Hotel occupancy in Scotland during December reached its highest level since before the pandemic.
Research by RSM, the accountancy firm, and HotStats, a hotel analytics group, found that occupancy was at 67.1% in 2023, compared with 67.2% in 2019.
Average daily rates in December were £129.69, up on the £93.28 average measured in December 2019 and the mark of £117.48 reported in December 2022.
Stuart McCallum, partner and head of consumer markets in Scotland at RSM UK, said: “Businesses were able to make the most of the festive period, without having to navigate the challenges of train strikes and pandemic limitations as seen in previous years.”
Thomas Pugh, economist at RSM UK added: “The resilience of the hotel sector provides some hope that the economy managed to avoid a recession at the end of last year. Indeed, the shocking 3.2% m/m decline in retail sales volumes in December suggests that consumers have continued to prioritise spending on experiences, such as hotels and restaurants over retail goods.
“Looking ahead, the first six months of this year are likely to remain tough with high interest rates dragging on economic growth and inflation remaining well above target. However, things look brighter in the second half of this year.
“The inflation rate will probably fall to about 2.5%, which will allow the Bank of England to start cutting interest rates. At the same time, real earnings growth will continue to rise and there is the distinct possibility of further tax cuts coming in March.
“All this would mean more consumer spending, which will be a positive for the travel and hotel sector.”