In the report published today, Leisure Rediscovered, Barclays’ data shows that the vast majority of hospitality and leisure businesses (93%) in Scotland are confident about their growth prospects for this year following a post-lockdown surge in trade.

Based on projected sales figures for the period from April to December 2021, when the hospitality sector has largely been open again, this equates to £3.5 billion more in national Gross Value Added (GVA) than in the equivalent period in 2019.

The research reveals new patterns in the way people are accessing hospitality and leisure services and changing consumer habits. For example, although restrictions on foreign travel have eased substantially in the past couple of weeks, staycation tourism could be here to say with more than half (52%) of consumers in Scotland prioritising UK holidays over those abroad. The most popular destinations are the Lake District, the South West of England and the Scottish Highlands.

Barclays Corporate Banking estimates that, if a preference for UK holidays continues at the same rate in 2022, it will add up to £9.2bn to the UK’s domestic tourism market.

The report also shows that significant numbers of consumers are prioritising hospitality and leisure products that offer health and wellbeing benefits, strong sustainability credentials, or which come with particularly strong safety and hygiene standards.

On average, consumers in Scotland are prepared to pay 17.4% extra for healthier food and drink options, and 15.8% for holiday accommodation that includes health and wellbeing services such as a gym or spa and 80% of hospitality and leisure operators in the area are now prioritising ‘healthy’ products among their portfolios.

At a national level, while eating out or drinking, those aged 16 to 24 would be prepared to pay a premium of 35%, on average, for products with strong sustainability credentials. The average premium for 25-to-35-year-olds is 30%. Meanwhile, a sustainable holiday experience is worth 39% more to the youngest group, and 32% for 25s-to-35s.

Unsurprisingly, many consumers in Scotland are expressing strong preferences for services that are safe and hygienic. In fact, customers would pay an extra 18.6%, on average, to eat and drink in venues with particularly strong standards. Across the UK, the 16-to-24 age group would pay an average of 39% extra, while those aged 25 to 35 would pay 33% more.

Mike Saul, head of hospitality and leisure at Barclays Corporate Banking, commented: “After a very difficult period for the hospitality sector, it is great to see how well the sector has bounced back. Our findings show an industry brimming with confidence and buoyed by surging revenues.

“However, it is also an industry that is undergoing a substantial amount of change – from the customers it serves to the products it sells. We have uncovered strong evidence that, particularly for younger customers, operators will need to place increased focus on healthy, sustainable and safe product ranges and to maintain investment in data and technology. Whilst the industry is navigating some short-term challenges around supply chains and labour shortages, operators that prioritise these areas will be an incredibly strong position for the long-term.”