´óÏó´«Ã½

´óÏó´«Ã½ BLOGS - Douglas Fraser's Ledger
« Previous | Main | Next »

Recession on tour

Douglas Fraser | 21:40 UK time, Friday, 24 July 2009

At the high point of the Year of Homecoming, should we be worried or surprised that Scotland's tourist industry has taken a cold dip in the North Sea?

A bit worried, but not surprised. A decline of more than a million trips, when comparing last year with 2007, shows signs of the early stage of economic downturn taking its toll.

That was before the sterling zone began to see the benefits of more competitive prices in the euro and dollar zones.

It didn't have the benefit of the Homecoming marketing (assuming there is some). And it was probably affected by one of last summer's biggest concerns being the rocketing price of fuel.

These factors should be helping Scottish and British tourism this year, though there's a warning attached - fuel prices and sterling have been moving in an unhelpful direction over more recent months.

However, with many tourism businesses having tight margins, the loss of £156m from the collective tourist spend last year has been hurting some. The lucrative business tourism market was down particularly sharply, by 14%.

Those who made the visit seemed to like it. A satisfaction survey found business visitors rated their trips quite highly - 80% "very satisfied" was 21 points up on a poor showing in 2007.

Others, particularly at the value end of the market, seem this year to be having a pretty healthy peak season, much of it from Brits remaining close to home on "staycations".

It's looking good for camp sites and those who benefit from day trips.

And while international arrivals were down, outbound air departures from Britain are down by more - 16% in the early part of this year.

How does that compare with competing tourism markets? The World Tourism Organisation recently reported that tourism arrivals rose by 2% last year. But it added that the growth was in the early part of the year, and there was a dip in the second half.

The overall effect was a little growth around the world, with the exception of Europe, which stagnated. Business was at its best in the Middle East, up 11% - which, let's be honest, isn't a conventional competitor with Scotland for the tourist dollar, euro or dinar.

So Scotland's tourism problems have to be seen in the context of the global challenge.

But the downturn does make it particularly tough to hit the Scottish Government target of growing the tourism industry by 50% between 2005 and 2015.

The setback to that ambition may help explain why VisitScotland was so unhelpful in making these latest figures public.

If targets are to be meaningful, this is one that may require a new dose of realism.

Comments

  • Comment number 1.

    Thanks Douglas.

    Depressing stats indeed. These make it even more important that the Scottish tourism industry actively engages with Web 2.0 and social media to build a strong base of high value, loyal customers. Some progress is being made in this area, but much more needs to be done. Web 2.0 requires a radical new approach to tourism marketing and promotion - an approach based on marketing as a 'conversation with your customers, a conversation with your network'.

    Dr Jim Hamill
    [Personal details removed by Moderator]

  • Comment number 2.

    Successive Governments tell us how important the Tourism industry is but fail to finance it in par with other industries (and Banks). Considering the huge amount passed back to the treasury, and local government from VAT and all the stealth taxes generated from hotels and restaurants. Other businesses benefit from the industry from the local paper shop to accountants and solicitors; they all indirectly generate revenue from tourism enterprises. The UK Tourism industry is treated unfairly with other European countries by our Government.

    Thats the gripe now a few solutions.

    VAT the same as France @ 5.5%.
    Capital funding for upgrading the accommodation sector. Spain is investing ½ Billion Euros.
    Better facilities for tourist such as Public Toilets.
    Joined up Public Transport.
    Government funded catering and hospitality schools.
    Reduced rates

  • Comment number 3.

    Truth will out. We have been receiving email shots from Visitscotland advising that this , the year of the homecoming was proving to be a bumper year for Scottish Tourism (though their quality inspectors have a more realistic view). The homecoming has been an unmitigated non event. We tourist operators have little confidence in Visitscotland They lost many millions on their web site, designed to generate cash for their organisation, not for the operators. And yet they still persisted with their approach , flying in the face of operators non co-operation until forced by their political masters to make a change.
    And even then their emails show that they are so out of touch with the real world. A summary of the tourist season so far might read.
    British tourists are staying at home rather than travelling abroad or going on holiday in the UK. Short breaks are up at the expense of weeks and more and more holidays are booked at the last minute. There has been a small increase in visitor numbers from Europe ( early bookings up but increased value of pound stopped the growth) and a deline from America
    It would be re assuring to think that VS would get the message and send it on, even now!
    And more engagement with web 2 is a great idea but there is a huge training need

  • Comment number 4.

