provides a clear rationale for the need for continued support.
- There continues to be major concern around international markets and particularly around airline survival given the impact of air corridors / quarantine restrictions in addition to the end of furlough.
- It was noted that the same themes are being echoed on this call as in Scotland
The SGov emphasised that any representation to the UK Government by the Scottish Government would be more powerful if it could focus on 2 or 3 key industry priorities. To improve the chance of success, Nigel Huddleston needs 2 or 3 things that could really make a difference rather than a long list of
requests which can get very complex. Industry is asked to consider what these priorities should be.
Action: Marc Crothall to liaise with UKH to ensure that messaging on priorities are consistent
The absence of international markets is severely impacting on tour operators. Following a recent meeting involving the airports and inbound operators the SGov Tourism team has followed up with Jason Leitch and Transport colleagues to push for progress in this area. The SGov Tourism team will continue topursue with Health and Transport.
Concerns continue that cities are still not seeing a revival
Eat Out to Help Out scheme has generally performed well with some business choosing to continue the scheme into September to encourage customer loyalty and maintain cash flow.
The first in a series of ASSC webinars took place on Tuesday with Malcolm Roughead and Marc Crothall.
C. 180 people attended.
Enterprise Agencies
The Hotel Support Programme continues to be a key focus.
Following the announcement on 28th August of a new £59m funding package to support Scottish culture and heritage, Scottish Enterprise is working with Creative Scotland to help disburse the funds.
Business Gateway
There is concern over the potential impact of newly imposed lockdown restrictions on 3 council areas in the west of Scotland, (Glasgow, West Dunbartonshire and East Renfrewshire). The new measures are not the same as those imposed in Aberdeen, however transmission rates are going up and the situation could get worse. The question was asked whether there will there be resource to support businesses should it be needed.
The SGov tourism team advised that consideration is being given as to what happens next, however as yet there is no evidence to suggest that additional funding would be available.
The underspend on the coronavirus (COVID-19) business support fund grants which were disbursed by local authorities was discussed recently at a Council leaders meeting and clarity about what had
happened to the remaining funds was requested.
The SGov tourism team advised that they have continued to press this same question however have not
yet received clarity.
Skills Development Scotland
Rural skills proposal to be submitted to the Rural Economy Division on 4th September
Discussions ongoing with the Enterprise Agencies regarding the support SDS can offer to the new Hotel
Support programme.
Continuing to work with Scottish government to develop programmes of support based on the recommendations of the Enterprise and Skills Strategic Board report and the recommendations of the Advisory Group on Economic Recovery. These include:
- Upscaling the PACE service
- Protecting Apprentices. Expanding the Adopt an Apprentice Programme and developing a pathways to
Apprenticeship programme
- Expanding and developing the Individual Training Accounts and developing a Transition Training Fund
Visit Scotland
Concern has been raised with the SGov Tourism team about the new VisitBritain campaign which is due to kick off in mid-September. Currently VisitScotland are not permitted to run their domestic marketing campaign instead having to continue with the Scotland only campaign, there is a risk that the VisitBritain
campaign will encourage Scots to holiday in the rest of the UK. Our cities in particular could be impacted as VisitScotland cannot currently campaign outside of Scotland.
The SGov Tourism team noted that the VisitBritain campaign was on their radar.
VisitScotland are currently working on a cities campaign and this is due to launch in the next couple of weeks. The campaign will focus on exploring the many different neighbourhoods within our cities.
Anecdotal evidence has suggested that the opening of the V&A in Dundee has had a significant impact on hotel occupancy rates in Dundee – this needs to be investigated further.
Festival 2022, a UK wide festival of culture and science will launch next week. £12m has been allocated to Scotland. This is a positive example of collaboration.
Scottish Government
The Task Force report is the current priority, it is essential that this is submitted in time to be considered in the spending review.
The proposal for a ‘Scottish Tourism Emerging Talent Employee Retention and Training programme’,
which was proposed to Fergus Ewing and Jamie Hepburn is still under discussion.
6. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured.
Action: Redundancy updates to be forwarded to Karen Christie prior to the next meeting.
7. AOB
No AOB noted.
Next Meeting Date
The next meeting will convene on Thursday 10th September, 11.00am-12.00pm.
Key Notes & Actions
1. Scottish Tourism Recovery Task Force (STRT)
A first draft of the Tourism Task Force report was circulated by Bettina Sizeland to STERG in advance of the meeting. The paper was acknowledged as a starting point for STERG to work on. It was noted that the recommendations from the Investment working group have not yet been included. These will be forwarded to STERG separately.
It is intended that the Tourism Task Force report will highlight to Scottish ministers and UK ministers the key recommendations only, with a further report containing the detailed recommendations. The detailed recommendations will act as working menu for STERG to consider. The draft report outlines a set of criteria for prioritising recommendations and STERG are asked to review this criteria. Once the criteria is agreed the priorities can be reviewed based on that.
It was confirmed that the use of the word ‘sustainable’ in the draft report refers not just to financial viability but to broader sustainable development encompassing economic, social and environmental dimensions. The final report will be submitted to Cabinet in early to mid-September.
Next steps were outlined as follows: - STERG to review and feedback comments on the first draft by Tuesday 1st September - Revised draft of the report will be circulated to STERG for the next meeting on Thursday 3rd September
- Further revised draft issued to the three Task Force working groups for review w/c 7th September
- Final report to Cabinet early to mid-September
Action: STERG members to review the draft and forward all comments to Bettina Sizeland by close of play Tuesday 1st September.
The likelihood of imminent additional support for the sector from the UK Government was discussed and it was noted that this was unlikely. DCMS have put forward the case to Treasury however Tourism is not the loudest voice. The Task Force recommendations need to be forwarded quickly to Nigel Huddleston to open direct treasury discussions which include all other devolved nations. It was highlighted that tactics to ensure Scotland’s voice is heard more loudly needed to be identified.
It was noted that the STA were meeting with Oliver Mundell in the afternoon and steps were being taken for further engagement with the Scottish Office. The importance on focusing on just a few, big asks, which could support the whole of the sector, was reiterated. However there are some key areas that we must not lose sight of such as aviation and the travel trade. It was noted that the STA have a meeting set up with UKInbound to understand the actions they are taking with the UK Government.
The proposal for a ‘Scottish Tourism Emerging Talent Employee Retention and Training programme’, which was prepared by a sub group of the Task Force Recovery working group (and included members of the Tourism Skills Group), has been submitted to Fergus Ewing and Jamie Hepburn. The proposal is currently being reviewed and potential funding options are being discussed. It was stressed that for this proposal to be feasible, funding was required to cover both the training element of the programme and the wage subsidy element. Further discussions with ministers to look at possible funding options are required.
2. STERG Action Plan
The updated STERG Action Plan was published on VS.org on 24th August.
The Action Plan working group and the scenario planning working group will come together for a joint session on 4th September to stress test the plan against the scenarios.
Action: Karen Christie to feedback the output from the meeting to STERG on 10th September.
3. STERG Scenario Plans
An industry engagement plan, prepared by Chris Greenwood, VS, was circulated to STERG in advance of the meeting. The plan outlined an approach to sharing the scenarios with industry. All STERG members agreed this was the right way forward and the green light was given to progress the immediate actions identified.
Action: Barbara Clark to link in with Chris Greenwood regarding communication support.
4. Funding Packages Update
£14m Hotel Support Programme - The new Hotel Support Programme was launched on Wednesday 26 August after a huge amount of effort by partners to reshape the criteria based on industry feedback. 6 expressions of interest have been received already. No technical issues have been noted so far. No feedback has been received from industry. Workstreams across all the Enterprise Agencies, VisitScotland and Skills Development Scotland are working on the next steps, the appraisal process, the support packages, the reporting etc.
All expressions of interest must be received by 5.00pm, 9th September. Local Authorities will support the launch of the Programme by making the business community aware of it. Local Authorities will also be involved in discussions around the business support packages.
It was noted that final details of the Hotel Support Programme should be sent to the Culture, Tourism, Europe and External Affairs Committee. Action: Scottish Government officials to forward the final details of the Hotel Support programme to members of the Culture, Tourism, Europe and External Affairs Committee.
£1m Coronavirus Support Scheme for self-catering businesses - 78 applications have been approved and the businesses have been notified. - Remaining eligible applications will be advised shortly. - Rejected applications are in the process of being notified. - An Appeals process is in place.
£6m Events Industry Support Fund - The new £6m Events Industry Support Fund, was launched on Monday 24th August. - The fund is being managed by VisitScotland / EventScotland and a large team of people have been brought together to respond to the demand for the fund. - Applications for the fund will open from noon on Monday 31 August 2020 until noon on Monday 14 September 2020. - It was noted that significant effort had been made to ensure the eligibility criteria was clear. - So far there has been 10,000 views on VS.org and 2,500 downloads of the guidance document.
5. Cities
Increasing concern was raised about the ongoing, devastating impact of COVID-19 on tourism within our cities, particularly in Edinburgh, Glasgow and Aberdeen. There is concern that tourism is being portrayed, through the media for example, as doing well which is masking the desperate situation that our cities are facing.
It was highlighted that the retail sector is also very concerned about city centres particularly as there is no day time trade happening. People are staying at home, they’re working from home, they have no need to go into the city. Our cities need to be supported with positive messages from the media which promotes how great our cities are, that they are safe places to visit and people should be encouraged to go out and enjoy them.
It was noted that VisitScotland are working with the cities on marketing activity (currently targeted at Scotland) and that the autumn / winter campaign has a cities focus. The biggest challenge right now is that all marketing activity beyond Scotland is on hold.
It was acknowledged that marketing is only part of the issue and that the STERG Action Plan should be reviewed to identify the actions that are currently being undertaken to support the cities and whether new actions are needed. Action: Karen Christie to coordinate a review of the Action Plan. Action: Barbara Clark to put together a communication which reflects actions being undertaken to support the cities.
The question of further support for Aberdeen was raised. It was noted that no additional funding beyond the £1m fund being administered by Aberdeen City Council would be available.
6. Partner Updates Business Gateway
A campaign to push Business Gateway and DigitalBoost services will be launched on 7th September.
Work is ongoing to push businesses to findbusinesssupport.
Enterprise Agencies
The Hotel Support Programme is a key focus.
Working with Creative Scotland on the £2.2m Grassroots Music Venue Stabilisation Fund https://www.creativescotland.com/funding/funding-programmes/grassroots-music-venues-stabilisation-fund
Visit Scotland
Promoting the new £6m Events Industry Support Fund is a priority.
