Chamber
Meeting of the Parliament 17 March 2010
17 Mar 2010 · S3 · Meeting of the Parliament
Item of business
Tourism
As a member of the Economy, Energy and Tourism Committee and someone who represents a constituency to which tourism is important, I am pleased that the importance of tourism to the Scottish economy is being recognised.
According to VisitScotland, the national tourist board, Scottish tourism is worth just over £4 billion in expenditure terms. Given that the industry employs 218,000 people, which represents around 9 per cent of the total number of people who are employed in Scotland, it is clear that tourism is crucial to the Scottish economy.
The committee undertook an inquiry to find out whether Scotland could achieve 50 per cent growth in revenue from tourism by 2015. It was found that that was most likely to be delivered by an increase in visitor numbers of about 20 per cent by 2015, with the rest of the growth coming from increased spend per head as the industry gets better at offering a wider range of experiences and products to meet our visitor’s expectations. Scotland has an exceptional tourism product, and we have an identity and a brand that are second to none, and which include breathtaking scenery, world-class attractions and famous history and culture.
However, it is important that we measure improvements in tourism in an open and transparent way. The Scottish Government has made a number of assertions since the new year, claiming that tourism was a success in 2009. However, to support that claim, it has excluded visitor numbers from Europe—which have decreased—despite the fact that the number of visitors from Europe accounts for a much larger proportion than visitors from North America and the rest of the world, who were used to promote the Government’s assertion. That is not at all helpful, and it actually undermines the whole process.
We must also await an independent report on homecoming Scotland to determine its success, although we thank those who supported the tourism initiatives during this period. I commend schools in my constituency and across Scotland who embraced the homecoming ethos.
It was clear that it would be a challenge to meet our targets. That was and is still the case because, since the targets were set and as others have said, the economic circumstances that face the tourism industry have changed significantly. The operating environment has toughened considerably, and the balance between quality and affordability has never been more important.
In these difficult economic circumstances, the Scottish Government must work with the tourism industry and ensure that public and private sectors work in partnership. According to evidence to the Economy, Energy and Tourism Committee by one of the leading trade bodies, the Scottish Tourism Forum, it is only through a co-ordinated approach from both public and private sectors that opportunities can be provided for sustainable growth in the industry and the spreading of economic benefit across the entire country. The Scottish Government must therefore work with and support the large and small businesses that make up the sector and listen to the needs of the industry—I will come back to that later. Importantly, as my colleagues Lewis Macdonald and Gavin Brown said, we must improve the provision of skills.
It is apparent that it will be near impossible to increase the revenue that the sector takes in without driving up standards and quality. The quality, the welcome and the experience that tourists have during their visit depends on the quality of the hotels, cafes, visitor attractions and the services offered by the people who work in the industry.
We must concentrate on skills, training and leadership in the sector. Evidence points to overprovision of courses, many of which we have heard do not meet industry requirements. We must motivate potential employees, drive up quality, develop small and medium-sized businesses and grow a confident and motivated workforce. We said that two years ago, and I agree with Gavin Brown that what has been said today is too little, too late.
As the further and higher education sectors have come under financial pressure, practical training must not be adversely affected. The sector also has problems with retention due to the image of the industry. Despite the number of people who undertake training, it is estimated that only 80 per cent of the people who go into the sector are still there in five years. That leads to many managers who work in the industry not possessing even the minimum qualifications.
I urge the Scottish Government to work with the Scottish Further and Higher Education Funding Council, the sector skills council and Scotland’s Colleges to deliver a system that provides education, skills and training that is demand led and fit for purpose.
Improving the quality of education and skills of our workforce in the tourism industry must be met with opportunities in the sector. Problems with planning and building control were identified as inhibiting our ability to attract investment. There are examples of good practice in which major tourism projects receive fast-track status, and those innovative systems and procedures must be replicated across Scotland. There must be joined-up thinking within Government and its quangos, so the proposals to cut by 22 per cent funding to universities for architecture, the built environment and planning are sheer madness.
If areas such as Fife are to take advantage of tourism opportunities, including the impending hovercraft service from Edinburgh to Kirkcaldy and the potential for a development at Kirkcaldy promenade, the Government must work with local government towards eliminating barriers to investment.
The bombshell of increased business rates that the Government dropped last week will seriously damage the Scottish hotel and hospitality industry, and it flies in the face of the Government’s commitment to working with SMEs and the industry as a whole. The Scottish Tourism Forum has announced that the sector is braced for an even tougher year than 2009, in which the quality of our welcome will be even more crucial.
