Minutes of Meeting of the Visitscotland Board

Meeting Minutes

Minutes of Meeting of the VisitScotland Board held on 17 May 2013

Present: Mike Cantlay (Chairman) Stephen Carter Paddy Crerar Dorothy Fenwick Manus Fullerton

In attendance: Stephen Leckie (Scottish Tourism Alliance)

Malcolm Roughead (Chief Executive) David Anderson (Head of HR) Riddell Graham (Director of Partnerships) Ken Neilson (Director of Corporate Services) Stuart Turner (International Events Director, EventScotland)

Apologies: Russel Griggs Paul Bush (Chief Operating Officer, EventScotland)

Minutes: Lynne Raeside

MINUTES OF THE BOARD MEETING HELD ON 22 MARCH 2013

1. The minutes of the Board meeting held on 22 March 2013 were confirmed as a true record of the meeting.

MATTERS ARISING

Urgent Approvals Committee

2. The Director of Corporate Services noted that the final terms of reference would be submitted to the June Board meeting.

Events Strategy

3. The International Events Directer reported that a revised timeline for the Events Strategy would be submitted to the June Board meeting. He also noted that road shows would be held as part of the consultation process. Action: paper to be submitted to June Board meeting.

CONFLICTS OF INTEREST

- 1 - 4. Manus Fullerton recorded a potential conflict in the event of discussions relating to Visitor Services Ltd.

CHAIRMAN’S REPORT

5. The Chairman introduced a report on his activity since the previous Board meeting. He drew particular attention to the following: (i) the visit of the VisitBritain Board; (ii) the outcome of his annual review and the agreed focus on growth and internationalisation; and (iii) the meeting with Ken McQuarrie of BBC Scotland which focused on working with the BBC to help Scotland to the world. It was noted that STV had also just appointed a new Chair.

6. The Chairman updated the Board on the appointment of new Board members. He noted that the advert had been published and that shortlisting would take place in mid-June. He noted the work being carried out by Dorothy Fenwick and Stephen Leckie as Panel members and thanked them on behalf of the Board for their continuing work.

7. The Board noted the report.

CHIEF EXECUTIVE’S REPORT

8. The Chief Executive introduced a report on activity since the previous Board meeting. He drew particular attention to the following:

(a) Performance: the early part of 2013 is looking encouraging, with UK visitor numbers to Scotland up 13% and spend up 9% in January against a 9% decline at UK level. The accommodation occupancy survey also indicates growth across the board while industry confidence levels have also increased. (b) Canada: plans are being finalised to base a member of staff in Toronto who would cover North America and begin initial work in Brazil. The individual would be supported by Sales Agencies in market. (c) Quality Assurance: plans to introduce a European Quality Label are developing and VisitScotland is therefore seeking to influence this policy. Already the organisation is working with Sweden and Norway to provide consultancy services and discussions are also underway with the Baltic States. VisitScotland is keen to provide leadership on this matter given its extensive experience. The Board discussed the inclusion of Quality Assurance targets as part of business cases submitted to banks for lending purposes. It was noted that should this proposal be taken forward by any of the banks, it would have to be developed in such a way that it included ‘any appropriate Quality Assurance scheme’. (d) Investment: the Board discussed the number of new rooms coming onto the market, particularly in Edinburgh, and whether it would be useful to have a discussion with hoteliers about the impact of this new investment. It was noted that a meeting is due to be held shortly with the British Hospitality Association and Edinburgh hoteliers. It was suggested that a fuller report on investment right across the country would be useful. Action: information on investment across Scotland to be incorporated into forthcoming Board papers.

- 2 - FINANCE REPORT

10. The Director of Corporate Services introduced the Finance report which provided an update on the 2012/13 Annual Accounts; the 2013/14 Annual Budget; and the Youth Olympic Games. He reported that the draft Annual Accounts would be submitted to the Audit Committee in June.

