Select Committee on Culture, Media and Sport Minutes of Evidence


Memorandum submitted by VisitScotland

1.  INTRODUCTION

  VisitScotland welcomes the opportunity to submit written evidence to the Culture, Media and Sport Committee of the UK Parliament on its inquiry into the tourism sector in the UK.

  VisitScotland is a non-departmental public body responsible for promoting and marketing Scotland as a tourism destination. It reports to the Minister for Tourism, Culture and Sport within the Scottish Executive. The organisation's key strategic direction and priorities are set out annually in a Letter of Strategic Guidance from the Minister.

  In April 2005 VisitScotland was formed from the merger of 14 individual area tourist boards and the former marketing organisation (with the same name), VisitScotland.

  Over a two year period until early 2004, there was a widespread consultation carried out by the Scottish Executive on the future of Area Tourist Boards (ATBs), and a review of tourism funding and structures carried out by a cross-departmental Ministerial Group on Tourism. Ministers decided that the creation of an integrated tourism network should be effected by the merger of the existing 14 ATBs with VisitScotland. The Minister for Tourism, Culture and Sport announced the outcome of the review in March 2004.

  The Scottish Executive commissioned VisitScotland to manage the project and the Tourism Network Scotland (TNS) Project was set up immediately to deliver an integrated tourism network by April 2005. It was a major undertaking; merging 15 independent bodies, including their staff, resources, systems, commitments and liabilities into one integrated organisation, and comprised four phases of work, from specification through planning and design to implementation. In parallel, legislative arrangements were put in place by the Executive to dissolve the existing 14 ATBs and transfer their assets and liabilities to two "network tourist boards" which in turn were to be controlled by VisitScotland. This was done through two Scottish Statutory Instruments which took effect on 1 December 2004. The Tourist (Boards) Scotland Act 2006, which was enacted on 1 April 2007, was the final step in this process and consolidated the Scottish Tourist Board and the two network tourist boards into a single body called "VisitScotland".

  Three years on from the Ministerial TNS announcement on the need to create a new integrated tourism support structure, the "one team VisitScotland" is fully staffed, fully operational and delivering against its core objectives.

  A national strategy for the future development of the industry—The Tourism Framework for Change—has been developed by the Scottish Executive and published by the Minister for Tourism, Culture and Sport. VisitScotland had a significant input into this—including proposing the ambition for the industry to achieve 50% revenue growth within 10 years—along with many other interests and businesses. All of VisitScotland's activities are geared towards contributing to this growth ambition.

2.  FOUNDING LEGISLATION AND STATUS

  VisitScotland is established under the Development of Tourism Act 1969. Its powers were amended by the Tourism (Overseas Promotion Scotland) Act 1984. VisitScotland does not carry out its functions on behalf of the Crown.

  The Act gives VisitScotland the following functions, duties and powers:

    —    to encourage people to visit Scotland and people living in Scotland to take their holidays there;

    —    to encourage the provision and improvement of tourist facilities in Scotland; and,

    —    to give advice to Ministers and public bodies on tourism matters.

  The 1969 Act gives VisitScotland wide discretionary powers with which to discharge these functions. In addition, VisitScotland has specific powers, the most important of which are:

    —    to promote or undertake publicity in any form;

    —    to provide advisory and information services; and,

    —    to promote or undertake research.

  As outlined above, The Tourist (Boards) Scotland Act 2007 came into force on 1 April 2007 and this formalised the structure was created by the TNS project.

  The sponsor department (the Tourism and Major Events team at The Scottish Executive) determines VisitScotland's performance framework in the light of Scottish Ministers' wider strategic aims. VisitScotland's objectives and key targets are agreed within VisitScotland's business planning process.

3.  VISITSCOTLAND STRUCTURE

  The organisation employs around 1,000 people. There are 14 offices responsible for marketing and industry relationships within a local area, a larger office in Inverness and the main office in Edinburgh. There is also a small presence in London.

  There are six directorates and 16 departments. The directorates are:

    —    Marketing;

    —    Industry Engagement;

    —    Visitor Services and Quality;

    —    Network Services;

    —    Strategy, Partnership and Communications; and

    —    Corporate Services.

