A New Strategy for

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SCOTTISH EXECUTIVE Contents page

Executive Summary 1 www.v isitsco tland Vision 4 .net ww w.v Where we are now 6 isit sco tla nd How the market is changing 14 .ne t w w Realising our vision 18 w. vis its co Measuring our success 42 tla nd .n et w w w . vi si ts co tl an d .n e t w w w .v is it sc o t la n d .n e t

www.visitscotland.net

© Crown copyright 2000 ISBN 0 7480 9328 1 Executive summary

Section 2 of this strategy sets to the increasing use of new out the Scottish Executive’s technology, in particular the vision for Scotland’s tourism internet, to the growth in industry and identifies the competition and the increasing need to develop a modern quality being offered by tourist industry in touch with its competing destinations, and to customers; a skilled and changing social trends. enterprising industry which has embraced the culture of lifelong Section 5 sets out the action learning; and an industry which that needs to be taken to provides the quality of service realise the vision set out in our visitors demand. If the section 2. industry itself responds to this challenge tourism can take its Section 5.1 concludes that the rightful place at the heart of effective use of knowledge is Scotland’s economy. one of the keys to business success. Businesses need to Section 3 reviews the understand who their performance of Scotland’s customers are, and what their tourism industry over the last needs are; and have to have 30 years and anticipates future the means to communicate trends in the market. It finds swiftly and accurately with that the major growth area has them. The internet will be one been in visits from overseas. of the main means of This growth is projected to communication with customers continue. The UK market, in future. The strategy which is still our most recommends a number of important, has remained mostly actions to put Scottish tourism static in terms of visitor businesses at the forefront of numbers and spend. For this the internet revolution. market, short breaks are the growth area of the future and Action: The STB, with SEn and this market also presents the HIE will establish a fully greatest opportunity for off- operational industry web-site season growth. Business by June 2000. This will present tourism has been a major relevant market research growth area for Scottish information in an accessible tourism in recent years and this form, allowing tourism is expected to continue. businesses to improve the nature and quality of the Section 4 highlights the major services they provide, and tailor changes that are impacting on their individual marketing plans the tourism industry world-wide to suit particular niche markets. and sets the scene for the changes that are proposed in this strategy. It draws attention

A New Strategy for Scottish Tourism 1 Action: The STB’s on-line Section 5.2 discusses the Action: The STB will utilise the booking system, Ossian, will be marketing of Scotland. The worldwide appeal of our fully operative for e-commerce Scottish Executive will review ambassadors for sport and from June 2000. The Scottish how its network of offices culture as part of the niche Executive will set a target of overseas can assist in the marketing strategy. 30% of accommodation marketing of Scotland as a businesses to be trading by e- tourist destination. The public Section 5.3 identifies action to commerce by 2002, 50% by agencies have a major role to raise quality in the industry. 2003 and 90% by 2005. play but success will There will be a new requirement increasingly be determined by to display prices and charges Action: The STB will establish the marketing effectiveness of clearly. The STB quality a partnership with the private individual businesses. While assurance officers will become sector to maintain Ossian’s tourism in Scotland as a whole quality advisers. The National competitive advantage through has increased, the rate of Transport Timetables will be further development. increase across the country has incorporated into the STB not been uniform. More needs website. Action: The new partnership to be done both to extend the will develop the facility to book season and to increase the Action: The STB will double its and to pay by e-commerce for benefits of tourism in rural quality assurance effort events and transport, and the areas. The strategy creating a force of quality use of the latest interactive recommends that this should advisors able to advise on technologies such as the be tackled through the improving quality and on best provision of information through development and marketing of practice and to encourage mobile phones, to enable niche products. managers to take advantage of visitors to access information training opportunities. on local attractions, Action: The STB, working with accommodation and travel. the ATBs and the private sector Action: The STB will ensure will develop a new marketing that all businesses in Action: The STB will establish, campaign to persuade Scots to membership of the through partnership with the holiday in Scotland. accommodation QA scheme private sector, a call centre display clear information, based on Ossian. Action: The Scottish Executive outside their premises, about and STB will join with Scottish prices and charges. This will Action: Tourism Information companies to co-operate when include phone calls and other and booking will be available advertising overseas. This will services. through a single national and involve companies adding the international telephone number, STB web site address to their for the 2001 season. own promotional material.

Action: The STB will produce a new strategy to target niche markets, focussing initially on golf, culture and genealogy.

2 Action: The Scottish Executive > work with SQA and the FE Action: The Scottish Executive, will produce a National and HE sectors to identify and in partnership with STB, ATB’s, Transport Timetable by end develop “centres of training SEn and HIE will publish an 2000 and the STB will excellence”, in the tourism annual report and hold an incorporate this in its web site sector. annual conference with New so that the customer can have Ideas Workshops. easy access to the information > develop and promote a needed to plan a visit using all mentoring scheme for tourism Section 6 sets out the principal modes of public transport. businesses. indicators and targets by which the success of the strategy will Section 5.4 identifies a Section 5.5 identifies the need be measured. commitment to lifelong learning to keep the structure of public and to investment in support for the industry up to Action: We will establish a set employees as being the keys to date to match the changes in of local area indicators and raising skills and improving the tourism market and targets for area tourist boards service quality in the industry. developments in technology. from the suite of national The strategy recommends that It proposes action to provide targets outlined in this strategy. a new, industry led, skills body more stability of funding for be established and sets targets ATBs, and to ensure effective for the uptake of Modern support from the enterprise Apprenticeships and Individual networks. Progress towards Learning Accounts. the targets set in the strategy will be reviewed annually with Action: The Scottish Executive the industry. will set up, by April 2000, a new industry led Tourism Skills body Action: The Scottish Executive, with a focus on meeting the in partnership with local needs of our customers authorities, will provide 3-year through investing in the people budgeting for Area Tourist who provide the service. Boards.

Action: The new body will: Action: The Scottish Executive will review the role of the > promote the uptake of 1,000 enterprise networks in Modern Apprenticeships in the supporting tourism as part of tourism industry by 2003. its broader review of the networks. > promote the uptake of 5,000 Individual Learning Accounts Action: A new implementation by 2002. group, chaired by the Minister and replacing STCG, will be formed to oversee implementation of the strategy.

A New Strategy for Scottish Tourism 3 2 section Our vision for Scottish tourism

Scotland has the assets to be a world class tourism destination. It has magnificent scenery; a pristine natural environment; cultural and historical richness; world famous sporting attractions; and beautiful and vibrant cities. These assets have helped to make Scotland an important tourist destination already, and to make tourism an important industry for Scotland.

4 Henry McLeish MSP Minister for Enterprise and Lifelong Learning

The environment in which So Scotland cannot rely on its Our vision for Scottish Scottish tourism competes is natural assets alone. Nor can it tourism is of: changing. The global tourism rest on the quality of service market is increasingly the tourism industry currently > A modern tourist industry in offers. The tourism industry, competitive. Destinations touch with its customers around the world are becoming just like any other, must learn, more accessible and more invest and modernise if it is to > A skilled and enterprising attuned to the needs of tourists. remain competitive. industry which has embraced And tourism itself is being the culture of lifelong learning changed by developments in Getting the basics right, by technology, particularly in providing a quality of service > An industry dedicated to communication and in the which complements and providing the high quality of growth of e-commerce. emphasises Scotland’s unique service our visitors demand. assets, is the best way to ensure sustainable long-term If we realise this vision, tourism growth in the industry and to can take its rightful place at minimise the impact of external the heart of Scotland’s factors like the weather. economy. It will be a sustainable industry. An industry which works for the whole of Scotland throughout the year. But this vision can only be realised if the Scottish tourism industry takes up the challenge. The Government and the public agencies will support and empower the industry. But success depends on the industry’s own efforts to modernise, invest in its staff and embrace the culture of service.

