18 December 2002: The Consortium led by Macdonald Hotels set to redevelop Aviemore Highland Resort (AHR) today unveiled multi-million pound plans which they are confident will turn the area into a world class tourism and business tourism destination, creating more than 200 new jobs.

Speaking on behalf of the consortium - which consists of Macdonald Hotels plc, Teesloch plc and Bank of Scotland - Donald Macdonald, Group Chief Executive of Macdonald Hotels, said that the consortium’s £18 million investment in AHR was attracting an additional £6.5 million of funding from Moray Badenoch and Strathspey Enterprise (MBSE) and Highlands and Islands Enterprise (HIE). This includes £600,000 from the European Regional Development Fund. A further £2 million will be invested by MBSE in the public road network which will be subsequently adopted by Highland Council.

Macdonald Hotels will also invest a further £5 million in its existing resort at nearby Dalfaber, creating a luxury, 100 bedroom, 4-Star hotel with an 18-hole championship quality golf course on the banks of the River Spey and an extended health and beauty spa complex. This development is also the subject of a £1m assistance package from MBSE.

New facilities at AHR (formerly known as the Aviemore Centre) will include a superb, state of the art Pool, Health Spa and Beauty Complex - with Highland Council subsidised swimming for local residents; Conference, Exhibition and Cinema facilities in a totally revamped and substantially extended Osprey suite capable of banquet seating for up to 1,000; the transformation of Aviemore Highland Hotel to 4-Star standard and with 50 new bedrooms, making a total of 150 bedrooms; a Hospitality Academy and family hotel in the redeveloped Freedom Inn property, 47 imaginative and high quality cottage-style Self-catering Lodges; and over 100 new private houses at a range of prices to match local and visitor profiles, all in keeping with the anticipated National Park status of the area.

While a site has been allocated for a larger supermarket rival now needed to serve the area, any future store will not open without the development and completion of a northern link road into the site. Existing roads within AHR will meantime be upgraded to adoptable main road standards. The Resort's setting will also include a large, landscaped green area and carefully selected sites for future development by suitable leisure operators and retailers. One of the key visitor attractions will be at least 50,000 sq. ft. of upmarket retail outlets. AHR will also donate a site for Aviemore's planned Community Centre.

Donald Macdonald, who has worked with the architects and planners for the last five and a half years, said that his board had always recognised the synergy between Dalfaber - one of the most successful properties in Macdonald's international resort business - and AHR. Agreement with the Enterprise Network and Highland Council on funding and planning for the latter now cleared the way for the complementary development long planned at Dalfaber. Mr. Macdonald envisaged benefits for the entire area, not least in rising property values within the Badenoch and Strathspey area.

"We see Aviemore and the surrounding area as a natural hub for Highland tourism - one which can take its place as an international tourist destination and centre of excellence for business tourism. Quality will be the watchword in all that we create in a resort sensitive to the National Park which will be both its doorstep and horizon.

"We believe that the completed development at Aviemore will have enormous benefits for the wider area and plans include a substantial destination marketing campaign which will bring economic benefits throughout it."

David Sutherland, Chairman of Tulloch said, "My Company is highly privileged to be the managing contractor for this high profile development which has been waiting to happen for the last seventeen years. Our objective is to construct buildings of the highest quality, maximising the use of natural stone, timber and slate to blend in with the majestic backdrop of Craigellachie.

"I am particularly pleased that Moray Badenoch and Strathspey Enterprise, Highlands and Islands Enterprise and Highland Council are so supportive of these plans and we hope that work will start in early summer 2003."

Confirming the enterprise network’s contribution to the project, which includes the appointment of a non-executive director to the consortium, MBSE Chief Executive, Douglas Yule said the project would help raise the annual visitor spend. He added: "I am delighted that the redevelopment of Aviemore can now get underway, and that the enterprise network is able to help make this happen. This project will confirm Aviemore as an outstanding resort, complementing the Cairngorm funicular as a must for visitors, and be a showpiece for the new National Park.

"The development provides improved career opportunities for more year-round jobs and through the training academy, with MBSE and others, will help tackle hospitality and service standards required by a quality resort. Public sector investment at this stage will also be a confidence boost to potential private sector investors in the area in both tourism facilities and housing. We are now at the start of a new and challenging process and the enterprise network, through MBSE, will continue to work closely with Aviemore Highland Resort on the implementation of these ambitious plans."

The Highland Council Convener, David Green, said: "This is really great news for Badenoch and Strathspey and the wider Highlands. The combination of the funicular railway attraction at CairnGorm Mountain; the new Cairngorms National Park and now a revamped Aviemore is a very potent mix which will make Badenoch and Strathspey a hugely attractive gateway to the Highlands. Exciting times lie ahead for this very special corner of the Highlands."

Councillor Angus Gordon, Chairman of the Council's Badenoch and Strathspey Area Committee, said: "I am very impressed with the quality of the planned redevelopment of Aviemore. Quality must be the byword in our very special area at the gateway to the Highlands. I am sure the entire area will benefit from a revamped and confident Aviemore."

Hamish Swan, Chairman, Cairngorm Chamber of Commerce said "It’s very good news to know that 2003 will finally see the real dawn of a new future for Aviemore. This will be to the benefit of business, not just in the immediate area, but throughout Badenoch & Strathspey and to the Highlands generally."

"By creating a quality environment in tune with the natural environment, I believe, Aviemore Highland Resort has a great opportunity to compliment the Cairngorms National Park."

"It will also compliment the efforts of the many businesses throughout the area, who as a result of much individual effort, investment and commitment, already provide for visitors a good quality experience."

"Over the last few years there has also been very significant commitment in the area by the public agencies through investment in major development, these will now benefit significantly from this renaissance of Aviemore."

Adding his welcome for today’s AHR announcement, another of the area’s key tourism operators, Hilton Group CEO David Michels said "Countries throughout the world are waking up to the potential of tourism and are addressing it seriously: competition to attract tourists is therefore getting tougher and can’t be ignored.

"It is long past time that Aviemore’s obvious potential was realized. We all have a part to play."