Supplementary Memorandum submitted by
the Scottish Tourism Forum
INTRODUCTION
1. The Scottish Tourism Forum has submitted
written evidence to the Select Committee's Tourism Inquiry and
has now been invited to offer oral evidence at its 26th November
session.
2. The Scottish Tourism Forum represents
operators and the private sector in tourism in Scotland, comprising
trade associations, companies, marketing groups and other bodies
dependent upon tourism for income. There are about 200,000 people
employed in the industry in Scotland, representing 8% of total
employment (this proportion is higher in many rural areas with
for instance an average of 12% of employment in the Highlands).
Valued at £4.5 billion in 2000, tourism is 5% cent of Scottish
GDP—20,000 tourism businesses operate in Scotland.
3. We welcome the opportunity to speak directly
to the Committee, to represent private sector and commercial views
on the role of government in tourism and also to comment upon
plans for the integration of the roles of the English Tourism
Council and British Tourist Authority.
WESTMINSTER, DEVOLUTION
AND TOURISM
4. Businesses in Scotland endorse the beneficial
impact of devolution on the tourism sector—with shorter
lines of communication and accountability for expenditure and
policy, as well as the opportunity to more directly influence
branding and marketing priorities.
5. Scottish tourism performance is, however,
highly dependent upon Westminster's priorities and policies, through
eg fiscal and monetary policy, regulatory, labour and transport
policies and investment, as well as resources and priorities for
overseas marketing.
6. The tone and style of government leadership
is crucially important in determining how tourism is viewed and
how it performs across the UK. Government policies must be flexible
and adapt to changes in the macro economic and geopolitical environment
to ensure that the UK, and Scotland, retain their appeal to the
market and remain competitive in an increasingly globally competitive
industry.
7. Thus, despite the benefits of devolution,
UK Government decisions impact upon the operational and business
environment for tourism (as it does for all economic sectors)
throughout the UK. It is thus crucially important that DCMS, Chancellor
of the Exchequer and other policy and investment decisions which
impact tourism are evaluated for their impact across the UK. Within
this context, decisions about the role of the BTA and ETC are
of more than cursory interest to the tourism industry in Scotland.
THE ROLE
OF GOVERNMENT
IN TOURISM
8. We highlight in our written evidence
the important role of government in tourism. A number of UK-wide
issues still need to be addressed to ensure that Great Britain's
market appeal and competitiveness are assured. The UK is at a
distinct competitive disadvantage (with £14 billion adverse
tourism balance of payments) and government has to be more flexible
and fluid in the way policies are developed and impact upon tourism
performance. Leadership exhibited by Government to the tourism
industry during Foot and Mouth was exemplary, but flexibility
only at times of crisis (moratoria on VAT payments for instance)
mean that fundamental fiscal or infrastructure weaknesses which
impact tourism performance are not addressed.
9. The Scottish Tourism Forum would like
to amplify and comment upon six UK-wide policy areas with potential
for enhancing UK and Scottish tourism performance:
— The tax and regulatory regime:
two key areas where the levels of taxes (VAT particularly in comparison
to other European destinations) and the number of additional regulations
impacting tourism, hospitality, leisure and travel are disincentives
to investment and entrepreneurship. Planning and building regulations
need to be modernised and processes speeded up. At a time when
new product innovation is important in helping the UK to offer
more products and services, and value for money, to the customer,
then these government roles can either stimulate, or constrain
the industry.
— Integrated transport: the
Forum is responding to the Department of Transport's consultation
on the future of air transport and we look to speedy decisions
about capacity not only for air, but for all transport modes.
Investment levels are crucial to modernise and integrate transport
and certainty is needed about timing of investment. Specifically,
the new budget airline model is proven to add significant economic
benefit (see Stevens Associates' report for the Scottish Parliament's
Enterprise and Lifelong Learning Committee Tourism Inquiry) and
far greater flexibility about support from Government for new
routes is needed.
— Skills issues: the creation
of the industry-led sector skills councils is welcome as one intervention
to address skills issues and shortages in the industry. Moves
to open up access to the UK employment market for overseas nationals
is also welcome, but we need to think far more rigorously about
social exclusion policies aligned to assist job access to the
industry.
— Quality assurance: the Scottish
QA system (operated by VisitScotland) has the distinct benefit
of achieving between 70 and 90% penetration in different parts
of the tourism sector. It is important however to look to a UK-wide
QA system, integrating the best of the different schemes available
in order to make it easier for the consumer.
— London as a gateway: British
tourism depends upon getting people out of the arrival points.
In Scotland, Edinburgh and Glasgow are gateways and work is underway
to enhance their role in distributing visitors and economic benefit
to the rest of Scotland. London's gateway and dispersal roles
have to be catalogued and designed from the outset (leaving nothing
to chance) to ensure that the rest of the UK benefits from investment
in London.
OVERSEAS MARKETING
AND THE
BTA
10. The Forum has consulted its membership
and wider tourism interests in Scotland about the planned integration
of the BTA and English marketing. About two-thirds of our respondents
highlight the risks to Scotland from perceived weakened overseas
marketing support for Scotland, whilst about one-third suggest
that Scotland should "go it alone" with an increased
overseas presence in our main markets.
11. Decisions about the organisational structure
of an enhanced BTA/ETC must be made from the point of view of
the consumer, and not for administrative convenience. We have
to make it easy for the overseas customer to buy travel and holidays
in the UK and our comments below about the planned merger are
taken from this perspective.
12. Scottish businesses by and large have
very positive views of the BTA and the commercial sector endorses
the close working relationship of VisitScotland and the BTA. Recent
BTA changes to management and to strategy are welcomed, because
they will add value to Scotland's overseas efforts.
13. The Forum has urged for some time however
that the BTA be given stronger (English) regional and Scottish
targets and we welcome the planned accountability of BTA for overseas
marketing to the Scottish Parliament and indeed the safeguard
of separate overseas and English marketing accountability to Westminster.
Whilst the devil is of course in the detail, these are important
principled steps.
14. Whilst the Forum welcomes the planned
protective measures, such as ring-fenced funds, for overseas marketing
in the merger, concerns have been expressed about the risk of
loss of Scottish brand identity in overseas markets, resulting
from what is seen as an inevitable "skewing" of BTA
effort. The fear is that there will be an increase (or perception)
of bias towards London and England in overseas marketing. This
is strictly a marketing issue—English, London, Welsh, Scottish
and other brands each have competitive advantage and recognition
in certain markets and these marketing strengths (for the UK)
must not be watered down by the integration of overseas and English
marketing within a single agency. The promises of protection of
overseas marketing independence must be fulfilled to the satisfaction
not only of tourist boards and agencies, but also of the private
sector throughout the UK, so that positive BTA and commercial
relationships are not lost.
15. Adequate funds for overseas marketing
are important and we need hard information about the tax-take
to the Exchequer from overseas visitors. The BTA has already indicated
to the Committee that the Treasury will recoup at least £100
million in tax and revenues, from a £20 million investment
in overseas marketing in the One Million Visitor Campaign if
the £500 million additional spend target is achieved.
16. We would like to express our ambition
that the private sector across the UK is automatically consulted
on tourism policy changes. The English Tourism Alliance, Wales
Tourism Alliance and Scottish Tourism Forum have already met informally
to focus on UK-wide tourism issues and will meet formally in the
New Year to progress these. Just as the UK Tourism Ministers meet,
we consider that it would also be helpful for the appropriate
committees in Westminster, Cardiff and Edinburgh to regularly
review UK-wide tourism issues.
20 November 2002
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