SUSTAINABLE DEVELOPMENT COMMITTEE 16 APRIL 2008

TOURISM PARTNERSHIP AGREEMENT AND FUNDING FOR 2008/09

Report by Director for Sustainable Communities

PURPOSE OF REPORT To agree the Partnership Agreement with VisitScotland for 2008 / 09 and to agree funding for VisitScotland for the same period.

COMPETENCE

1.1 There are no legal, financial or other constraints to the recommendations being implemented.

SUMMARY

2.1 Comhairle nan Eilean Siar and VisitScotland (VS) have had a Partnership Agreement on the delivery of tourism services in the islands since 2005. The Agreement details how the Comhairle wishes to see the area marketed and what methods are used to undertake the marketing effort.

2.2 The agreement does not specify costs against any activity with the allocation of Comhairle funding covering the whole of the activities contained in the Partnership Agreement. Comhairle funding was reduced slightly last year and VisitScotland Hebrides reviewed elements of the agreement to achieve efficiencies but marketing and visitor services were broadly in line with previous years.

2.3 The changes to the VisitScotland set-up announced in September of last year might have an effect on how future marketing is undertaken so it is important that the maintains a tourism presence broadly similar to that which exists at present. The Tourism Member / Officer Working Group has discussed the Agreement and requested that the Chief Executive of VisitScotland Hebrides make a presentation to the Sustainable Development Committee.

RECOMMENDATIONS

3.1 It is recommended that the Comhairle:

a) approve funding of £100,000 for core activities and £25,000 for VisitHebrides.com, to VisitScotland from the 2007 / 08 Tourism budget; and

b) authorise the Director of Finance and Corporate Resources in consultation with the Director for Sustainable Communities, to conclude an agreement with VisitScotland on the basis of the draft Partnership Agreement at Appendix I to the Report.

Contact Officer: Roderick MacDonald, Economic Development Officer

Appendix: 1. Draft of Proposed Agreement 2. VisitScotland Report

Background Papers: None REPORT DETAILS INTRODUCTION

4.1 Comhairle nan Eilean Siar and VisitScotland (VS) have had a Partnership Agreement in place since 2005 on how tourism services should be provided in the islands. This Agreement is a legal document, which details the tourism services the Comhairle expects from VisitScotland for the funding provided.

4.2 The main points covered within the agreement are: Strategy; Marketing (Branding, Tourism Brochure, VisitHebrides.com); Tourism Information (TIC’s Information Points); Events Development; Research; Local Industry Association and Quality

4.3 VS have provided feedback to the Tourism MOWG on how the aims of the Agreement have been achieved.

PARTNERSHIP AGREEMENT

5.1 The Partnership Agreement for 2007 / 08 was discussed by the Tourism MOWG on 4 March 2008 and they are happy that a similar Agreement to last year, highlighting the tourism services the Comhairle wish to see delivered, is progressed.

5.2 The Chief Executive of VisitScotland Hebrides produced a report and gave a presentation to the Tourism MOWG of activities over the last year linked to the Partnership Agreement 2007/08. This included Strategy, Tourism Information Services, Marketing, Events/Exhibitions/PR/Grants, Research, Local Industry Association, Quality and Finance.

5.3 The MOWG requested that the Chief Executive give a similar presentation to the Sustainable Development Committee.

5.4 Recent changes to the VisitScotland set-up, some of which have been implemented and some which are still being discussed, will have a bearing on how tourism services in are delivered and it is essential that the Outer Hebrides maintains a tourism presence and marketing and information structure similar to what exists at present.

5.5 It is proposed that a funding package, similar to 2007 / 08 of £100,000 for core funding and £25,000 for the promotion and upkeep of the VisitHebrides web sites be agreed for the 2008 / 09 financial year.

CONCLUSION

6.1 Tourism continues to be an important sector to the Outer Hebrides economy. The quality of accommodation and of the tourism product continues to improve with investment from the industry and agencies.

6.2 Other changes such as Road Equivalent Tariff (RET) provide opportunities and challenges for the future and the tourism sector needs to respond to these to maximise income for the islands.