A New Strategy for Scottish Tourism 5 3 section

Where we are now

6 Our strategy for the future development of our Over the same period there has also been significant change in the tourism industry must be based on a clear volume and quality of the understanding of changes that are taking accommodation stock. The number of hotels in Scotland has place in world tourism; on an appreciation of increased from just over 2,000 in what Scotland has to offer; and on the views 1970 to just over 2,500 now (an increase of 25%). The number of of those in the industry itself. hotel bedrooms with en-suite facilities however increased from Long term trends less than 35% in 1970 to 87% in 1998. This is a real change in quality. Over the past 30 years, there have been dramatic changes in the Employment in tourism related tourism industry. Tourism in industries is estimated to have Scotland has grown by 43% . increased from 112,000 in 1970 to But there have been considerable some 177,000 in 1998 (including changes in the markets; which some 17,000 self employed), an make up the total. In 1970, increase of 58%. overseas tourists took 620,000 trips to Scotland, stayed for 8.5 million nights and spent £26 million (£230 million in 1998 prices). In 1998, they took over 2 million trips, stayed for 19.4 million nights and spent £940 million.

Visits to Scotland by UK residents show a different picture. In 1970, these visitors took 12.3 million trips, stayed for 65 million nights and spent £175 million (£1,500 million in 1998 prices). In 1998, they took 9.8 million trips, stayed 44 million nights and spent £1,540 million. UK residents are spending fewer nights in Scotland but spending more while they are here. This reflects the virtual disappearance of the main holiday market for UK residents and the rise of the short break. Over the long term, therefore, the growth in tourism in Scotland has come primarily from overseas markets.

A New Strategy for Scottish Tourism 7 Overseas tourism

In our main overseas markets in the period USA between 1972 and 1998, we have seen the The USA is the largest overseas number of visitors from France increase from market for leisure travellers to Scotland. Our visitors are 36,000 to 133,000 and visitors from Germany primarily from the North East of increase from 43,000 to 210,000. the US, or the states of Texas, California, Florida and Illinois. During the same period, the The majority of our main number of visitors from the holiday visitors visit Scotland as USA has increased from part of a Britain itinerary, 158,000 to 470,000. These beginning their tour in London. figures reflect the growing However increased direct flight importance of European capacity from the US into tourism to Scotland which in Scotland presents increased 1972 accounted for 29% of all opportunities to grow the overseas tourism trips but number of ‘Scotland only’ trips which by 1998 had risen to particularly short breaks from 48%. the Eastern Seaboard. The US baby boomers approaching retirement amounts to some 76.5 million of which 3.2 million claim Scottish ancestry providing good prospects for generating increased numbers of visitors from this, our priority segment.

8 Germany Tourism from within The opportunity for Scotland is in 1-7 night breaks for couples Germany is the key European the UK who: market for Scottish tourism. A sizeable number see Scotland The trend in the UK market is > are pre-family or post-family. as a destination in its own right, towards short breaks. The spending their whole holiday average length of stay by UK > are looking for escape, here rather than visiting visitors has decreased from 5.4 freedom and reconnection with Scotland as just one part of a nights in 1970 to 4.5 nights in self or partner. Britain itinerary. German 1998. > might be into an activity on visitors have a strong interest in holiday. the environment, nature and In 1998 English visitors to wildlife and walking, while niche Scotland spent over £1 billion > might be interested in culture markets exist for more serious and Scots spent £353million and city breaks. walking, cycling and golf . making the UK market our While the German market to largest. While there is still an > take a number of breaks each Britain is set to level off, there important main holiday market year. for couples and families, this is will continue to be scope for > book independently. Scotland to increase its market in decline because of the share. Demand for healthy preference for overseas > travel by car. tourism and eco-tourism will holidays. grow over the next few years. Scottish residents remain an France important market for Scotland. In 1998 they accounted for France’s geographical proximity 43% of all holiday tourism trips to Britain, with excellent access from within the UK to Scotland, routes by air, sea or tunnel, and 25% of spending. There make it an important market. has been a long-term decline of With the increase of direct the 8+ night market largely as a flights into Scotland (11 per day result of increased affordability into Scottish airports) there is and desirability of overseas potential to increase the summer sun holidays. But this number of visitors from France has been balanced to an extent and to increase the proportion by growth in 1-3 night trips. of Scotland-only visitors among This market is volatile and these. Overseas travel is expenditure fluctuates widely growing among the French and from year to year. The Scots the increase in direct flights to market presents a particularly Scotland presents opportunities important off season for main-holiday business and opportunity. for the fast growing short and city break segments.

A New Strategy for Scottish Tourism 9 Business tourism

Discretionary business tourism is worth Business tourism in Scotland in the 1990s has been a success c. £450million per annum to Scotland. story. It has grown at a steady It is particularly important because of its rate, and the long-term high yield, out of season potential and links indicators point to continuing growth. Business tourism trips with wider economic development. in Scotland from within the UK over the period 1990-98 have Key segments are: doubled from 0.9million to 1.8 > International Association million. However, as Meetings. businesses began to control costs their expenditure on > European Corporate Meetings business trips decreased, from and Incentive Travel. £265 per trip in 1990 to £160 per trip in 1998. Within the > US Corporate Meetings and overseas markets we see the Incentive Travel. opposite, with growth in trips > UK Association Meetings. and expenditure most years, from a low of £49million in > UK Corporate Meetings and 1991, to a record high in 1998 Events. of £170million. Much of this growth is from our near > Scottish Internal Association European partners of France, and Corporate meetings and Germany and the Netherlands. events. While Scotland’s national image and attractions are important for this market, these must be linked to messages on Scotland’s venue and facilities, business and commercial success and leading edge technology. Price, value for money and time and cost of travel to Scotland are key issues for most meeting planners.

