The Auchrannie resort on the Isle of Arran is to close its doors until the end of January because of the impact on its business of Covid restrictions.
Auchrannie co-founder and managing director Linda Johnston said that with “great sadness and regret” the decision had been made to close the popular Arran resort until 29 January.
The move follows a similar one made by the Gleneagles Hotel in Perthshire announced earlier this month.
Johnston said in a statement: “The hospitality industry has spent vast sums on implementing safe systems to make sure we could open safely following the national lockdown.
“Arran businesses implemented Covid precautions responsibly and effectively and this was demonstrated during the four months from July 2020 when the island was able to trade effectively and welcomed large numbers of visitors without a single case of Covid-19.”
She said that the travel and other restrictions in place since the introduction of the tier system on 2 November, “ever changing guidelines and uncertain times ahead make it impossible for the business to trade viably at this time.”
She continued: “With the furlough in place, our team is protected, whilst closing the resort allows us to minimise costs and reduce risk by creating certainty instead of speculation in our cash flow projections.”
But she said that despite the closure and furloughing staff the resort needed to cover high fixed costs each month which run into six figures and the loss would be higher if it attempted to continue to trade.
She added : “We understand the effect that this decision will have on guests, team members, the community, the supply chain and other businesses who rely on tourism over the winter.
“We are also sorry that we are unable to open our leisure facilities to the community and are acutely aware that this leaves the island with no indoor swimming or gym facility.
“Sadly, we have no choice, as the cost of opening is not sustainable for the business and we must make sure that Auchrannie emerges from the pandemic in good shape to welcome guests back and continue to support the Island and community as we have for the last 32 years.”