6.3 With the gradual extension of the tourism season further new opportunities will present themselves and this area must be able to take advantage of such opportunities. APPENDIX 1: DRAFT PARTNERSHIP AGREEMENT

MINUTE of AGREEMENT between

The Scottish Network (1 or 2) Tourist Board, established by the Scottish Network [1/2] Tourist Board Scheme Order 2004 and having its principal office at Ocean Point One, 94 Ocean Drive, EH6 6JH who, along with the Scottish Tourist Board and the Scottish Network (1 or 2) Tourist Board collectively operate under the name “VisitScotland” and are hereinafter referred to by that name in this agreement and

Comhairle nan Eilean Siar, established by the Local Government etc. (Scotland) Act 1994, and having its principal offices at Sandwick Road, Stornoway, Isle of Lewis hereinafter referred to as “The Council”

WHEREAS

(A) The parties to this Agreement wish to work together for the promotion and development of tourism in the area of the Outer Hebrides

(B) The Council has agreed to provide financial and other assistance to VisitScotland in terms of Section 175 of the Local Government (Scotland) Act 1973

(C) VisitScotland and the Council have agreed to enter into this Agreement for the purpose of regulating their relationship with each other;

THEREFORE IT IS AGREED as follows:

1. DEFINITIONS AND INTERPRETATION

1.1. The following definitions shall apply throughout this Agreement, and throughout the Schedule, unless the contrary intention appears:

“Area” means the area within the Council’s jurisdiction.

“Area Director” means VisitScotland’s Area Director for VisitScotland Hebrides based at South Beach Street, Stornoway.

“Network Office” means VisitScotland’s South Beach, Stornoway office at South Beach Street, Stornoway.

“Network Office Budget” has the meaning assigned to it by Clause 9.1 hereof.

“VisitScotland” means the operating name used by the group of organisations comprising the Scottish Tourist Board, the Scottish Network 1 Tourist Board and the Scottish Network 2 Tourist Board.

2. PERIOD OF AGREEMENT

This Agreement will apply to the period from 1 April 2008 until 31 March 2009, notwithstanding the date or dates on which it is signed. The Agreement may be renewed with the mutual consent of the parties. 3. SHARED AIMS FOR THE DEVELOPMENT OF TOURISM

3.1. Both parties agree that tourism is an essential element in the economic development strategy for the Area and a key driver for growth in the local economy.

3.2. Both parties support the aims and objectives of the national tourism plan “Tourism Framework for Change”.

3.3. The parties agree to work jointly to develop tourism in the area, with the aim of the Area making a significant contribution towards the ambition of achieving 50% growth in the value of tourism in Scotland by 2015.

4. COMMUNITY PLANNING

VisitScotland acknowledges the Council’s lead in community planning for the Area, and undertakes to participate in and support the community planning process to ensure that tourism contributes to the wellbeing of the Area in so far as this is impacted by tourism.

5. AREA TOURISM PARTNERSHIPS AND PLANS

5.1 Both parties agree to participate in the Outer Hebrides Tourism Partnership.

5.2 VisitScotland will be responsible for providing administrative support to the Partnership. This support will include facilitating the adoption of an Area Tourism Partnership Plan setting out the agreed priorities for developing tourism in the Area and the actions which members of the partnership commit to.

5.3 Both the Council and VisitScotland agree that their respective commitments to actions in implementation of the Area Tourism Partnership Plan will be provided for in any future amendments or replacements of this Agreement.

6. ACTIVITIES TO BE DELIVERED BY VISITSCOTLAND

VisitScotland undertakes to deliver tourism services in and for the benefit of the Area. These services may be delivered nationally, through the Network Office or through another Network Office, all as set out and defined in Appendix 2 to this Agreement.

7. PERFORMANCE INDICATORS

VisitScotland has established a system of performance indicators for its network offices, all as set out in appendix 3 to this Agreement. A quarterly report on the performance of the Network Office in respect of these indicators will be provided to the Council as soon as possible and, in any event, not later than one month after the end of each quarter.