11. He reported that the interim audit had been completed and that the savings to be achieved through the 2013/14 annual budget had been confirmed. A revised budget will be brought to the June Board. Action: revised budget to be presented to future Board meeting.

12. The Director of Corporate Services also updated the Board on state aid discussions, noting that a further update on activity would be provided to the audit committee. He also reported that everything was on track for the integration of third party booking systems for the website. He noted that the discussions had provided an opportunity to review all activity.

13. Discussions are also underway on the food grading scheme, a Scottish Government led initiative which VisitScotland is delivering. A final decision on the name and implementation of the project is awaited.

14. The Chief Executive reported that VisitScotland was awarded a Certificate of Achievement at the European Structural Fund Annual Publicity Event for a High Level of Public Engagement and Promotion of Funds. The Board congratulated the team on its success.

KEY PERFORMANCE MEASURES

16. The Director of Corporate Services introduced a paper outlining progress to date on performance measures for the year 2012/13. He reported that the organisation is on track to meet all its key performance indicators.

17. The Board discussed the issue of complaints against hotels which are directed to VisitScotland from consumers. It was noted that any mis-leading advertisements would be addressed through Trading Standards.

PROCUREMENT

19. The Director of Corporate Services introduced a paper which updated the Board on the Scottish Government Marketing Services Framework and which also sought Board approval for the award of contract for Creative Agency Services (International) to G2 Germany GmbH for a maximum period of 36 months to an operating contract value of £1,500,000 and a maximum contract value of £5,000,000.

- 3 - 20. The Board approved the award of contract, noting that North American and European activity was now combined.

21. The Director of Corporate Services assured the Board that contingency measures had been put in place pending the decision regarding the marketing services framework.

PROPERTY MATTERS

23. The Director of Corporate Services tabled a paper updating the board on the potential letting of vacant floors within VisitScotland premises at 11 George Square, Glasgow, and seeking approval to delegate authority to the Chief Executive and the Director of Corporate Services to accept the best value offer.

24. The Board gave its approval to delegate authority.

RYDER CUP UPDATE

25. The Chairman welcomed Robbie Clyde (RC), Ryder Cup Project Director, to the meeting. RC gave a presentation updating the Board on highlights in relation to the Ryder Cup since August 2012. He drew attention to key dates and upcoming milestones. The ticket ballot will open on 10 June and will close on 22 July. Ticket allocations will then be announced in mid-August.

26. RC reported that three official charities had been named for the Ryder Cup: Quarriers (national); Perth & Kinross Disability Sport (regional); and Friends of St Margarets (local). He noted that no other approaches can be offered to other charities.

27. RC reported that the Gateway Review had been completed and had gone well. The Budget Review had also been completed and had gone well. The Chairman noted the importance of ensuring clear leadership to ensure delivery of the Ryder Cup, noting that the EventScotland directorate of VisitScotland had to be allowed to lead the process.

28. The Board also discussed VisitScotland’s role in the development of golf, noting that VisitScotland is leading on the Ryder Cup and tourism specific opportunities; industry support and partnerships; and marketing. The industry still has a significant role to play. RC reported that Golf Tourism Scotland would be relaunching its strategy in June and that KPMG would be launching the findings of its study into the value of the golfing industry.

29. RC updated the Board on media partnerships with Sky Sports and NBC/Golf Channel. He also noted that the Ryder Cup website would be relaunching in June with accommodation and golf offers and a Ryder Cup tool kit.

30. The Board discussed risk. RC reported that the risks around the transport plan had all been worked through and addressed. The Chairman noted that the biggest risk was Scotland losing touch with the Ryder Cup. He noted the importance of working with media partners and golf clubs to ensure that the whole population is engaged in the Ryder Cup.

- 4 - 31. The Board thanked Robbie Clyde for an informative presentation.