Recent tracking data has shown that for the first time countryside breaks have overtaken city breaks in online searches. Romance and luxury are 2 of the most popular themes being searched for.
STA
The current position on weddings continues to be an area of concern. A recent submission has been made by the STA recommending a 20/20 position is adopted. It is hoped that an announcement on this will be made imminently.
The industry scenario planning project, which is being led by Consultants Waldencroft, recently held a 2 day online workshop to progress the development of the scenarios. The industry representatives are from a cross sector of the industry and have voiced strong concerns about the ongoing impact of COVID-19.
The meeting notes from the STA Forums which were held last week will be circulated today.
Scottish Government
A final review of the Programme for Government was carried out this morning. No surprises are expected for Tourism.
Support for fun fairs has not yet been secured, this will be pursued jointly with the Culture team in the SG, a further submission will be made to Fiona Hyslop.
Capital budget is being pursued through the capital spending review in order to support initiatives to address issues with Wild Camping and the Rural Tourism Infrastructure Fund.
Funding opportunities may exist with the low carbon fund. Scottish Government Tourism team will work with STERG to put forward recommendations.
7. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured. Action: Redundancy updates to be forwarded to Karen Christie prior to the next meeting.
8. AOB
No AOB noted.
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Next Meeting Date
The next meeting will convene on Thursday 3rd September, 11.00am-12.00pm.
Future Meetings
Thursday 17th September will be moved to Wednesday 16th September.
Thursday 24th September and Thursday 1st October will be chaired by Marc Crothall in the absence of Riddell Graham.
Key Notes & Actions
1. Scenario Planning Update
The STERG Scenario Plans were approved by all members of the group.
The group agreed that the Scenario Plans could now be shared more widely, in particular with the Task Force and with participants involved in the new, longer term Scenario Planning work which is being led by consultants Waldencroft.
It was agreed that the content of the scenario plans should be shared in a meaningful way with businesses.
Action: Karen Christie to circulate scenarios to the Task Force and the participants in the Waldencroft scenarios. Action: Working group to liaise with Barbara Clark to look at ways in which the output of the scenario plans could be shared with industry.
2. Funding Packages Update
£14m Hotel Recovery Programme Partners are continuing to work closely to finalise the criteria for the programme. Extensive industry engagement has taken place to ensure the approach being taken is right.
The programme is expected to launch w/c 24th August. The communication and guidance which is to accompany the launch of the programme will be key to ensure the process is as seamless as possible.
£1m Coronavirus Support Scheme for self-catering businesses - Opened 3rd August / closed 10th August - Over 200 full applications received and logged - The assessment panel have now assessed all applications - Offers will be issued this week - Unsuccessful applicants will be provided with a clear rationale explaining why the application was rejected - An Appeals process is in place
Many thanks go to the ASSC for their support in assessing the applications.
£10m Events Sector fund The launch of a fund to support businesses in the supply chain to the events sector, is expected to be announced imminently. This fund will account for a proportion of the £10m. A second fund, accounting for the balance of the £10m, is to follow, date TBC.
It was noted that there is a lot of working going on within Scottish Government looking specifically at venues and in particular wedding venues, both on guidance and support. A new trade body for wedding venues has been established, the Association of British Wedding Businesses (ABWB), this is an association that aims to support members of the British wedding industry during COVID-19.
3. STERG Action Plan
The updated STERG Action Plan was approved for publication on VS.org w/c 24th August
It was highlighted that the scale of activity being undertaken is significant however it was noted that there are actions which could now be closed off as they have been delivered.
Since the Action Plan was launched there have been 13.5k visits to the Action Plan page and 2,627 downloads of the Action Plan.
Action: Karen Christie to circulate the STERG Action Plan to the Task Force
4. Scottish Tourism Recovery Task Force (STRT)
The third meeting of the STRT will be held on Monday 24th August where all three working groups, (Stimulating Demand, Recovery and Investment) will report on progress and discuss their recommendations.
The final Task Force Recommendations paper is expected to be submitted to Cabinet in early September. Consideration is to be given to the format of the final paper.
It was noted that the availability of funding to support the implementation of Task Force recommendations was critical and there is ongoing discussion as to whether new money will be available or existing budgets will need to be repurposed.
In response to an urgent request from Mr Ewing to address immediate workforce retention issues the Recovery working group submitted a draft paper to the Scottish Government for a programme which addresses the immediate need to retain our emerging talent within Scottish Tourism. Feedback on the proposal from Mr Ewing is expect by Monday 24th.
The importance and value of a united front between industry and the Scottish Government when making representations to the UK Government was stressed.
5. Partner Updates Skills Development Scotland
SDS working with Scottish government to develop programmes of support based on the recommendations of the Enterprise and Skills Strategic Board report and the recommendations of the Advisory Group on Economic Recovery. Key areas of focus are: - Providing Guidance.
Expanding the PACE service for displaced staff and the Next Steps programme for young people under 18. - Protecting Apprentices. Expanding the Adopt an Apprentice Programme, supporting displaced apprentices to complete their training and developing a pathways to Apprenticeship programme - Options for Learners.
Expanding and developing the Individual Training Accounts and developing a Transition Training Fund
Business Gateway
New £1m support fund is to be made available via Aberdeen City Council for hospitality businesses directly impacted by the local lockdown in that area.
It is expected that the Health & Safety Executive will issue guidance on the requirements for ventilation within premises. It will be critical to understand the implications of this for businesses.
Enterprise Agencies
The Hotel Recovery Programme continues to be a key focus. Work is currently ongoing to finalise the details of the programme.
The supporting Communities Fund which is administered by HIE will shortly be moving into Phase 2.
This phase will be recovery focused and it is hoped that it will be themed around community and tourism. HIE have been approached to support research funding on Motorhomes
The HIE board are currently considering a paper that recommends a revised medium term approach by HIE regarding future support to Destination Management Organisations. This is line with Wider COVID strategic sector support.
Visit Scotland
Members of STERG met on Monday 17th to review the role, remit and sustainability of Destination Organisations as requested by the Stimulating Demand working group. A final document with STERG recommendations is being prepared.
VisitScotland is convening a new group (in addition to the comms group), to look at the impact which dirty camping is having on communities and the environment. This group will take a holistic view of the issues which are being raised and in particular look at infrastructure.
A number of issues were highlighted as contributing to the current situation, in particular the fact that many campsites have been unable to open and the availability of public toilet facilities. A further issue to consider is the inflated prices of some self-catering businesses could be driving people to choose camping when previously they wouldn’t have.
It was noted that ministers are keen to see to see actions being taken to address this however it was recognised that it may be too late for this season and may need to wait until next season. The importance of getting the balance right between education and infrastructure was stressed.
STA
The STA are continuing their business survey on the impact of the ‘Eat out to help out’ scheme which launched on 3rd August. It was noted that Aberdeen venues have missed out on the scheme and that there is an ask to extend this scheme beyond August.
There is ongoing concern that there are still a number of areas within the sector that are not yet open for example, wedding venues, Exclusive use properties, business events and conferencing.
The Scottish Government highlighted that the guidance related to exclusive use properties was dependent on whether there is a shared kitchen or a separate kitchen.
With regard to business events, there are still significant public health concerns here and detailed analysis of this is ongoing. An indicative date of September has been given but nothing specific.
6. Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured. Action: Redundancy updates to be forwarded to Karen Christie prior to the next meeting.
7. AOB
No AOB noted.
Next Meeting Date
The next meeting will convene on Thursday 27th August, 11.00am-12.00pm.
Scenario Planning Update
Chris Greenwood and Raymond McIntyre presented the final Scenario Planning document to STERG for comment. It was noted that the Scenario Planning document had been stress tested with the Scottish Tourism Consultants Group and a number of their recommendations had been incorporated.
It was noted that once the document has been signed off, the working group will look at ways in which the content could be shared in a meaningful way with businesses. It was highlighted that the STERG Scenarios will complement both the Scenario Planning work completed by Scottish Enterprise and the new industry driven Scenario Planning work which is being facilitated by Waldencroft.
Action: Chris to pick up with Bettina for input once she has returned from annual leave on 17 August.
Action: STERG to review the Scenario Planning document and provide feedback, comments, questions etc., to the working group by close of play Tuesday 18 August. Please email feedback to: chris.greenwood@visitscotland.com raymond.macintyre@visitscotland.com Karen.christie@stalliance.co.uk A final version will be circulated to STERG for sign off on 20 August.
Action: Barbara to work with Chris to look at potential options for communicating the output of the scenario planning work to industry.
Funding Packages Update
£14m Hotel Recovery Programme Following the announcement of this programme on 29th July the partners have been working closely to define the detail ensuring that the feedback received from stakeholders is being taken into account. The formal launch is expected at the end of August.
The importance of getting the criteria and approach right for this programme was acknowledged and therefore the launch date may be postponed.
£1m Coronavirus Support Scheme for self-catering businesses - Opened 3rd August / closed 10th August - Over 200 full applications received and logged - Over and above the 200…Between 40-50 incomplete applications were received and additional evidence has been requested for these. - The assessment panel have assessed 143 applications to date
o 28 Approved
o 45 Approved – awaiting check from Local Authorities
o 17 in query
o 53 Rejected
- Successful applicants and unsuccessful applicants will be notified at the same time. Unsuccessful applicants will be provided with an explanation as to why they were unsuccessful.
£10m Events Sector fund Event Scotland and the Scottish Government are in the process of finalising the criteria and eligibility for the fund. Sign off from the Scottish Government is expected this week and it is anticipated that a communication will go out next week regarding the fund.
Scottish Tourism Recovery Task Force (STRT)
The third meeting of the STRT will be held on 24 August where all three working groups, (Stimulating Demand, Recovery and Investment) will report on progress and discuss their recommendations.
All three working groups continue to meet in preparation for the 24th.
It was noted that the Recovery working group has submitted a draft paper to the Scottish Government for a programme which addresses the immediate need to retain our emerging talent within Scottish Tourism.
Members of STERG will meet on Monday 17th to discuss their guidance on the future of Destination and Sector organisations as requested by the Stimulating Demand working group.
Further details about the Task Force including minutes and papers can be found on the SG website www.gov.scot/groups/scottish-tourism-recovery-taskforce
Partner Updates Skills Development Scotland
Scottish Government £10m funding to support a range of measures to recruit and retain apprentices, including additional funding for the Adopt an Apprentice programme, Lawrence Durden in discussion about prioritising Tourism within this fund.
Additional £10m announced for the flexible workforce development fund which addresses broader support for businesses such as upskilling and reskilling the workforce.
SDS currently discussing how they can contribute to the wrap-around business support and advice being offered as part of the new Hotel Recovery Programme.
