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Inverness business leaders and politicians react after fears raised over a potential spate of Highland hotel redundancies


By Ian Duncan

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Michael Golding of Visit Inverness Loch Ness (VILN).
Michael Golding of Visit Inverness Loch Ness (VILN).

There was a shocked reaction from Inverness business leaders and politicians after concerns were raised that the Highlands could be hit with a spate of winter redundancies.

It has been predicted that job losses could impact the region’s essential migrant workforce – unions have already reported an increase in people being sacked rather than furloughed within the tourism sector, with many of those laid off being EU nationals.

Campaigners have issued the warning due to fears that a combination of rising coronavirus cases and the post-Brexit fallout will see tourism businesses shedding jobs.

Inverness MP Drew Hendry said the consequences of leaving the EU were already rippling through Highland businesses as they grappled with trying to keep their struggling businesses afloat throughout the Covid crisis.

He said: “For many tourism businesses, an already difficult trading period has become impossible, leaving workers facing the prospect of losing their job and, for some, a roof over their head.

“Among them are many EU citizens who are integral to the Highland economy and our recovery as we deal with the fallout from Brexit.

“While far from perfect, the furlough scheme is designed to keep folk in work, and I urge Highland businesses to make use of this mechanism if they can.”

Inverness-based economist Tony Mackay said: “The tourism industry has been badly affected by the coronavirus pandemic and there is little doubt that things will get worse over the next few months. With the new level four restrictions all the local hotels, B&Bs and related places have been forced to close.

“The impact on employment, however, is less clear because of the government’s furlough schemes and other special assistance. It seems certain there will be a big rise in unemployment in the region when those schemes end.”

He said last week’s warning highlighted the fact many people working in tourism and hospitality were from the EU and other countries, rather than being Scottish or UK nationals. He added: “They are now affected by the UK’s decision to leave the EU and many have already left the Highlands to go back to their home countries.

“An obvious conclusion is that when the pandemic is eventually over the local hotels and other businesses affected will have serious problems finding suitable workers. In the long run more local people could be trained to work in these industries but in the short run I fear there will be problems.”

Michael Golding, the chief executive of Visit Inverness Loch Ness, said: “An inability to operate has created a third winter in a row for businesses who are under immense pressure.

“Our sources show there is a great appetite for local people to take advantage of the opportunities provided by local businesses and the destination reputation remains strong with future visitors.

“Businesses must be supported to be able to reach what looks to be a relatively strong and viable future market while continuing to provide employment and act as a spearhead to lead an economic recovery throughout local communities.”

Tony Story, who runs the Kingsmills and Ness Bank hotels, said that, while he was not planning any redundancies, some businesses would not be able to keep on seasonal staff and he was shocked when he saw the predictions.

David Richardson, the Federation of Small Businesses’ (FSB) Highlands and Islands development manager, said: "Tourism is a people business, and the many small, independent tourism businesses that characterise the Highland visitor economy know this only too well.

"Great customer care is one of the things that makes the Highlands special, but customer care is delivered by rank-and-file members of staff, and these employees will only care for customers if they feel cared for themselves.

“If one thing has stood out from my countless discussions with Highland FSB members throughout this crisis, it is their loyalty and commitment to their staff teams. They really value them and they want to do everything possible to protect what are, after all, their greatest assets.

“Tragically, many businesses are now struggling for their very survival, and if redundancies really must occur it will be as a last resort and not a first. Thankfully, however, while the short term future remains a major concern, the longer term prospects for the Highlands are excellent, and we must all fervently hope that things get back on an even keel soon.”


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