Rurality

In Scotland in 2023, there were 3,240 rural accommodation and food services businesses, with 39,000 people employed in rural areas in 2022. The accommodation and food services sector has a much larger share of employment in remote rural areas (17.9%) compared to accessible rural areas (10.1%) and the rest of Scotland (9.9%).

The Inquiry considered the unique challenges of rural and island living and how this impacts the experience of fair work in hospitality and found the following:

• Hospitality employers play a significant role in remote rural communities. Accommodation and food services is one of the biggest providers of private sector employment in remote rural areas along with agriculture, forestry and fishing and wholesale, retail and repair.
• Rural hospitality employers have many of the same fair work challenges as other hospitality businesses, but they also have a range of added pressures, challenges and costs unique to rural areas.
• There is a general lack of housing in rural areas which reduces the available workforce and prevents people moving to the area for work.
• Tied housing arrangements add significant cost to the employer and come with clear fair work issues for the worker. Having housing which is tied to their job creates issues around security and may act as a barrier to effective voice. The Inquiry heard evidence from workers that tied housing arrangements limit their family life in the longer-term, with rural employers also recognising that tied housing arrangements make it harder to maintain a settled workforce.
• There was a shared desire from both employers and workers to have affordable and stable housing in rural areas.
• There are substantial issues with transport infrastructure including infrequent and fragmented rail, ferry and bus services.
• Rural workers face increased transport costs, with many stating a preference for private car ownership due to the lack of available and reliable public transport.
• There is a lack of reliable and affordable childcare which is further compounded by transport infrastructure issues. Lack of childcare options particularly impact the career opportunities of women.
• Training in rural areas can also be challenging. Employers and/or workers can face increased costs due to transport issues and the additional time away from the business. Online training could also be impacted by connectivity issues brought about by poor broadband service.

In Scotland, hospitality and tourism play an important role in the economy of remote rural areas. Rural businesses face many of the same fair work issues as urban businesses but there are significant additional issues facing both employers and workers. Making progress on issues like transport, housing, childcare and connectivity is essential for delivering fair work in rural areas.