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'We cannot control the wider geopolitical uncertainty'
'We cannot control the wider geopolitical uncertainty'

The Herald Scotland

time26-06-2025

  • Business
  • The Herald Scotland

'We cannot control the wider geopolitical uncertainty'

However, following the re-opening of international travel, tourists from around the world have shown their love for Scotland in a very big way. As revealed by The Herald this week, the number of trips by international visitors to Scotland reached a record 4.4 million in 2024, a 10% rise on 2023. Spending by visitors on those trips also surged, by 7% to £3.9 billion, although the number of nights spent in Scotland fell, according to the latest Great Britain Tourism Survey, released by VisitScotland. Such figures surely make for hugely positive reading for not just the tourism industry but Scotland as a whole, given the way in which the economic benefits of tourism tend to spread throughout the country. And they certainly should not be taken for granted: just this week we have seen the precarious nature of global tourism writ large, as conflict between Israel and the US on one side and Iran on the other led to disruption in the skies over the Middle East. While this conflict was clearly of a different nature, it brought to mind the massive disruption to global travel that followed the 9/11 terror attacks in the US around 24 years ago. Read more: VisitScotland's director of strategy Cat Leaver cited a range of reasons when asked to explain the rise in international visits to Scotland, from favourable exchange rates to enhanced connectivity. She pointed to the appeal of Scotland's 'world-class visitor experiences', which alongside established favourites such as Edinburgh Castle and Stirling Castle boast a raft of new additions. These include Perth Museum - the new home of the Stone of Destiny - the revamped Scottish Crannog Centre, Rosebank Distillery, and the Lost Shore Surf Resort in Edinburgh. Scotland is also building an impressive reputation for hosting major events, illustrated last year by the World Athletics Indoor Championships in Glasgow, the Clipper Around the World Yacht Race in Oban, and the 152nd Open golf championship in Troon. Yet despite these encouraging signs, the tourism industry in Scotland is certainly not without its challenges. This point was assertively made by Marc Crothall, chief executive of the Scottish Tourism Alliance (STA), in a swift response to this week's figures on international visits to Scotland. Mr Crothall declared the surge in visits by overseas travellers was a 'welcome boost for many tourism businesses who have worked tirelessly to rebuild after the pandemic and maintain Scotland's reputation as a world-class destination'. But he made plain that the headline figures do not tell the full story as he highlighted the daily reality for the many businesses that provide the tourism experiences that those visitors enjoy. Part of this struggle is the significant rise in costs businesses have been forced to endure over recent years – including the steep rise in labour costs brought by increases in employer national insurance contributions and the national living and national minimum wage which took effect in April. It is also down to the continued weakness of the domestic tourism market – day trips and overnight stays in Scotland by residents of Great Britain – because of ongoing pressure on the cost of living. 'While international spend is rising, many businesses serving the domestic market continue to face enormous challenges,' Mr Crothall said. 'Rising operating costs, staff shortages, reduced profitability, regulatory burdens and declining domestic overnight stays and spend are all taking their toll. The reality is that too many businesses are still struggling to break even, and a busy summer alone won't secure their future.' It is a sobering reminder of the situation that faces the hundreds of small and medium-sized businesses that form much of the backbone of the tourism industry in Scotland. And it explains why the Scottish tourism industry is so concerned about the prospect of visitor levies being introduced by local authorities around Scotland. Read more: Given legislation is now in place that allows councils to introduce tourist taxes, a key focus of the industry right now is on ensuring that the method of collecting those taxes and the way in which they are calculated are less onerous than currently proposed. The STA has won widespread support in the industry for a series of proposals to modify the legislation to lessen the burden on the industry, submitted in a letter to Minister for Public Finance Ivan McKee last month. These include the adoption of a 'simple, proportionate fixed fee approach', rather than adding a percentage to the cost of an overnight stay as the legislation currently provides, and the introduction of a visitor QR code system to ensure the tax is paid directly to local authorities. It is abundantly clear that while Scotland's reputation is riding high among international tourists, the industry has big challenges in its local market that need to be acknowledged. The situation is certainly not lost on Vicki Miller, chief executive of VisitScotland, who in a blog post warned that the 'optimism' created by the growth of international visitors 'must be balanced with realism'. 'International visits and spend are up, yet visits and spend from UK visitors continue to be affected by the rising cost of living,' Ms Miller wrote. 'This is holding back the overall growth of Scotland's tourism and events sector.' Ms Miller added: 'Our insight shows that interest in visiting Scotland remains strong but for many domestic visitors cost is now a deciding factor. Some are choosing not to travel at all, while others are changing their plans to suit their budgets, opting for cheaper overseas alternatives, prioritising longer experiences and cutting back on activities and experiences. 'As the national tourism and events organisation, we cannot control the cost of living or the wider geopolitical uncertainty that may impact overseas markets in the months ahead. But what we can do, and are doing, is take clear, focused action to support the sector.'

