Introduction to the HIE area economy

Date: 22 November 2008
Author: kenhieonly
Last updated: 11/08/2004 10:37:21
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Introduction

The Highlands and Islands of Scotland is the most northerly part of the United Kingdom. An environment of unique quality forms the backdrop to one of the last unspoilt areas of Europe. The rich culture and heritage of the area provides a base for modern industries and tourism, while traditional industries such as agriculture and fishing continue to support rural employment.

The area

The area of the Highlands and Islands stretches for over 640 kilometres from Shetland in the north, to Campbeltown at the southern tip of Argyll. The Highlands and Islands has a total land area of just over 39,050 square kilometres and a coast line of over 9,000 kilometres. Land in the east of the Highlands and on several Islands such as Orkney, Jura and Bute is agriculturally productive. In the centre of the Highlands and in many locations on the west, the land rises to mountains over 1,000 metres and is characterised by broken rocky, heather moors. On the west coast, many sea lochs provide locations for the area’s growing fish farming industry, inshore fishing and areas for yachts to explore.

The Highlands and Islands are an area of outstanding environmental quality. Sites of Special Scientific Interest (SSSIs) have been designated over 14 per cent of the area and represents two thirds of Scotland’s SSSIs. One fifth of these SSSIs are either designated or proposed as sites of international importance and form part of the European Union’s Natura 2000 series. The quality of the landscape is illustrated by the fact that a fifth of the area is classed as a National Scenic Area, and is therefore of national significance. Other conservation designations include Ramsar wetland sites, National Nature Reserves, Biosphere reserves and the St Kilda World Heritage Site. There are four Environmentally Sensitive Areas (ESAs) in the Highlands and Islands and in addition there are twenty seven sea lochs and islands classified as Marine Consultation areas.

The people

With a population of 400,000 and an area of 39,050 square kilometres, the Highlands and Islands is one of the most sparsely populated parts of the European Union. Its population density of 9 persons per square kilometre compares with an EU average of 116 per square kilometre, and is on a par with the northern parts of Finland and Sweden. In addition to a very low population density, 30 per cent of the population of the Highlands and Islands live on more than ninety inhabited islands. Inverness, is the largest settlement with more than 40,000 people, Fort William, situated at the foot of Ben Nevis being the second largest settlement. The inner Moray Firth (Nairn, Inverness, Dingwall, Alness and Invergordon) contains approximately 70,000 people, or nearly 20 per cent of the Highlands and Islands population. With such a dispersed population, 61 per cent of Highlands and Islands residents live in rural areas or settlements of fewer than 5,000 people.

The people and heritage of the modern Highlands and Islands have been influenced by different cultures over the last 2,000 years. In the northern isles (Shetland and Orkney), the influence of Norse ancestors is still evident in buildings, arts and local dialect. The Gaelic culture is evident throughout much of the Highlands mainland and the Western Isles (or Outer Hebrides). In the east of the Highlands and Islands, around the Moray Firth, Doric (Grampian and Aberdeenshire) culture has influenced local language.

The economy

Over the recent past, the Highlands and Islands have undertaken the transformation from an area characterised as suffering from the 'Highland problem': out-migration, unemployment and low incomes, to one where modern communications and infrastructure offers residents and visitors alike, a much improved quality of life.

The economic base of the Highlands and Islands is characterised by the continuing importance of primary industries (agriculture, forestry and fishing). The mountainous terrain of the region and the short growing season impose difficulties for agriculture and economic activity. With the exception of agriculturally productive land in the east and on some islands, almost all of the HIE area is classed by the European Union as a less-favoured area for agriculture. Remote rural areas and islands in particular are highly dependent on agriculture and fisheries. The manufacturing sector is diverse and is typified by SMEs and micro-enterprises. New activities in key technology industries such as medical products and pharmaceuticals, contrast with traditional sectors such as oil-related engineering and textiles. The service sector accounts for over two thirds of employment and is characterised by the importance of tourism and public administration.




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