8. PROVISION OF FINANCIAL AND OTHER ASSISTANCE

8.1 In furtherance of this Agreement, the Council will provide funding of xxxx pounds to VisitScotland.

8.2 Funding will be paid in four quarterly instalments on receipt by the Council of an invoice for the amount due as follows:

• First instalment: Due on 1 April 2008 or, if this Agreement has not been executed by that date, the date of such execution; • Second instalment: Due on 1 July 2008; • Third instalment: Due on 1 October 2008; • Fourth instalment: Due on 1 January 2009.

[note: by agreement, instalment arrangements can be varied to provide for two instalments or a single annual payment} 9. NETWORK OFFICE BUDGET

9.1 A provisional budget showing income and expenditure for the Network Office is set out in appendix 1 to this Agreement.

9.2 VisitScotland will provide the Council with a final Network Office Budget by not later than 31 May 2008, and will notify the Council promptly of any changes to this budget proposed during the year.

9.3 VisitScotland will provide the Council with information on its total national budget and will inform the Council of any material changes to that budget during the year.

10. EQUAL OPPORTUNITIES

VisitScotland has adopted an Equal Opportunities Policy and undertakes to fully comply with all aspects of equality legislation and good practice as an employer and in the delivery of services and will monitor its compliance with these undertakings.

11. COMPLAINTS PROCEDURE

VisitScotland will maintain a procedure for receiving, investigating and reporting complaints about services provided under this agreement, keeping details of how many complaints are received and how they are dealt with. For the avoidance of doubt, any complaints received relating to services provided by the industry and any other affiliated parties will not be provided to the Council under this agreement.

12 INSPECTIONS

VisitScotland will co-operate with any inspection, monitoring or evaluation process agreed with the Council in accordance with its obligations to ensure satisfactory standards of quality and output on matters affecting this Agreement.

13. REPORTING AND AUDIT

13.1 VisitScotland will submit a detailed financial progress report in respect of the Network Office budget, made up for the three month periods ending 30 June, 30 September, 31 December and 31 March, and made available to the Council not later than two calendar months after the end of each such period. The first financial progress report under this agreement will be in respect of the three month period to 30 June 2008. VisitScotland will, if requested, allow inspection of all relevant financial records within 14 days of the request.

13.2The Council’s external auditor shall have access to relevant records and financial information and be able, through the Council, to obtain necessary explanations from a representative of VisitScotland. With the mutual agreement of the parties, this requirement may be satisfied by the provision of a Certificate by Audit Scotland or VisitScotland’s external auditor providing information on the use of funds provided to VisitScotland by the Council.

13.3VisitScotland will remain responsible for the management of inherited assets from the former Area Tourist Boards. The responsibility for financial record keeping for these assets will remain with VisitScotland. 14. PERFORMANCE MANAGEMENT AND STAFF RECORDS

14.1 VisitScotland will maintain appropriate administrative, management and staff records from which the performance indicators, as detailed in the Area Business Plan, can be measured and reported.

14.2 All aspects of this Agreement will be reviewed before the end of December 2008. The review will take place in such a way as to enable both parties to reach agreement on the renewal or the revision if appropriate, of an Agreement for 2009 / 10.

15. VARIATION OF AGREEMENT

The terms and conditions of this Partnership Agreement can only be varied following full consultation and mutual agreement between the partners. VisitScotland will notify the Council in writing, if for any reason it is unable to maintain the services as specified this Agreement and will return such parts of any grant that relates specifically to services not provided, proportionate to the contract period remaining.

16. DISPUTE RESOLUTION

16.1 Both parties will use their best endeavours to resolve any dispute at local level to reach an amicable and workable resolution of the matter in dispute.

16.2 If any matter relating to this agreement is unable to be resolved between the parties in terms of clause 16.1, the issue will be escalated for resolution to the Chief Executives of the Council and VisitScotland.

17. TERMINATION

17.1 The Agreement may be terminated with immediate effect, in writing, by either side, if it can be established that either side is in default in respect of substantive issues within the Agreement.