Management Team and the VisitScotland Board

  Six directors and a Chief Executive report to a non-executive Board which consists of a Chairman and six members. The Board is appointed by the Minister for Tourism, Culture and Sport. The Board meets eight times a year.

Funding

  VisitScotland's total budget is around £72 million and comes from three main sources. The Scottish Executive provides the largest source of funding, a grant of £48 million. In addition there is funding from local authorities and income from commercial and retail activities.

VisitScotland's core purpose

  Tourism is central to the Scottish economy and future. There are some 20,000 diverse businesses employing 200,000 people.

  In Scotland, annual revenue from tourism is currently around £4.2 billion. VisitScotland's core purpose is to maximise the economic benefit of tourism. It does this by attracting visitors to Scotland (including Scots to visit different parts of Scotland). VisitScotland does not directly provide goods and services to visitors but works in close partnership with a range of tourism businesses and consortia. It provides support, both in kind and financial, together with expertise to a range of industry bodies and businesses across the country.

VisitScotland's core activities

  The organisation focuses on five core activities in order to maximise the economic benefit of tourism and to ensure a coordinated and successful approach to marketing Scotland. These five core activities are:

    (i)  To give strategic direction to the industry;

    VisitScotland works closely with businesses, trade associations and area tourism partnerships. On a practical level it provides comprehensive research on visitor trends and tourism related issues. It also offers opportunities for training and seminars on specialist topics. On a strategic level it communicates and coordinates priorities from the Scottish Executive around the industry. Similarly it provides feedback from the industry to the Minister and sponsor department.

    (ii)  To market Scotland and all Scotland's tourism assets to all parts of the world;

    VisitScotland has a strong marketing strategy (outlined below in further detail) shaped by solid research into the current and future lifestyle trends of visitors.

    Scotland has benefited greatly from an increase in direct flights. The Route Development Fund (supported by both the Scottish Executive and Scottish Enterprise) has brought in 52 direct air links since inception in November 2002. In addition, a direct access ferry link between Zeebrugge and Rosyth in Fife has also played its part in improving access and increasing visitor numbers.

    There is no doubt that improved and direct access is crucial in a market with an increasing demand for short breaks.

    VisitScotland works with the Scottish Executive and other agencies on transport issues which affect tourism such as links to airports.

    (iii)  To provide information—and inspiration—to visitors and potential visitors to enable them to get the best out of a visit to Scotland;

    VisitScotland operates around 100 Tourist Information Centres (TICs) in both urban and rural locations. Around 50 of the TICs open only for the main tourism season (April to October). During peak season, VisitScotland's TICs employ around 550 staff.

    A recent consumer survey around current information (and sales) services operated by VisitScotland confirmed visitors' preference for personal contact with VisitScotland staff. Visitors were particularly keen on interaction with local tourism experts and personal recommendations and inspiration on tourism matters. A small project team (within the Visitor Services and Quality directorate) has examined the use of new communication channels and remote technology to deliver information to visitors.

    (iv)  To provide quality assurance to visitors and quality advice to industry partners;

    VisitScotland operates an established Quality Assurance Scheme. This guides visitors on the standards to expect and also advises businesses on how to meet customer expectations.

    (v)  To promote partnerships with—and across—the wider industry to ensure we all reap the economic benefits of collective effort;

    There are a number of important and effective partnerships across the private and public sectors.

Area tourism partnerships

  The Area Director from each of the 14 local offices is a member of a local Area Tourism Partnership. These ATPs comprise representatives from the local authorities, as well as private tourism businesses.

Enterprise agencies

  VisitScotland has good working relationships with the two main Enterprise Agencies (Scottish Enterprise and Highlands and Islands Enterprise) together with the individual local enterprise companies. These relationships are managed by the Director of Strategy, Partnerships and Communications. In 2007, a programme of joint quarterly meetings was established with the Chair and Chief Executive from Scottish Enterprise, Highlands & Islands Enterprise and VisitScotland to focus on strategic direction.

  VisitScotland has well developed links with groups working on sectoral or product development initiatives (examples being the Tourism Innovation Group and Pride and Passion). These bodies receive significant support and, in some cases, funding from VisitScotland, HIE and SE.

  A new focus on joint planning between Scottish Development International and VisitScotland's International Marketing and Business Tourism Units will deliver greater efficiency, focus and clarity in areas of mutual interest in both core and developing markets.

