Coronavirus (COVID-19) business support: equality impact assessments

Detailed equality impact assessments (EQIAs) for the COVID-19 business support funding issued between March 2020 and April 2021.


Hotel Support Programme

Name of Grant:

Hotel Support Programme

Policy Lead

Judith Young/Caroline Cantin

Legal power used:

Overarching legal powers to take emergency action due to COVID.

Grant Overview:

The visitor accommodation sector is a key part of Scotland’s visitor economy, comprising 2,880 registered enterprises and accounting for 72,450 jobs[114] broken down as follows:

  • 1,690 Hotels in Scotland, supporting around 62,000 jobs – around a quarter of all jobs in Scottish tourism.
  • 145 Holiday centres and villages, around 1,500 jobs
  • 30 Youth hostels, supporting 450 jobs.
  • 680 Other holiday and other short-stay accommodation (not including holiday centres and villages or youth hostels) supporting 4,000 jobs
  • 250 Camping grounds, recreational vehicle parks and trailer parks supporting 3,500 jobs.
  • 85 Other accommodation supporting 1,000 jobs. The accommodation sector was estimated to contribute to around £1.58 billion of GVA to Scotland’s economy in 2018[115].

The sector comprises a wide range of accommodation types (hotels, B&Bs, self-catering, hostels caravan and campsites), and contributes to enhanced physical and mental wellbeing and reduced social isolation.

The accommodation sector has experienced substantial and continued reductions in trade in the period since March 2020, compared with previous years. Industry data from STR and VisitScotland indicate occupancy rates across Scotland in 2020 as being substantially below those seen in 2019; VisitScotland reports similar for B&Bs, Self-Catering and Hostels[116]. In early 2021, the situation was still challenging for the accommodation sector in Scotland: January’s (2021) Monthly GDP statistics show output in Scotland’s Accommodation and Food sector remained 66% lower than pre-pandemic levels, compared with 8.4% lower for Scotland overall[117].

The challenging situation in the accommodation sector was closely related to the considerable reduction of international visitors. For instance, ONS data for Scotland for Q1 2020 showed that there was a 17% decrease in overseas tourism visits to Scotland compared to Q1 2019[118]; ONS data for Q2 2020 indicated that international visits to the UK were 96% lower than Q2 2019[119]. Moreover, VisitBritain’s published forecasts suggest international inbound tourism to the UK in 2020 declined by 76% in terms of visits to 9.7 million and by 80% in terms of spending to £5.7 billion[120].

In December 2020, the requirement to cease trading was based on the introduction of the stay at home requirements, including the requirement not to be away from your primary residence overnight, and to remain within a limited distance of that primary residence, other than for essential/exempted purposes. Visitor accommodation offers people the opportunity to move around the country, and creates opportunities for social interaction, which was wholly incompatible with the restrictions put in place to suppress the spread of the virus.

A small number of visitor accommodation providers continued to carry on their business in accordance with the exceptions in the relevant regulations, for example, providing accommodation to key workers, or to allow for essential travel – for instance for travellers attending funerals. In the case of key worker accommodation some providers offered this free or at low cost. Even where visitor accommodation was leased for these purposes, the income generated and the operating costs meant that these arrangements did not make up for losses.

The gradual reopening of the tourism sector including visitor accommodation through summer 2020, starting with self-contained accommodation and then other types, did allow some economic activity within the broader sector. However the limits on household gathering that remained in force, throughout this period, meant that the hotel business model, which relies on socialisation, was especially hard hit, as this was fundamentally incompatible with these socialising restrictions.

Following consultation with the tourism and hospitality stakeholders, SG decided to set up the Hotel Support Programme

to mitigate the impact of Covid-19 on hotels, which were heavily impacted by the pandemic.

The £14 million fund was delivered by Visit Scotland, developed with input from the industry. It was established to provide financial support for the Scottish hotel sector.

As part of the National Performance Framework, this fund contributed to this national outcome: economy.

Executive Summary:

The Scottish Government understands the impact COVID-19 has had on businesses, which is why £4.3 billion has been committed to business support. This includes the support package of £129 million to support a range of tourism and hospitality businesses from January 2021. This emergency funding has supported otherwise strong and viable businesses as well as jobs.

In order to address the needs of the tourism and hospitality sector adversely impacted by the pandemic, a range of business support funds were introduced to provide emergency funding to help secure jobs, safeguard businesses and to alleviate hardship.

