Despite much tougher market conditions, Scotland’s tourism industry is holding steady so far.
According to the latest research released by VisitScotland, there was a slight increase in Scottish tourism revenue in 2007, thanks to growth in the amount spent by UK visitors. This extra expenditure offset a decrease in international tourism revenue, with the hotel sector enjoying room occupancy at record levels in 2007.
The revenue generated by UK visitors to Scotland grew by four per cent, to £2.8 billion from £2.7 billion in 2006.
The UK Tourism Survey 2007, produced by independent research company TNS for VisitBritain, VisitScotland, VisitWales and the Northern Ireland Tourist Board, shows that Scotland outperformed the UK overall, which saw a one per cent increase in the value of domestic tourism.
The growth in the value of domestic tourism to Scotland is set against a decrease in the provisional value of international tourism, which fell by seven per cent to £1.3 billion in 2007, despite a provisional increase in the numbers of international visitors of one per cent to 2.76m.
The growth in revenue from Scotland’s largest market, UK visitors, meant that Scotland’s overall tourism revenue increased by 0.5% in cash terms in 2007, although total number of visitors to Scotland dipped slightly from 16.01m to 15.9m.
Despite the dip in the value of international tourism to Scotland in 2007, since 2001 the value of international tourism to Scotland has increased by 60 per cent and the number of visitors by 74 per cent. Scotland has again outperformed the UK, which saw 28 per cent growth in revenue and 43 per cent growth in international visitor numbers over the same period.
Other measures of the performance of Scottish tourism have also been positive. Most holiday accommodation sectors experienced growth in occupancy levels in 2007. Hotel room occupancy reached a record level of 65 per cent, an increase of 2 per cent on 2006. The guest house/bed and breakfast sector increased by one per cent in room occupancy to 46%. Pitch occupancy for touring caravan and camping businesses also grew by 1 per cent in 2007 to 46 per cent.
The number of visitors to Scottish visitor attractions increased by 1.8 per cent in 2007, with over 45 million visitors to Scotland’s paid and free visitor attractions.
Jim Mather, the Minister for Enterprise Energy and Tourism, said of the figures: “These figures for 2007 show Scottish tourism holding its own against strong external influences, including the international credit crunch and the rising cost of fuel.
“Our shared ambition with industry is to grow tourism revenues by 50% over the decade to 2015, and we believe that remains achievable. In 2006 the Tourism Framework for Change provided a pathway to that target, and we are continually seeing evidence of the tourism sector changing to make the most of the markets they are in.
“Scotland continues to punch above its weight as a destination in world tourism terms. That is in no small part down to the team approach taken in the Scottish tourism sector between private operators, the public sector and VisitScotland, along with hugely exciting and dynamic projects including Homecoming 2009.”
VisitScotland’s Chief Executive Philip Riddle added: “It is encouraging to see growth in the value of domestic tourism to Scotland, along with growth in visits to Scottish attractions and increasing occupancy in most of our holiday accommodation sectors. Generally, the industry has been holding its own in an intensely competitive environment.
“However, the overall increase in revenue from tourism was marginal, due to a dip in revenue from international visitors. Although the shared industry ambition to grow revenues from tourism by 2015 is still achievable, we are certainly not on track and it will require significant action from everyone involved in tourism, in both the private and public sectors.”
He pointed out that the essential ingredients to achieve growth would be increased investment to expand the industry and greater productivity from within the industry.
“Increased investment must include investment in capital developments, marketing and product quality. Greater productivity from within the industry must focus on ensuring we are encouraging visitors to come to Scotland year round, as well as businesses working together on joint initiatives and increasing their focus on sales,” explained Mr Riddle.
VisitScotland’s primary role is as a marketing organisation. The additional value brought by marketing campaigns is always measured and rates of return are continuing to improve. The 2007 UK Spring campaign and European touring campaign generated over £25 million and £32 million respectively in additional income for the Scottish economy.
Iain Herbert, Chief Executive, Scottish Tourism Forum, said: “The figures for 2007, despite only a marginal increase, still highlight the importance of tourism across the Scottish economy. There is no doubt we are facing a tough couple of years ahead, we must continue to plan and invest for the future and not fall behind the highly industrious world competition, either on quality or offer. Developing the domestic and European markets is crucial for our immediate prospects but we must not lose sight of the developing markets to build for the future.
Investment in Scottish tourism by its nature stays in Scotland, but only through careful planning and use of resources will we unlock the level of growth potential that we truly have. It’s essential that the industry takes the lead and works closely with Government to remove barriers to growth, align public and private spend in order to ensure the best possible return for Scottish tourism through limiting duplication of effort and spend.”
For the full report visit www.visitscotland.org/tourism_in_scotland