Other public agencies

  VisitScotland's client management arrangements ensure that it has strong strategic and commercial relationships with a host of other organisations including the Scottish Tourism Forum, COSLA, Scottish Natural Heritage, Historic Scotland, Scottish Development International and the National Trust for Scotland.

  In 2007, local authority partnerships will be supported by a simplified system of reporting and monitoring being developed jointly between VisitScotland and the Scottish Local Authorities Economic Department. VisitScotland's Local Authority Chairman's Committee and a joint National Convention continue to be important communication channels which assist joint working between these organisations.

  Increasingly, VisitScotland is developing new and successful joint marketing activities with key players in the private sector, notably the airlines and Highland Spring.

4.  VISITSCOTLAND'S MARKETING ACTIVITY

  VisitScotland continues to market Scotland as a must-visit, must-return destination for business and leisure travel to both domestic and international audiences. VisitScotland's marketing activity has continued to go from strength to strength, generating very impressive return on investment figures and gaining professional peer recognition in wider UK marketing circles.

  Through extensive research in the UK market, we realised that years of marketing Scotland as "The Highlands" had led to a rather one-dimension image of Scotland -beautiful scenery but not much else. Therefore, our strategy was to add breadth and depth to Scotland's image—yes, we have stunning scenery but also vibrant cities, a huge range of activities, a rich culture and fantastic wildlife and golf.

  In the promotion of Scotland, our marketing strategy is built around a strong brand and a product portfolio that reflects what visitors want to buy, not necessarily what we want to sell. This new customer focus permeates all that we do and is the most telling feature of the new approach.

  The brand is built around attributes people associate with Scotland—the brand essence: enduring, dramatic and human—and is captured in UK marketing in a proposition that a visit to Scotland is such a unique and powerful personal experience that it can touch all the senses—hear it, touch it, see it, taste it, smell it, live it.

  The creative strap line—Live it. VisitScotland—encourages people to get involved with Scotland, to immerse themselves in the many and varied experiences to be found here. This line appears on every single bit of communication from VisitScotland in the UK market, be it direct mail, advertising, online or in PR, creating visual and content synergy.

  In overseas markets the same brand essence is translated into the proposition Welcome to our Life, based on the findings that people come to Scotland from overseas to experience the authentic Scottish way of life and to interact with local people.

  Within the brand messages designed to create an emotional link to Scotland there is a portfolio of products that encompasses all that Scotland can offer in ways that potential consumers find easy to relate to.

  Promotion of Scotland is also done on a geographic basis where areas and places have particular resonance with visitors—for example, Loch Lomond, Edinburgh, Loch Ness, the Highlands etc. Most promotions link both geography and products from the portfolio—for example, Freedom and Heritage trails.

  Other marketing activity, using the same brand and product portfolio building blocks, focuses on time of year—for example, our Autumn Gold campaign—or one-off opportunities like Highland 2007 or 2009: Year of Homecoming. This approach to marketing has been successful over the past five years in giving Scotland a distinctive voice in a very crowded market, resulting in both increased visitor numbers and in a series of awards from wider industry marketing professionals.

  Such marketing activity will continue, with a concentration on refining the approach through better segmentation and CRM (customer relationship marketing) so that effectiveness is constantly improving.

VisitScotland product portfolio

  There are five key themes within the product portfolio:

    —    Freedom;

    —    Active;

    —    Cities;

    —    Culture and Heritage; and

    —    Business.

  All that Scotland has to offer can be linked into one or more of these themes and promotional activities are built around sub-sets of these, as is shown below.

VisitScotland brand portfolio

WildlifeGolf ShoppingTV/FilmConferences
Castles/HeritageMountain Biking Night LifePerforming Arts Incentive Trips
GardensWalkingFood and Drink Visual ArtsBusiness Meetings
Island HoppingClimbing SportLiteraryExhibitions
Hub TouringCycling Events/Festivals
Watersports Heritage/Genealogy
Adventure Sports Museums
Fishing
Shooting
Ski-ing


5.  VISITSCOTLAND WORKING WITH INDUSTRY

  Businesses, both from the mainstream of tourism and from many related sectors, are key partners and customers. Effective engagement, joint working and two-way communication with businesses of all sizes throughout Scotland is important to both our success and to the delivery of the wider industry growth ambition. With the creation of the new Network, we are developing new and innovative ways of working with all businesses.