Cuts to funding for the tourism budget for 2010-11 by £4.5 million will not help. The Government must take a lead, show confidence and support, and ensure that the Scottish economy reaps the full potential from what is a very important sector.
15:30
According to VisitScotland, the national tourist board, Scottish tourism is worth just over £4 billion in expenditure terms. Given that the industry employs 218,000 people, which represents around 9 per cent of the total number of people who are employed in Scotland, it is clear that tourism is crucial to the Scottish economy.
The committee undertook an inquiry to find out whether Scotland could achieve 50 per cent growth in revenue from tourism by 2015. It was found that that was most likely to be delivered by an increase in visitor numbers of about 20 per cent by 2015, with the rest of the growth coming from increased spend per head as the industry gets better at offering a wider range of experiences and products to meet our visitor’s expectations. Scotland has an exceptional tourism product, and we have an identity and a brand that are second to none, and which include breathtaking scenery, world-class attractions and famous history and culture.
However, it is important that we measure improvements in tourism in an open and transparent way. The Scottish Government has made a number of assertions since the new year, claiming that tourism was a success in 2009. However, to support that claim, it has excluded visitor numbers from Europe—which have decreased—despite the fact that the number of visitors from Europe accounts for a much larger proportion than visitors from North America and the rest of the world, who were used to promote the Government’s assertion. That is not at all helpful, and it actually undermines the whole process.
We must also await an independent report on homecoming Scotland to determine its success, although we thank those who supported the tourism initiatives during this period. I commend schools in my constituency and across Scotland who embraced the homecoming ethos.
It was clear that it would be a challenge to meet our targets. That was and is still the case because, since the targets were set and as others have said, the economic circumstances that face the tourism industry have changed significantly. The operating environment has toughened considerably, and the balance between quality and affordability has never been more important.
In these difficult economic circumstances, the Scottish Government must work with the tourism industry and ensure that public and private sectors work in partnership. According to evidence to the Economy, Energy and Tourism Committee by one of the leading trade bodies, the Scottish Tourism Forum, it is only through a co-ordinated approach from both public and private sectors that opportunities can be provided for sustainable growth in the industry and the spreading of economic benefit across the entire country. The Scottish Government must therefore work with and support the large and small businesses that make up the sector and listen to the needs of the industry—I will come back to that later. Importantly, as my colleagues Lewis Macdonald and Gavin Brown said, we must improve the provision of skills.
It is apparent that it will be near impossible to increase the revenue that the sector takes in without driving up standards and quality. The quality, the welcome and the experience that tourists have during their visit depends on the quality of the hotels, cafes, visitor attractions and the services offered by the people who work in the industry.
We must concentrate on skills, training and leadership in the sector. Evidence points to overprovision of courses, many of which we have heard do not meet industry requirements. We must motivate potential employees, drive up quality, develop small and medium-sized businesses and grow a confident and motivated workforce. We said that two years ago, and I agree with Gavin Brown that what has been said today is too little, too late.
As the further and higher education sectors have come under financial pressure, practical training must not be adversely affected. The sector also has problems with retention due to the image of the industry. Despite the number of people who undertake training, it is estimated that only 80 per cent of the people who go into the sector are still there in five years. That leads to many managers who work in the industry not possessing even the minimum qualifications.
I urge the Scottish Government to work with the Scottish Further and Higher Education Funding Council, the sector skills council and Scotland’s Colleges to deliver a system that provides education, skills and training that is demand led and fit for purpose.
Improving the quality of education and skills of our workforce in the tourism industry must be met with opportunities in the sector. Problems with planning and building control were identified as inhibiting our ability to attract investment. There are examples of good practice in which major tourism projects receive fast-track status, and those innovative systems and procedures must be replicated across Scotland. There must be joined-up thinking within Government and its quangos, so the proposals to cut by 22 per cent funding to universities for architecture, the built environment and planning are sheer madness.
If areas such as Fife are to take advantage of tourism opportunities, including the impending hovercraft service from Edinburgh to Kirkcaldy and the potential for a development at Kirkcaldy promenade, the Government must work with local government towards eliminating barriers to investment.
The bombshell of increased business rates that the Government dropped last week will seriously damage the Scottish hotel and hospitality industry, and it flies in the face of the Government’s commitment to working with SMEs and the industry as a whole. The Scottish Tourism Forum has announced that the sector is braced for an even tougher year than 2009, in which the quality of our welcome will be even more crucial.
Cuts to funding for the tourism budget for 2010-11 by £4.5 million will not help. The Government must take a lead, show confidence and support, and ensure that the Scottish economy reaps the full potential from what is a very important sector.
