Committee
Economy, Energy and Tourism Committee, 07 Oct 2009
07 Oct 2009 · S3 · Economy, Energy and Tourism Committee
Item of business
Draft Budget Scrutiny 2010-11
VisitScotland has helpfully provided a 2008 tourism summary, which contains information that the committee asked for in the recommendations that arose from its tourism inquiry. The regular reports from VisitScotland will be helpful in placing in a longer-term perspective the discussions that we inevitably tend to have on a six-monthly basis. That is where, I think, Parliament could add some value. I have a couple of suggestions for VisitScotland. I note that it is not possible to adduce from the 2008 visitor summary the total spend in real terms over the past four years. It says that the nominal reduction in spend was more than 1 per cent and, in fairness, it also gives the total spend for domestic trips and international trips. I note that there has been a 2 per cent real-terms decline in the value of international spend and a real-terms decline in domestic spend of 5 per cent a year. In 2005, none of us sitting here today would have expected to see a 5 per cent real-terms reduction in spend over the five-year period, notwithstanding the fact that there have been many international vagaries and events that we might not have anticipated. However, if we look at the contribution of tourism to Scotland's gross value added in the period from 2004 to the present day, using the data that we have, we see that there is a less than 0.1 per cent increase.In subsequent versions of this report, VisitScotland should think about ensuring that there are trend data on the total spend in real terms over, perhaps, a 10-year time horizon, if that is possible, and that there are similar data for international spend and domestic spend. There should also be a little bit more comparative data. I see that the UK figure for domestic spend is also down 5 per cent, which is fractionally more than the decline in Scotland, but it is difficult to tell whether a 0.1 per cent greater contribution by tourism to Scotland's GVA, a 5 per cent reduction in domestic spend year on year or a 2 per cent reduction in international spend represents a good or a bad performance when compared with the performance of other well-developed western European tourism markets or the tourism markets of the other nations of the UK. Basically, I thank you for the annual summary, which was helpful. However, with regard to the committee's attempt to track the state of tourism, it would be helpful if the data that we receive on an annual basis were standardised. That would mean that, from Administration to Administration, we could gain a sense of whether tourism is meeting the objectives that we hope that it should, and it might enable us to better address issues such as quality, which the Scottish Tourism Forum raised in its submission but which we do not have time to pursue today.The annual summary is helpful, but if there were more in the way of standardisation, real-terms figures and international data, that would make for a better-informed debate about the place of tourism in the wider Scottish economy.
In the same item of business
The Convener:
LD
Item 2 is our continued scrutiny of the Scottish Government's draft budget for 2010-11. I am again pleased to welcome our adviser, Peter Wood.This morning we...
Philip Riddle (VisitScotland):
Good morning and thank you, convener, for this opportunity to talk with the committee about VisitScotland and tourism in Scotland. We always find the committ...
The Convener:
LD
Thank you. I will start by asking the obvious question. You had additional funding this year to support homecoming 2009, but you will not have that funding n...
Philip Riddle:
Homecoming was, overall, very successful in terms of what it set out to do, and I am sure that it will achieve an economic benefit of an extra £44 million. T...
The Convener:
LD
This is not intended as a criticism of VisitScotland, but it is quite difficult for the committee to scrutinise a budget when we do not actually know what it...
Philip Riddle:
We are certainly looking at efficiencies in our network and quality assurance. Both areas have deficits today. We have good sources of income, but there are ...
The Convener:
LD
I have one final question before I hand over to colleagues. Are the savings to which you refer likely to result in job losses?
Philip Riddle:
We are working in an environment in which we must avoid job losses; we will certainly avoid any compulsory redundancies. There may be some opportunities for ...
Rob Gibson (Highlands and Islands) (SNP):
SNP
It is interesting to see the figures relating to the year of homecoming, as we will be able to see what happened last year, what has happened during the year...
Philip Riddle:
The money that was put in through VisitScotland and EventScotland was about £5.5 million. I am pretty confident that, taking into account the events for whic...
Rob Gibson:
SNP
That would be helpful. Many of us received the brochure for the final weekend of the homecoming, for which events were held throughout the country. It would ...
Philip Riddle:
Let us be clear. You are asking for a breakdown of the public and private funding. A lot of private money went into many of the events.
Rob Gibson:
SNP
Yes. It is important for us to know that, to see the effectiveness of what you do.In your written submission, you talk about seeking income from European cam...
Philip Riddle:
Are you asking about the mechanics of the campaign?
Rob Gibson:
SNP
Yes.
Philip Riddle:
We concentrate quite a lot on direct access. A main element of our European campaigns has been our focus on the existing air routes and our work with the air...
Rob Gibson:
SNP
Can you measure the effectiveness of that work in getting German tourists to come here in 2007 and 2009? Did you undertake the same sort of campaigns in thos...
Philip Riddle:
We can certainly come up with some estimates. We do not get the figures for every country every year; we tend to do sampling. I cannot remember offhand which...
Lewis Macdonald (Aberdeen Central) (Lab):
Lab
I apologise for missing the bulk of your opening statement, although I enjoyed reading your written evidence in advance of today's meeting. I was curious abo...
Philip Riddle:
It is certainly an expectation. It is based on the formula that we will get an £8 return on every £1 that we have spent. The evidence so far suggests that th...
Lewis Macdonald:
Lab
In spring next year, when you assess the success or otherwise of homecoming and whether you have met the target, will the £8 for £1 calculation be made in re...
Philip Riddle:
The figure relates to tourism spending.
Lewis Macdonald:
Lab
For reasons that are not within VisitScotland's control—although you would hope to influence them—overall spending in the period since the target for increas...
Philip Riddle:
It is not impossible to distinguish between them. We will measure homecoming in the same way that we measure every marketing campaign. The surveys that we ca...
Lewis Macdonald:
Lab
This morning, I saw for the first time a submission from the Scottish Tourism Forum that reflects concern about the decline in VisitScotland's budget and see...
Philip Riddle:
Decisions about our overall remit are beyond us—those are judgments for the Government. However, there are opportunities for consolidation, both vertically a...
Lewis Macdonald:
Lab
If your budget was going up rather than down, would you be in a position to make a more effective intervention on tourism spend and providing what the custom...
Philip Riddle:
Absolutely.
Stuart McMillan (West of Scotland) (SNP):
SNP
Good morning. I have a few wee introductory questions. In relation to the European touring campaign, do you work collaboratively with the university sector i...
Philip Riddle:
Absolutely. It is a market that has grown particularly strongly and has a lot of potential. Although you mentioned it in the context of the European campaign...