  Recognising the need to treat tourism businesses as customers and to deliver products and services to them in a consistent and coherent way, VisitScotland has established a new Directorate—Industry Engagement. Industry Engagement involves listening to businesses, understanding their needs and working to ensure that we offer relevant products and services. Substantial progress has been made in bringing the new Industry Engagement delivery framework to life over the last year.

  The Industry Engagement Directorate of VisitScotland works with tourism businesses in the following key areas: offering advice about tourism; the marketing and promotion of VisitScotland products and services; the delivery and sale of VisitScotland products and services; making inputs to local strategy development; and making funding available, particularly through the Challenge Fund.

  VisitScotland Relationship Managers (RMs) are responsible for creating and maintaining relationships with tourism businesses. These Relationship Managers are located throughout Scotland in all network offices. The Division as a whole is dispersed across the country with senior managers based in Aberdeen, Perth and Stirling.

  To date this approach to working with the industry has resulted in VisitScotland establishing customer relationships with almost 11,000 businesses and generating £7.7 million in income from a broad range of products and services. In addition we have leveraged almost £1 million match funding via the new marketing challenge fund.

  Whilst Area Tourist Board membership and the associated costs have been abolished, new product opportunities have been introduced to ensure that businesses across Scotland continue to have access to the full range of services that were previously available through ATBs and VisitScotland. Businesses are now offered more flexibility in the products that they can select from VisitScotland. This is an important step in enabling both VisitScotland and our business customers to focus efforts on those marketing opportunities which are most effective. As a result, many businesses have seen cost reductions for equivalent service.

  In addition, we continue to liaise on a regular basis with industry representative bodies. At a Scotland-wide level we value good working relationships with the Scottish Tourism Forum, Pride and Passion (a publicly funded and industry-led initiative aimed at improving service and quality) and national industry sector organisations. To ensure that our relationship with industry continues to develop we have introduced a further VisitScotland Chair's Committee with membership drawn from the industry.

6.  QUALITY ASSURANCE

  Quality is central to a successful tourism experience and standards continue to break new barriers, particularly in relation to making higher quality much more affordable, and improvement is essential, not only to growing tourism and but in maintaining existing tourism levels.

  VisitScotland's approach to quality assurance in tourism is a world-leading example of such a role being delivered by a national tourism organisation. Building on the Scottish Executive's Tourism Framework for Change, VisitScotland continues to develop and grow consumer-led Quality Assurance (QA) schemes with the aim of raising participation to 90% of the known supply of serviced accommodation by the end of 2008. Plans to expand the depth and breadth of VisitScotland's Quality Assurance operations remain on target to deliver this increased participation in established schemes during the year ahead and also to deliver a suite of new quality improvement programmes.

VisitScotland Quality and Welcome Schemes

Main Schemes

  Serviced and Self-Catering Scheme:

    —  Hotels;

      —  Hotel,

      —  Small Hotel,

      —  Country House Hotel,

      —  Town House Hotel,

      —  Metro Hotel,

      —  Budget Hotel, and

      —  Exclusive Use Venue.

    —    Small serviced accommodation;

      —  B&B,

      —  Farmhouse,

      —  Guest House,

      —  Guest Accommodation,

      —  Inn, and

      —  Restaurant with Rooms.

    —    Self-Catering;

      —  Self-Catering,

      —  Campus Accommodation, and

      —  Serviced Apartment.

    —    Under Development;

      —  Heritage Property.

  Hostel Scheme:

      —  Hostel,

      —  Bothy,

      —  Bod,

      —  Bunkhouse,

      —  Camping Barn,

      —  Backpackers,

      —  Group Accommodation, and

      —  Activity Accommodation.

  Caravan and Camping Scheme:

      —  Camping Park,

      —  Holiday Park,

      —  Touring Park,

  Visitor Attractions Scheme:

      —  Visitor Attraction,

      —  Castle,

      —  Museum,

      —  Historic House,

      —  Tour,

      —  Historic Attraction,

      —  Garden,

      —  Garden Centre,

      —  Leisure Centre,

      —  Activity Centre,

      —  Tourist Shop, and

      —  Arts Venue.