Working with the Task Force Recovery working group and members of the national Tourism Skills Group, a draft paper has been submitted to the Scottish Government outlining a programme which addresses the immediate need to retain the emerging talent within Scottish Tourism.
In addition, as chair of the Workforce Recovery sub group, within the Task Force Recovery working group, longer term workforce recommendations are being developed to support recovery of the sector.
Business Gateway
In response to the ongoing lockdown in Aberdeen there is a lot of work going on to identify the support that businesses need.
Additional £1.5m funding announced for Business Gateway’s Digital Boost programme. The funding will run until 5th April 2021. It is envisaged that this additional resource will offer the opportunity to pilot new ideas which can then be developed and rolled out next year. It was noted that the Digital Boost Programme Manager keeps in contact with HIE and SE. It was recommended that the Programme Manager contacts Aileen Lamb at SE who is doing a lot of work in this space.
Enterprise Agencies
HIE Let’s Grow Adventure Tourism programme was launched on 16th July and closed on 7th August. HIE are delighted with the volume of applications received demonstrating a real appetite for support in the Adventure sector. The programme will start late September / beginning of October.
The Hotel Recovery Programme is taking up the majority of time as partners work to finalise the detail of the programme.
Engagement with Local Authorities has increased recently due to discussions on how the City Deals and Growth Deals could accelerate recovery.
Visit Scotland
A communication plan is being worked on for the new Events Sector funding scheme.
Two major golf events will take place in the next two weeks, the Aberdeen Standard Investments Ladies Scottish Open and the AIG Women’s Open. Both events will be TV-only events with no crowds in attendance.
Dirty camping continues to be an ongoing issue and a working group is looking at this.
C. 6,300 are now signed up to the We’re Good to Go scheme and over 3,500 are listed on VS.com. A Gaelic version of the logo is also now available.
STA
The STA are continuing the two business surveys this week. - The new ‘Eat out to help out’ scheme launched on 3rd August and the STA are keen to understand how this initiative is working for businesses. Is it successfully driving footfall? Is it displacing weekend bookings? - Forward bookings for accommodation providers vary significantly across the sector. For hotels in particular the majority are looking at <20% occupancy in the coming months. This survey looks to capture a snapshot of bookings for August and September / October.
Issues with wild camping remain. A workstream is looking into this.
There are still a number of areas within the sector that are not yet open for example, Exclusive use properties, swimming pools, events. There is an increasing nervousness among hotels on whether events (of any size) will be given the green light or not, for many this will have a critical impact on their survival.
The licensed trade requires more clarity around the guidance, i.e. what’s mandatory and what’s not.
A recent letter from the WTTC to the Prime Minister has highlighted the urgent need for the G7 nations to work together collectively. Are the G7 messages feeding down to the devolved ministers? This should be considered by the Task Force.
Scottish Government
The immediate focus is on changes to sector guidance, including mandatory collection of customer details for Test & Protect and the ongoing lockdown in Aberdeen.
Work is continuing on the guidance for those places which are not yet open, it is hoped that there will be more on this at the next review point on 20th August.
Redundancy Update
An update on sector redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured. Action: Redundancy updates to be forwarded to Karen Christie prior to the next meeting.
AOB
Oliver Mundell MSP has been appointed Shadow Cabinet Secretary for Rural Economy and Tourism in the recent Scottish Conservative reshuffle. Rachael Hamilton MSP now takes on the role of Shadow Cabinet Secretary for Social Security and Older People.
Next Meeting Date
The next meeting will convene on Thursday 20th August 11.00am-12.00pm.
Scenario planning update
VisitScotland updated on the progress being made on the scenario planning work. It was noted that all actions agreed at the previous meeting have been completed, i.e. narratives have been developed for all four scenarios, based on a set of agreed assumptions and an economic overlay has been provided highlighting the economic implications.
The completed work will now be stress tested with for example the Scottish Tourism Consultants network before the final document is presented to STERG on 13 August.
Funding packages update
The Scottish Government will publish a summary of the applications for the Newly Self-Employed Hardship Fund, Pivotal Enterprise Resilience Fund (PERF) and Creative, Tourism and Hospitality Enterprises Hardship Fund (CTHEHF), and Bed and Breakfasts Hardship Fund (B&BHF).
https://www.gov.scot/publications/coronavirus-covid-19-hardship-and-resilience-funds-statistics/
N.B. Details of the coronavirus (COVID-19) business support fund grants (correct to 4 August) can be found at: https://www.gov.scot/publications/coronavirus-covid-19-business-support-fund-grant-statistics/
he new £1 million Coronavirus Support Scheme for self-catering businesses, which opened on 3 August and is being administered by VisitScotland with support from the ASSC, has seen 750 downloads of the Application guidance document and 250 applications. The fund awards will be allocated on a first come, first served basis. The first 100 applications are being checked now.
The new £14 million Hotel Recovery Programme is being administered by the Enterprise Agencies and is intended to be live by the end of August. The importance of getting this fund right was noted and the Agencies team working on the detail will take into account feedback from industry, learnings from previous funds and try to anticipate all the challenges, all within a very tight timeframe. It was acknowledged that £14 million is not enough and that the projected number of hotels which could be helped by this programme (c. 50-60 hotels) won’t make the difference required, however it was also recognised that the cash pot is not endless.
It was noted that prior to the launch of the new Self Catering Support Scheme and the Hotel Recovery Programme there had been discussions about supporting the Coach sector. Clarification is sought as to the current position on supporting this sector.
EventScotland and the Scottish Government are currently working on the criteria and eligibility for the recently announced Events fund, a report is due on Monday. It is hoped this fund, which aims to support organisers of cultural, community, and sporting events, as well as supply chain firms facing hardship, will be launched soon.
A new £2.2 million support fund for Grassroots Music Venues is expected to launch on 20 August and will have a 10-14 day window for applications. This is a pan Scotland fund intended to keep grassroots music venues alive.
Industry update
The announcement of renewed lockdown restrictions in Aberdeen has prompted many questions from businesses. In the first instance businesses should be directed to the available guidance, however if further clarity is required questions are to be channelled through the STA to the SG team.
It is suggested that a common sense approach should be applied when interpreting the guidance.
- https://www.gov.scot/publications/health-protection-coronavirus-restrictions-aberdeen-city-regulations-2020/
- https://www.gov.scot/publications/coronavirus-covid-19-local-measures/
- https://www.gov.scot/publications/coronavirus-covid-19-update-first-ministers-speech-5-august-2020/?fbclid=IwAR20ptC1xQBU1CG325PovY4WiuOAB1yGGEhhYb7gUp35jZ8HNTHURek-pcI
It was noted that VisitAberdeenshire have paused their Marketing activity.
The STA are running two business surveys this week.
- The new ‘Eat out to help out’ scheme launched on 3 August and the STA are keen to understand how this initiative is working for businesses and whether it is successfully driving footfall.
- Forward bookings for accommodation providers vary significantly across the sector. This survey looks to capture a snapshot of bookings for August and September / October.
- Both surveys will close on Sunday 9 August. Insights will be shared with partners w/c 10 August.
It was noted that self-catering bookings still remain strong, however there is a very mixed picture within the hotel sector, Glasgow and Edinburgh occupancy levels remain low at c.20%, however, there are pockets where some hotels are performing strongly, for example Fort William.
It was highlighted that a simple urban / rural split is not reflective of the current situation, there are rural hotels for example in the Highlands running at c. 20% occupancy and comments have been made that this could be due to negative media coverage for example.
VisitScotland IRM’s and other VisitScotland colleagues are currently trying to get a picture of the real situation.
Scottish Tourism Recovery Task Force (STRT)
The first meeting of the Investment working group was held on 3 August. Action:
The Stimulating Demand working group has requested that STERG provide guidance on Destination and Sector organisations for consideration in the working group’s submission to the Task Force
Initial discussion document is to be shared with STERG with a follow up meeting w/c 17 August. A response is required before the end of August. HIE is currently preparing a proposal for the CEO and Leadership team on regional destination support required for recovery.
The Recovery working group continues to develop their recommendations on Business and Workforce Recovery. Three sub groups have been created in order to focus on specific priority areas.
The next meeting of the Task Force will be held on 20 August. Further details about the Task Force including minutes and papers can be found on the SG website: www.gov.scot/groups/scottish-tourism-recovery-taskforce
STERG Action Plan
The working group reviewed and updated the STERG Action Plan as appropriate. A refreshed Action Plan (4 August) was approved for publication by STERG.
It is noted in the Action Plan (6.5) that Local Authorities are undertaking consultations with businesses to aid Economic recovery planning. It was highlighted that this information, if consolidated, could help inform the Recovery Working Group.
Good to Go Scheme / Tourism & Hospitality Guidance
Currently c. 6,043 businesses in Scotland have signed up to the ‘Good to Go scheme’, (30,000 total UK, Scotland has the second highest number of businesses signed up). It was noted that although c.6,000 have signed up only c.1,000 businesses have updated their listings on VisitScotland.com. All businesses are to be encouraged to update their listings to indicate, 1. That they are open and 2. That they’re 'Good to Go' if accreditation has been received. VisitScotland concluded 500 business advice calls last week with businesses to check that everything is ok with the scheme. Businesses with more than one property e.g. Premiere Inn, are required to apply for accreditation for each individual property to ensure compliance.
At a recent meeting with all the ‘Visits’ two proposals were shared. The first, a consumer facing video to drive the awareness of the ‘Good to Go’ scheme and the second is an interactive map which could sit on VisitScotland.com and which would geographically show who is ‘Good to Go’.
It was highlighted that the test & protect procedures across the sector is incredibly variable and that checks are a good thing, there is concern that there could be businesses who gain the accreditation to the ‘Good to Go’ scheme but then do not put the measures into practice. Cairngorms and Lochaber are currently testing an online app to make the Test & Protect process easier. Results have been very positive. 5pm have also developed an online solution.
EHO’s have been very active recently, despite the inconsistencies at the beginning, EHOs have been great on spot checks.
VisitScotland to check and confirm whether the Events sector guidance could be used as the back-drop to the Good to Go scheme
Partner updates
Skills Development Scotland: Following the publication of the Scottish Governments response to the report by the Advisory Group on Economic Recovery (AGER) report and the report by the Enterprise and Skills Strategic Board sub-group on measures to mitigate the Labour Market impacts by COVID-19, SDS are now developing their response.