17.2 An Annual Review will take place at such time and in such a way, as to enable either party the opportunity of giving three months notice, in writing, of non- renewal of the Agreement.

17.3 Termination of this Agreement shall have no effect on the liability of either party to the payment of sums arising under this Agreement prior to the date upon which termination takes place.

18. TRANSFER OF ASSETS & LIABILITIES

In the event that the VisitScotland ceases to exist, and except as may be otherwise provided by statute, any assets provided by the Council, or purchased with the financial help of the local Council, together with any financial assets or liabilities, shall be, with the Council’s agreement, transferred to the VisitScotland’s successor organisation with responsibility for delivery of services at a local level.

19. THIS AGREEMENT NOT TO CONSTITUTE A PARTNERSHIP

None of the provisions of this Agreement shall operate so as to create a partnership or any relationship of agency between the parties; neither of the parties has any authority by virtue of this Agreement to bind or commit or otherwise act on behalf of the other in any way. 20. NOTICES

20.1 All notices and notifications under this Agreement shall be given or issued by letter or by other written document, or by way of facsimile transmission or other visible electronic means.

20.2 A notice or notification under this Agreement shall be deemed to be duly given:-

1.1.1.1.in the case of a letter or other written document, when delivered;

1.1.1.2.in the case of facsimile transmission or other visible electronic means (provided that any relevant answerback has been received) when despatched;

to the Party to which it is given, addressed to that Party at the address last intimated in writing to the Party giving the notice or (as the case may be) at the facsimile number then current of the Party to which it is given.

20.3 A notice or notification which is delivered, or (in the case of facsimile transmission or other visible electronic means) despatched, outwith business hours shall be deemed to be duly given during business hours on the Business Day which next follows.

20.4 A notice sent by first class recorded delivery post (or equivalent postal service) shall be deemed to have been delivered during business hours on the Business Day following the date of posting; in proving that a notice was given, it shall be sufficient to prove that an envelope containing the notice was duly addressed and posted in accordance with clause 20.2

20.5 For the purposes of clauses 20.3 and 20.4, “business hours” shall mean the period between 9.00 a.m. and 5.00 p.m. on a Business Day.

21 COSTS

All legal fees and other expenses incurred in the preparation and execution of this Agreement shall be borne by the Party by whom they were incurred.

22. LAW OF SCOTLAND

The construction, validity, performance and all other matters arising out of, and in connection with this agreement, shall be governed by the Law of Scotland.

IN WITNESS WHEREOF:

Signatories to the Agreement;

On behalf of the Council

Signed: ………………………………………………. Name: ………………………………………………. Position: ………………………………………………. Date: ……………………………………………….

Witness: ………………………………………………. Name: ………………………………………………. Position: ………………………………………………. Date: ……………………………………………….

On behalf of VisitScotland Signed: ………………………………………………. Name: ………………………………………………. Position: ………………………………………………. Date: ……………………………………………….

Witness: ………………………………………………. Name: ………………………………………………. Position: ………………………………………………. Date: ………………………………………………. Partnership Agreement Appendix 1

Target Date Description Who ? GENERAL VisitScotland will ensure that sufficient human and other resources are made available in the Outer Hebridies to ensure that the various elements of this Partnership Agreement are efficiently delivered. As a very minimum these resources should be equal to those presently provided by Western Isles Tourist Board VisitScotland will ensure that WITB reserves as at 31 March 2005 are utilised solely for the benefit of the Outer Hebrides / local projects and for no other reasons such as redundancy payments

STRATEGY VisitScotland to have two representatives on the local area strategic partnership group for the Outer Hebrides VisitScotland senior management representatives to meet with Comhairle nan Eilean Siar annually or as requested VisitScotland to work with other local partners in the delivery of the local tourism strategy for the Outer Hebrides 2006 – 2010 During the course of 2007, VisitScotland and the Comhairle (along with other relevant partners) will undertake a detailed assessment in regard to area marketing to ensure value-for-money and to explore alternative solutions.

