Capital's hotels hit by slump as banks withdraw bookings

A SLUMP in bookings from Edinburgh's banking giants has hit hotel reservations in the Capital.

New figures for the city's hotels show that room occupancy slid by 7.5 per cent in 2008 compared to the previous year.

And there have been fewer advanced bookings for ten of the months in the coming year than there had been at this time last year.

Hoteliers say that Royal Bank of Scotland and HBOS, the largest commercial bedroom bookers in the city, are cutting back on the amount they spend.

However, there are some optimistic signs, with Homecoming Scotland events being attributed for spikes ahead of key events, such as the Gathering of the Clans.

The Edinburgh Principal Hotels Association (EPHA), which published the data, also hopes that a growing trend of late bookings will help improve figures.

Chris Wayne-Wills, secretary of the EPHA and general manager at the Roxburghe Hotel, said: "The financial sector – especially those who pour up to Edinburgh from London – is a key driver.

"There has been a very significant change. Sometimes the bookings still come but they come much later. But bank guests are also staying a bit less.

"If they would have stayed for two or three days previously, we are now finding that they will stay just for one night."

The latest figures published today showed that hotel occupancy was at 62 per cent in December 2008, compared to 67 per cent a year earlier. And there are early signs of a decline in sales of rooms for August, the key month for Edinburgh's hotel and leisure sector, with advance bookings down nine per cent compared to this time last year.

However, bookings for May are ahead of last year and Mr Wayne-Wills is hopeful that events for Homecoming Scotland will help boost late bookings.

Already, many hoteliers in the city, including the Roxburghe, are fully-booked ahead of the Clan Gathering at Holyrood Park, which starts on July 25.

"Bookings are definitely strong for the summer – five per cent on last year," Mr Wayne-Wills said.

"The Homecoming is going to be a very positive thing for Scotland, not just for hotels."

And members of Clan Donald from North America have already booked all 156 rooms at the Macdonald Holyrood Hotel, on Holyrood Road.

Manager John Shevlin said: "Although we expected there to be increased interest because of the Homecoming, we never thought there would be as much as this."

A VisitScotland spokesman said: "We are seeing a trend to more last-minute bookings by leisure visitors and businesses are cutting back on over night stays."

But he added: "Homecoming Scotland 2009 is going to be a crucial element of Scottish tourism in the forthcoming year."