Aberdeen businesses shut down as trade in the city struggles
Several licensed businesses in Aberdeen have shut or gone into administration in recent weeks as the city continues to struggle with the downturn in the oil and gas industry.
Restaurants the Adelphi Kitchen and Cue Barbecue, both operated by Beetroot Restaurants, have closed, while the firms behind bar and restaurant The Albyn and two hotels – the Holiday Inn and the Holiday Inn Express – have gone into administration.
In a statement, Beetroot Restaurants said that “sustaining local independently-owned restaurants in Aberdeen over the last 12 months has been a challenge that, unfortunately, has beaten us”.
The closures come after figures released earlier in the year from business consultancy BDO revealed a 38.4% drop in Aberdeen’s hotel revenues in April this year compared to April 2015.
Speaking to SLTN last week about the trading climate in the north east, Andrew Martin, co-vice chair of the Aberdeen City and Shire Hotels Association, said the granite city is facing “a new reality”.
“Oil and gas were a significant influence in the city; that influence is now diminishing,” said Martin.
He added that several hoteliers in the area have told the association that business tourism has “taken a big hit”.
But he claimed that operators are starting to see an increase in leisure tourism spend.
“Leisure tourism is coming back in the city,” said Martin.
“Sure, it’s at a lower rate than business tourism, but Aberdeen is now repositioning itself, which is great as a leisure tourism destination.”