With VisitScotland’s campaign encouraging off-season travel to Shetland, the hospitality sector is preparing for another busy festive period.
Seasonal tourism can provide businesses with a financial boost during these challenging economic times, but having the right plans in place is crucial.
By strengthening your operations and forecasting demand early, you can potentially increase your revenue without being overwhelmed by the Christmas rush.
You don’t need to face this trading season alone, as we are here to help you prepare and protect your cash flow.
How has Shetland managed the tourism boost?
Research from the Shetland Visitor Survey 2024 found that 55 per cent of visitors come from the UK, while 45 per cent travel from Europe and North America.
With more tourists being encouraged to visit, local hospitality businesses should begin preparing now.
Tourism is a major economic driver for Shetland as the Shetland Islands Council and VisitScotland estimated it brought in £50.3 million in 2024, with around 89,000 visitors.
VisitScotland’s tourism campaign has helped fund events like the Shetland Tall Ships 2023 and support organisations, including the Shetland Museum and Archive post-COVID.
However, the increased demand has also strained local operations with reduced space on the North link and limited rental opportunities for young people in Shetland.
How can Shetland’s businesses prepare?
Higher seasonal demand can bring an increase in upfront expenses for businesses and cash flow management is essential for the year ahead.
Businesses can prepare by:
- Purchasing additional stock before peak seasons
- Upgrading equipment to maintain efficient operations
- Reviewing pricing and cost structures
- Plan how to reinvest festive revenue into the business
If you are unsure of where to start, our team can help assess your finances and act quickly before the rush starts.
How should Shetland businesses prepare staffing and payroll for Christmas?
Businesses should support their staff during this busy time of year and creating a clear rota in advance and hiring temporary workers can help ease the workload.
However, when hiring seasonal workers, it comes with compliance responsibilities that businesses must not overlook.
Christmas is a time of generosity and if your business receives any tips or implements a gratuity or service charge, you must comply with the Employment (Allocation of Tips) Act 2023.
As an employer, it is your legal obligation to make sure employees receive the correct pay and no additional payments are used to make up their wages.
The recent Autumn Budget has also announced an increase in the National Minimum Wage (NMW) and National Living Wage (NLW), so keeping informed on current payment policies is important.
Before hiring additional staff, you should ensure their payroll systems are up to date to protect both your team and business.
If you handle the Christmas rush well, it can strengthen your position going into the new year.
How can Shetland businesses plan their finances smartly?
The recent Autumn Budget has brought a spike in employee expenses and employer National Insurance Contributions (NICs) and many businesses will struggle to stay afloat.
While an increase in tourism won’t solve every problem, it can provide short-term support and help avoid contraction.
With 29.1 per cent of small businesses expected to contract over the next 12 months, cracking this Christmas period is more important than ever.
If you are worried about your business’s future and managing the Christmas demand, our team can help assess your finances and make the most of the increased revenue.
We are now the biggest accounting firm in Shetland with the acquisition of our new office in Lerwick and are ready to support your needs.
The Lerwick team remains the same and with our backing, we are here to help the community stay resilient and plan ahead.
To learn how to prepare your business’s finances, speak to our team today!
