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Inverness & Moray Accommodation Study

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Inverness & Moray Accommodation Study HIGHLANDS AND ISLANDS ENTERPRISE & SCOTTISH DEVELOPMENT INTERNATIONAL INVERNESS AND MORAY ACCOMMODATION AUDIT November 2011 TOURISM RESOURCES COMPANY Management Consultancy and Research Services 2 LA BELLE PLACE, GLASGOW G3 7LH Tel: 0141-353 1143 Fax: 0141-353 2560 Email: [email protected] www.tourism-resources.co.uk Management Consultancy and Research Services 2 LA BELLE PLACE, GLASGOW G3 7LH Tel: 0141-353 1143 Fax: 0141-353 2560 Email: [email protected] www.tourism-resources.co.uk Ms Lynne Carstairs Senior International Executive Scottish Development International 3 Greenmarket DUNDEE DD1 4BQ 21st November 2011 Dear Lynne INVERNESS AND MORAY – ACCOMMODATION AUDIT We have pleasure in presenting our findings from research into the supply and demand dynamics of tourism accommodation in the Inverness and Moray Region. This final report presents the supply of accommodation along with the market demand calculations and includes a section suggesting strategic accommodation development opportunities to support continuous improvement in the tourism sector. The scope of our work on this project is detailed in our proposal (Ref: P1592) dated 13th June 2011 and presents the sector’s position as at end of August 2011. This report, along with the accompanying database has been conscientiously prepared for use by the study sponsors and no liability to third parties can be accepted. Yours sincerely (For and on behalf of Tourism Resources Company) Sandy Steven Director Ref: SS/IM/0841-FR1 Inverness & Moray Tourism Resources Company Accommodation Audit November 2011 TABLE OF CONTENTS SECTION PAGE NO 1 INTRODUCTION 1.1 Background 1 1.2 Study Objectives 2 1.3 Report Format 4 1.4 Study Participation Levels / Survey and Consulting Responses 4 2 PROFILE OF REGIONAL ACCOMMODATION SUPPLY PROFILE – AN OVERVIEW 2.1 Background 6 2.2 Operations – Current Stock 6 2.3 Potential Future Additions to the Portfolio of Accommodation 8 2.4 Regional Overview of Room and Bed Space Supply (All Areas) 8 2.5 Overview of Demand for Accommodation in the Study Region 17 2.6 Conclusion 18 3 OBSERVATIONS ON SUPPLY – ISSUES AND POTENTIAL DEVELOPMENT OPPORTUNITIES (STUDY AREA SUMMARY) 19 4 OVERVIEW OF THE ACCOMMODATION SECTOR IN EACH ZONE 3.1 Introduction 28 A GREATER INVERNESS A1 Introduction / Overview 29 A2 Overview of Current Supply of Accommodation 29 A3 Overview of Current Demand for Accommodation 38 A4 Potential New Supply 41 A5 Observations on Supply – Issues and Potential Development Opportunities 42 B BLACK ISLE / CROMARTY FIRTH B1 Introduction / Overview 45 B2 Overview of Current Supply of Accommodation 45 B3 Overview of Current Demand for Accommodation 54 B4 Potential New Supply 57 B5 Observations on Supply – Issues and Potential Development Opportunities 57 C LOCH NESS C1 Introduction / Overview 60 C2 Overview of Current Supply of Accommodation 60 C3 Overview of Current Demand for Accommodation 69 C4 Potential New Supply 72 C5 Observations on Supply – Issues and Potential Development Opportunities 73 Inverness & Moray Tourism Resources Company Accommodation Audit November 2011 TABLE OF CONTENTS (CONT) SECTION PAGE D BADENOCH AND STRATHSPEY (AVIEMORE) D1 Introduction / Overview 75 D2 Overview of Current Supply of Accommodation 75 D3 Overview of Current Demand for Accommodation 84 D4 Potential New Supply 88 D5 Observations on Supply – Issues and Potential Development Opportunities 89 E SPEY VALLEY (NORTH STRATHSPEY) E1 Introduction / Overview 91 E2 Overview of Current Supply of Accommodation 91 E3 Overview of Current Demand for Accommodation 100 E4 Potential New Supply 104 E5 Observations on Supply – Issues and Potential Development Opportunities 104 F MORAYSHIRE COAST F1 Introduction / Overview 107 F2 Overview of Current Supply of Accommodation 107 F3 Overview of Current Demand for Accommodation 117 F4 Potential New Supply 120 F5 Observations on Supply – Issues and Potential Development Opportunities 121 APPENDICES I Projects in the Planning Process II Properties Apparently Ceased Trading in Recent Years III Web Directories Reviewed IV Operator Survey Questionnaire V Highlands of Scotland Occupancy Data (VisitScotland & TNS Survey) VI Intermediary Consultees VII Intermediary Research Findings VIII VisitScotland Accommodation Categories Inverness & Moray Tourism Resources Company Accommodation Audit November 2011 1 INTRODUCTION 1.1 Background This study was commissioned by Highlands and Islands Enterprise (HIE) and Scottish Development International (SDI). The study is an overview of the commercial tourism accommodation sector in the Highland Council area, focused on Inverness, and Morayshire and is designed to provide for the first time a complete listing of all accommodation