Boost for Scotland’s hospitality industry following years of decline

Scotland’s hospitality industry is showing signs of recovery following years of decline, according to a new report.

A review by the Scottish Licensed Trade Association (SLTA) surveyed 600 retailers within the hospitality sector across Scotland, with 49% of respondents recording growth in their business over summer.

The figure for the same period last year was 38%.

The majority of retailers surveyed posted their optimism that this upwards trend will continue until the end of the year, with 83% expecting growth or stability.

Outlets in rural and countryside locations remain challenged however, with over a third (36%) of pubs in those areas in decline, although this figure is down from the number previously recorded (46%), suggesting a more positive outlook than a year ago.

Food and beer are both under-performing versus the market, although 80% of outlets reported either parity or growth in independent/craft beer sales.

Soft drinks are performing slightly ahead of the market with 80% of outlets reported to be either stable or growing, but spirits have slightly underperformed.

Colin Wilkinson, managing director of the SLTA, said: “Our survey is an indicator of the key challenges facing the wide range of small to large businesses who trade within the wider hospitality sector, covering pubs, clubs and hotel groups.

“This report demonstrates our ambition for retailers to work with manufacturers and brand owners by sharing the front line key insights which our retailers are uniquely able to provide to manufacturers and wholesalers.”

Alistair McAlinden, head of hospitality and leisure for auditors KPMG in Scotland, added: “It is positive to see that almost 50% of respondents have reported growth during 2018 – an improvement on the prior year.

“Whilst out-of-town trading conditions remain challenging, declining performance for rural operators appears to be abating.”