'Scottish tourism is not a seasonal or peripheral industry'
'Scottish tourism is not a seasonal or peripheral industry'

The Herald Scotland

time25-06-2025

  • Business
  • The Herald Scotland

'Scottish tourism is not a seasonal or peripheral industry'

VisitScotland's director of strategy Cat Leaver declared factors such as improved connectivity, favourable exchange rates, 'world-class' visitor experiences, and the 'warm hospitality of our people' helped Scotland to 'attract more holidaymakers to our shores'. However the figures, taken from the Great Britain Tourism Survey carried out by the Office for National Statistics (ONS) and released by VisitScotland, underlined the continuing challenges facing the domestic tourism market in Scotland. Read more: Although the number of overnight trips taken by residents of Great Britain rose by 3% to 2.2 million in the first quarter, and expenditure increased by 48% to £752 million, the value and volume of day trips decreased. VisitScotland said the findings suggested domestic tourists were prioritising longer term breaks over day trips. Responding to the figures, Mr Crothall welcomed the record tally of international visits recorded in 2024, which he said underlined the 'strength of Scotland's global appeal and the huge contribution international visitors make to our economy'. But he declared that the 'topline figures tell only part of the figure' and highlighted the difficulties domestic businesses face in the current economic climate. Mr Crothall said: 'While international spend is rising, many businesses serving the domestic market continue to face enormous challenges. Rising operating costs, staff shortages, reduced profitability, regulatory burdens and declining domestic overnight stays and spend are all taking their toll. The reality is that too many businesses are still struggling to break even, and a busy summer alone won't secure their future. 'Tourism is not a seasonal or peripheral industry; it is one of Scotland's largest private sector employers, a major export earner and a critical lever for economic growth. To unlock the full potential of the sector and ensure commercial viability for many hundreds of businesses, we need policy stability, fairer taxation and long-term investment in infrastructure, skills and destination development.' Mr Crothall underlined the industry's continuing concerns over the introduction of visitor levies in parts of Scotland. Edinburgh looks set to become the first local authority area in Scotland to go live with a tourist tax next year. But industry representatives and operators retain concerns over how proposed levies will be collected and the potential impact it could have on Scotland's competitiveness in the international tourism market. Mr Crothall said: 'The proposed visitor levy is being introduced in a fragile economic climate, placing additional pressure on businesses already fighting to stay afloat. It is vital that it is implemented in full partnership with industry, in a way that is fair, simple and economically sound. The Scottish Tourism Alliance has led on a joint letter to Scottish Government, initially co-signed by 80 representatives from Scotland's tourism and hospitality industry, sharing concerns on the introduction of the visitor levy in its current form. 'Today's figures should be a wake-up call to all political parties, as we move closer to an election year in Scotland, not to take the sector's performance at face value, but to act now, give guarantees to long term increased investment in the development and marketing of the sector, with supportive policy to secure a stronger and more sustainable future for Scottish tourism, creating real opportunities for long-term growth.'