    —    Under development:

      —  Activity Provider,

      —  Wildlife Experience,

  EatScotland Scheme:

      —  Formal Dining,

      —  Coffee Shops,

      —  Tea Rooms,

      —  Fast Food,

      —  Takeaway,

      —  Informal dining,

      —  Breakfast,

      —  Home Dining,

      —  Self-Service.

  Other Schemes:

      —  Boat,

      —  International Ferry,

      —  Cruise Ship,

      —  Train, and

      —  Farmers Market.

  Under Development schemes for:

      —  Conference Venue,

      —  Conference Facility,

      —  Retail,

      —  Golf Clubs,

      —  Spas, and

      —  Pubs.

Welcome Schemes

    —    Ancestral Tourism;

    —    Anglers Welcome;

    —    Arts Welcome;

    —    Bikers Welcome;

    —    Children Welcome;

    —    Cyclists Welcome;

    —    Golfers Welcome;

    —    Walkers Welcome;

    —    Dogs Welcome; and

    —    Visiting Golfers Welcome

  Under Development:

      —  Classic Cars Welcome;

      —  Divers Welcome;

      —  Field Sports Welcome;

      —  Film Crews Welcome;

      —  Watersports Welcome;

      —  Extended Stay; and

      —  Groups Welcome.

  Supplementary Schemes:

    —    Accessibility Scheme;

    —    Green Tourism Business Scheme; and

    —    Thistle Award.

7.  SUSTAINABLE TOURISM

  As outlined above, VisitScotland's core purpose is to maximise the economic benefits of tourism to Scotland. Maximum benefits will accrue only by ensuring the industry is sustainable—ie, by ensuring that its impact on the social, cultural, economic and natural environments does nothing to permanently impair these environments. This means a vigilance to protect the natural and cultural assets that are the foundations of our industry balanced with the creative exploitation of these assets for social and economic benefit.

  The Tourism Framework for Change (TFFC) challenges the Scottish tourism industry to achieve 50% growth in revenue in a sustainable way. VisitScotland has a clear role in contributing to the achievement of this ambition through the activities included in the organisation's corporate plan. Since March 2006, VisitScotland's Sustainable Tourism Unit has been working with other VisitScotland departments to integrate sustainability into all that the organisation does. In addition, a Sustainable Tourism Partnership has been set up by the Scottish Executive and has brought together a wide range of public and private sector partners to identify and tackle issues at the industry level.

  Target 14 in the TFFC concerns the establishment of a Sustainable Tourism Partnership (STP) from March 2006 (building on the work of the Tourism Environment Forum) to promote sustainable tourism throughout Scotland. The STP, chaired by Tom Brock of the Scottish Seabird Centre, is expected to include in its membership private industry partners as well as organisations such as VisitScotland, the enterprise networks, local authorities, Scottish Natural Heritage, Historic Scotland and the national parks. The STP will act as the implementation group for the TFFC sustainability theme.

  The Scottish Executive called the first meeting of the STP in August 2006. Two subsequent meetings have since been organised with a good turn-out at each. Membership comprises many of the obvious public agencies and interest groups and key tourism industry/business organisations (including the Scottish Tourism Forum (STF) and the Association of Scottish Visitor Attractions). The purpose of the Partnership as laid out in the TFFC is to provide support to businesses keen to become more sustainable, underpinned by research and projects in relevant areas.

  A proposed, detailed remit for the STP is currently in draft form and is with members for consideration and comment. Once the remit is agreed the next step will be the development of an action plan. An STP sub-group has been set up to develop sustainable tourism indicators for Scotland.

  In addition, the Quality Assurance team work closely with The Green Tourism Business Scheme (GTBS). The latter was developed by VisitScotland, with assistance from Highlands and Islands Enterprise and Scottish Enterprise, to help businesses working in the hospitality sector achieve efficiency and marketing benefits by managing their environmental responsibilities. The GTBS is the most successful green tourism scheme in Europe and has 800 members around Scotland. The ambition is to increase this to at least 1,000 by the end of 2007.

  The GTBS is a central plank of VisitScotland's approach to encouraging businesses to think about a sustainable tourism industry.