MARKETING Branding VisitScotland to promote the Western Isles as the Outer Hebrides in line with the branding for the area in all its activities in the tourism marketplace The Outer Hebrides brand to be used by VisitScotland in all internal and external references to the area covered by Comhairle nan Eilean Siar

The Outer Hebrides area to be specifically marketed in print, electronically and at exhibitions as a specific holiday destination area within Scotland 2008 Outer Hebrides Brochure 80,000 copies, printed at same or better level of paper quality as existing All content sections to remain in present format - full colour, 64 pages Brochure to be compiled by local VisitScotland resources liaising with the local tourism industry businesses Brochure to contain page listing, advertising and display advertising opportunities for local businesses as at present Flexibility to remain to provide free or reduced cost advertising to voluntary and community organisations Costs of advertising opportunities to be within similar cost parameters of affordability as at present All direct brochure advertising income to offset costs of brochure production VisitScotland to ensure distribution to TIC’s in all areas of Scotland and selected UK areas VisitScotland to actively promote the Outer Hebrides area in all promotional print and electronically VisitScotland to actively promote the Outer Hebrides brochure at all UK and overseas exhibitions VisitScotland to advertise brochure availability to the tourism marketplace at similar levels of spend as in recent years All brochure storage, distribution and any other associated response costs to be borne by VisitScotland Customer enquiry data for the Outer Hebrides area to be electronically captured by VisitScotland Monitoring reports of marketing activity, response levels, and brochure stock levels to be provided by VisitScotland to Comhairle nan Eilean Siar

VisitHebrides.com The Outer Hebrides area to be marketed electronically by VisitScotland as a specific holiday destination The VisitHebrides.com website to be actively promoted by VisitScotland VisitHebrides.com websites to be maintained and further developed by local VisitScotland resources liaising with the local tourism industry businesses VisitHebrides.com suite of websites to continue to be available as stand- alone sites, as well as within VisitScotland.com Links to VisitHebrides.com to be on the homepage of VisitScotland.com VisitHebrides.com to be included on all appropriate web search engines to ensure easy accessibility by web users and high rankings on search engines Web advertising opportunities as at present to continue to be available to local tourism businesses to offset costs VisitScotland to maintain accuracy of data on all VisitHebrides.com websites covering all current webpages Changes and updates to VisitHebrides.com websites to be incorporated within reasonable and acceptable timescales VisitScotland to provide monitoring reports of customer enquiry and usage activity relating to all visithebrides.com websites TOURIST INFORMATION Tourist Information Centres Tourist information centres to be continued in the following locations to provide information services to visitors to the Outer Hebrides: • Stornoway, Isle of Lewis (all year round) • Tarbert, Isle of Harris (all year round – reduced hours mid-October to mid-March) • , Isle of North Uist (mid-March to mid October) • , Isle of (mid-March to mid October) • Castlebay, Isle of (mid-March to mid-October) These TIC’s to stock information and retail items associated with, and complementary, to the Outer Hebrides areas These TIC’s to be kept in good condition through an appropriate repair and maintenance programme Information Points Outer Hebrides tourist information to be available at specific locations throughout the Outer Hebrides and mainland Scotland as follows: Inter-island ferry ports: • , Isle of Harris • , Isle of North Uist • , Isle of South Uist • Ardmore, Isle of Barra Island airports: • Stornoway, Isle of Lewis • Balivanich, Isle of Benbecula • Isle of Barra Libraries and other information points TIC’s in mainland ferry ports: • Ullapool • Uig, Skye • VisitScotland will promote Comhairle nan Eilean Siar facilities such as sports centres via TIC’s VisitScotland will distribute relevant tourism information publications produced by Comhairle nan Eilean Siar such as bus timetables VisitScotland will ensure that TIC staff and contact centre staff in Livingston are familiar with the Outer Hebrides area and its facilities so that customers receive accurate information and services