10 Business tourism in Scotland in the 1990s has been a success story.

- clean green environment people (Picts/Celts, Scots/ = natural/organic produce Vikings/prehistory raditions Strengths > Part of UK/part of island of > Distinctive destination appeal: Britain Weaknesses scenery/natural environment opportunity to gain share of > Short season and consequent heritage/history Britain visitors inability to reinvest in improving friendly people BTA overseas network product quality > Perceived pace of life: “Most scenically varied small > Fragmented tourism industry escape/relaxation/uncongeste country in the world” dominated by marginally viable d stunning countryside/historic, SMEs “island of tranquillity” in vibrant cities frenetic world mainland/islands mountains/lochs/farmland/ > Price/value for money > Perceived brand values & way coasts compared to competitors of life: Pictish/Celtic/Scottish/prehist particularly in 2-3 star range Inventiveness oric heritage tenacity > Service attitude (particularly integrity > Culturally distinctive compared to competitors) spirit music “real people” with traditional art > Management skills values language - Gaelic/Doric > Lack of on-selling by > Quality products/natural architecture businesses produce - malt whisky > Weather - smoked salmon too real amongst Scots - “Angus” beef sometimes worse than - seafood perceived amongst English - cashmere less of a problem overseas > Unspoilt natural environment: > Scottish temperament - space/big sky individualistic - humanised wilderness blame culture complacency

A New Strategy for Scottish Tourism 11 Whatpa rtheochialism industry wants ScotlandN Sea crossing’s St dirrengthsect to and ScotlandWeaknesses This strategy has been * Growing domestic and international conference prepaOpportunitiesred following the largest To take advantage of the business and* Incmostrease inclusive in short consultation breaks (esp worldwide growth in tourism * Changes in global distribution everfor undertaken more accessible on tourism in and compete effectively with systems/ICT (eg Ossian) Scotland.areas/central The main belt) issues that other destinations, we must * STB QA scheme eme* rGgedreater from awa thereness views of of build on Scotland’s distinctive - quality focus thoseScotland who have contributed strengths and address its - investment incentive we-re: as “somewhere different” weaknesses. Taking into - professional advice following parliament account the views of those in * Growth in budget hotel groups > The- as need “fashionable” to understand in artistic and the industry who have * Partnerships between customersenvironmental and niches terms to contributed to the development public/private sector market* Growth Scotland in activity effectively holidays (eg of this strategy, a SWOT Threats > Thewalking, need togolf, take fishing, advantage analysis of Scottish tourism * Impact of short breaks on of newwatersports) technology and would show the following remoter areas methods* Growth of communicationin desire for cultural picture: element to holiday/’self > The need to develop and improvement’ * 8 night traditional holiday in improve the marketing of * Trend towards UK in terminal decline Scotland green/environmental > Theconscience need to workpurchasing together * Transport policy and* ‘Boomers’raise the p rmarketofile of tourism - under-appreciation of > The* ‘Scottish need to Roots’improve market quality importance of car to rural areas and* Scotlandservice ’s vibrant - petrol price > Thecontemporary need to imp artsrove scene skills (eg throughoutTrainspotting, the industry Glasgow Year of * Time, cost and distance from > Architecture) The need to tackle regionality major markets in UK and* Lifestyleseasonality businesses can operate where purely (sometimes perceived, often > Thecomme needr cialfor theventu tourismres cannot real) industry* Natural to be hospitality adequately of the supportedScots * Lifestyle businesses run for > The* T ransportneed to make Scotland owner, not customer an -accessible Integration country and single * Accessibility > Thetimetable need to develop a sustainable- growth industryin low cost which airlines - limited number of direct benefits- reduced all of rail/air Scotland fares flights/(lack of critical mass to - development of smaller, more provide large enough outbound fuel-efficient aircraft market) - increase in direct flights/charters from Europe - European “open skies” policy * Competition for short breaks - faster ferry developments (particularly for city breaks from could free up ships suitable for Europe and New York)

12 will take to meet these * CompetitionStrengths from “new” concerns. Most canWeaknesses be emerging destinations (eg Asia, addressed by action taken by former> Distinctive Soviet bloc) destination and more appealthe Scottish Parliament;> Short season and consequent problems challenging> Quality adventureproducts holidaysand naturalhowever, produce some matters,with reinvesting for in improving product quality in Latin America etc example, taxation issues, are > Unspoilt natural environment > Service attitude (particularly compared reserved to the UK > to competitors) Culturally distinctive Government. The Scottish > * Impact> Natural of ‘indirect hospitality taxation’ of the on ScotsExecutive will work Managementin skills UK consumers’ discretionary partnership with the> Price UK compared to competitors spending power Government Departments and the European Union to provide the best possible conditions for * Competition for individually the growth of Scottish tourism. ownedOpportunities 2-3 star traditional Threats hotels from national/multinational budget > Increase in short breaks > Impact of short breaks on remoter areas hotel chains > Growth in activity holidays and growing > UK residents trend to take main holiday 2. interest This strategy in culture has been overseas prepared> Trend following towards the green/environmental largest > Competition for short breaks from andpurchasing most inclusive consultation overseas markets ever undertaken on tourism in > Growing domestic and international Scotland. The main themes conference business that emerged from the views of those> Huge who increasehave contributed world-wide in the use were:of new technology

* The need to understand customers and niches to marketThe later Scotland sections effectively of this strategy discuss the action we will take to *meet The theseneed toconcerns. work together Most can be addressed by action taken by andthe Scottishraise the Parliament; profile of tourism however, some matters, for example *indirect The need taxation to improve are reserved quality to the UK Government. The Scottish andExecutive service will work in partnership with the UK Government and the *European The need Union for the to tourism provide the best possible conditions for the industrygrowth of to Scottish be adequately tourism. supported * The need to make Scotland an accessible country * The need to develop a sustainable industry which benefits all of Scotland

The later sections of this strategy discuss the action we

A New Strategy for Scottish Tourism 13 4 section

How the market is changing

14 The increasing use of technology

Technology is radically improving New technologies and methods of communication will mean communication and distribution channels that: between customers and suppliers. > Consumers will increasingly In a relatively short period, access information on tourism successful tourism businesses destinations and products and have moved from effective use make bookings on the Internet. of fax and e-mail, to > The increasing use of the fundamental changes in the Internet for e-commerce will way they do business through provide new opportunities to interactive marketing via the sell accommodation and other Internet, e-commerce, tourism related products. interactive TV, and database marketing. > Use of the Internet, interactive TV and mobile channels for Two hundred million people communication and sales to currently have access to the promote tourism products will Internet. This is projected to set new standards in the increase to six hundred million quality, detail and accuracy of (10% of the world’s population) information available to within five years. consumers. > Multi-media and virtual reality Given this growth in Internet technology offer new access, it is not surprising that possibilities for enhanced doing business on the Internet presentation of Scotland’s is set to accelerate, particularly environment, history and in the tourism sector. Travel culture via the Internet. and leisure currently accounts for 40% of global e-commerce > Improved access by transactions and this is set to customers to information on grow from two billion dollars in tourism products will make it 1999 to thirty billion dollars in easier for them to compare 2003- representing 12 % of quality and prices on an world-wide travel industry international basis. sales. All of this will see a move away from the traditional high street travel agent with a corresponding growth in direct telephone and Internet sales.

A New Strategy for Scottish Tourism 15 Competition More and more countries are now competing for a share of the tourism cake. International tourism arrivals are forecast to rise to 673 million in 2000 and to top one billion by 2010. The World Tourism Organisation is forecasting world growth of 4% a year. But strongest growth is expected to be in Asia and other fast growing regions. The forecast of annual growth of tourism into Europe is 3.1%.

Social trends Growing affluence, increasing sophistication and demographic changes influence the type of tourist that Scotland can attract. It is important to understand the impact of these changes.

Ageing population > Currently around 15% of the Scottish population are 65 or over. > Over 65’s will increase from 16% (9 million) to 20% (12 million) of the UK population in the next 20 years. > Most EU countries have had an ageing population for the last 30 years and by 2020 one fifth of the population of Europe will be 65 or over. > By 2030, 69 million people in the USA will be aged over 65 (20% of the population).