8.  VALUE OF SCOTTISH TOURISM

  The industry has recovered strongly from the low points of 2001 and is capitalising on an excellent fit with latest consumer trends and renewed self-confidence. Measurement of volume and value in our main market—the United Kingdom—can only be done with confidence looking forward but international growth has been significant and other indicators point to general strength across the industry.

  The table below shows the significance of tourism relative to other leading industries in Scotland on the basis of GVA (Gross Value Added).


International Visitors

  The table below shows the significant growth in international visitor volume and value since 2001.

Overseas Visitors to Scotland


2001
2002
2003
2004
2005
2005v2001

Trips (m)
1.59
1.59
1.57
1.88
2.39
50%
Nights (m)
15.00
15.04
14.95
19.01
24.33
62%
Expenditure (£m)
Historic prices
755
811
842
994
1,208
60%
Real prices
839
878
887
1,022
1,208
44%
Source: ONS International Passenger Survey.

Note: Prestwick airport was included as a sampling point for the first time in 2005 giving a truer reflection of international traffic. Previously data for international passengers travelling through Prestwick had been estimated using information from interviews at a number of regional airports across the United Kingdom.


UK Visitors

  The table below shows UK visitor volume and value for 2005.

UK Visitors to Scotland


2005

Trips (m)
14.9
Nights (m)
53.9
Expenditure (£m)
3,006
Source: UKTS 2005.


  Note: As a result of introducing a new methodology in 2005 it is not possible to compare these results with those of past years.

Total Volume and Value

  The total volume and value figures for 2005 are given below.

Total Visitors to Scotland


2005

Trips (m)
17.26
Nights (m)
78.23
Expenditure (£m)
4,214


Occupancy

  The table below shows figures for accommodation occupancy since 2001. These indicate a steady growth over the period and 2005 figures are, in the main, the highest for 10 years despite the fact that the stock of accommodation has grown, particularly in hotels and self-catering.

Occupancy in Scotland


2001
2002
2003
2004
2005

Hotels
Bed Occupancy %
43
45
46
46
47
Room Occupancy %
58
60
61
61
63

Guest House and Bed and Breakfast
Bed Occupancy %
32
35
36
38
39
Room Occupancy %
40
43
44
46
47

Self Catering
Unit Occupancy %
48
49
52
51
55

Camping and Caravan
Unit Occupancy %
30
32
34
35
40

Hostels
Bed Occupancy %
47
46
46
46
47

Source: Scottish Accommodation Occupancy Survey, 2001-05.


  The picture for Glasgow and Edinburgh is similar.

YTD Averages as at May 2006


%
2004
2005
2006

Glasgow
62
63
67
Edinburgh
69
70
72

Source: Lynne Jones Research.


Hotel RevPAR

  The UK Hotels 2006 report from TRI Hospitality Consulting shows the growth in RevPar over the last few years.

Revenue Per Available Room (occupancy X average room rate)


£
2001
2002
2003
2004
2005
2005v2001

40.04
41.8
37.9
42.31
48.26
21%

Source: UK Hotels 2005, TRI Hospitality Consulting.


Visitor Attractions

  The figures for visitor attractions show fluctuations but a recently rising trend overall.

Scottish Visitor Attraction Numbers


2001
2002
2003
2004
2005
2005v2001

36,298,996
41,349,813
37,921,012
39,129,922
40,129,922
11%

Source: Visitor Attractions Monitor, 2001-05.


Employment

  Official figures are given below showing the growth in employment in tourism related sectors; latest data available is for 2004.

Employees


2001
2002
2003
2004
2004v2001

194,564
200,823
199,249
204,225
5%

Source: NOMIS, 2001-05.


9.  VISITSCOTLAND POSITION ON TAXATION

  In Scotland, VisitScotland shares an ambition with the industry to grow revenues from tourism by 50 % by 2015. We would caution against the introduction of a bed tax which could hinder this ambition and damage one of Scotland's most successful areas of economic activity.