Within this context of emergency, there was limited opportunity to gather evidence on the possible impacts of these measures before their implementation. Nevertheless, this fund was set up following extensive consultation with the relevant tourism and hospitality stakeholders. More specifically, it is important to stress that there was extensive proactive engagement with this sector throughout the pandemic (and this continues) to try and address their concerns and issues, via the Scottish Tourism Alliance, who have coordinated input on behalf of the accommodation provider sector and key stakeholders. This engagement has been in place since the start of the pandemic and gives the Scottish Government a close understanding of the issues facing the sector.

The tourism and hospitality stakeholders represent businesses who have a large proportion of employees with one or more of the protected characteristics. Indeed, evidence tells us that the workforce in the accommodation sector, and broader accommodation and food services sector is comprised of people who are predominately, but not exclusively, from groups of people who have one or more of the protected characteristics below: women[121], young people (16-24 years old)[122], non-UK nationals[123] and people experiencing socio-economic disadvantage[124].

Therefore in developing this EQIA the Scottish Government is mindful of the three needs of the Public Sector Equality Duty (PSED) - eliminate unlawful discrimination, harassment and victimisation, advance equality of opportunity between people who share a protected characteristic and those who do not, and foster good relations between people who share a protected characteristic and those who do not. Where any negative impacts have been identified, we have sought to mitigate/eliminate these. We are also mindful that the equality duty is not just about negating or mitigating negative impacts, as we also have a positive duty to promote equality.

For this reason, the Scottish Government worked in collaboration with its delivery partners Scotland’s entreprise agencies and their partners to establish a rigorous assessment process in order to assure the fairness of the process.

Key Findings - impact assessment of benefits and/or disadvantages.

First, it is important to acknowledge the fact that the tourism and hospitality team does not possess any data about the socio-economic profiles of hotels’ owners.

Age: Older People and Children and Young People

We know that a large proportion of the workforce in the accommodation and food services sector are young people: 36.8% of the accommodation and food services sector workforce is aged 16-24 compared to 12.3% of the workforce as a whole[125].

Consultation with tourism and hospitality stakeholders demonstrated the importance of bespoke support for the hotel sector during the pandemic due to the unique characteristics of the sector in order to mitigate the economic impact of this unprecedented crisis. Our main concern was to design funding schemes that would be inclusive for every business as long as they meet the funding scheme’s eligibility criteria.

The Hotel Support Programme contributed to advance equality of opportunity for young people. Indeed, this fund contributed to maintain hotels’ financial viability. Since a large proportion of the workforce in the visitor accommodation sector are young people, this fund preserved jobs and contributed to advance equality of opportunity for this group of people.

Closing the age gap will require a cross-government approach and we have made a commitment as such in response to the pandemic. We established a package of support to help young people, including £60 million for the Young Person's Guarantee and £15 million to establish the Apprenticeship Employer Grant. The Scottish Budget includes an initial additional investment of £125 million for the Young Person’s Guarantee, the National Transition Training Fund and broader skills and employability support. The ambition of the Young Person’s Guarantee is that, within two years, every person aged between 16 and 24 will have the opportunity to study; take up an apprenticeship, job or work experience; or participate in formal volunteering.

Sex: Men and Women

We know that women are more likely than men to work in the accommodation and food sector industry. Women constitute 54.8% of the workforce in Accommodation and Food Services[126]. In addition, the minority ethnic employment gap is much higher for women (22.0 percentage points vs 9.5 for men, in 2019). The vast majority of part-time workers are women: in 2019, women aged 16+ accounted for three-quarters of part-time employment in Scotland[127].

Consultation with tourism and hospitality stakeholders demonstrated the importance of bespoke support for the hotel sector during the pandemic due to the unique characteristics of the sector in order to mitigate the economic impact of this unprecedented crisis. Our main concern was to design funding schemes that would be inclusive for every business as long as they meet the funding scheme’s eligibility criteria.

The Hotel Support Programme contributed to advance equality of opportunity for women. Indeed, this fund contributed to maintain hotels’ financial viability. Since a large proportion of the workforce in the visitor accommodation sector are women, this fund preserved jobs for this group of people.

Closing the gender gap will require a cross-government approach and we have made a commitment of £50m for the Women’s Business Centre over the course of this Parliament.

Race

The industry sector with the highest proportion of non-UK nationals in the workforce is distribution, hotels and restaurants – 12.5 per cent of its workforce are non-UK nationals[128].

Moreover, previous economic recessions have disproportionately impacted minority ethnic employment, and this may be repeated, especially given that a higher share of the visible minority ethnic population in employment work in the hospitality industry (31.7% vs 18.6% of the white population)[129].