16 Older tourists will be better likely to be more flexible and travelled and more aware of the more independent. It will be competition. However, they will important to offer flexible have more time to travel and packaged products and to will be more experience than cater for niche markets. destination focussed. Scotland can attract this market by Interest in the having a quality product and excellent service as standard. environment There are also opportunities for > Growing interest in our main the development of niche markets for breaks that are a products. complete change from what we do every day. Cash rich-time poor > Promotion of health and fitness and nature as an There is evidence that leisure “experience” is becoming more time is being squeezed with a important. growth in short breaks. With growing pressures on time the Scotland could have a prime value of free time increases. advantage here with its clean, The key here is to provide a green image. However, more packaged high quality product research is needed to that is booked easily in the determine if we have the right shortest possible time. There products in place to meet our are opportunities for city breaks customers needs. and relaxing, stress busting holidays. A more discriminating customer Smaller households People are staying in education > In 1997, there was an average longer and entering the of 2.5 people per household in workforce later. These people the EU compared to 2.8 in will be more globally and IT 1981. aware and therefore more > By 2010 in Scotland, knowledgeable about what the household size is expected to competition has to offer. They have fallen to 2.1. will be more likely to travel and > Over 25% of UK households will also be more discerning. were 1 person in 1998-double Scotland needs to be able to the 1961 figure. offer high quality products and This could mean more travel services if we are to compete and more money for travel for successfully for these those with fewer dependents. customers. Again, there will Single householders are also also be opportunities for niche and special interest products.

A New Strategy for Scottish Tourism 17 section 5 Realising ourVision To develop an industry which is modern, in Knowing our customers touch with its customers, which embraces We live in a changing world, lifelong learning, which provides the quality where customers are becoming more demanding and tastes are of service its customers require, we need changing rapidly. We need to action across a number of fronts. This understand the changes that section spells out where we propose new are taking place and develop our knowledge of where the action should be taken. tourists of tomorrow will come from and what they will want. 5.1 Using knowledge These changes and their effectively implications will vary from market to market and segment Knowledge is one of the keys to segment. They will, however, to business success. This inevitably have an impact on applies as much to tourism as how people make their to any other business. Using decisions, how they access the knowledge effectively is a two holiday or meetings product way process. Tourism and what they want from a businesses need to know holiday, short break or meeting. where their customers will Increasingly, people have more come from, what they will want choice on how to spend their from a holiday or conference leisure time and more products and why they would and would on which they can spend their not choose Scotland. They money. Tourism businesses need that knowledge to design need to keep abreast of those the products and services that developments and focus clearly will meet their customers’ on the visitors they have the needs. Having done so, they potential to attract. Each area need to be able to make sure or destination within Scotland their potential customers know will have its own strengths and what they have to offer, and the potential to develop its own they have to do this in a way niches. which will motivate them to visit Action: The STB, with SEn and Scotland and buy their HIE will establish a fully services. We will make it easier operational industry web-site for tourism businesses to do by June 2000. This will present both. relevant market research information in an accessible form, allowing tourism businesses to improve the nature and quality of the

A New Strategy for Scottish Tourism 19 Scottish tourism must aspire not simply to be part of this revolution but to lead it.

services they provide, and tailor Tourism businesses need to their individual marketing plans communicate effectively with to suit particular niche markets. potential visitors. Recognising the rapid advances in Internet Communicating with and telecommunications our Customers technology, STB and the Area Tourist Boards set out early in Channels of communication 1998 to develop a “real time” and distribution are changing database covering all tourism rapidly as technology develops. products and services The Internet, digital television throughout Scotland- the and radio, and interactive TV all genesis of “Ossian”. Having offer exciting and different invested £2.8 million to date, opportunities to get our over 10,000 establishments in message across. It is estimated membership of ATBs covering that two hundred million people hotels, guest houses, B&B’s, worldwide currently have caravan and camping and access to the Internet. This is visitor attractions are already projected to increase to six searchable using the Internet. hundred million within five Increasing business is being years. Travel industry sales via generated through Ossian, e-commerce will represent 12% initially with bookings through of world-wide travel industry the traditional channels of sales by 2003. telephone, fax and mail and also through e-mail. With the Scottish tourism must aspire growing importance of e- not simply to be part of this commerce, it is projected that revolution but to lead it. Ossian will generate very significant additional and profitable business for Scotland.

20 STB’s web-site To make this possible, the and the kind of enterprise and (www.visitscotland.net) is Ossian database will be flair that will not only maximise already established as are a developed into a full e- revenue but also keep its network of Area Tourist Board commerce facility by June services at the leading edge of sites. We already have over 2000. This will enable a technology and commercial 10,000 quality assured determined push to bring the practice. With this in mind, STB businesses on the searchable, whole tourism sector into the will be working during 2000 to bookable database on the STB world of e-commerce. secure a long-term partnership web-site known to the trade as with input from leading private We also need to ensure that Ossian. A growing number of sector companies. In the businesses that have no tourism businesses have their interim period all involved, previous experience of IT can own web-sites and advertise on public bodies and tourism easily access whatever training the net. However, there is a businesses, must support is required to enable them to huge gap between these Ossian fully and use it to best become proficient in its use. businesses and the least aware. effect. Further investment in LECs and ATBs will provide For Scotland to take full hardware and training is crucial tourism businesses with both advantage of the opportunities as is the need to adapt to general and Ossian specific IT available we need a step- changing marketing techniques training. change in the accessibility of involving for example e-mail the whole industry via new and website promotions. Even this will not be enough. technology. Ossian and other technologies For Ossian to realise its full such as interactive TV will potential it requires both provide the capability for the substantial further investment competitive advantage our industry needs to succeed.

A New Strategy for Scottish Tourism 21 Scotland’s tourism assets are world class.

The real focus for the industry Action: The new partnership is not the technology but the will develop the facility to book customer. Not all potential and to pay by e-commerce for visitors will be internet users. events and transport, and the For these customers the use of the latest interactive development and promotion of technologies such as the a single telephone number to provision of information through service customer enquiries will mobile phones, to enable radically improve ease of visitors to access information access to information about on local attractions, Scotland with Ossian at the accommodation and travel. core of this call centre technology. Together these Action: The STB will establish, developments will ensure a through partnership with the much faster and more private sector, a call centre comprehensive service to our based on Ossian. potential customers. Action: Tourism information and booking will be available Action: The STB’s on-line through a single national and booking system, Ossian, will be international telephone number, fully operative for e-commerce for the 2001 season, from June 2000. The Scottish Executive will set a target of 5.2 Marketing Scotland 30% of accommodation businesses to be trading by e- Scotland’s tourism assets are commerce by 2002, 50% by world class. Our scenery, our 2003 and 90% by 2005. culture, our heritage and our environment provide us with a Action: The STB will establish a major natural advantage. It is partnership with the private the task of the STB to use sector to maintain Ossian’s these images to create an competitive advantage through awareness of, and an interest further development. in, visiting Scotland. Target: We are setting our industry a target of achieving an annual growth rate of 3.3% in the period to 2005.

