Major hotel operators have warned that a hospitality meltdown is in sight as they plan for mass redundancies and hotel closures by the end of March.
A cash injection from the government is needed NOW say bosses.
Angela Vickers CEO of Apex Hotels says, “The industry is taking things day by day, but by the end of the month there will be a mass impact on jobs if we cannot get financial help we will have to lose hundreds of jobs if we can’t get financial help. Our industry is asset rich not cash rich and cashflow won’t take very long until it has dried up. I have spoke to hoteliers across the country and many are afraid that come the end of this month they will go under. ”
A view shared by fellow hotelier Maroulla Nicholas, “Everyone has been doing their very best but this is destroying my business.”
It is thought that up to 150,000 jobs could go in Scotland and 1.5 million nationally.
President Macron of France has promised that “no businesses in France will go under because of this”, and UK hospitality businesses need the same support.
A statement is expected by the Chancellor at 7pm tonight and industry bodies have been lobbying furiously making their case for support.
The issue facing the hospitality industry is one of massive cashflow shortfalls due to the fact there are virtually no customers.
UKHospitality is urging a single UK-wide support for all hospitality businesses to help meet payroll and have suggested a cash fund, VAT and PAYE repayments and rates breaks.
Companies are already laying off hotel personnel across Scotland and that looks set to infect the industry quicker than any virus.