Links to the Scottish Governments responses:
- https://www.gov.scot/publications/economicrecovery-implementation-plan-scottish-government-response-to-the-advisory-group-on-economic-recovery/
- https://www.gov.scot/publications/addressinglabour-market-emergency-scottish-governments-response-report-enterprise-skills-strategic-board-sub-group-measures-mitigate-labour-market-impacts-covid-19/
SDS has published its latest COVID-19 Labour market Insights Report: www.skillsdevelopmentscotland.co.uk/what-we-do
PACE has seen a significant increase in numbers in July: June 284 hospitality workers / 7 hospitality employers, July 930 hospitality workers / 34 hospitality employers
SDS currently discussing how they can contribute to the wrap-around business support and advice being offered as part of the new Hotel Recovery Programme.
Working with the Task Force Recovery working group and members of the national Tourism Skills Group to develop an immediate programme to retain staff who are at risk of redundancy through a package which includes a wage subsidy and a training & development programme. A paper will be presented to the Cabinet Secretary imminently. Also working on longer term workforce recommendations to support recovery of the sector.
Business Gateway: to work in closer collaboration with SDS, DWP and SLAED on PACE. Resilience support (pre PACE) continues. Positive stories have been noted. Furlough has provided time for individuals to be able to work on a business and not in it.
A noticeable increase in interest in Start Ups has been recognised as people have had time to consider ideas.
Following the publication of the Scottish Governments response to the AGER report, Business Gateway is working on its response. A couple of problematic areas have been identified so far, conditionality on business support and despite the importance of digital skills and adoption in the report, Digital Boost, the Business Gateway programme is not mentioned.
BT are offering a Small Business Support Scheme
Enterprise Agencies: SE working on their response to the Scottish Governments response to the AGER report. More focus on regional development is suggested, this will drive what SE will do but will not be everything that they will do.
The ILG review, led by Nora Senior (Chair, Enterprise and Skills Strategic Board) was recently published and highlights the positive work done by the Tourism ILG. The report also outlines recommendations for how an ILG could or should engage in the future. All partners should consider this moving forward. www.gov.scot/publications/industry-leadership-groups-review
SE Account Managers are reporting some good news stories particularly around businesses thinking and doing things differently as a result of the crisis. Those businesses who have more of a digital background are seeing good opportunities.
Enterprise Agencies: HIE Let’s Grow Adventure Tourism programme was launched on 16 July and will close on 7 August. So far there has been a very positive response. An update will be provided at the next meeting.
Second series of HIE Road to Recovery Podcasts commenced 10 July and completed on 31 July. The podcast series will now take a short break.
VisitScotland: Work to begin on VisitScotland.org to tidy up the look and feel ensuring the balance of information is right going forward.
STA: The Tourism Scenario Planning programme, an initiative kick started by Gordon Dewar, will begin on 12 August and run until the 9 September. 20 participants will take part representing transport, hospitality, tour operators, visitor attractions, golf tourism & events, marine tourism, business tourism, supply chain, legal and destinations. This work will complement the STERG scenario planning work which is being led by the Scottish Government and VisitScotland as it is intended to be broader in scope and longer in time frame (18 months+ - 5yrs).
Scottish Government: Further announcements to ensure compliance with the Tourism and Hospitality Guidance is possible within the coming days.
Redundancy update: An update on redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured.
Industry update
STA highlighted:
- Selfcatering still strong.
- Hotel occupancy still challenged with some hotels notably in the cities sitting around 20% on average and smaller hotels still sitting around 35%.
- Visitor Attractions – ASVA survey suggests that approx. 60% open by end of the month.
- Restaurants still a bit hit and miss aware of inconsistencies around application of mitigation and adherence to guidance. Suggestion that Environmental Health and Licensing write to their clients reminding them of their responsibilities.
- Not a great picture around Scotland.
- North Coast 500 and issue of wild camping, still a challenge.
HIE agreed re wild camping, this is the headline in HIE area, sheer volume of campervans and wild camping on some beaches never seen before this year. A lot of comms issued through various channels so unsure what else can be done to inform / educate those few who are acting irresponsibly and ruining the experience for everyone else.
On a positive note more engaging with Good to Go and eateries diversifying.
South of Scotland Enterprise seeing slow pick up, bed nights are a fraction of what is expected at this time of year. Parts of South West Scotland rely on coach tours, these are non-existent. Local messaging that it’s a slow recovery around hospitality and consistent picture with the rest of Scotland.
SE, echoed the city challenge, hearing from a broad range of businesses, hotels in city
or the attractions, retail, and eateries that they are finding it very difficult, huge drop in numbers and footfall in key streets in Edinburgh down to less than 10% from a normal July. Account managers hearing about redundancies coming through. Still very challenging times.
VisitScotland referred to a note from Scottish Independent Hostels, 86 throughout Scotland, which had been sent to all MSPs with a request for funding but also covering operational issues which made it difficult for many to operate.
Guidance on this hasn’t changed and still stands. First Minster very cautious, not expecting further shift or specific exemptions. On the specific question of funding Scottish Government clarified that this sector wasn’t currently being considered for support. In terms of any further funding for the wider tourism sector, this is being tackled at a UK level, there is nothing further identified at the moment.
Funding update
Two announcements today, one for self-catering and the other for the hotel sector.
Scottish Government updated on the self-catering fund with the £1 million cash limited pot specifically for those that missed out first time round as didn’t meet the 140-day threshold for eligibility of previous grants for 2019/20 season. Being administered by VisitScotland in partnership with ASSC. Will be £10,000 grant to the first 100 business that meet the eligibility criteria.
Hotel recovery programme will be administered via Enterprise agencies in partnership with VisitScotland and STA. Invite expressions of interest towards end of August. The aim is to protect employment/jobs, working with lager hotel businesses. The funding available is £9 million resource and £5 million capital. This represents a move away from hardship into protecting core business across Scotland.
HIE highlighted a live enquiry regarding the self-catering fund. It was noted the comms will be
issued today and will appear on VisitScotland.org, in the first instance, with the process and application form and will point people in the right direction. Comms out to self-catering database for VisitScotland and ASSC.
SDS – had only seen press release this morning and asked what the mechanism was for SDS involvement regarding providing its support. Scottish Government stated that the aim is for a team Scotland approach, before opening for expressions of interests looking at designing and developing this in next few weeks.
STA welcomed the news of these funds to protect some jobs, but it is clear that more support is
required from UK Government for a lot of business to survive in the longer term.
HIE expressed concern that all agencies on front line could get a trickle or flood of enquiries from
businesses and asked that an effort be made to at least provide a more detailed briefing between
now and launch. There is a potential issue for hoteliers who own more than one hotel, but each individual unit has less than 50 employees, although collectively they have more than that employed, the way fund developed at moment makes them ineligible. Anticipate this could possibly be where some complaints/ feedback will come from.
On the issue of hotels that had already accessed funding from other sources, HIE was aware that nothing excluded an application apart from employee numbers, but in the application form previous funding will be taken into consideration as part of the final decision making.
Scottish Tourism Recovery Task Force (STRT)
First meeting of Investment sub- group to be held on Monday 3 August with supporting economic
papers provided by Sc Govt team. VisitScotland will circulate a copy of the draft note from the last meeting of the stimulating demand subgroup which contains a specific ask of STERG regarding Destinations and set up a separate discussion on how to tackle this as response required by end of August.
Good to Go Scheme / Business re-opening
Currently 5,700 businesses have signed up. Frustration, which also applies to business re-opening, is that they have been slow to update entries on VisitScotland.com. Further comms and chasers being sent next week.
STA to include chaser comms in next newsletter to members.
STERG Action Plan
Plan published as agreed on VisitScotland.org. Next week’s meeting will receive first draft of scenario planning work.
Partner updates
Business Gateway | finalising tail end of applications for funds, a lot quieter than it has been.
Skills Development Scotland (SDS) |circulated Labour Market Insights, which is available on website and 74% furloughed highest sector, 45% temporally paused, 90% report decrease in staff working hours. Across sector 59% few that six months survival. Discussion internally about additional £100 million with focus on: Youth Employment Guarantee, COVID specific transition fund, upscaling of PACE, support around apprenticeships.
STA | mentioned Scenario Planning Programme and that Gordon Dewar is involved. Targeted invite, 10 August, good range of people committed to take part. Feed into and be complementary to wider STERG scenario planning work being led by Sc Govt.
Scottish Government | next review point tomorrow 30 July for potential opening on Friday, potential is around Fun Fairs. Ongoing engagement with DCMS. STA asked about arcades, pools in resort hotels and weddings. Scottish Government uncertain about content of FM announcement but likely to pursue a very cautious approach. Weddings, being looked at for increasing number of guests, might land in this review point but can’t confirm at moment. Swimming pools, indoor pools under consideration for September.
On Business events STA, referred to a detailed proposal being put forward for the EICC to run potential pilot events. Proposal sent to Fergus Ewing and Fiona Hyslop, asking if due consideration could be given. Scottish Government said the proposal is still live, but reluctance to hold indoor business and live events.
Redundancy update
Agreed that any update on figures would be included on spreadsheet on Karen Christie’s return from annual leave.
AOB
VisitScotland highlighted an issue in relation to its UK marketing campaign which was due to launch 31 July. Based on guidance received this week from Scottish Govt this has been paused. The focus would have been the English market, the most important domestically.
VS Marketing Update
- Update on all VisitScotland marketing plans over the next few months and latest sentiment analysis tracker with data analysis and interpretation of the tracker results. These are available on VisitScotland.org.
- The main marketing campaign focused on Scotland was launched last week, with the wider UK activity with Ireland launch w/c 27 July and the international activity on hold until more guidance is received from Scottish Government.
- Marc Crothall asked about Ireland and permission of travel and highlighted concerns re a possible lack of a UK airbridge. This will be checked with the marketing team.
- Scotland is ahead of the game in promoting to the home and domestic markets with no other UK national tourist board doing any marketing activity.
Industry Update
- STA highlighted the following from recent visits to businesses:
- Hotel occupancy still sitting around 35 – 40% for small/medium category for July and August.
Some anomalies of smaller hotels and some not yet opened.
- Hotels with pools and leisure facilities keen to get clarity on reopening dates
- Wedding receptions – SG clarity on numbers being sought
- Self catering – strong performance across the country with Supercontrol data showing a 40%
uplift year in year.
- Not been the boom result everyone had hoped for.
- One of the key challenges which remains is for English visitors. Businesses are still experiencing cancellations. Messaging still needs addressed.
- Events advice needed urgently - England announced to 30 people events.
- Still concern as Scottish school holidays coming to an end.
- Ferries, much improved situation, with four week window booking.
- Wild/irresponsible Camping / Campervan concerns, part of broader piece re responsible tourism.