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Auckland Buenos Aires Sydney

LIS Locations STI Locations BTA Locations

STB’s current marketing build up this market, which has faceted approach to the strategy targets those markets been volatile in recent years, as marketing of Scotland. offering the greatest short and it has particular potential for the The British Tourist Authority medium term return on remote areas of Scotland. (BTA) is responsible for the investment. It is a highly generic marketing of the United segmented approach balancing Target: We are setting targets Kingdom as a holiday the need to maximise yield with for our industry to achieve for destination overseas. the need to deliver benefits spend by both English and Scotland is an important and throughout Scotland throughout Scots visitors. These are attractive brand for the BTA and the year. Current priorities annual increases in spend of it represents Scotland in 27 which deliver best against 2.5% by English visitors and overseas offices, including all of these objectives are high yield 3% by Scots visitors. Scotland’s most important leisure and discretionary overseas markets. The BTA business tourism segments in Action: The STB working with consults the Scottish Tourist the UK, USA, Germany and the ATBs and the private sector Board about how Scotland is France followed by the rest of will develop a new marketing represented in any pan-Britain western Europe. campaign to persuade Scots to marketing activity and is holiday in Scotland. accountable to the Scottish Target: We are setting targets Parliament as well as for annual growth in our key Westminster. overseas markets. These will Who represents The Scottish Tourist Board is be: USA 5%, Germany 4% Scotland responsible for attracting and France 2%. visitors to Scotland. It advises For many overseas visitors the industry on market trends Scotland is seen as part of a Discretionary business tourism- and supports the Area Tourist United Kingdom package meetings, conferences, Board network. accessed through London. incentive travel, product Residents in other parts of the The 14 Area Tourist Boards are launches, corporate events, UK will have a good awareness responsible for promoting their exhibitions and trade fairs- is a of Scotland in generic terms, local area; they service visitors strong growth area for although often less so in in that area, and provide a Scotland. We have the relation to particular areas. focus for local tourism products and the organisational Scottish residents are more businesses to reach their infrastructure to build on this likely to have a clear idea of markets. success. The STB, working with what the different parts of Scotland’s area convention Scotland have to offer. These Through Locate in Scotland bureau and trade partners, will differing levels of awareness and Scottish Trade develop Scotland’s position as and perception require a multi- International, Scotland has an a prime destination for additional presence in 27 discretionary business tourism. offices in 15 countries. The Scottish residents market is also a particularly important one that presents opportunities, particularly for short breaks and out of season. It is important to

A New Strategy for Scottish Tourism 23 Who Does What? Tourism businesses have a key role in marketing their own BTA products and services. This may seem self-evident, but > Generic marketing of Britain the industry has traditionally as a holiday destination relied on the public agencies for > Represents Scotland in 27 national and area marketing. overseas offices The enormous growth in direct > Consults STB on how communication between Scotland is represented in business and customer, through pan-Britain activity the Internet and other modern technologies, now means that the effectiveness and STB responsiveness of individual > Attracts visitors to Scotland businesses also reflect on > Advises the industry on perceptions of the area and the market trends country as a holiday > Operates Quality Assurance destination. This is an area Schemes where there is a real need for > Advises government on more effective action by the tourism development industry itself. > Supports ATB network There are also opportunities for co-operative advertising between public agencies and ATBs private companies to increase > Promote local area the exposure of Scotland as a > Provide visitor services tourism destination. > Focus for trade to reach markets Action: The Scottish > Development and Executive will also review how implementation of Area its network of offices overseas Tourism Strategies can assist in the marketing of Scotland as a tourist destination. LECs > Business development Action: The Scottish > Skills development Executive and STB will join with > Product development Scottish companies to co- > Environmental improvement operate when advertising overseas. This will involve companies adding the STB web site address to their own promotional material.

24 Spreading the Benefits Target: We are setting a target for growth in the It is clear that the less volume of tourism in every accessible and less well-known ATB area of at least 50% of areas of Scotland are not the national average growth enjoying the same benefits from rate. growth in tourism as elsewhere. Spend by tourists in areas Tourism has the potential to outwith Edinburgh and Glasgow make a major contribution to has grown by 11% over the last the development of rural areas. 5 years. But there has been The proposals in this strategy growth of 24% in the 2 cities to use the Internet to give during the same period. There tourism business direct access are a number of underlying to the customer and vice versa reasons for this. They include will be of particular benefit to the trend towards shorter rural areas. However, we need holidays and the decline in the to do more. We must also look number of UK residents taking closely at how we market their main holiday here. Scotland. To achieve greater customer recognition of the Scotland’s tourism industry is less visited and remoter areas, also highly seasonal with STB will feature a wide range of around 40% of holiday trips areas in all print, Internet sites, taking place between July and press visits and consumer sales September. Generating promotions and where business outwith this period appropriate advertising images. remains a major challenge. While this will help, new action Encouragingly, however, is required. Research shows research undertaken by STB that it is possible to influence shows that UK residents are visitors choice of destination willing to visit Scotland at most and the time of year they visit times of the year if they are by building up knowledge of offered the right product. potential customers, identifying Some progress has been made the product (the “niche”) that through national marketing they want and then developing campaigns such as “Autumn and marketing it. A greater Gold” and “Spring into emphasis will in future be Summer”. Many individual placed on the development and businesses and industry groups marketing of niche products for have also developed successful rural areas. marketing campaigns and offers to attract visitors year round while many businesses are staying open longer.

A New Strategy for Scottish Tourism 25 Niche Marketing

Some “niches” lend themselves to action at the national level. These include activity holidays, culture, the environment and genealogy STB will identify the niche products in which Scotland is likely to have a competitive edge, disseminate information and with partners will determine what needs to be done. STB and partners will then market these “niches”. The first national niche to be developed will be golf. It is not only the championship courses that are attractive to visitors; golf tourism offers great potential to very many areas of Scotland including a great number of rural areas. We need to get over the message world- wide that Scotland is the home There are many other niches of golf. that offer potential at the local level. Examples might include sailing, fishing, cruising, bird watching, archaeology, and winter sports including skiing. National and local events and festivals also provide a significant opportunity to attract visitors to Scotland, in particular to less visited areas and outwith the main season.

Key elements of low proposals Golf Culture for developing golf, culture and genealogy will include: > Increasing promotional activity > Making the cultural product at home and overseas. more accessible to visitors > Making it easier for visitors to > Introducing event ticketing as access information and to part of Ossian make bookings. > Promoting cultural activities in > Developing club hire for existing and new markets. visitors. > Establishing local cultural > Developing a “gateway” golf “trails”. website linked to Ossian. > Supporting a bid for the 2009 Ryder Cup. Area Tourist Boards will, with Historic Scotland, Scottish partners, review their strategies Natural Heritage, the Scottish to identify the niche products Arts Council, the Gaelic Arts and markets in which their area Agency (Proiseact nan Ealan) is likely to have particular and the Scottish Museums strengths. STB will help ATBs Council will also work together and other local partners and with the industry to define local tourism businesses to develop product and customer needs and market niche products. In and, where appropriate, to many cases, this will require develop events and festivals. cross boundary action by a This action will build on the number of ATBs working in work of the private/public partnership. Co-operation is sector groups that have played sometimes more effective than a key role to date in developing competition. For example, our environmental and arts based two great cities, Edinburgh and tourism. We need specific Glasgow, both have much to action to lengthen the season. offer the visitor, and together Firstly, STB will develop a they are likely to be able to Toolkit of practical tips and attract visitors that they ideas to assist tourism wouldn’t by acting alone. businesses make the most of ATBs, LECs, local authorities, their off-season campaigns. Secondly, ATBs

Edinburgh and Glasgow will co-operate in the marketing of city breaks in Scotland.