EVENTS DEVELOPMENT Seo Seinn Gaelic song festival to be financially resourced to at least the same levels as at present by VisitScotland to ensure its continuation and further development VisitScotland to actively promote the existing range of events currently organised in the Outer Hebrides VisitScotland to specifically promote major events, such as the Hebridean Celtic Festival, nationally and internationally to further raise the areas profile VisitScotland to participate in discussions for other new events developments in the Outer Hebrides with a view to enhance this area of activity to attract more visitors RESEARCH VisitScotland to continue to provide the following research services: • annual TIC research of visitors • annual Outer Hebrides occupancy study VisitScotland to work with local partners and contribute financially to major research every three years to evaluate the volume and value of tourism to the Outer Hebrides

LOCAL INDUSTRY ASSOCIATION VisitScotland to provide services to the local tourism association in organising and facilitating meetings throughout the islands

QUALITY VisitScotland to develop a ‘quality award’ system to recognise exceptional quality of visitor service and welcome in the Outer Hebridies by local businesses VisitScotland to ensure that only accommodation businesses of a requisite quality in the Outer Hebrides are given opportunity to be promoted by VisitScotland and VisitScotland.com

Marketing Services

• Short Break Campaigns • Day Visitors • Cruise Line Marketing • Specific overseas marketing • Discretionary Business Tourism • Website consumer marketing • CRM Services • Partnership marketing/intermediaries • Local Print • Media Relations

Visitor Services

• Tourist Information Centres • Neighbourhood Information Points • Tourist Information Points • Electronic Information • TICs in partnership with Local Authority • Local internet portholes • TIC Client

Product Development Services

• Industry Engagement Strategy • Business Advisory Services • Research and intelligence • Product development • Support for events • Support with community initiatives Partnership Agreement Appendix 2

Activities to be delivered by VisitScotland Nationally

[Note: this schedule will show a listing of national activity that benefits the Area with an indication of total national spend.]

1. Marketing

2. Sales and Information Services

3. Sector Development

4. Engaging the Tourism Industry

5. Quality and Standards

6. Research and Intelligence

7. Strategy and Policy

8. Corporate Support Services

8.1. Finance Management 8.2. Human Resources 8.3. Facilities Management 8.4. Information Technology

Activities to be delivered in the Area through the Network Office

[Note: This section gives a short description and costing for activities managed through the network office]

1. Marketing Activities

1.1.1.Brand development and support 1.1.2.Local Campaigns 1.1.3.Marketing for Council Facilities and Services 1.1.4.Promotional Print 1.1.5.Internet 1.1.6.Customer Relationship Marketing 1.1.7.Discretionary Business Tourism

2. Sales and Information Services

2.1. Tourist information provision for the area 2006-7 2.2. Information and Sales Review 2.3. Consultation

3. Sector Development

4. Engaging the Tourism Industry

5. Quality and Standards

6. Research and Intelligence

7. Area Tourism Partnership Plan APPENDIX 2

VISITSCOTLAND REPORT ON COMHAIRLE NAN EILEAN SIAR / VISITSCOTLAND PARTNERSHIP AGREEMENT 2007 / 08

GENERAL

Tourism continues to grow in the Outer Hebrides with further increases in visitor numbers especially arrivals by air to Stornoway, Benbecula and Barra. Research produced in 2007 estimated visitor numbers to be 195,000 and annual tourism value to the islands at £49.9million.

Real opportunities to further develop tourism visitor numbers and investment in tourism infrastructure will follow as a result of the recent announcement on RET.

VisitScotland are actively engaged with over 400 tourism businesses in the islands – 126 serviced accommodation, 175 self-catering, and 99 other non-accommodation businesses.

There are developing pressures on finances with increasing staff and services costs against a backdrop of reducing area funding. Deficit funding of the Outer Hebrides network office by VisitScotland of approximately £185,000 is unlikely to continue at this level. VisitScotland organisational restructuring is currently taking place.

For reference, 2007 / 08 Comhairle funding support of £125k (£100k core and £25k VisitHebrides project funding) compares to Orkney £197k (all core funding) and Shetland £425k (£150k core and £275k project funding).

STRATEGY

The Area Tourism Plan for the Outer Hebrides was the first one to be completed in Scotland and is commended as a good example of best practice in area tourism planning and partnership working.