Scottish Tourism Recovery Task Force (STRT)
- Activity of the wider Taskforce with meetings held of 2 subgroups focused on Demand and Recovery. The Investment group is still to meet. The next meeting of the full Task Force will be held on Thursday 20 August. End of August deadline for taking outputs back to Cabinet. Marc’s noted the work of his Recovery working group. Highlighted issues around investment, banks not lending and concern about levels of borrowing.
Tourism and Hospitality Guidance / Good to Go Scheme
- Currently 5,500 businesses in Scotland have signed up to the We’re Good to Go scheme with new entrants being added at around 100 – 150 a day. VisitScotland will continue to encourage businesses to sign up and promote it on business listings on VisitScotland.com. It was noted that there is a comms campaign this week to encourage as it helps get more bookings/business. VisitScotland staff also following up with calls to support businesses.
Funding Packages Update
- Both Hardship and PERF closed, teams dealing with a number of appeals. Analysis across funds being completed for Scottish Government.
- Local Authority funds update – have until 31 July to tie up any final information and wrapped up by middle of August.
STERG Action Plan
- Note from last meeting very comprehensive, updated plan now published on vs.org.
- A work in progress document will be available for comment by STERG w/c 3August. A final document will be available to STERG (and the Task Force) w/c 10 August.
Partner Updates
- Skills Development Scotland updated on employee retention training programme.
- SE focus has been on specific tourism funding – reminder of the Creative Heritage and Cultural funding that Scottish Government has made and benefit of this to tourism. There’s been more business as usual work recently and some big inward investment enquiries over last week for longer term benefit and impact – positive to see. City deal discussions picked back up to try to accelerate tourism investments.
- HIE launched Community Tourism Leaders programme in partnership with South of Scotland, second cohort looking to launch around September. Let’s Go Adventure programme, Highland region and funded through Highland Region Deal. Some business as usual work coming through. Some work initiated on destinations and their longer-term sustainability.
- Business Gateway seeing continued interest in start-ups, happening a lot quicker as had time to think of ideas. Working with Government and Enterprise agencies on promoting the guidance ‘Promote Support’ second phase coming along. Directing businesses to where to find content guidance i.e. Business Gateway, PACE. Campaign to get back virtually to local offices. Digital Boost about upskilling, budget confirmed. Working with SE colleagues on early Precede Fund, working closely to get business into this at an early stage. Challenge Fund launched Monday 20 July - promoting to businesses – not aimed too much at tourism side of thing, more technical and innovative.
- VisitScotland marketing film had one million shares on social media which is more than any other film that VS has sent out. A third of shares by Scots, much higher than usual, so messaging getting across to domestic market for Scots to holiday in Scotland. Anxiety regarding information that visitors are getting when they are here. Not about complaints that business not complying to safety standards, but about littering and some anti English bias.
Industry Update
- The STA council convened on Monday 13 July with the Cabinet Secretary in attendance.
- Marc Crothall highlighted the following observations from visits to businesses on 14 and 15 July.
- Disappointing occupancy rates in Dundee and Edinburgh. There is concern that a reduced proposition within the hotels and in the cities will discourage visits (top visitor attractions currently closed, leisure facilities closed, no weddings or events can take place).
Note: STR occupancy rates Glasgow 5% July, 9% August, 13% September. Edinburgh 7% July, 14% August, 15% Edinburgh.
- Generally many business are still closed, a phased opening over the coming days / weeks is expected.
- Employees are very upbeat and seemed pleased to be back at work.
- PPE being worn by everyone, visors appear to be the preferred option
- Bookings for self-catering accommodation is strong. Visitors are more confident about self-catering, visitors remain anxious about staying in a hotel.
Note: VisitScotland is working with hotel groups (particularly city centre) to see if there’s anything they can do to help.
- The early opening of self-catering accommodation has given a boost to some restaurant businesses offering take away service.
- Visitor numbers at attractions were very low
- In terms of traffic on the west coast, there were no coaches or foreign cars and hardly any caravans or campervans. No signs of wild camping. No unwelcoming signage telling tourists to go home. - It was noted that the ferry situation is now easing both for the west coast and the north coast given the recent changes made by the ferry operators.
- One of the key challenges which remains is the perceived threat of quarantine for English visitors. Businesses are still experiencing cancellations due to this. It was noted that this needs to be addressed.
It was highlighted that the VisitScotland marketing campaign targeting England will be launched on 27 July (subject to approval by the First Minister) and this should help to convey a positive welcoming message and drive demand. A date for Europe / international is TBC and will be subject to First Minister approval. - It was noted that the vast majority of businesses believe that the recent VAT cut to 5% is to help businesses and in the main the majority are holding their prices. Some of the big brands however have reduced their prices e.g. Wetherspoons, Pret and McDonalds.
It is being picked up that there are self-catering accommodation providers who have put their prices up significantly – it was highlighted that this needs to be monitored.
Scottish Tourism Recovery Task Force (STRT)
- The second meeting of the Task Force took place on Friday 10 July. An update from the Demand working group, (led by Malcolm Roughead) and the Recovery working group, (led by Marc Crothall) was provided at this meeting.
The papers and minutes of the meetings will be published on the SG website. - The next meeting will be held on Thursday 20 August.
- It was noted that the Recovery working group will address business recovery and workforce recovery. In addition, the Recovery working group will address immediate to facilitate recovery now as well as longer term needs to aide recovery over the coming 12 months and beyond.
It was highlighted that a proposal was currently being scoped to address the immediate need to protect the current workforce from displacement and in particular the rising stars of the industry. A paper will be presented to STERG for consideration before it is proposed to the Task Force. - It was noted that the Demand working group should consider other levers for stimulating demand – not just marketing.
Tourism and Hospitality Guidance / Good to Go Scheme
- Further guidance and clarity is urgently required in the following areas:
- Hotel services such as meeting and event space, weddings, health clubs, pools and spas; conference and exhibition centres; night-time economy venues; amusement arcades and major events.
- Extending the reduced physical distancing rule from 2 metres to 1 metres (with the necessary mitigating measures in place) to all other areas of the tourism sector for example visitor attractions, outdoor activity providers, boat operators.
- Consistent interpretation and enforcement of sector guidance across Scotland.
It was advised that guidance for other areas of the tourism sector are with Public health Scotland and that we are waiting on a response.
The Scottish Government team advised that they will liaise with colleagues to understand the progress being made on the 2 metres to 1 metres physical distancing rule. - Currently c. 4,500 businesses in Scotland had signed up to the Good to Go scheme. VisitScotland are encouraging businesses to include the ‘We’re Good to Go’ mark on social media, websites and listings, (including OTA platforms). It is expected that the number of businesses signing up will continue to grow as more and more businesses open. VisitScotland will continue to encourage businesses to sign up to the scheme.
It was highlighted that businesses should also be encouraged to sign up to the ‘Eat Out to Help Out’ scheme, including hotel restaurants.
Funding Packages Update
- The South of Scotland Enterprise Agency advised that they are currently looking at where they could provide assistance to smaller businesses for example, education or business support.
- B&B fund has generally been well received despite the glitches.
- Enterprise agencies and VisitScotland are continuing to work with the Scottish Government on possible options for additional funding support. As yet there is no time frame for any additional funds.
An update on NDR grant applications through the local authorities can be found here.
@ 14 July
- c. 105,000 applications received
- c. 86,000 grants awarded
- c. £969 million awarded
STERG Action Plan
- The refreshed Action Plan (8 July) was published on VS.org on Monday 13 July.
The next refresh will be published at the beginning of August. - Following the STERG meeting on 9 July the Scenario Planning working group have agreed the next steps on the project, including a revised timeframe for delivery.
A work in progress document will be available for comment by STERG w/c 3 August. A final document will be available to STERG (and the Task Force) w/c 10 August.
Redundancy update
An update on redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured.
VisitScotland update
An update on the community engagement activity being undertaken by VisitScotland will be circulated to STERG next week for information.
Action: Ken Massie to circulate the document to STERG through Riddell Graham.
It was highlighted that there are some brilliant local initiatives going on, which are really good examples of community collaboration e.g. Cairngorms and Orkney. Case study examples can be found on VisitScotland.org.
Travel Tech for Scotland initiative
A pre-launch summary of the new Travel Tech Scotland initiative was circulated to STERG in advance of the STERG meeting for information. This new initiative is expected to launch in mid-August and is intended to support SMEs in the RESTART phase. Progress will be tracked in the STERG Action Plan.
It was noted that a press release about the new Interface ‘Adopt a Business’ initiative was published this week. Although the deadline for the initiative has past, tourism businesses can still contact Interface about working with academic partners.
AOB
- Despite the First Minister’s recent announcements it was highlighted that there is still confusion among the general public about Scotland’s position on potential quarantine measures for visitors from England. There is an urgent need for the First Minister to clarify this as soon as possible.
Action: Scottish government team to progress.
Next meeting date
Note: STERG meetings scheduled for Thursday 23 July and Thursday 30 July will now move to Wednesday 22 July and Wednesday 29 July.
Scenario Planning – progress update
An update on the scenario planning work was provided by Chris Greenwood.
-The purpose of sharing the progress on the development of the scenario plans is to agree that the work done so far meets STERGs requirements.
- The draft framework which has been developed collaboratively between the Scottish Government, VisitScotland, HIE, SE and STA, recommends a set of assumptions and uncertainties which have been used to create 4 scenarios based on consumer demand and capacity to accommodate.
- An initial draft was shared with the Scottish Tourism Consultants Group for external feedback, the draft was then further refined after extensive discussions.
- The recommendation of the working group is to progress with the development of the 4 scenarios unless STERG requires something different.
- The current timeframe for delivery is mid-August.
- Initial scenario planning discussions within the Scottish Government had agreed that the priority was to create a set of planning assumptions and scenarios e.g. best, worst, medium case which would inform the recovery plans and the interventions required.
- Concern was raised over the timescales for delivery as it was hoped that the Task Force could use the scenarios in their work. The Task Force will be submitting their recommendations end of August / beginning of September. It would be useful to have this piece of work earlier than mid August.
- It was agreed that the work completed so far met requirements and that the two variables which address high or low visitor demand and high or low capacity to operate was acceptable. However, it was agreed that the next steps in the development of the scenarios needed to look at a more granular level of detail, i.e. by sub-sector and geography. This information will help drive investment decisions into the right areas.
- Overall the two most important points for the Scottish Government are: 1. Everyone is working to the same set of assumptions. 2. If things don’t go to plan we can begin to put actions or investments in place to mitigate the impact.