Gypsy/Travellers were also most likely to be employed in hospitality at the time of the last Census in 2011 (31% of all those who were employed, compared to 21% for the employed population as a whole)[130]. Asian men and women (20%) were particularly likely to be working in wholesale and retail and accommodation and food services in 2011 compared to 6% for the employed population as a whole[131].

Consultation with tourism and hospitality stakeholders demonstrated the importance of bespoke support for the hotel sector during the pandemic due to the unique characteristics of the sector in order to mitigate the economic impact of this unprecedented crisis. Our main concern was to design funding schemes that would be inclusive for every business as long as they meet the funding scheme’s eligibility criteria.

The Hotel Support Programme contributed to advance equality of opportunity for non-UK nationals, Asian people, Gypsy and Travellers as well as visible minority ethnic population at large. Indeed, this fund contributed to maintain hotels’ financial viability. Since a large proportion of the workforce in the visitor accommodation sector are non-UK nationals, Asian people, Gypsy and Travellers as well as visible minority ethnic population, this fund preserved jobs for these groups of people.

Closing the ethnicity gap will require a cross-government approach and we have made a commitment as such. Indeed, ethnicity pay gap reporting is an important step to identifying and addressing disparities faced by minority ethnic workers. That is why we are committed to publishing an ethnicity pay gap strategy to support our objective to improve labour market outcomes for minority ethnic people in Scotland. The strategy, due to be published in spring next year, will support employers to evidence how different minority ethnic groups are represented in an organisation, across different pay bands. This will also help employers to understand if there are unfair disparities and help drive strategies for the recruitment, retention and progression of minority ethnic groups.

Disability

The Scottish Government recognises that disabled people have been disproportionately affected by the pandemic and lockdown, and we are engaging extensively with Disabled People’s Organisations (DPOs) to understand and tackle the complex reasons for this.

We do not possess data on disabled people for the tourism and hospitality sector specifically. That said,

  • In 2019, the employment rate for those classed as disabled under the Equality Act 2010 was 49.0 per cent which was significantly lower than the employment rate for non-disabled people (81.6 per cent). In 2019, the disability employment gap was 32.6 percentage points.
  • The disability employment gap was lower for women (27.5 percentage points) than men (38.2 percentage points) for ages 16 to 64 and across all other age bands. The disability employment gap was lower for young people and increased with age, with the gap being highest for those aged 50 to 64 years, for both women and men[132].

We can suppose that we find the same proportion in the visitor accommodation sector. The Scottish Government worked in collaboration with its delivery partners to put in place accessibility measures to ease applications for disabled people. For instance:

  • There were multiple channels of communication and submission for the applicant if they had accessibility issues.
  • Scotland’s entreprise agencies and their partners provided documents in written format to ensure that it was accessible for applicants who may have had difficulty in using digital technology. This contributed to eliminate discrimination, advance equality of opportunity for hotels’ owners/employees with a disability and foster good relations with this group of people.

Closing the disability gap will require a cross-government approach and the Scottish Ministers established the Social Renewal Advisory Board in June 2020 to focus on tackling poverty and advancing equality as we began to emerge from the pandemic. The Social Renewal Advisory Board considered issues experienced by disabled people over this period, taking views from a wide range of individuals, groups and organisations.

The report “If not now, when?” was published in January 2021. The concluding section of the report identifies a final Call to Action on how the actions in this report can be taken forward.

Religion and Belief

No evidence of a differential impact identified at this time for the tourism and hospitality sector.

Sexual Orientation

No evidence of a differential impact identified at this time for the tourism and hospitality sector.

Pregnancy and maternity

No evidence of a differential impact identified at this time for the tourism and hospitality sector.

Gender reassignment

No evidence of a differential impact identified at this time for the tourism and hospitality sector.

Marriage or Civil Partnership

No evidence of a differential impact identified at this time for the tourism and hospitality sector.

Socio-economic disadvantage: any people experiencing poverty

We know that a large proportion of the workforce in accommodation and food services face a socio-economic disadvantage. Indeed, 45.4% were employed in ‘low skilled’ occupations in 2019, compared with 10.8% of the workforce in the Scottish economy overall. The majority of those aged 18+ in Accommodation and Food Services (64.4%) earned less than the Real Living Wage in 2019, compared with 16.8% of all employees in Scotland[133]. Finally, the large proportion of people working within accommodation work part time. In 2019, 36,000 employees (51%) worked full-time, while 34,000 (49%) worked part-time[134].