    Back again.

    Just looked at VAT charges in our main tourism competitor countries for hotel accommodation.

    Spain 7%, France 5.5%, Ireland 13.5%, Netherlands 6%, Italy 10%, Greece 9%, Portugal 5%. UK 15% (but going up to 20% to pay city bonuses).

    Where is the level playing field?

  • Comment number 5.

    We live in Cyprus and tourism here is down, being part of the Eurozone, but the Government has helped the Hotels with a lower VAT rate. The Tavernas are complaing that they don'y enjoy the same rate. The Tavernas are also suffering because of the rise in popularity of the 'All Inclusive' holiday. I think some holidaymakers never leave their hotels , enjoying the Sun the Pool and the free drink. There is so much of interest to see and do I don't know why people do it . The 'All Inclusive' option is not cheap but I suppose you know exactly what your holiday will cost.

  • Comment number 6.

    ´óÏó´«Ã½ 16 July - New optimism for tourism business

    Do we look backwards or forwards? Do we concentrate on what's good about Scotland or bad? We have a lot to offer but we seemed keen to remain mired in a negative apathy. Would you visit a country full of such blawearies?!

  • Comment number 7.

    Why would anyone want to go on holiday in Scotland where you will be ripped off by overcharging , not very good hotels and restuarants and at the same time treat yourself to hypothermia in our glorious summer weather. The cost of a cheap break , 3 days ? in Scotland, will get you at least a week , maybe two, in the Mediterranean with endless sunshine and a warm sea, plus food you don't need a second mortgage to buy. Even the cost of a humble fish supper here will get you a proper meal in Greece in most tavernas.

  • Comment number 8.

    While accepting many of the criticisms of the Scottish Tourist industry as mentioned above, I wonder how helpfull the ´óÏó´«Ã½ Radio Two weather reports are.

    In recent months (years?) they have fallen into the habit of giving the highest and lowest temperatures forecast such as; temperatures will range from 12 degrees in the north of Scotland to 22 degrees in the South of England. No mention is made of the higher temperatures in other parts of Scotland or lower temperatures in other parts of England.

    Bearing in mind that a large percentage of the potential tourist market for Scotland comes from England how does this consistant drip feed of negative propaganda play out to our benefit?

    Having spent almost 30 years living in England, in my personal experience, the general impression of all my friends in England regarding the weather in Scotland is that Scotland doesn't attract them as it is too cold.

    In reality, a close inspection of the detailed weather forecasts shows that a large part of Scotland is usually just as warm as most of England except for the extreme South East of England.

    Bearing in mind that this negative portrayal from the ´óÏó´«Ã½ is now a consistant habit, would it not be possible for someone from the Scottish Tourist Industry to have a word?

    Best wishes.

  • Comment number 9.

    Douglas I am not surprised tourism figures are poor. Aside from the usual weather that we can't do much about there are some things we could do.

    1) Join the Schenegen area passport free travel zone. This will encourage tourists from the EU. Less hassle at airports is a positive message.

    2) Join the Euro. Exchanging money is a pain. Less hassle for tourists.

    3) Build more Hotels. A few wee Bed and Breakfasts are all very well but we have to think of catering for plane loads and not just the odd tourist that drives from the Ferry Ports or expats staying with their family. Much more Hotel Beds will get costs down. Better value for money for tourists.

    4) Could the international arrivals area at Aberdeen Airport not resemble a cattle pen when two aircraft arrive at once?

    All these points will make Scotland more attractive to tourists if we really want it to be! Of course the press will veto most of these ideas.

  • Comment number 10.

    In terms of being an attractive tourist destination one obstacle that the country faces is that compared to many other countries Scotland does not feel like a relaxed place, somewhere at ease with itself, and with others.

  • Comment number 11.

    The UK tourism industry has definitely benefited from the recession, if not the weather!

    However one owner in the Cotswolds has resorted to a competition to fill his luxury holiday cottage and save VAT and other taxes for both proprietor and guests.

    Don't tell the chancellor!


  • Comment number 12.

    Douglas:

    Yes, it is always a good thing to show the recession going on the road...

    =Dennis Junior=

Ìý

´óÏó´«Ã½ iD

´óÏó´«Ã½ navigation

´óÏó´«Ã½ © 2014 The ´óÏó´«Ã½ is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.