- It was noted that although the scenarios would be important for the public sector, it would also be beneficial if they were accessible and useable for businesses.
- Next steps were agreed and summarised as follows:
- Current approach is agreed and should progress
- Narrative for each of the four scenarios will be developed and will now include sector specific / geography specific information
- An economist overlay will provide a view on the economic implications, this won’t be quantitative but should provide a trend e.g. occupancy, employment will decline marginally / decline significantly etc.
- Timescales will be reviewed in order to deliver a document by the end of July, for review by STERG on Thursday 6 August TBC. It was highlighted that the document produced by the end of July will act as the foundation for ongoing work, as the situation evolves the document will be updated.
Industry update
- The next STA council meeting will convene on Monday 13 July with the Cabinet Secretary in attendance.
- Concerns continue over ferry capacity issues and the impact this is having on tourism businesses / local economies on the islands.
- It still remains unclear what businesses will open / will not open on 15th July. The STA currently have a survey open to capture this data. Insights will be shared once closed.
- Clarity still required on:
- Opening of hotel leisure facilities, spas, swimming pools etc. (It was noted last week that Active Scotland are expected to publish guidance on the opening of pools on 13th July).
- Clarity on any guidelines for weddings / small gatherings / small events, e.g. cap on numbers. In England the guidelines have been quite strict.
Scottish Tourism Recovery Task Force (STRT)
Minutes from the first Task Force meeting on the 25 June were circulated.
- Three workstreams have been created to focus on three priority areas, 1. Stimulating Demand – led by Malcolm Roughead 2. Sector Recovery – led by Marc Crothall 3. Investment – led by Malcolm Buchanan.
- The next meeting of the Task Force will be held on Friday 10 July. An update from the Demand and Recovery workstream will be provided at this meeting.
Tourism and Hospitality Guidance / Good to Go Scheme
- As of 8 July, 3,717 businesses in Scotland had signed up to the Good to Go scheme. Positive feedback has been received from people accessing the portal. The ‘We’re Good to Go’ mark is now being seen on social media, websites and listings.
- It has been noted that there is an inconsistent approach by Environmental Health and Trading Standard to the interpretation and application of the sector guidance. In particular a number of inconsistencies have been picked up across different cities and within the same cities. VisitScotland has picked this up and are dealing directly with the central bodies for Environmental Health and Trading Standards.
Community Engagement and Community Sentiment
- VisitScotland has taken a three tier approach to community engagement. In areas where there are known sensitivities a series of round table webinars have been held with councillors, local community groups, local tourism partners etc. and generally these have been very positive with very few areas of concern. The VisitScotland regional teams have engaged with communities in all areas across Scotland. This activity will be completed at the end of next week.
- The Scottish Government highlighted that they were receiving increasing correspondence particularly from people in England who are saying that they don’t feel welcome in Scotland and are cancelling bookings. The message is that of course people are welcome in Scotland however you should think about whether you want to travel.
- It was noted that VisitScotland messaging echoes the welcome message. It was noted that a number of community groups / destinations have developed their own welcome messages.
- It was highlighted that VisitScotland has developed its own visitor charter and is showcasing case studies on VisitScotland.org.
- Regarding anti-English messaging, IRM’s are not picking up anything significant on this, it would appear that there are a few noisy people on social media who are driving it.
- Key themes for community engagement activity was around basic services, e.g. public toilets, car parking, litter, public realm etc.
- It was noted that HES are expected to announce today what venues will be open and when. It was also noted that the work ASVA is doing with the Moffat Centre to map what Visitor Attractions will be open, should be completed and published by the end of next week – this will of course change as time goes on.
- It was highlighted that the First Minister is very concerned about community engagement and it’s very good to hear positive feedback on reopening from the activity that the VisitScotland team has been undertaking. It was noted that it would be useful to share this feedback with Ministers. Action: VisitScotland to prepare a paper on the community engagement feedback for Ministers.
Funding packages update
- The final stages of queries and appeals for the Pivotal Enterprise Resilience Fund and the Creative Tourism and Hospitality Enterprises Hardship Fund are in progress and will be completed within the next 7-10 days. A PERF breakdown is available for STERG. It is expected that the Scottish Government will publish a breakdown of the data relating to these funds, however no publication date is yet known. Action: Aileen Lamb to circulate the PERF breakdown to the group.
- Enterprise agencies and VisitScotland are working with the Scottish Government on possible options for additional funding support. As yet there is no time frame for any additional funds.
- An update on NDR grant applications through the local authorities was provided. - c. 101,000 applications received - c. 84,000 grants awarded - c. £942 million awarded. An update on the newly self-employed hardship fund was provided. - 7,762 applications received - 5,282 grants awarded - £10,564,000 awarded
An update was provided on the B&B Hardship Fund
- 511 applications received - 184 grants awarded - £552,000 awarded It was noted that the Newly Self-Employed Hardship Fund, Small Business Support Grant, Retail, Hospitality, Leisure Support Grant and Bed & Breakfast Hardship Fund will close to applications at 5pm on 10 July.
At a recent meeting of local government representatives and Fiona Hyslop it was highlighted that local government was best placed to deliver a place based response to economic recovery and it was proposed that any underspends could be used flexibly with local businesses, particularly those businesses who continue to fall through the funding gaps.
It was noted that there is no data available for the Creative Tourism and Hospitality Enterprises Hardship Fund.
A question was raised as to whether it was possible to find out the number of self-catering businesses who applied for a grant but were rejected due to the 140 day occupancy rule. It was not known whether that data was available however it would be raised on the project group call later in the afternoon.
STERG Action Plan
- The working group reviewed and updated the STERG Action Plan as appropriate. A refreshed Action Plan (8 July) was approved for publication by STERG. Action: Karen Christie to liaise with the team at VisitScotland on publication.
- The scope of Action 7.3 “Ongoing economic analysis to understand the impact of the COVID-19 crisis across the geography of Scotland and across the sub sectors of the tourism industry.” Is to be progressed by the Scottish Government team.
- It was agreed that the VisitScotland business barometer would be adjusted to capture additional data which could inform recovery.
Redundancy update
- An update on redundancy information was circulated prior to the meeting. No further updates were noted. Confidentiality of this information was assured.
Partner updates Skills Development Scotland
- The recommendations from the Enterprise and Skills Strategic Board on measures to mitigate the impacts of COVID-19 was published on 3 July. SDS, the Scottish Government and Job Centre Plus are currently in discussions about the funding to support the recommendations of the report (as well as the Chancellor’s recent announcement). The funding position should be clearer by the end of July.
Enterprise Agencies
- On 2 July HIE relaunched the ‘Communities leading in Tourism’ programme. This is a programme to help community development organisations and social enterprises support the recovery of rural Scotland’s tourism sector. People working in community development with an interest in tourism, can apply for one of 15 places on the programme starting in late September and running until December. https://www.hie.co.uk/communitiesleadingintourism
Holiday cover for future meetings
- STERG meetings will continue over the summer period. Substitute representatives from member organisations are welcome.
Industry Update
The STA Destination Members Forum took place on 1st July. A key area of concern that was highlighted and discussed was community engagement and community sentiment – in particular island destinations where media coverage is amplifying concerns e.g. telegraph article on 30 June.
There was an ask for marketing activity to counter the suggestions that visitors are not welcome and that Scotland is shut. Frances Pacitti, Director of Aviation, Maritime, Freight and Canals at Transport Scotland joined the call and took questions specifically relating to the concerns about the ferries. Discussions are continuing off line.
There is increasing news about impending redundancies particularly in smaller businesses. Hotel occupancy is not seeing the expected pick up particularly in some of the larger hotels such as Crieff and Macdonald Hotels – consumer confidence continues to be a concern
It is hoped that the self-catering sector are able to get off to a good start this weekend. The STA will continue to reinforce messaging around supporting communities and behaving responsibly.
Scottish Tourism Recovery Taskforce (STRT):
The first meeting of the Taskforce took place on 25 June. A formal communication following the meeting is expected – to include members of the Taskforce. Action: Fiona Cook to press for the post meeting communication to be published.
The Taskforce will focus on 3 workstreams, Demand, Recovery and Investment. Output from these workstreams will inform STERG actions.
A section for the Taskforce has been created on VS.org.
VisitScotland Meeting with Cabinet Secretary and MSPs:
VisitScotland met with 45 MSPs on 1 July. The MSPs in attendance represented all parties and all geographies across Scotland.
VisitScotland provided an update on STERG and shared their Marketing plans. The overarching theme of the meeting was community concerns.
Overall it was a very positive session with a lot of questions raised. The questions raised can be shared with the group as required.
Tourism & Hospitality Guidance / Good to Go Scheme:
Around 2,000 businesses have signed up to the Good to Go scheme across Scotland. C. 900 are self-catering however there is also a good range of hotels, B&Bs, guest houses, pubs and food outlets. A breakdown is available to STERG if required.
The following outstanding concerns on the guidance were raised:
1. Ensuring the consistency of interpretation and application of the guidance by EHO’s across local authorities.
VisitScotland have a direct link to the chief local authority officer coordinating EHOs and will pick this
up.
2. Opening of hotel leisure facilities, spas, swimming pools etc.
- It was noted that Active Scotland are expected to publish guidance on the opening of pools on 13 July.
3. Clarity on any guidelines for weddings / small gatherings / small events, e.g. cap on numbers. In England the guidelines have been quite strict.
4. Greater clarity required on how to deal with visitors / conference delegates / event attendees who are showing signs of COVID-19 either while staying with accommodation providers or attending an event.
This is particularly challenging for island communities, those who have travelled via public transport or
those who live overseas where returning home may not be possible.
This has been highlighted to James Johnston, Scottish Government lead and more specific guidance is expected to be published shortly.
It was noted that the sector guidance is a live document and will continue to change and be updated as frequently as required.
Funding Packages Update
The final stages of applications and appeals for the Pivotal Enterprise Resilience Fund and the Creative Tourism and Hospitality Enterprises Hardship Fund are in progress and will be completed imminently.
It is expected that the Scottish Government will publish a breakdown of the data relating to these funds, however no publication date is yet known.
An update on NDR grant applications through the local authorities can be found on the Scottish Government website. Read the business support fund grant statistics.
The VisitScotland Destination and Sector Group COVID-19 support scheme has now allocated all funds. 83 organisations received funding totalling c. £520k.
STERG Action Plan
The updated STERG Action Plan was published on VisitScotland.org this week.
https://www.visitscotland.org/supporting-your-business/advice/coronavirus/sterg/national-action-plan
It was agreed that the SE weekly economic reports did not provide a sufficient level of tourism sector information for STERG to address Action 7.3, “Ongoing economic analysis to understand the impact of the COVID-19 crisis across the geography of Scotland and across the sub sectors of the tourism industry.”