The Hotel Support Programme was designed for businesses and not individuals. However, the Scottish Government was aware that individuals in this sector who are in lower paid jobs have been disproportionately affected by the effects of the pandemic. Consultation with tourism and hospitality stakeholders have also proven the importance to support hotels during the pandemic in order to mitigate the economic impact of this unprecedented crisis. Our main concern was to design funding schemes that would be inclusive for every business as long as they meet the funding scheme’s eligibility criteria.

The Hotel Support Programme contributed to advance equality of opportunity for people who deal with a socio-economic disadvantage. Indeed, this fund contributed to maintain hotels’ financial viability.

Since a large proportion of the workforce in the visitor accommodation sector are people who are employed in low-skilled jobs, work part-time or earn less than the Real Living Wage, this fund preserved jobs for this group of people.

Closing the socio-economic gap will require a cross-government approach and the Scottish Government’s ambition – shared by the Fair Work Convention – is for Scotland to be a leading Fair Work Nation by 2025. Later this year, we plan to consult on the action that will be needed to achieve this vision and how we will measure success. Fair Work sits at the heart of our ambition to move toward a wellbeing economy and is central to supporting economic recovery and renewal. While employment law remains reserved to the UK Government, we will use our Fair Work policy to promote fairer work practices across the labour market in Scotland, including hospitality.

Stakeholder Engagement:

The Scottish Government has worked closely with industry at every stage of the pandemic to deliver where we can on its asks, including financial support. In the year to March 2021 the Scottish Government had nearly 300 engagements with tourism and hospitality stakeholders (the Scottish Tourism Alliance, South Scotland hoteliers, Highland Hoteliers, COSLA/Local authorities, UK Hospitality, etc.).

This engagement has been in place since the start of the pandemic and gives the Scottish Government a close understanding of the issues facing the sector, the opportunity to test ideas, share information about progress and discuss/address specific issues identified by the industry. The sector has been a key player on the Tourism Task Force, and via STA in STERG (the Scottish Tourism Emergency Management Group) as well.

Positive outcomes of this engagement include:

  • the extensive support in place for this sector (including development of specific targeted packages for hotels, hostels self-catering, and B&Bs, including support for small accommodation providers who pay council tax). More specifically, in recognition of the single-household rule and indoor (private) socialising rules making trading conditions difficult for hotels, and in collaboration with key stakeholders, a fund for the hotel sector was put in place. The Scottish Government continues to engage regularly with this sector.

Mitigations

The Scottish Government decided to set up the Hotel Support Programme to mitigate the impact of Covid-19 on hotels. However, the extension of Covid-19 restrictions might prevent the desired outcomes being achieved.

More specifically, the accommodation sector has been severely impacted by the measures taken since the start of the pandemic to suppress the virus. The sector was almost in effect fully closed for approx. 8 months between March 2020 and April 2021 with travel restrictions and limits on numbers / households and social distancing affecting bookings and operations. A range of financial support measures were put in place to support the sector through this period. These measures were aimed at assisting the sector to survive, and did not replace income, with substantial losses seen through the sector.

A positive bounce was experienced by most of the sector following reopening in late April 2021, however this positive bounce is quite fragile considering the reintroduction of limiting measures, and ongoing changes to demand (for example almost no business travel, less demand in cities than rural locations, international travel restrictions still in place for several countries). As of today, the situation is still fragile and new measures can be reintroduced if the progression of the virus requires it. Risk of differential impacts on key equalities groups would have to be mitigated by additional business support funding if this happens in order to reduce the impact on people with a range of protected characteristics.

Next Steps (if any)

As part of the Tourism Recovery Programme, the industry is planning to establish the Scottish Tourism Observatory. The aim of this project is to create a resource for Scotland’s tourism industry which would make necessary, relevant and valuable data, analysis and insight easily available and usable by all, and would exploit data developments and innovations to expand our knowledge further. It will support Scotland’s tourism industry to successfully recover from COVID-19 and help to ensure its future resilience, by facilitating robust data and insight driven decision making. Thanks to this observatory, it would be possible to collect data on the socio-economic profile of hotels’ owners for instance in order to ease the decision making process for future funding schemes.

Declaration and Publication

I have read the Equality Impact Assessment and I am satisfied that it represents a fair and reasonable view of the expected equality impact of the measures implemented.

Signed: Colin Cook

Date: Nov 21

Contact

Email: Pauline.Jones@gov.scot

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