across the whole area. The aim is to provide a database of the Region’s stock of bed spaces and its trading patterns. [The larger area / Region itself divided into smaller areas (zones) to reflect destination marketplaces]. The consultants were also tasked with assessing the strategic gaps in the current offering and the development opportunities that the sector offered in helping the various destinations reposition their tourism offering to improve economic performance. In May 2011 tenders were sought from interested parties to conduct the audit. It was envisaged that at the conclusion of the research a detailed report would be produced that provided a range of data and market intelligence on the lodging sector including: supply / cataloguing of product viz scale, mix and types of facilities alongside an indication of current trading pattern viz occupancy / demand levels currently hosted and profiling of current demand mix. The aim of the work is to provide valuable information on the sector to inform current operators, those considering investment in the sector and the public agencies in evolving strategy and planning responses. Tourism Resources Company (TRC), a specialist tourism consultancy submitted proposals to conduct the work and were commissioned after a competitive tendering process. TRC’s work has been used in the past to inform accommodation development strategies for tourist authorities; operators and owners throughout Scotland Our work on this project again used a tested methodology. The geographic area / Region covered by this audit has been defined thus – the area of coverage and market ‘zones’ agreed with HIE and SDI at the outset. These zones reflecting the locations which form, what is seen to be the wider area’s (Region’s) tourism offering and its constituent parts (see the map on Page 3). -1- Inverness & Moray Tourism Resources Company Accommodation Audit November 2011 The postcodes that are included in this overview are: Greater Inverness: IV1,2,3,12; Loch Ness: IV2, 3, 4, 63, and PH32; Black Isle / Cromarty Firth: IV4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19; Badenoch and Strathspey: IV13, PH20, 21, 22, 23, 24, 25, 26; Spey Valley: AB37, 38, 55, PH26, IV32; and Moray Coast: AB56, IV30, 31, 32, 36. 1.2 Study Objectives In summary the study objectives were to provide: An audit and analysis of accommodation supply across all accommodation types, and quality, in line with VisitScotland designations; Detailed analysis of current accommodation demand by type, serviced / non-serviced and whether VisitScotland graded or not, highlighting key trends and trading patterns; Reliable, factual information to inform public and private sector investment in the accommodation sectors; Identification of the views of accommodation buyers re the current offering and their future qualitative / quantitative needs eg the: corporate sector; conference organisations; accommodation booking agents; wedding organisers and in the leisure sector ie tours / special groups including golf groups, short breaks, etc; Identification of product gaps / shortfalls in the accommodation sector in each area highlighting potential opportunities for development in the local accommodation supply chain. The range of work concluded by the consultants was highlighted in our proposal to the Client Group. This involved creating a comprehensive database of supply and consulting with operators to identify current demand dynamics re the scale and profile of demand and the trading patterns being experienced. This work involved both interviews and an online survey of operators. The findings of all components of work are included in this report. -2- Inverness & Moray Tourism Resources Company Accommodation Audit November 2011 INVERNESS AND MORAY STUDY AREA -3- Inverness & Moray Tourism Resources Company Accommodation Audit November 2011 1.3 Report Format This report displays the key relevant supply and demand data (adopting the VisitScotland categories of accommodation in the reporting format). In addition to this ‘hard copy’ report, a full, confidential, electronic database of the stock has been provided in a format that allows the data on stock available to be interrogated further by the Client Group. (However relevant trading data of operators, where supplied has been provided anonymously in this report and is excluded from the electronic database). In conclusion this final report includes: A detailed catalogue / baseline of the accommodation sector in each of the six areas under review – Supply Analysis; Performance of the sector – Demand Analysis (anonymised); An assessment of issues relating to the future of the sector; and A discourse on potential future investment opportunities across the different sub-destinations / zones of the wider study geography. The study provides the
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