Scots tourism reports record year for international visits
Scots tourism reports record year for international visits

The Herald Scotland

time24-06-2025

  • Business
  • The Herald Scotland

Scots tourism reports record year for international visits

New figures released by VisitScotland from the latest Great Britain Tourism Survey, carried out by the Office for National Statistics, underlined Scotland's continuing appeal among international travellers, and cemented the industry's recovery from the challenging days of the coronavirus pandemic. They build on a strong performance by the industry in 2023, when international visits to Scotland surged by 23% to four million as the industry reaped the benefits of sustained efforts to market Scotland throughout the Covid crisis. Read more: Asked to pinpoint the reasons behind the rise in international visits to Scotland last year, Cat Leaver, director of strategy and competitive intelligence at VisitScotland, told The Herald: 'Enhanced connectivity, favourable exchange rates, our world-class visitor experiences, and the warm hospitality of our people - as recognised during the Euros -have all helped attract more holidaymakers to our shores. 'This is significant, as international visitors typically stay longer and spend more than domestic visitors, providing vital support to the visitor economy and benefiting communities across Scotland. Many of our key markets, such as the US and Germany continued to perform well with increased visits and spend. We also saw greater interest from visitors from Ireland and Netherlands last year than in 2023.' Ms Leaver highlighted a rise in visitor numbers to heritage attractions such as Edinburgh Castle, Culloden Visitor Centre, and Stirling Castle, as important contributors to the increase in international visits, as well as the emergence of new offers. These include Perth Museum, which is the new home of the Stone of Destiny, the re-opening of the Scottish Crannog Centre, Rosebank Distillery, and the Lost Shore Surf Resort in Edinburgh. Ms Leaver also flagged the impact of events, including the World Athletics Indoor Championships in Glasgow, the Clipper Around the World Yacht Race in Oban, and 152nd Open golf tournament in Troon. However, while international visits went from strength to strength, figures for the first quarter highlighted the lingering weakness of the domestic tourism market, which continues to be affected by the cost of living. Residents of Great Britain took 2.2 million overnight trips in Scotland in the first quarter, up 3% on the same period of 2024, according to the survey. These trips spanned 6.1 million nights (up 11%) and generated £752 million of expenditure (up 48%). However, the volume and value of tourism day trips by residents of Great Britain in Scotland fell by 11% to 16.5 million and by 15% to £844m respectively, compared with the first quarter of 2023. This suggests domestic tourists are focusing expenditure more on longer stays than shorter trips, VisitScotland noted. Read more: The latest figures on Scottish visitor trends come amid a tumultuous time for the tourism industry, as geopolitical events influence travel patterns and the cost of doing business puts a strain on domestic operators. VisitScotland chief executive Vicki Miller recently said that Scottish tourism may benefit as some tourists decide not to travel to the US because of opposition to US President Donald Trump. But industry representatives have voiced concern over moves by local authorities such as Edinburgh and Glasgow to introduce tourist taxes on overnight stays, warning that visitor levies may undermine Scotland's competitiveness on the world stage. Asked how the 2025 tourism season is shaping up from an international and domestic perspective, Ms Leaver said: 'While some businesses and tour operators note slower sales and bookings, others remain optimistic, suggesting it may be too early to draw definitive conclusions as the season continues to unfold. 'Our insight suggests that there is still a lot of interest in Scotland as a destination, but visitors are more budget conscious than they may once have been and this continues to drive their travel behaviour, with some reducing the lengths of their stays or spending less on experiences. 'Pricing is also a key consideration for many visitors. To address this, we're collaborating with businesses and stakeholders to ensure high-quality services and hospitality that offer value for money. Our marketing and PR (public relations) efforts highlight a range of budget-friendly options. 'We expect that ongoing wider geopolitical and economic uncertainty may impact this market in the months ahead. As a result, we are continuing to monitor the situation using external data, insight and feedback from partners.' On whether Scotland is seeing any benefit from international travellers turning away from the US, Ms Leaver added: 'Generally, long-haul visitors book much further in advance than short haul/domestic travellers. So it therefore too early to understand if there has been any immediate impact or benefit to Scotland's visitor figures. 'However, we do recognise the opportunity to appeal to markets who may have traditionally favoured US as their primary holiday destinations. ' Ms Leaver noted that Canada has been identified as a growth market. She said: 'Dedicated efforts are underway to strengthen relationships with Canadian key accounts, including tour operators and travel agencies. 'A key development in fostering Canadian interest in Scotland is the launch of the new direct Air Canada route from Montreal to Edinburgh, set to begin on 26 June. This route will provide a much-needed direct connection, making travel to Scotland more convenient and accessible for Canadian visitors.'

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