Genealogy

> Linking Scots genealogy websites to Ossian > Developing the promotional potential of Scots heritage events overseas. > Introducing tactical direct marketing campaigns > Promotion in specialist ex-pat publications. and the Scottish Tourism Forum Some Scots are world famous will encourage tourism for their sporting and cultural businesses to adopt greater achievements. They can help to flexibility in servicing visitor raise awareness of what needs throughout the season, Scotland has to offer and boost to recognise the opportunities awareness of Scotland as a for extended opening created tourism destination, particularly by marketing campaigns and to overseas markets. participate in them. Many first-time visitors to Action: The STB will produce Scotland, particularly from a new strategy to target niche overseas, will go to Edinburgh markets, focussing initially on and Glasgow. The cities have a golf, culture and genealogy. crucial role to play both in attracting first time visitors and Action: The STB will utilise undertaking a gateway role in the worldwide appeal for,our helping to disperse visitors ambassadors for sport and throughout Scotland either as culture as part of the niche an add-on to their city holiday marketing strategy. or as a repeat visit. This is a tremendous opportunity that will be fully exploited.

28 We are setting a target for the average Quality Assurance scheme score to be at least 3 stars by 2005. It is currently 2.8.

5.3 Quality and Service Better Service-Better Quality-Better Product Quality is an essential ingredient of successful tourism There have been calls for the destinations. The quality of a introduction of a scheme of Scottish holiday will determine compulsory registration of our industry’s reputation in the accommodation providers in global tourism marketplace and order to improve quality. Views in securing repeat business. vary, however, as to what the We can, and must, learn from conditions might be and how best practice elsewhere. any such scheme should be During 2000, STB will enforced. Others argued benchmark Scotland against against compulsion, pointing countries overseas that offer out that while a scheme could comparable products (these will establish a benchmark of include Ireland and Norway) acceptable facilities, it could and disseminate the results to not by itself drive up quality or businesses and to public sector instil a service culture. In partners. support of this view, there is no hard evidence from experience Scotland should also aim to of schemes operating become one of the world’s elsewhere that they have either leading sustainable raised standards or brought destinations. We are well significant benefits in terms of placed to do so and customer satisfaction. sustainable practice will be a central theme in implementing The voluntary approach has this strategy. had some success in Scotland. STB estimate that around 90% of accommodation businesses are members of their quality assurance scheme which provides an independent guarantee to visitors of over 10,000 tourism businesses in Scotland. The scheme also provides a focus for support to tourism businesses. The Scottish Executive believes that the way forward is to build on the existing Quality Assurance Scheme.

A New Strategy for Scottish Tourism 29 Our aim is to see all businesses working towards improvements in their quality rating.

But that does not mean This service will be developed resting on our laurels. The and expanded. In future, the QA scheme provides a prime responsibility for driving ladder, with each rung an up quality standards will rest indicator of better quality. with the STB QA staff. They will Businesses who progress up form a team of Quality the ladder will win more Advisors. Their role will include business and increase their giving businesses: earnings. Our aim is to see > advice about how they can all tourism businesses raise standards. working towards > information on how they can improvements in their quality participate in national and local rating. marketing activities and campaigns. The STB is responsible for > market intelligence to help grading accommodation them plan their own marketing within the quality assurance activities. scheme. It applies a > information about staff consistent national standard. development and training The purpose of grading is to opportunities. provide visitors with an > information about IT and in independent mark of quality, particular how to benefit from and to provide an incentive the Ossian system. to businesses to improve the > information about where to go quality of service they offer. for more detailed advice, e.g. These purposes are LECs and ATBs complementary. The quality assurance schemes success This will lead to a better should not be measured by informed, more professional the number of businesses industry and one that is better who fail but by the numbers equipped to compete in the who move up the quality global marketplace. scale. The enterprise networks Target: We are setting a provide business advice and target for the average support, and sometimes grant Quality Assurance scheme assistance, to tourism score to be at least 3 stars by 2005. It is currently 2.8. businesses. In future, such support will be directed The STB grading officers towards achieving improvement currently provide a basic in the QA rating. advisory service as part of their annual visit to some 10,000 accommodation providers and visitor attraction operators.

30 Action: The STB will double its Accessibility We are working with local quality assurance effort, authorities, transport operators creating a force of quality Many of those responding to and user groups to develop a advisors, able to advise on our consultation mentioned framework for the improving quality and on best accessibility to and within establishment and practice and to encourage Scotland as an important issue. implementation of a National managers to take advantage of Potential visitors to Scotland Public Transport Timetable in training opportunities. will draw comparisons with Scotland. The National other tourist destinations in Timetable system is being Being clear about prices terms of convenience, constructed on a network of integration, cost, quality and local information centres Part of providing a good service ease of access to information throughout Scotland and also in is making clear to the customer and booking services. England and Wales. When fully what they are getting for their developed, the potential will money. We believe that The improvements that have exist for links to be established information on charges should been made in recent years to between the National Public be clear, transparent and easily the road infrastructure together Transport Timetable system and accessible. with investment in the rail on-line booking systems such network have opened up new as Ossian. Action: The STB will ensure opportunities for Scottish that all businesses in tourism. A number of new, Action: The Scottish Executive membership of the direct, scheduled air services will produce a National accommodation QA scheme have commenced, examples Transport Timetable by end display clear information, are services from Spain, The 2000 and STB will incorporate outside their premises, about Faroe Islands, Denmark, this in its web site so that the prices and charges. These will Austria, Germany, France, customer can have easy access include phone calls and other Sweden and the USA. to the information needed to services. plan a visit using all modes of Many of the issues surrounding public transport. accessibility, for example, the opening up of new air and ferry links, are commercial decisions which the government cannot control. We will, however, do everything we can to encourage the development of new and better transport services. We will also continue to cooperate with the UK government and the EU on issues for which they have responsibility.

A New Strategy for Scottish Tourism 31 5.4 The right skills right now

If Scotland’s tourism industry is to grow, much will depend on the quality of service we provide to our visitors. This quality of service depends crucially on the skills and attitudes of those who work in the industry. Given the ever- changing nature of the industry and ever growing expectations of the customer, a commitment to improvement through lifelong learning is the key. The commitment is as important to the success of the smallest tourism business in the most remote area, as it is to major companies in the industry.

Substantial progress has been made in recent years in the area of skills development. Over 50,000 people have participated in the courses developed on behalf of Tourism Training Scotland (TTS). Despite this, and many individual examples of good practice, it is clear that weaknesses remain in the areas of skills development, service standards and recruitment and employment practices.

Despite the take up of short training courses, there is still not enough attention paid to skills development within individual tourism businesses. Managers may not be keeping their own skills up to date, which is particularly important when so much is changing in the industry.

