Tourism and hospitality firms need support ... as do staff

The announcement included a new taskforce to focus on the sector’s recovery priorities, actions required from the UK Government and the launch of a new domestic tourism marketing campaign. Immediate requests have been made of the UK Government to review VAT rates and to consider extending the Coronavirus Job Retention Scheme, which is currently expected to cease in October.

The hospitality sector, and the 160,000 people working in it in Scotland, could certainly do with some hope. With hundreds of job losses announced in recent weeks by large employers like The Restaurant Group, Kimpton Hotels, Chardon Hotels and Marriott Hotels, uncertainty beckons. But this is also a sector with a woeful track record of poverty pay and precarious contracts, so both Governments must work to ensure not only that jobs are saved, but that they are high-quality jobs.

READ MORE: Coronavirus threatens up to 1800 jobs at Macdonald Hotel chain

The UK Government must recognise the unique challenges faced by the sector, which was the first to close and will likely be last to reopen. France recently announced a two-year partial activity scheme whereby employees can work fewer hours – to account for reduced operations and reduced business income – and be partly supported by the state. In comparison, the UK plan to bring the furlough scheme to an abrupt end would cause immense suffering, as well as creating a need to pay social security benefits to millions of unemployed workers. Retaining jobs beyond the lifespan of the current furlough scheme would serve as a vital lifeline for hospitality businesses and workers.

As Fergus Ewing’s proposed reopening date for the hospitality sector looms, support to adapt will be crucial. Clear, coherent and detailed guidance coupled with practical support must be made available to the sector prior to opening to ensure that staff and customers are safe and comfortable as businesses reopen. This is not only an essential public health measure. The regrowth of the hospitality and tourism economy will be immensely reliant on customers’ confidence, as people are unlikely to spend their time and money in places where their health is at risk.

With the imminent need to adapt, there’s an opportunity to accelerate the “spaces for people” agenda that was already being developed in urban areas; ideas like Low Emission Zones, traffic reduction, expansion of pedestrianised zones and cycle ways, and the creation of outdoor street space for cafes, bars, pubs and restaurants. The Scottish Government and local authorities have a central role to play in removing existing barriers to expanding outdoor seating and obtaining outdoor licensing. Letting businesses open later would help too, as reduced physical capacity means serving fewer people at a time.

There’s no single solution that will work everywhere, but if we want our communities to be vibrant, attractive places to spend time in we’ll need to reimagine our public spaces.

We’ll also need to make sure the jobs are high quality, by ending exploitative practices. Before the coronavirus outbreak, 60% of accommodation and food workers were paid below the real Living Wage of £9.30 per hour – the lowest hourly pay across all sectors in Scotland. That is not to say that there aren’t a number of responsible hospitality employers who value their staff properly. We’re unlikely to see employers rushing to uplift their staff to the Living Wage when many haven’t made a penny in three months, but this crisis has exposed the precarious nature of hospitality work and the low levels of pay that exist. We mustn’t give up on the urgent need to correct that.

A lot of the power on this currently lies with the UK Government, although the Scottish Government does have a role to play. One suggestion has been for employers who have Living Wage accreditation to be offered additional financial support to cover the extra cost. Another approach might involve striking a deal, whereby the UK and Scottish Governments adjust VAT and non-domestic rates for hospitality and tourism businesses in exchange for a commitment to pay their staff the Living Wage.

If we want this sector to “build back better”, putting an end to precarious contracts and poverty pay, we mustn’t let those employers with ethical practices be the ones that end up folding. Hospitality is a notoriously high-pressured, stressful environment, and coupled with traditionally low employment standards the result has been anxiety and financial insecurity. But if we take the urgent action needed to protect quality jobs, support adaptation and rebuild the sector to a higher standard, we could make this not just a successful part of our economy, but also a genuinely good place to work in the years to come.