  It is VisitScotland's view that a tourism tax in the form of a bed tax is not in the best interests of the tourist or the tourism industry and is not the best way of achieving additional funding. It is not just hotels and other businesses working directly in tourism that benefit from the visitor economy—a wide range of other businesses, from retail and leisure and from transport to restaurants, rely on tourism to boost their income. Therefore a bed tax would impact disproportionately on only one part of the tourism industry and would undermine the sharing of the ambition to grow tourism revenues by 50% by 2015.

  Tourism is intensely competitive on a global scale and so any increase in costs for the Scottish industry that are directly passed to consumers could impact on visitor choice. VisitScotland research shows that value for money is one of the key factors which consumers consider when making choices about their leisure or business trips.

  Instead of introducing a bed tax that would impact directly on the consumer, damaging our competitiveness, VisitScotland would prefer to see greater consideration of how the gains made from tourism, including through existing taxes, can be reinvested to strengthen the Scottish tourism offering and help Scotland compete in a globally competitive market.

  With the exception of local taxation, most taxes are reserved to the UK Government and are outwith the control of the Scottish Executive.

10.  DATA ON SCOTTISH TOURISM

  Good market intelligence is a key driver of innovation and enterprise. To support the industry in this area, a new joint initiative has been developed by Scottish Enterprise, Highlands & Islands Enterprise and VisitScotland called Tourism Intelligence Scotland.

  Working closely with the Scottish Executive Tourism Unit to support the delivery of the Tourism Research Network proposed in the Tourism Framework for Change, Tourism Intelligence Scotland is a key initiative in supporting the industry to achieve the 50% growth target set out in the framework.

  The specific objectives of Tourism Intelligence Scotland are:

  1.  To work with the industry to promote a strong market and customer focus in Scottish tourism at all levels: Scottish, destination/local, and business.

  2.  To ensure that the right intelligence is gathered and effectively disseminated to the industry.

  3.  To promote an exchange of market intelligence around the industry and to stimulate follow-through action.

  4.  To ensure that public and private sector resources in this area are applied effectively and in a coordinated way.

  5.  To identify and learn from best practice in market intelligence gathering and dissemination locally, nationally and internationally.

  6.  To promote awareness of competitor destinations and provide a basis for strategies to build competitive advantage for Scotland and Scottish businesses.

  7.  To create a cultural change in the industry in relation to the gathering and use of market intelligence that supports the objectives of groups such as Pride & Passion and the Tourism Innovation Group.

  The following suggestions would improve Scottish data at a national level and could be used to assist in informing Government policy. In addition, the information gained from them could also be used to shape VisitScotland's marketing and product development strategies.

    —    Funding for full scale survey on day visitor volume and value.

    —    Funding for National Visitor Survey (Domestic and International) to research the following:

      —  Visitor Flows;

      —  Visitor Attitudes;

      —  Activities/Behaviour; and

      —  Expenditure.

  This would offer greater accuracy than national volume and value monitors, especially at a local level .

  * Expansion of International Passenger Survey sampling points to include Aberdeen Airport.

11.  CHALLENGES FOR TOURISM INDUSTRY

  The tourism market is changing and the motivations and decision factors of today's visitors continue to evolve. Scotland has an extremely good fit with the latest consumer trends and has benefited greatly from the increased number of direct flights from Europe and North America in recent years. These direct flights help support the marketing of Scotland and the attractiveness of Scotland as a destination. Indeed, they have contributed significantly to the 50% increase in international visitor numbers over the last five years. However with new destinations emerging all the time, holding on to existing market share is a challenge.

  Consumer research over recent years has confirmed that today's visitors are no longer for the traditional passive sun, sea and sand holidays. Current and prospective demand presents a host of opportunities for Scotland. In our research, we have found that people are interested in visiting new places and learning about different cultures. For others, their holidays are a chance to pursue and develop their skills in a hobby or interest, resulting in demands for activity and special interest holidays. Through these, they can return to normal life refreshed and inspired. Building on this research, VisitScotland's marketing strategy and product portfolio (as outlined above) works effectively to meet customer expectations.

  The Tourism Framework for Change is built around a number of key areas that are vital to support the growth of the tourism industry. The key areas are:

    —    Market Intelligence & Innovation;

    —    Marketing;

    —    Customer Experience;

    —    Sustainability; and

    —    Legislation and Infrastructure.

  The TFFC is available for download from: http://www.scotland.gov.uk

March 2007



 
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