EVENTSCOTLAND UPDATE

32. The International Events Director presented a paper updating the Board on the activities of EventScotland since the previous Board meeting. He drew particular attention to the following:

(a) The International Orienteering Federation visit was a huge success. (b) The decision on the World Figure Skating Championships will be made at the beginning of June. (c) The final bids for the UK City of Culture are due in September, with a final decision due to be made in December. (d) Regional finals for the Scottish Thistle Awards will be held in the first week of June. The Board discussed the application process and agreed that it would be helpful to businesses if the process could be simplified.

33. The Board discussed progress with Homecoming Scotland 2014. It was noted that there is considerable interest in the Bannockburn event which is owned by and will be delivered by the National Trust for Scotland. The Chairman noted the importance of ensuring all of Scotland engages with Homecoming and that it is not simply considered as series of events for the Clans. The Chief Executive noted that the proposed Homecoming television advert will encourage engagement with Homecoming domestically. Action: concept of Homecoming advert to be presented to the June Board.

34. An update on funding streams for Homecoming was provided. It was noted that additional funding has been made available to enhance community activity. Discussions are underway at present to establish how best to direct this funding. It was also noted that the Scottish Government has launched a Fund for events to commemorate World War I.

35. It was reported that all funding from the Growth Fund has now been allocated and the Fund has been closed temporarily. It is hoped that the Fund will be reopened later in the year with a view to making awards in the financial year 2014/15. The Board agreed that the Growth Fund had been hugely successful. They requested that evaluation of the Fund be presented to the Strategy Day. It was also suggested that consideration be given to reviewing the criteria. Action: evaluation of Growth Fund to be presented to the August Strategy session.

NATIONAL TOURISM DEVELOPMENT FRAMEWORK 37. The Director of Partnerships introduced a paper asking the Board to review the final draft of the National Tourism Development Framework. He reported that the COSLA Group had reviewed the document and had confirmed they were content.

38. It was noted that VisitScotland is listed in lots of actions but it was agreed that VisitScotland will be leading and facilitating action rather than leading on all activity. Support from Team Scotland has been extremely positive as has involvement from the

- 5 - private sector. It was suggested that the names of those in the private sector who had contributed to the Framework should be listed.

39. The Board discussed the launch of the Framework. It was suggested that a dinner to discuss the four or five transformational projects would be useful. It was also suggested that the Framework should be considered as an addendum to National Planning Policy.

40. The Chairman congratulated the team on the project, noting particular thanks to the Director of Partnerships.

41. The Board approved the final plan.

VISITSCOTLAND EQUALITY OUTCOMES 2013

42. The Chairman welcomed Chris McCoy, Diversity and Equality Manager, to the meeting. CMc introduced a paper seeking the Board’s approval of the actions required to meet VisitScotland’s equality duties as set out in the Specific Duties of the Equality Act 2010.

43. CMc updated the Board on activities since she had last reported to the meeting, highlighting in particular activity at a European level and with Glasgow 2014. The Board congratulated the team on the excellent Accessibility Conference.

44. It was noted that the the Diversity and Equality Manager is taking on a leadership role with other departments and other agencies supporting in terms of delivery, e.g. the Enterprise Companies will lead on funding while the Quality Assurance teams will lead on advice to businesses and on development of the European Quality Label.

45. The Board discussed ways in which the industry could be encouraged to develop their thinking. It was suggested that equality could be built into the Thistle Awards for example. It was also suggested that there should be an Equality Impact Assessment of Homecoming Scotland 2014. This should be shared with the Board.

46. The Board approved the actions and agreed that VisitScotland should be trying to exceed not just meet its obligations.

ANY OTHER BUSINESS

Scottish Events and Festivals Association

47. It was reported that the Scottish Events and Festivals Association has now been launched. It is hoped that it will link into the Scottish Tourism Alliance.

Recent VisitScotland Activity

48. The Chairman recorded his thanks to the teams involved in recent events - Scotland Week, VisitScotland Expo and Scotland Means Business - noting that these had all been excellent and well delivered.