It was suggested that the content presented by Kevin Brady and Chris Greenwood at the first Scottish Tourism Recovery Taskforce meeting on 25 June may be more relevant to STERG.
Action: Karen Christie to circulate the presentations provided by Kevin Brady and Chris Greenwood at the first Scottish Tourism Recovery Taskforce meeting for STERG to review.
A working group led by SG has continued to develop the scenario planning work. The working group are requesting to ‘check in’ with STERG on Thursday 9th July to share the approach taken, the work progressed so far and the anticipated outputs to ensure the work still meets with STERG’s expectation.
Action: Karen Christie to invite Kevin Brady, Scottish Government to join the next STERG meeting on 9 July.
It was agreed that a STERG planning session will be planned for the end of July / beginning of August once the output from the scenario planning work is available and the output from the Taskforce workstreams are known.
The working group will continue to refresh the Action Plan on a regular basis.
Action: Karen Christie to schedule the STERG planning session (estimated w/c 13 August).
Scottish Government Update:
Priority continues to be on the questions and issues arising from the Tourism & Hospitality Guidance, in addition there is a focus on the discussions about people entering Scotland and being prepared for the changes that are anticipated to be announced this week by the FM.
Redundancy Update:
An update on redundancy information was circulated prior to the meeting. No further updates were noted.
It was agreed to continue to collate this information while appreciating that it is difficult to ensure it is kept up to date.
Partner Updates:
Enterprise Agencies
Focus remains on getting the funding awards out to businesses as quickly as possible and advising Scottish Government Ministers on funding gaps.
Next Meeting Date
The next meeting will convene on Thursday 9 July, 11.00am-12.00pm.
Scottish Government Guidance
The Scottish Government launched the Tourism & Hospitality Sector Guidance on 18 June. So far the guidance has been viewed 15k times.
https://www.gov.scot/publications/coronavirus-covid-19-tourism-and-hospitality-sector-guidance/
VisitScotland’s ‘Get Tourism Ready’ campaign was launched at the same time to support this guidance. So far the Visitscotland web page has had 10k visits.
In addition today saw the launch of the new ‘Good To Go‘ scheme, a UK-wide industry standard and consumer mark designed to give confidence to visitors that businesses are adhering to official government and sectoral guidance.
Since the guidance was launched, one of the primary issues that has arisen is, what happens if someone contracts COVID-19 when staying with an accommodation provider? What should the business do? What would be the impact on future bookings? Is there a potential risk of closure due to self-isolation?
It was noted that the UKH guidance was very good and points to NHS advice however further clarity is required. Currently the advice is that if people fall sick while staying in your premises then they should go home so long as it is safe to do so.
It was acknowledged however that if someone gets sick on the islands then it could be very difficult to get home given ferry capacity issues and the ability to self-isolate on board.
The Scottish Government would like to work with industry to come up with a workable solution to address this. Other issues that require further clarity are:
- Wedding receptions and hotel events, is there a cap on the number of people who can attend?
- When can leisure facilities and swimming pools in hotels open
- Guidelines for exclusive use properties and large self-catering properties where multiple families may
stay together.
Advisory Group on Economic Recovery - Recommendations
Report:
The Advisory Group on Economic Recovery published it’s recommendations on 22 June. View the publication: 'Towards a Robust, Resilient Wellbeing Economy for Scotland: Report of the Advisory Group on Economic Recovery' at the Scottish Government's website.
The recommendations will be presented to the Cabinet for consideration.
The recommendations will also be presented to the Scottish Tourism Recovery Taskforce for a more detailed consideration with the opportunity to further develop the recommendations in the final
Taskforce report.
It was noted that the three direct references to Tourism within the recommendations are thought to already be underway, namely, to develop a sustainable tourism strategy (Scotland Outlook 2030 – Responsible Tourism for a Sustainable Future, was launched on 4 March), VAT reduction – this is currently a real live issue and a targeted reduction in business rates.
It was noted that Scotland outlook 2030 should be the basis for any future recommendations.
STERG Action Plan:
The working group reviewed and updated the STERG Action Plan as appropriate. A refreshed Action Plan (23rd June) was approved for publication by STERG.
Action: Barbara Clark and Karen Christie to liaise on publication.
It was highlighted that the scope of Action 7.3 “Ongoing economic analysis to understand the impact of the COVID-19 crisis across the geography of Scotland and across the sub sectors of the tourism industry.” would be reviewed once STERG members had reviewed the weekly economic reports issued by Scottish Enterprise.
Action: STERG members to confirm to Karen Christie whether the SE weekly economic reports provides
the right level of detail.
The working group reviewed the Toposophy proposal and although well received by all, the group concluded that the recommended headline actions were in the main out of scope, i.e. good proposals
but not immediately relevant to the STERG Restart or Recovery phases. It was noted that the Actions were more suited in the longer term, beyond Recovery. They may fit with the Taskforce agenda.
However they would sit well with Scotland Outlook 2030. A summary of the working group’s conclusions will be prepared.
The Scottish Government and VisitScotland are liaising with members of the working group to develop 6-9 month planning scenarios to help shape the further development of the STERG Action Plan. These are expected to be available w/c 13 July.
VisitScotland Marketing:
A webinar was held today with Vicki Miller to share VisitScotland’s new Marketing campaign. Over 200
people joined the webinar which was recorded and will be made available online.
It was agreed that the right level of marketing support to ensure Scotland’s competitiveness was critical and the group questioned whether there was sufficient funding available or whether there should be a request for more.
It was recommended that VisitScotland put in a bid through the normal channels, with the endorsement of STERG, which could allow VisitScotland to seriously upscale activity.
Action: STERG members to feed back any comments on the Marketing plan to Riddell Graham.
Scottish Tourism Recovery Taskforce (STRT):
The Scottish Government have launched details of the new Taskforce, details can be found here:
https://www.gov.scot/news/new-tourism-taskforce/
The Taskforce will meet for the first time today (25 June).
The Taskforce will be supported by the Scottish Tourism Emergency Response Group (STERG). The Taskforce will act as an advisory group with the STERG operating as the delivery arm. The STERG will be
responsible for taking forward the agreed recommendations and delivering the Recovery plan.
It is anticipated that the Taskforce will break into 3 different work streams in order to focus on the priority areas where action is required. It is proposed that STERG members will facilitate the workshops to kick this off.
Action: Scottish Government team to clarify the specific role of STERG for the workshops.
Industry Update:
Diageo has recently announced the launch of a new $100m global programme to support pubs and bars to welcome customers back and recover following the COVID-19 pandemic. “Raising the Bar” will be a two-year programme available from July 2020. £4m has been allocated to Scotland. Read the news story at Diageo's website.
Redundancy Update:
It was noted that capturing redundancy information would ensure that 1. The Scottish Government were aware of the scale of the situation and 2. Encourage the Enterprise Agencies to feed in to give the wider picture and to provide evidence if required.
It was highlighted that capturing this data was difficult however STERG members would feed in the information that they had.
Recent surveys (STA, ASVA, SB&PA) have indicated the potential threat to jobs across the sector.
Funding Packages Update:
Pauline Howie, Scottish Enterprise, provided an update to the STA Council on 23rd June on the latest status of the Pivotal Enterprise Resilience Fund and the Creative Tourism and Hospitality Enterprises
Hardship Fund.
- Both funds closed on 18 May.
- All appraisals for both funds are now complete, the only exceptions are outstanding customer enquiries
or appeals.
- All appeals expected to be completed by mid-July.
- All details of the funds, including details of the appeals process, can be found on https://findbusinesssupport.gov.scot/
- All letters to unsuccessful applicants includes a telephone number to enable a follow up call.
- Information regarding the full appraisal process and a list of all successful applicants will be published in due course.
An update on NDR grant applications through the local authorities was provided.
- c. 96k applications received
- c. 79k grants awarded
- c. £900m awarded
The new Scottish Government support fund for B&B’s operating from a personal bank account, opened
for applications on 15 June via local authorities, this fund will close on 10 July along with the other NDR grants .
It was highlighted that there have been issues with some of the criteria and Scottish
Government colleagues are currently looking at whether a relaxation on some of the criteria would be possible allowing more local authorities to exercise discretion.
Partner Updates:
Business Gateway
Business Gateway ran it’s second back To Business webinar, “Restarting the Tourism Sector in Scotland (panel discussion)” on 24 June, with Hugh Lightbody, Chief Officer Business Gateway National Unit, Anna Miller Head of Tourism, Highlands and Islands Enterprise, Riddell Graham, Director of Industry & Destination Development, VisitScotland and Jemma Reid, Consultant and Project Manager, Midlothian & Borders Tourism Action Group.
The recording can be found on the Business Gateway YouTube site.
Next Meeting Date
The next meeting will convene on Thursday 2 July, 11.00am-12.00pm.
Industry Update and Ongoing Concerns
The Scottish Tourism Alliance board met with the Secretary of State for Scotland on 11 June where the urgent need for ongoing long term financial support for the sector was emphasised along with a discussion on the implications of current social distancing guidelines on the viability of many businesses and the impact of reducing the guidelines from 2m to 1m.
Marc Crothall and Stephen Leckie met with the First Minister on 11 June. The First Minister was very empathetic to the challenges being faced by the industry and wants to work with industry to ensure that that businesses can open up as soon as it can. Details of the meeting can be found on the STA website.
The STA launched a survey on 16 June to gather data on the potential impact of the 2 metre social distancing rule on restaurants and accommodation providers, in relation to loss of employment and business viability. The survey will close on 21 June and the results will be fed back to the Scottish Government at the beginning of next week and specifically shared with the Cabinet Secretary at the STA Council meeting on 23 June. Currently there are over 1,000 responses.
This survey will complement the recent survey by the Scottish Beer & Pub Association which covered over 300 pubs and which found that it would not be financially viable for almost nine out of ten landlords to reopen their doors if the two-metre distancing guidelines were still in place – potentially leading to the direct loss of over 23,600 jobs within the trade.
ASVA are also running a survey looking at ‘Readiness to “Reopen”, which includes the implications of 2m vs 1m social distancing. This survey will close on 19 June.
The STA Board and invited leading hoteliers from across Scotland will meet with Fergus Ewing, Cabinet Secretary for Rural Economy and Tourism later today to outline the devastating impact that COVID-19 is having on these larger hotel businesses and what is needed to rescue these businesses for the future.
