Scotland suffers UK visitor slump

Domestic visitors to Scotland slumped by more than 10 per cent last year, counterbalanced by a 12% rise in international arrivals.

The value of UK visitors to Scotland declined by 10% to £2.7 billion in 2006 as numbers dropped by 11% to 13.3 million, according to latest VisitScotland figures.

The World Cup, increased domestic fuel bills and higher interest rates were blamed for the drop in travellers from other parts of the UK.

“This is a trend which is shared across the UK and has been influenced by economic factors including increasing fuel prices and interest rates,” a statement said. “However, Scotland’s share of the UK market has remained steady at 13 per cent of revenue in 2006 and 2005.”

Revenue from international tourism to Scotland rose by 17% to £1.4 billion as the number of international visitors increased by 12% to 2.7 million.

“The combined effect of growth in international visitors and decline in domestic means that in effect, the strong recovery since 2001 has levelled off in 2006,” the tourist board admitted.

“The total value of tourism to Scotland decreased by around 2% in 2006 to £4.1 billion. The total number of visitors decreased to 16.0 million.

“The increase in the number of direct flights to Scotland is one of the reasons for the growth in international visitors. However, the increase in direct international flights across the UK is also is likely to have contributed to a decrease in the UK market, making it easier and less expensive for UK consumers to holiday abroad.”

Hotel room occupancy remained at 63% for the second year while the number of visitors to Scottish visitor attractions increased by 6%.

A decline in UK consumers’ disposable income due to increasing costs including gas, electricity, fuel and interest rates may have made consumers less likely to take this second break and therefore contributed to the decline in 2006, according to VisitScotland.

“Another factor is the World Cup, which took place in June and July 2006. This major sporting event resulted in less UK, particularly English, visitors taking trips within the UK, preferring to stay at home to watch the matches or travelling to Germany.”

VisitScotland chief executive Philip Riddle said: “Although the UK market has been more disappointing, largely due to factors out of the control of the tourism industry, the fact that our share of the UK market and occupancy levels have remained steady is reassuring. This is reflected in the optimism of the Scottish tourism businesses who took part in a recent independent survey of business confidence.”

Commenting on ambitions to grow revenue from tourism by 50% by 2015, Riddle said: “The shared industry ambition to grow revenues from tourism by 2015 is still achievable, however, it will require action from everyone involved in tourism, in both the private and public sectors. 

“The essential ingredients to achieve growth will be increased investment to expand the industry and greater productivity from within the industry.

“Increased investment must include investment in capital developments, marketing and product quality. Greater productivity from within the industry must focus on ensuring we are encouraging visitors to come to Scotland year round, as well as businesses working together on joint initiatives and increasing their focus on sales.”

Peter Taylor, chairman of industry body The Scottish Tourism Forum, said: “These figures underline the hugely competitive nature of tourism, as more countries than ever are realising the economic opportunities it brings.

“It is vital that the public and private sectors continue to work more closely together to ensure the best return from marketing and deliver an unforgettable experience to visitors here.

“Maximising our tourism industry is crucial to growing Scotland’s economy but nobody can be complacent about the challenge to achieve our shared ambition of 50% revenue growth.”

by Phil Davies