A number of meetings of the Area Tourism Partnership Group comprising CnES, VisitScotland, HIEIG, and the Outer Hebrides Tourism Industry Association have taken place with the venue for these meetings being rotated throughout the islands. Good progress has been made towards delivery of the Area Tourism Plan to 2009.

An advisory paper on use of Gaelic within and by VisitScotland was also produced.

TOURIST INFORMATION SERVICES

VisitScotland operated five Tourist Information Centres in Castlebay, Lochboisdale, Lochmaddy, Tarbert, and Stornoway during the tourism season employing 14 staff. The TIC’s had over 80,000 visitor customers (an increase of 24%), dealt with over 10,000 telephone enquiries, over 3,000 email enquiries, 500 letter enquiries and also transacted 1,156 accommodation bookings (an increase of 6.5%).

VisitScotland also provide information via a number of unmanned Tourist Information Points throughout the islands as well as at inter-island ferry waiting rooms and libraries.

VisitScotland undertook a £10,000 refurbishment of Stornoway TIC and Castlebay and Lochboisdale TIC’s are currently having upgrading work done.

Brochures were also distributed at CalMac offices at mainland ferry ports to foot passengers and car drivers.

A bid has been made for funding to introduce Plasma information screens to all TIC’s. MARKETING

BRANDING

VisitScotland continues to participate in the brand development project for the Outer Hebrides.

The Outer Hebrides is the brand identifier for the area used by VisitScotland in all internal and external communications. The local network office is known as the Outer Hebrides Network Office.

PROMOTIONAL MARKETING

The Outer Hebrides is marketed as a distinct part of Scotland both nationally and internationally.

The 2008 Outer Hebrides main brochure has been produced over recent months and is now available – 100,000 copies. The 64-page brochure is of the same high quality as previous years and features over 400 local tourism businesses.

We have also produced a CD of the 2008 Hebrides brochure for the blind. This contains 3 versions – an audio version, a WORD text-only version that can be translated by PC software into speech, and a PDF large format version for the partially sighted. The Outer Hebrides are the first area to do this and it has been very well received by the Royal National Institute for the Blind. These brochure versions are all available on the VisitHebrides website.

A major Direct Mail campaign was run in early January to send 28,000 copies of the 2008 Hebrides brochure to targeted addresses from the VisitScotland database.

Media promotional campaigns for the 2008 season are well underway and will continue over coming months. Some of the promotional and other print activities undertaken are:

• Design upgrading of VisitHebrides.com website

• Skyscraper banner advert on homepage of Scotsman website

• Development of WinterHebrides web campaign with special industry offers online

• TIC’s promotional posters on CalMac ferries

• Holiday Competition promotion at Celtic Connections festival in

• Photography competition to be launched in 2008

• Loganair ‘backseat’ events promotion

• Billboard advertising – 4 weeks in Glasgow and Edinburgh

• Promotional Media Advertising of • Radio Times Christmas / New Year issue • 6 weeks Radio Times January / February • Readers Digest – January • Scotsman magazine – January • Walk magazine – Spring edition • Scotsman Holiday supplement • Eating Out Guide promotion

• Family activities promotion

• Reprint of 8 walks leaflets – Hebridean Walks

• Committed spend of £5,000 of advertising in various niche activity magazines

• Committed spend of £7,000 in mini-brochure insert in The Scotsman

VisitScotland will also place new ‘Failte’ Welcome Boards at all main ferry terminals welcoming visitors to the islands.

Over and above these local marketing and promotional initiatives VisitScotland has also promoted the Outer Hebrides as part of their many national campaigns including direct mail promotions to the VisitScotland database.

A new UK cinema advert to attract visitors to Scotland was filmed in Barra entitled ‘A Perfect Day’. This being shown in 188 cinemas across and South of England and is part of a £2.7million advertising campaign.

The Hebrides also benefit from generic national Scotland advertising in cinemas, TV and major media & press advertising throughout the UK and internationally such as ‘Win A Scottish Island’.