The threat of large scale redundancy is very real and will continue to rise if consideration is not given to reducing the 2m social distancing guidelines, looking at ways to stimulate consumer demand, (currently these larger hotels are running at c. 6% occupancy across July & August) and addressing the crippling ongoing costs.
It was noted there was some positive news. Auchrannie for example had seen very strong bookings since the announcement last week, however it was highlighted that the ferry issues remain a critical challenge.
The Scottish Government team advised that the ferries was Mr Ewing’s priority and that he was pushing hard with Mr Matheson and Mr Wheelhouse to find solutions. It was also noted that the NC500 is seeing positive movement as is self-catering who have had a strong
boost for July & August post the announcement last week.
Many questions are being raised about the sector guidance, it will be critical therefore to ensure once the guidance is published that the signposting is very clear for businesses on where to go to have their questions answered.
Scottish Government CV-19 Tourism & Hospitality Sector Guidance
The Tourism & Hospitality Sector guidance is due to be published today, 18 June. This guidance is overarching in nature and industry will be signposted to sector guidelines for further details.
It is expected that there will be a number of questions raised around whether or not specific activity can take place, a number of examples were identified:
- Functions, e.g. weddings, will there be a cap on numbers?
- Rules for exclusive use houses?
- Opening of public toilets
- Opening of Spas, health clubs etc. in hotels
It was noted that the guidance would be unlikely to give clarity on these points however it was highlighted that there will be guidance on ceremonies and the Scottish Government Route Map should give clarity on this. The mass gatherings and events guidance is due to be published on 26 June.
“Good to Go” Scheme
The VisitScotland Board has approved the “Good to Go” scheme and the Cabinet Secretary has also signed off Scottish Government support for the scheme.
VisitEngland, VisitWales and Tourism Northern Ireland have all signed up and the scheme is due to launch on Tuesday 23 June. VisitScotland will supply the Scottish Guidelines (Scottish Government Guidance and sector guidelines).
It was noted that James Johnston, Scottish Government had done an excellent job with the sector guidance as he had really listened to the needs and concern of industry.
STERG Action Plan
The latest version of the STERG Action Plan (dated 12 June) is live on VS.org.
The working group will meet today to build on and develop the Action Plan further, taking on board comments from STERG members and a recent proposal from Toposophy. All proposed changes will be presented to STERG for approval.
A first cut of the scenario planning work which is being led by the Scottish Government will be available for review this week. This piece of work will identify a set of core planning assumptions which will inform the STERG Action Plan.
Members of the new Scottish Tourism Recovery Taskforce will be announced shortly. It is expected that there will be c. 30 members. Action: Scottish Government to circulate the list of members to all STERG members.
It was noted that the Taskforce, chaired by Mr Ewing, will be a high level advisory group while the STERG will be the critical group responsible for delivery.
VisitScotland Update – Community Engagement, Promoting Businesses That Are Open, Marketing Plans
VS will take a three tier approach to community engagement. The first tier will focus on community hot hotspots with c.6 round table events being held with key community groups and others key stakeholders from the destination.
The next tier will focus on the traditional honey pots with similar round table activity and the final tier reflects the continuous data gathering by the Regional Directors and teams. All activity will kick off w/c 22 June.
It was noted that community sentiment is changing as we hear more about redundancies and unemployment. There is recognition that there are two sides to the tourism story.
It was highlighted that it was absolutely key to get community engagement activity right.
It was reiterated that the sector Guidance that has been developed is intended to provide reassurance to employees, communities and visitors. It was noted that the guidance has a section about respecting communities and the countryside.
All VS messaging is intended to provide reassurance to communities and visitors.
A detailed communication plan is in place and covers the following:
- This week will prioritise SG and sector guidance
- On Monday 22 the focus will be on the community. 5-6 community case studies which demonstrate best practice within destinations will be published.
Also next week the comms will cover the Marketing recovery plan
- Updates to vs.com to highlight open/closed, good to go will take place in the coming weeks.
- The Marketing recovery plans are currently being finalised and will be circulated when available.
Action: Barbara Clark to send a briefing paper with all VS activity to Scottish Government.
Funding Packages Update:
Pivotal Enterprises Resilience Fund and Creative, Tourism & Hospitality Enterprises Hardship Fund:
- Both funds are closed.
- All PERF appraisals are now coming to an end. It was noted that Enterprise agency colleagues have been
- working incredibly hard to process all applications.
- The appeals process is open and appeals are beginning to come through. A sectoral breakdown of grants awarded is not yet available.
An update on NDR grant applications through the local authorities was provided.
- - c. 94k applications received
- - c. 77k grants awarded
- - c. £875m awarded
It was noted that applications have started to rise again, this could be due to the fact that the NDR based grants will close on 10 July.
The new Scottish Government support fund for B&B’s operating from a personal bank account opened for applications on 15 June via local authorities. So far the uptake has been small.
Action: Hugh Lightbody to update the group next week on progress.
Redundancies
There are many hotel groups currently undergoing consultation. IHG managed, Apex, Crieff Family hotels, Macdonalds, Chardon, Radisson, Marriott with thousands of jobs at risk. There is also a large number of redundancies expected in the Visitor Attraction sector c.3-4k (TBC). One of the largest sectors with jobs at risk was announced by the Scottish Beer & Pub Association 23,600 jobs in pubs across Scotland.
It is recognised that social distancing guidelines does have a part to play, however so does the level of demand from visitors, which is currently very low, (occupancy projections to early next year do not look good), and ongoing costs such as maintaining furlough. It is acknowledged that Ms Hyslop and Ms Forbes have made the case for continued to support to the UK Treasury and there is hope that the Chancellor’s statement (6 July) will have some good news.
It was noted that there is value in collectively capturing the details of consultations / redundancies that are being announced in order to provide evidence to the Scottish Government of the scale of the impact on jobs within the sector.
Action: Karen Christie to create a spreadsheet for partners to capture key redundancy information.
To demonstrate the scale of redundancies PACE, in April & May dealt with 540 employees across 18 hospitality businesses. Last year PACE dealt with a total of 631 employees across the whole year.
AOB
Independent Advisory Group on Economic Recovery (Chaired by Benny Higgins)
- Recommendations due to be presented to Scottish Government on 22 June
- A debate on economic recovery is being planned in the Scottish Government w/c 22 June, this will be
- an opportunity for all points to be discussed
- It is expected that the recommendations will be published
Business Gateway will be running a webinar, “Restarting the Tourism Sector in Scotland (panel discussion)” on 24 June, with Hugh Lightbody, Chief Officer Business Gateway National Unit, Anna Miller Head of Tourism, Highlands and Islands Enterprise, Riddell Graham, Director of Industry & Destination Development, VisitScotland and Jemma Reid, Consultant and Project Manager, Midlothian & Borders Tourism Action Group. Find out more about the webinar at the Business Gateway event listing.
It was recognised that Jemma Reid, Consultant and Project Manager, Midlothian & Borders Tourism Action Group has been a star in terms of communicating with businesses during this crisis and was a
great example of a Destination Organisation.
VisitScotland Industry Impact Survey
It was acknowledged that there are many industry surveys circulating right now and therefore there was no need for a follow up Industry Impact Survey. However it was agreed that we should continue to
monitor the situation to see when the time could be right.
Next Meeting Date
The next meeting will convene on Thursday 25 June, 11.00am-12.00pm.
Industry update and Ongoing Concerns
The importance of reducing the social distancing guidelines from 2m to 1m, this has a critical impact on the viability of many businesses and also has a significant impact on ferry capacity and therefore our island communities.
- Clarity is urgently required on the opening date for pubs and restaurants with outdoor spaces that are identified in Phase 2. If the target publication date for the Tourism & Hospitality sector guidance is 18th June, when can these businesses open? There are many factors to be considered e.g. licensing, planning, access to toilets etc. A statement from the Scottish Government on this is needed quickly.
- In Phase 3 clarity is required on the reopening of gyms, pools, spas etc, can the full product be opened on 15th July?
- Clarity also required on when zoos and safari parks can open in Scotland, in England they can open from 15th June.
- An announcement is expected on Friday 12th June in the UK Parliament about English Conference centres being re-classified and placed under the same category as pubs, hotels and restaurants in England, differentiating these venues from mass gatherings. Could this also be considered in Scotland?
- Overall an opening date is welcomed, however this is only the start of a very long and difficult road ahead. Recent announcements of potential job losses across hotel operators and in the Visitor Attraction sector is devastating for the ndustry and emphasises the urgent need for ongoing support to ensure the survival of the sector.
The Scottish Government team asked for the issues highlighted to be forwarded to them in order to respond directly. In addition the team advised that the Scottish Government continue to press for furlough extensions as well as a funded sector recovery plan across the UK. Within the Scottish Government there is the ability to tailor support to suit Scottish businesses if the right information is provided.
STERG Action Plan
The working group updated and circulated the Action Plan for approval at the STERG meeting.
The Action Plan was approved, however it was agreed that the timing of each of the 4 phases in the plan
should mirror the timing of the Scottish Government’s Economic Response Plan. It was agreed that the refreshed Plan should be accompanied by a narrative which clearly states that this is not the reopening timetable.
It was recommended that Tracey Martin, Falkirk Council (Deputy Chair, SLAED Tourism Group), join the
working group as the local authority representative.
The working group will meet w/c 15th June to build on and develop the Action Plan further.
Tourism & Hospitality Sector Guidance and “Good to Go” Scheme
The STERG sub-group which was recently set up with representatives of a number of sector bodies, met on Friday 5 June with James Johnston, the Scottish Government lead on sector guidelines and three union representatives, to comment on the Scottish Government’s draft Tourism and Hospitality Sector Guidance. The target publication date for the final document is 18 June. When published the document will link to the detailed guidelines which have been developed by the different sector bodies.
VisitScotland are working very closely with James Johnston on a communication plan.
The “Good to go” scheme, (an online self-certification platform), developed by VisitEngland, has now
been approved by the VisitScotland board. VisitScotland will be discussing the scheme further with
VisitEngland, VisitWales and Tourism Northern Ireland on a call this afternoon.
It was noted that the scheme does not yet have approval from the Scottish Government and there was
still further questions to be answered before it would be put before Ministers for approval.
It was highlighted that industry have been asking for such a scheme and would be very supportive of VisitScotland’s decision to approve.
Community Engagement
The importance of community engagement is strongly recognised and VisitScotland are developing a plan which addresses this involving the regional VisitScotland teams and Keep Scotland Beautiful. The plan includes showcasing best practice and already there are many positive examples from different destinations. It was also noted that other islands issues, in particular transport and the positive and negative views from communities will also feed into this plan.
It was acknowledged that there