32 ‘If Scotland’s tourism industry is to grow much will depend on the quality of service we provide to our visitors.’ Substantial progress has been made in recent years in the area of skills development. Over 50,000 people have participated in the courses developed on behalf of Tourism Training Scotland (TTS)

It is clear that the real challenge We will establish and support is to change attitudes in the a new industry led body to industry so that all tourism re-focus attention on the employers value skills, embrace people who work in our tourism lifelong learning and invest in industry. It will replace TTS and their own people. will bring together the industry and the organisations that have Skills development needs to be key supporting roles to play in driven by customer needs. this area- the Enterprise There has to be an enhanced networks, the National Training awareness of customer Organisations (NTOs) and requirements and their Springboard Scotland. The implications for skills new skills organisation will work development in such areas as closely with, and have the full service, marketing and support of, other key players promotion and use of such as the Scottish technology. Qualifications Authority, Further and Higher Education, and the Alongside this, however, there Scottish Tourism Forum. also needs to be a fresh focus on the industry’s other key The new body will report market, its own people. directly to the Minister for Recruitment problems in the Enterprise and Lifelong tourism industry are long Learning. Its remit will include: standing. The industry has to compete with other employers > Developing a shared vision of to keep its employees and quality service founded on an recruit new ones. To do this it industry-wide commitment to needs to be more aware of the understanding and meeting the needs and aspirations of its needs of its customers and its people and committed to people meeting these in areas such as > Increasing the demand for rewards, training, career management training driven by development and overall job improved customer and market satisfaction. awareness, and greater recognition of core skills requirements. > Promoting a better understanding of, and response to, customer needs, especially in the area of service quality. > Promoting better terms and conditions, employment practices and learning and career opportunities.

34 The new body will have access The industry, as one of to the full range of government Scotland’s biggest employers, support in the area of lifelong should be a major beneficiary learning. of government initiatives in the In particular: area of lifelong learning. The new body will have a key role > The Scottish Executive will to play in: expect the Scottish University for Industry to pay particular > Helping the industry meet new attention to the needs of the targets of 1,000 Modern tourism industry and, in Apprenticeships in tourism discussion with the relevant > 5,000 Individual Learning NTOs, to give attention to the Account holders in tourism commissioning of learning occupations materials to meet any gaps in > promoting uptake of Investors provision. in People > The Scottish Labour Market Unit will collaborate with the It is also important that the new body on gathering and industry engages with FE disseminating labour market colleges, HE institutions, LECs intelligence. and other providers, to ensure > Her Majesty’s Inspectorate are that training offered by these publishing a report on institutions match the industry’s Standards and Quality of needs. The new body will work Hospitality provision in the FE with the FE and HE sectors and colleges which will help to with the Funding Councils to inform future action. identify and benchmark best practice, to identify and develop “centres of training excellence”, and to ensure that the benefits of such developments enhance the relevance, quality and impact of tourism-related courses offered throughout Scotland. The development of a University for the Highlands and Islands may provide particular opportunities for promoting excellence in tourism training in that area.

A New Strategy for Scottish Tourism 35 Businesses need to identify Action: The Scottish Executive for themselves what their will set up, by April 2000, a new customers expect and how industry led Tourism Skills body they compare with the with a focus on meeting the competition. The actions needs of our customers already set out for through investing in the people disseminating market who provide the service. knowledge will help them do Action: this. There is also expert The new body will: business advice available > promote the uptake of 1,000 through the enterprise networks Modern Apprenticeships in the and the STB. However, in tourism industry by 2003. many cases the best source of > promote the uptake of 5,000 advice on business success is Individual Learning Accounts by from successful businesses. 2002. We will establish a scheme > work with SQA and the FE whereby new and growing and HE sectors to identify and tourism businesses can get develop “centres of training advice from established and excellence”, in the tourism successful ones. sector. > develop and promote a mentoring scheme for tourism businesses.

36 Some £60 million is invested annually by the public sector agencies in tourism marketing,

5.5 Getting the The future of tourism in this Structures Right country rests on the performance of the 20,000 or Some £60 million is invested so businesses directly involved. annually by the public sector Public sector agencies such as agencies in tourism marketing, the British Tourist Authority, the promotion and product Scottish Tourist Board, ATBs, development. In addition, Scottish Enterprise, Highlands some £100 million was invested and Islands Enterprise and the in tourism projects by the LECs have an important various EU Regional supporting role. Agencies such Development programmes as Historic Scotland, Scottish between 1994-99 with more to Natural Heritage, sportscotland, follow in the new post 2000 Scottish Arts Council and the programmes. Individual Scottish Museums Council also tourism businesses also invest make an important contribution substantial amounts annually in through the development and product development and marketing of visitor attractions. marketing. If the industry is to It is clearly vital that realise its full potential we need collaboration between these to ensure that these agencies, and between the investments mutually support public and private sectors is each other. This new strategy effective. will provide the framework around which we collaborate SEn will work with STB, HIE and avoid duplication. and the private sector to apply the “cluster” methodology to tourism. This is designed to support this strategy by promoting wider industry engagement and joint industry action to enhance Scotland’s international competitiveness.

A New Strategy for Scottish Tourism 37 This strategy highlights the massive changes taking place in the global tourism market

Open to Change The first of these is the funding Funding of ATBs by STB has of Area Tourist Boards. The remained stable over recent This strategy highlights the ATBs are the lead bodies for years, while from 1996 onwards massive changes taking place the development of tourism local authority funding of ATBs in the global tourism market locally. They will be key players has declined. However this and the pace of change in the in helping to put the strategy financial year there has been technologies by which business into effect, and it is important evidence of some stabilisation is done. It proposes actions to that they are able to plan for of funding by local authorities. help tourism businesses keep the future, develop new area abreast of these changes and strategies, participate in joint We will ensure that the funding exploit them to gain a marketing initiatives and so on. that STB provides for ATBs is competitive edge. Equally, we In order to do this they need to guaranteed for a 3 year period. need to ensure that the public have confidence about the level The Scottish Executive has also agencies in their supporting and stability of their funding. agreed with COSLA a new role remain open and receptive approach to the funding of to change themselves and that We have considered the ATBs, with the following main the structure of public support suggestion that has been made elements: remains relevant, appropriate by the STB and others that and effective. core funding for ATBs should > In future, Councils will inform be centralised through the ATBs of funding for Year 1 by The Scottish Executive will not national Board. The Scottish no later than 31 March in the promote change for changes Executive very much values the previous financial year. sake. Structural change can be role the overwhelming majority disruptive and distract from the of local authorities play in > At the same time Councils will task in hand. The key task for supporting tourism, which of give their ATBs a guideline the Scottish Executive is to course goes well beyond figure for years 2 and 3. work with the tourism industry funding ATBs, and would to implement this strategy. prefer to pursue a partnership > Councils would make a However there are two areas approach. However we need to commitment that their actual where the Scottish Executive be confident that the ATBs will allocations for years 2 and 3 does propose some change. have the stability of funding to would not fall below the do the job we are asking them guideline figure unless specific to do. circumstances have changed in the interim.

