Question reference: S5W-31324
- Date lodged: 20 August 2020
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Current status: Answered by Jamie Hepburn on 27 August 2020
Question
To ask the Scottish Government what analysis it has conducted of the long-term effect on the night-time economy of the ongoing closure of nightclubs and similar venues in response to the COVID-19 pandemic.
Answer
While there are no specific Scottish Government statistics for nightclubs or the night-time economy more widely (as it is a wide descriptive term that covers tourism, hospitality, transportation and cultural activities), we do recognise their importance to supporting a vibrant nightlife across Scotland, attracting visitors and supporting Scotland’s electronic dance music industry.
The Scottish Government acknowledges the Night Time Industries Association Scotland’s (NTIAS) recent survey of its members ( https://www.ntia.co.uk/financial-armageddon-to-hit-scotlands-night-time-economy-with-83-of-businesses-set-to-make-staff-redundant-in-a-matter-of-weeks/ ) which indicated the number of jobs potentially at risk and the survival rate for businesses.
A SPICe spotlight from June 2020
( https://spice-spotlight.scot/2020/06/16/scotlands-night-time-economy-and-coronavirus-covid-19/#:~:text=The%20night-time%20economy%20is%20an%20important%
20driver%20of,%E2%80%93%20with%20a%20heavy%20weighting%20towards%20the%20weekends. ) examined the night-time economy, including challenges it faced both pre and post lockdown. It notes a figure of 550 nightclubs in Scotland, but focuses on the night-time economy more generally across Scotland’s four biggest cities, estimating that this sector, in its wider sense, employs 7-9% of all employment within these urban area.
We fully recognise the need for support for this sector. As well as funding provided to businesses through our in excess of £2.3 billion financial package, from which NTIAS members have benefitted, we have also cautiously lifted restrictions on sectors where the evidence shows that it is safe to do so. While our latest route map Phase 3 update, published 20 August, excludes nightclubs at present due to the higher virus transmission risk, we will ensure that these businesses can reopen as soon as it is safe to do so. We also continue to push the UK Government for additional support, especially a continuation of the furlough scheme, which they are set to withdraw in October, putting many jobs in this sectors at risk.