Cash must be distributed before Christmas to avoid hospitality businesses going under.
That is the view of Skye tourism organisation SkyeConnect.
A wave of cancellations has led to numerous businesses in Skye and Lochalsh being left thousands out of pocket.
The cancellations came in the wake of an anticipated “tsunami” of Covid cases after guidance offered by the Scottish Government urged people to avoid Christmas parties.
The advice led to many cancelling at short notice, leaving cafes, bars and restaurants to pick up the pieces.
Many had already purchased food to be used at parties, with staff, already scheduled to work, requiring wages.
Hospitality businesses on Skye have reported losses in the thousands due to cancellations.
Extreme financial loss for Skye’s hospitality industry
Following a request from Highland Council to gather data, the islands destination management organisation compiled a snapshot survey.
It homed in on the Skye and Lochalsh area.
Open for 24 hours, the survey analysed the responses of 13 businesses representing cafes, bars, hotels and guest houses.
More than three-quarters, 78%, said that they had suffered cancellations ranging from 30% to 100% of their December bookings.
Financially, losses between £3,000 and £15,000 have been felt on food and beverage alone.
Those offering accommodation on Skye have reported lost bookings of up to £25,000.
Calls for quick payment to avoid closure
Dave Till, SkyeConnect’s chairman, is calling for the government to pay compensation as quickly as possible to avoid business closures.
On Tuesday, First Minister Nicola Sturgeon announced a £100 million fund to compensate the hospitality sector for lost bookings.
Mr Till said: “The one thing we all know about business is the importance of certainty around the trading environment.
“We accept that no-one can predict the next phases of the pandemic, but hospitality businesses were relying on bouyant Christmas trade.
“The optimism that we heard in a previous SkyeConnect survey has been wiped out in just a few days following direct advice from the government.
“Our latest survey is just a snapshot taken over 24 hours. But if the figures are replicated across the country the scale of losses will be staggering.
“We asked our businesses if they could provide evidence to support their losses.
“The vast majority said they could.
“On this basis we would urge the Scottish Government to put the compensation claim process in place before Christmas so that no business goes under as a result of government advice.”
Public health of ‘paramount importance’
The Scottish Government has said it understands the frustration being felt.
However, it stressed that public health is of “paramount importance” due to the spread of the Omicron variant.
A spokesman said an additional £100 million has been allocated to ensure the self-isolation support grant is available to those who need it, alongside a £100 million financial support package.
He added that clarification is being sought from the UK Government to identify what “additional resources” will be provided to help “mitigate the impact that this new variant has on jobs, business and our economy.”
