Another tough year for Scottish hotels

by Alister POOLE on February 11, 2011

A recent report by PFK predicts that Scotland’s hospitality sector will face yet another hard year. Large drops in occupancy and revenue capped 2010, following massive snow falls and rising oil prices. For several days in December, Edinburgh Airport was out of commission due to heavy snow. The occupancy rate dropped 8.5%.

Despite the December figures, Scotland had the highest occupancy figures for the UK during 2010 at an average of 71.6% compared with 69.4% for the UK as a whole.

Although Edinburgh recorded a large snow fall in December, the capital was one of the top three performing cities for last year with an average occupancy rate of 77.0% and an average room yield of £67.65. Alastair Rae of PKF said that the numbers show how bad weather has affected the Scottish hotel sector, with a significant cancellation of leisure and business trips.

PFK suggests that annual data shows that Scotland had a relatively good year considering the economic situation. With consumers worrying about public sector cuts and the performance of the economy, the continuing depression in the housing market, and the potential upturn in interest rates, it is evident that the hospitality industry in for another rough year.

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