From rising visitor numbers to policy challenges, the Scottish leisure and tourism industry experienced mixed fortunes last year. But which trends are here to stay, and what will 2024 bring?

Positive statistics

Last year began with a bang – literally – as Edinburgh hosted its first post-covid Hogmanay party, complete with fireworks. The summer brought the world cycling championships, generating a global audience of 537 million and crowds which gathered from Dumfries to Fort William. Meanwhile, the world’s largest cultural festival, The Edinburgh Fringe, attracted 4.5 million visitors, a 40 per cent increase from 2022, according to the organisers.

Research by Visit Scotland shows that although overnight visitor numbers lagged pre-pandemic levels, the hotel sector’s room occupancy rate (until October 2023) was up 6.85 per cent to over 70 per cent, compared to the previous year. Meanwhile self-catering occupancy increased marginally to 46.44 per cent. Unsurprisingly, the cost of living impacted spending: while 5-star properties continued to achieve the highest occupancy rates, their performance was down compared to 2022, with 4-star options experiencing the highest growth. Caravan parks attracted strong demand from Easter onwards, when compared to the year before. Cheaper pitches achieved the highest occupancy. 

Research from the Association of Scottish Visitor Attractions shows visitor figures between January and September 2023 were up 24 per cent on 2022, though still down 9 per cent on 2019. Places of worship, distilleries/breweries, heritage centres and wildlife/animal attractions fared best.

Strong headwinds

These successes were achieved against a backdrop of escalating operating costs and continued staffing issues. Both factors were identified as key barriers to growth by over half of respondents in Oxford Economics’ Tourism Industry Monitor (Nov 23). 

The Scottish sector had to contend with an additional flood of new legislation and resulting uncertainty, including over the much mooted deposit return scheme, making business planning particularly challenging north of the border.

The Scottish Budget of 19 December included 100 per cent rates relief (capped at £110,000) for hospitality businesses on Scotland’s islands. Whilst welcomed by those businesses suffering the ongoing economic impact of ferry disruption, there was no corresponding mainland relief. With 75 per cent in England and 40 per cent in Wales, Scotland now stands alone in its lack of this type of support.

This summer the Scottish Parliament will vote on the Visitor Levy Bill (commonly known as a “tourist tax”). If passed, local authorities will have the opportunity to charge a tax on overnight stays. 

Future opportunities

Despite the headwinds, can the sector look ahead with optimism?

Tourism is currently outperforming the wider global economy, with consumers prioritising – and prepared to pay a premium for – personalised, authentic holiday experiences. As such, Scotland’s rich heritage, culture and landscape continues to draw tourists from across the world.

More than 6 million visitors are attracted to our two established national parks annually: Loch Lomond & The Trossachs and The Cairngorms.  Nominations to establish a third will remain open until the 29th February, with a decision expected to be announced this summer. 

Scotland is firmly established as a global events destination. A strategy developed jointly by various Scottish tourist bodies, Scotland Outlook 2030, sets out an ambitious plan for the country become ‘the world leader in 21st century tourism’. The Scottish sector is certainly set to operate on the global stage again this year, hosting major events with new World Athletics Indoor Championships, World Orienteering Championships and the men and women’s Golf Open, to name but a few.

However, there is a real need for government to properly engage with tourism businesses, ensuring policy is implemented and financial mechanisms put in place to support the sector’s global reputation and enable it to thrive.

Further information

Contact Adam Davies