'Staycation' set to be continuing trend as Scots hotels benefit

Scottish hotels defied fears of a slump after the long Easter break to grow revenue and occupancy levels in May, new figures reveal.

Accountancy firm PKF's survey of three- and four-star hotels showed that those north of the Border continued to outperform the rest of the UK, and suggested a trend for "staycationing" may benefit them further this summer.

The monthly survey found that year-on-year occupancy levels in Scotland rose by 0.6 per cent to 77 per cent during May. England and Wales saw larger rises but reached just 73.3 per cent and 74.9 per cent respectively.

Average room yield during the month rose 3.1 per cent to 55.83 in Scotland, was up 1.3 per cent to 44.88 in England and increased 12.2 per cent to 44.28 in Wales.

Alastair Rae, a hospitality industry expert at PKF, said Edinburgh enjoyed some of the highest occupancy and revenue figures in the UK.

But the gains in the Scottish capital and Aberdeen, which also enjoyed robust growth, masked problems in Glasgow, where occupancy fell 4.6 per cent during May, and rooms yield was down by 7.1 per cent. Rae said: "These numbers are very positive for Scotland as a whole. The figures for Glasgow show a dip but this is in comparison to a spike during May 2010. I would, therefore, expect the June figures to show Glasgow increasing in line with the rest of Scotland.

"The year to date has been particularly strong. There was concern that some of the figures may fall back after such a good Easter but this does not appear to be the case and the year is shaping up to be very positive for the sector."

He said a predicted staycationing trend may benefit Scotland more than the rest of the UK, which could turn 2011 into the best year for the sector since 2007.

"If that is the case then the hospitality sector will be well placed for any economic upturn which occurs in 2012," he added.