38 We will monitor closely how It is important that we ensure these arrangements work in the that the role and responsibilities 2000-2001 financial year. We of the Scottish Tourist Board expect Councils to increase and the Area Tourist Boards their commitment to tourism, remain responsive, effective just as the Scottish Executive and appropriate to a dynamic, is doing. If it is clear that the modern industry. We will look position of the ATBs has not at these issues alongside the improved then we will look review of the enterprise again at the case for central networks to ensure that the funding with a view to future arrangements provide the introducing it next year. required leadership for the industry at national and local The second area concerns the level. role of the enterprise networks. The Scottish Executive has Action: The Scottish Executive, already announced a review of in partnership with local the networks, to ensure that authorities, will provide 3-year they remain appropriate, budgeting for Area Tourist relevant and effective in the Boards. light of the new challenges facing the Scottish economy. Action: The Scottish Executive One of these challenges is that will review the role of the of helping our biggest industry enterprise networks in realise its potential. As part of supporting tourism as part of its that review we will examine the broader review of the networks. role of the enterprise networks in supporting tourism to ensure that the responsibilities of the various players provide the best possible support for the industry and provide the required leadership at national and local level.

The Scottish Executive is determined to ensure that tourism becomes and remains part of the economic mainstream in Scotland. This strategy identifies new policies, new solutions and new responsibilities.

A New Strategy for Scottish Tourism 39 Review and renew At the Scotland level To ensure that the actions The Scottish Tourism Co- proposed in this strategy work, ordinating Group, meeting twice we need to set targets and a year, has been a valuable monitor our progress towards forum for bringing the various them. The key targets are set public sector agencies together out in section 6. We also need with industry representatives. effective arrangements for In future, this function will be implementing the strategy. performed by the review Both the targets and the workshop chaired by the arrangements need to be Minister. In order to drive reviewed regularly. implementation of this strategy a smaller group meeting more frequently is required. The Scottish Executive will establish a new Group to monitor implementation of this strategy. This Group will be chaired by the Minister for Enterprise and Lifelong Learning and comprise industry and ATB representatives, STB, SEn, HIE and the Chair of the new training Group. It will replace the Scottish Tourism Co- ordinating Group. A new Scottish Tourism Research Liaison Group will be established to initiate and co-ordinate tourism research in Scotland.

40 At the local level Area Tourism strategies are now in place in all of Scotland’s 14 Area Tourist Board areas. They are proving invaluable in bringing together the partners at the local level and in identifying local needs and solutions. ATBs, LECs and local authorities together with other local partners will review all Area Tourism Strategies by January 2001 to ensure that they reflect the priorities and actions identified in this strategy. Annual review To enable the industry to monitor progress and review what more needs to be done, the Scottish Executive will hold an annual conference at which an annual report will be presented. The conference will review progress against the targets set in the strategy; the success of niche marketing initiatives; and the latest research on market opportunities. There will be workshops to identify new ideas for developing our tourism industry.

Action: a new implementation group, chaired by the Minister and replacing STCG, will be formed to oversee implementation of the strategy.

Action: The Scottish Executive, in partnership with STB, ATB’s, SEn and HIE will publish an annual report and hold an annual conference with New Ideas Workshops.

A New Strategy for Scottish Tourism 41 6 section

Measuring our Success

Targets-national and local

This new strategy for tourism is both wide- To measure the influence which the strategy is having, there will ranging and far-reaching and it is important be two types of indicator: that it sets out the mechanisms for measuring progress. > Industry indicators, which can demonstrate change in the We are setting ambitious industry. These are the targets and we need indicators collective responsibility of the to provide reassurance that the industry and not of any one agreed actions are being agency. undertaken and that the strategy is making a > Activity indicators which are demonstrable difference to the essentially a check that the performance of the industry in actions specified in the strategy Scotland. are being undertaken by those who have responsibility for them.

The industry indicators are set out below.

Eleven headline indicators which represent the main tourism variables have been chosen, namely, the volume and value of tourists in Scotland, the volume and value from each of our key markets, the quality of facilities and visitor satisfaction. These are all capable of being measured from existing sources of information.

The headline industry indicators are as follows:

42 Headline indicators Target by 2005

Total number of tourist trips will be 14.3 million, which represents a 3.0% annual growth rate since 1999.

The value of tourism will be £3.1 billion, a 3.3% expenditure in 1999 prices annual growth rate since 1999.

The value of tourism will be £1,275 million, a 2.5% expenditure in Scotland by annual growth rate since 1999. English visitors

The value of tourism will be £490 million, a 3.0% expenditure in Scotland by annual growth rate since 1999. Scots

The value of tourism will be £331 million, a 5.0% expenditure in Scotland by annual growth rate since 1999. USA visitors

The value of tourism will be £110 million, a 4.0% expenditure in Scotland by annual growth rate since 1999. German visitors

The value of tourism will be £44 million, a 2.0% expenditure in Scotland by annual growth rate since 1999. French visitors

The volume of tourism in all will grow by at least 50% of ATB areas the national average.

The average Quality Assurance will increase from 2.8 to 3.0. Scheme score

The % of visitors who would will increase from 75% to 78% definitely recommend Scotland for a holiday or short break

The satisfaction rating* for will increase from 3.88 (1999) those visitors whose to 4.00. experience exceeded their expectations

* Satisfaction rating expressed as a scale of: 1 (much worse than expected) to 5 (much better than expected).

A New Strategy for Scottish Tourism 43 In addition to the headline indicators, the performance of the industry will Local indicators also be measured using a series of supplementary indicators. These supplementary indicators will help to measure some of the more In order to link the new strategy specific changes in the industry that the strategy seeks to influence. with Local Area Tourism Strategies, it will be important to identify a series of core local Supplementary industry indicators indicators. These will be drawn Data available at national level New Research required from both the headline and industry indicators above and, as a minimum, they should be > >Visitor satisfaction with Scotland’s proportion of reflected in all local strategies. visitors to the UK from the key information provision markets (USA,Germany and >Contribution of tourism to Action: We will establish a set France) community economies of local area indicators and > > Number of businesses Visitor satisfaction with targets for Area Tourist Boards products participating in Ossian from the suite of national > > Number of tourism Value of product investment targets outlined in this strategy. businesses participating in by tourism businesses > Ossian with their own Visitor satisfaction with Activity indicators websites service The final set of indicators will > >Investment in training by The number of Green Tourism measure progress in Business Awards tourism-related businesses implementation of the actions in > >Level of staff turnover in Identification of sensitive this strategy. Progress against sites open to visitors and the tourism-related businesses these indicators will be number with visitor > Operating profit of tourism monitored annually and management plans in place businesses reported in the annual review. >Number of tourism >Other, social and businesses with special needs environmental sustainability access indicators >Number of tourism trips by quarter >Average number of weeks tourism businesses are open >Number of New Deal participants in tourism-related businesses >Percentage of tourism-related employees with SVQ level 3 and above >Number of tourism and hospitality vocational qualifications >Number of tourism businesses with IIP >Business birth and death rates (VAT registered)

44 Designed and produced on behalf of the Scottish Executive by Tactica Solutions B11289-2-00 Globe photography: Creative, Edinburgh I SBN 0-7480- 9328- 1

Further copies are available from The Stationery Office Bookshop 9 780748 093281 71 Lothian Road, Edinburgh, EH3 9AZ Tel: 0870 606 55 66 ISBN: 0 7480 9328 1