15:30
In the same item of business
The Presiding Officer (Alex Fergusson)
NPA
The next item of business is a debate on motion S3M-5962, in the name of Jim Mather, on tourism.14:35
The Minister for Enterprise, Energy and Tourism (Jim Mather)
SNP
I am delighted to have the chance to debate a massively important sector. The debate augments the on-going conversation that we are having with the sector an...
Gavin Brown (Lothians) (Con)
Con
Apparently, rung 4 of the ladder is about trust, so I will aim for rung 4, if not rung 6. It is important that what the Government says about tourism figures...
Jim Mather
SNP
I suspect that that was about managing to move against the trend. I will debate the statistics in more detail with Mr Brown, because I know that, although he...
Margo MacDonald (Lothians) (Ind)
Ind
I apologise for not having one foot on the ladder; both of my feet are planted firmly on the ground. What does authenticity mean?
Jim Mather
SNP
If I have to explain authenticity to Mrs MacDonald, I feel that I am deviating from the subject. Authenticity is giving people the experience of meeting othe...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD)
LD
The minister refers to the economic case. He will be aware of the significant concern among those in the hotel and hospitality sector about the rates and tax...
Jim Mather
SNP
Compared with elsewhere, the rates position here is beneficial. Some 60 per cent of businesses are benefiting. This frugal Government—this minister—has the l...
Mike Rumbles (West Aberdeenshire and Kincardine) (LD)
LD
The minister has just said that the industry should have as much support as possible. He must be aware that hotels on Deeside in my constituency, such as the...
Jim Mather
SNP
If we went down the incremental path that Mike Rumbles suggests, small businesses in Scotland would pick up a £69 million tab. What we are doing is much fair...
Margo MacDonald
Ind
Will the minister give way?
Jim Mather
SNP
I think that I am in my last minute—am I?
The Presiding Officer
NPA
You have time.
Margo MacDonald
Ind
Like the minister, I mean to be as positive as I can be—I agree with him about that. Selling Scotland abroad now is relatively easy in the countries that are...
The Presiding Officer
NPA
I ask the minister to respond and then conclude.
Jim Mather
SNP
The member encourages me to focus on the positive, which is exactly what we will do. I mentioned Mike Cantlay, who brings even more positivity. He has a conn...
Lewis Macdonald (Aberdeen Central) (Lab)
Lab
Feel-good factors are important. I have no doubt that Jim Mather feels more cheerful when he tells us that Scotland is bucking the trend and welcomes homecom...
Rob Gibson (Highlands and Islands) (SNP)
SNP
Does the member agree that it is important for people to feel pride in their country if they are to welcome visitors to it and try to sell it abroad? Surely ...
Lewis Macdonald
Lab
It was indeed. My point was one of emphasis, not direction.Unfortunately, the evidence suggests that Mr Mather and his colleagues go beyond wishful thinking....
Joe FitzPatrick (Dundee West) (SNP)
SNP
Does the member support the small business bonus scheme, which is helping a large number of independent hotels, bed and breakfasts, guest houses and self-cat...
Lewis Macdonald
Lab
I have no difficulty in supporting the small business bonus scheme. My difficulty is with the proposition that businesses large and small should be hit overn...
Gavin Brown (Lothians) (Con)
Con
We should all be extremely proud of the Scottish tourism industry. It is vital to the country, it is worth more than £4 billion and it provides more than 200...
Jim Mather
SNP
I am sure that Gavin Brown will acknowledge that there is now an industry-led national skills subgroup and that we have a skills plan. I had an e-mail just t...
Gavin Brown
Con
The report is approaching its second anniversary and it made a very clear recommendation. The committee said: “This is an area where the current structure is...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD)
LD
The amendment in my name is to a motion of which we were grateful to receive advance notice on Friday from the Government’s special adviser. That courtesy wa...
Joe FitzPatrick
SNP
Would the member like to reflect on the fact that 60 per cent of businesses will pay less under the new valuations and that all businesses will benefit from ...
Jeremy Purvis
LD
I am not sure what planet Joe FitzPatrick lives on. First, he should give his message not to me but to the Apex hotel in Dundee, which faces an increase of £...
The Deputy Presiding Officer (Trish Godman)
Lab
We move to the open debate.15:17
Rob Gibson (Highlands and Islands) (SNP)
SNP
In today’s debate on tourism, occurring as it does in the midst of the biggest financial burst for 50 years, if instead of talking about Scotland’s difficult...
Iain Smith (North East Fife) (LD)
LD
Is the member aware that not only hotels but a large number of caravan parks are being hit by large increases in rates?