VISITHEBRIDES.COM

The VisitHebrides.com suite of niche websites has been redesigned and actively promoted by VisitScotland during the year. Data on the sites has been maintained throughout the year and web advertising opportunities have continued to be offered to businesses. VisitHebrides.com is also now directly accessible within a couple of clicks from the homepage of visitscotland.com

WinterHebrides.com new niche website has been developed with special offers for the winter period from tourism businesses and is now also available as one of the suite of niche websites on VisitHebrides.com

GreenHebrides and FoodHebrides domains have been registered for development

EVENTS / EXHIBITIONS / PR / GRANTS

VisitScotland have allocated local grant award support of £6,000 for the Seo Seinn Gaelic Song Festival for 2008.

Two Challenge Fund applications for support of area marketing initiatives have also been approved for VisitScotland funding – one for WinterHarris and one for Uist Marketing. Applications are awaited from Barra and Lewis in 2008.

VisitScotland will be sponsoring the ‘Scottish Night’ and exhibiting at the Pan-Celtic Festival in Ireland at end March 2008. Possible 2008 attendance at Eisteddfod in Wales.

Theatre Hebrides tour of UK and Ireland was also sponsored.

All local cultural events have also been promoted at Celtic Connections in Glasgow with outdoor activities promoted at The Outdoor Show in Birmingham and Scone Game Fair in Perth.

Excellent PR was also generated in various media publications and a number of travel writers press trips were hosted throughout the islands. RESEARCH

An update to the Macpherson report was commissioned by HIEIG, CnES and VisitScotland from Snedden Economics. The research showed a 9% increase in visitor numbers to 195,000 and a 27% increase in spend to £49.9million between 2002 and 2006.

An independent study was also done on ferry users in Scotland . Highlights were: Stornoway – Ullapool – 30% of passengers were resident in Outer Hebrides (70% not resident) Tarbert – Uig – 30% of passengers were resident in Outer Hebrides (70% not resident) Lochmaddy – Uig – 28% of passengers were resident in Outer Hebrides (72% not resident) Lochboisdale – Oban – 17% of passengers were resident in Outer Hebrides (83% not resident) Castlebay – Oban – 26% of passengers were resident tin Outer Hebrides (74% not resident)

Annual TIC research statistics were collected from visitors to all island TIC’s during the main tourism season. These questionnaires have now been analysed and the report is available. The report shows very high levels of customer satisfaction from visitors to the islands.

Annual Occupancy statistics have been collected from local tourism industry businesses and these are currently being analysed.

Local research reports are available on www.visitscotland.org

LOCAL INDUSTRY ASSOCIATION

VisitScotland continues to advise, provide support, and actively promote and encourage membership of the Outer Hebrides Tourism Industry Association.

QUALITY

VisitScotland has ensured that only accommodation businesses of a requisite quality in the Outer Hebrides have been given promotional opportunities.

The first 5-star Guest House award in the islands was achieved by Broad Bay in Back. There are now thirteen 5-Star self-catering properties in the Outer Hebrides and quality continues to improve year on year.

There were 6 Eat Scotland awards including 3 Silver awards attained by island restaurants in 2007.

There are 13 Green Tourism Business Scheme awards including 3 Gold awards.

There are 25 Disability Scheme awards. visitscotland.com There has been a significant change to the national website developed by visitscotland.com and the new website will be re-launched on 2 April 2008.

Joint business roadshows will take place throughout the islands in March 2008 run by VisitScotland and visitscotland.com FINANCE

INCOME

CnES FUNDING £125,000 BUSINESSES £100,000 ------TOTAL INCOME £225,000

EXPENDITURE

NETWORK OFFICE £166,000

AREA MARKETING £120,000

TIC’s – NET COSTS:

CASTLEBAY £ 4,000 LOCHBOISDALE £16,000 LOCHMADDY £16,000 TARBERT £14,000 STORNOWAY £74,000 £124,000

------TOTAL NET EXPENDITURE £410,000

------NET DEFICIT £185,000 ======

NB.

Network Office costs include property overheads, management and marketing staff

TIC net costs includes visitor generated income of £148,000

Net Deficit currently funded by VisitScotland