RISHI Sunak's Jobs Support Scheme may not stop mass redundancies in Scotland, the Scottish Tourism Alliance has warned.
Chief executive Marc Crothall said the new programme, announced by the Chancellor on Thursday, fell "some way short" of what the sector needed.
The Treasury scheme will see workers in "viable jobs" have their wages paid partly by the government, and partly by their employer.
It should mean staff getting up to 77% of their normal salaries for six months.
The Chancellor also said the emergency 5% VAT rate for the hospitality and tourism sector would stay in place until 31 March next year.
Crothall said the new scheme was flawed: "Employers cannot afford to pay staff when there is no work, so we can still expect to see mass redundancies."
He added: "The Jobs Support Scheme will only help businesses which have sufficient demand to pay these minimum hours; the majority of tourism businesses simply will not be able to do so as their businesses are either closed due to legislation or restrictions.
"This continues to create pressure on the payroll at a time when consumer confidence and demand for the services which the tourism sector offers is at an all-time low, coupled with the increased restrictions in place."
Crothall said VAT cut would only have a marginal effect on the industry.
"The reality we must all face now is that within the coming days and weeks, businesses owners will lose their livelihoods, thousands will lose their income and the effects on the economy and people's lives will be nothing short of devastating," he added.
Citizens Advice Scotland said the scheme would have to be targeted effectively to prevent a "tidal wave of redundancies" this winter.
CAS Social Justice spokesperson, Mhoraig Green, said:“We are particularly concerned about which jobs will be considered viable because many businesses which are difficult to operate under social distancing were buoyant before the lockdown, and could be again after social distancing is removed."
Drew Hendry the SNP's Shadow Business spokesperson, said the Chancellor needed to listen to the industry warnings.
"Scotland's tourism industry, along with other businesses, have faced a devastating few months due to the pandemic. At this critical time, when they looked to the Chancellor for a lifeline to navigate the coming weeks and months, they were instead left behind," he said.
"The Tory government's refusal to heed the SNP's calls for an extension to the furlough scheme and for strengthened measures and investment will now leave many businesses with no choice but to pull down their shutters for good and to lay off thousands of workers."
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