Chamber
Meeting of the Parliament 21 November 2012
21 Nov 2012 · S4 · Meeting of the Parliament
Item of business
Business Tourism
Along with other members of the Public Petitions Committee, yesterday I visited the National Assembly for Wales, which was also, coincidentally, debating the effect of APD on tourism. There is no doubt that APD—along with VAT, the lack of direct flights and the visa shambles—militates against success in tourism generally and business tourism particularly and defies some of the good work that our tourism agencies do.
Talking with some Chinese businessmen recently, I was appalled to be told that, when seven of them applied to come to Scotland on business, the embassy restricted their quota to five. Of course, none of them then came. Notwithstanding the consensual nature of the debate, I have to admit that I smiled yesterday when reading the story about Areva coming to Scotland, on which the Prime Minister, Mr Cameron, said:
“I am determined that Britain competes and thrives in the global race”.
Well, he could help our business tourism by asking his Chancellor of the Exchequer to reduce APD and VAT drastically, by asking his Foreign Secretary to sort out the visa shambles and by asking his Secretary of State for Transport to insist that the transport review considers direct flights to Scotland.
Having worked for several multinationals and run eight companies across Europe, I know that it is critical to business tourism that we increase the global corporate footprint in Scotland. We need more corporate headquarters. On that, I can only praise the great work of Scottish Enterprise and Scottish Development International and the efforts that they have made so far to attract such companies. I have no doubt that, under the umbrella of the strategic economic forum, there will be even greater co-ordination and cohesion among Scottish Enterprise, SDI and VisitScotland in attracting more businesses—and, by default, more business tourists—to Scotland.
In my careers with NCR, IBM, Digital, Wang UK and Tandem UK, I well remember the influx of colleagues from the US, Japan and Europe, many of whom brought their spouses and extended their stays, and even continued to come back after they had left the companies. I well remember Tandem taking over a third of Gleneagles hotel. I do not remember quite as well the night at the Tullibardine distillery, although I am sure I enjoyed it. The attraction of corporates and their subsidiary units and manufacturing entities must be an overarching objective for business and business tourism. As it was in silicon glen, let it be in renewables, food and drink, and life sciences.
We must build on the estimated £900 million of expenditure from business tourism in 2011, which was 19 per cent of total tourism expenditure. Aside from the volume, the business tourism sector is important because it is estimated that business tourists spend one and a half times what leisure tourists spend. It is important that we have in place the processes and information and communication technology systems that crystallise the numbers, so that we know exactly how we are growing.
As the minister said, our success is contingent on the joint work of VisitScotland’s business tourism unit, our universities, local authorities, regional tourism forums and the private sector to stimulate activity and build infrastructure to meet our national objective. Although I applaud the current 53 applications to the conference bid fund and I recognise the efforts of Glasgow City Council and Scott Taylor and his marketing team in securing outstanding conferences for Glasgow, particularly in the life sciences and medicine, I suggest that our business tourism cannot be city-centric only and nor can it be product-centric. According to the business tourism unit, outside the main cities, only 31 places in Scotland can seat more than 500 people in theatre style.
We will be successful in our pursuit of making Scotland a global business tourism centre for the corporates that I mentioned, for conferences, conventions, sales achievement programmes, exhibitions and trade fairs—I could go on—only if we are ready to beat the global competition. That means spreading our reach to show our service worth, natural resources and assets, including outwith the cities. It means increasing connectivity and business tourism attractions in the Borders and the Highlands and Islands. The phrase that comes to mind is, “Shovel ready, service ready.” We have good and, in some cases, excellent tourism and business tourism agencies. I am delighted to support the Government’s motion and the amendment.
15:48
Talking with some Chinese businessmen recently, I was appalled to be told that, when seven of them applied to come to Scotland on business, the embassy restricted their quota to five. Of course, none of them then came. Notwithstanding the consensual nature of the debate, I have to admit that I smiled yesterday when reading the story about Areva coming to Scotland, on which the Prime Minister, Mr Cameron, said:
“I am determined that Britain competes and thrives in the global race”.
Well, he could help our business tourism by asking his Chancellor of the Exchequer to reduce APD and VAT drastically, by asking his Foreign Secretary to sort out the visa shambles and by asking his Secretary of State for Transport to insist that the transport review considers direct flights to Scotland.
Having worked for several multinationals and run eight companies across Europe, I know that it is critical to business tourism that we increase the global corporate footprint in Scotland. We need more corporate headquarters. On that, I can only praise the great work of Scottish Enterprise and Scottish Development International and the efforts that they have made so far to attract such companies. I have no doubt that, under the umbrella of the strategic economic forum, there will be even greater co-ordination and cohesion among Scottish Enterprise, SDI and VisitScotland in attracting more businesses—and, by default, more business tourists—to Scotland.
In my careers with NCR, IBM, Digital, Wang UK and Tandem UK, I well remember the influx of colleagues from the US, Japan and Europe, many of whom brought their spouses and extended their stays, and even continued to come back after they had left the companies. I well remember Tandem taking over a third of Gleneagles hotel. I do not remember quite as well the night at the Tullibardine distillery, although I am sure I enjoyed it. The attraction of corporates and their subsidiary units and manufacturing entities must be an overarching objective for business and business tourism. As it was in silicon glen, let it be in renewables, food and drink, and life sciences.
We must build on the estimated £900 million of expenditure from business tourism in 2011, which was 19 per cent of total tourism expenditure. Aside from the volume, the business tourism sector is important because it is estimated that business tourists spend one and a half times what leisure tourists spend. It is important that we have in place the processes and information and communication technology systems that crystallise the numbers, so that we know exactly how we are growing.
As the minister said, our success is contingent on the joint work of VisitScotland’s business tourism unit, our universities, local authorities, regional tourism forums and the private sector to stimulate activity and build infrastructure to meet our national objective. Although I applaud the current 53 applications to the conference bid fund and I recognise the efforts of Glasgow City Council and Scott Taylor and his marketing team in securing outstanding conferences for Glasgow, particularly in the life sciences and medicine, I suggest that our business tourism cannot be city-centric only and nor can it be product-centric. According to the business tourism unit, outside the main cities, only 31 places in Scotland can seat more than 500 people in theatre style.
We will be successful in our pursuit of making Scotland a global business tourism centre for the corporates that I mentioned, for conferences, conventions, sales achievement programmes, exhibitions and trade fairs—I could go on—only if we are ready to beat the global competition. That means spreading our reach to show our service worth, natural resources and assets, including outwith the cities. It means increasing connectivity and business tourism attractions in the Borders and the Highlands and Islands. The phrase that comes to mind is, “Shovel ready, service ready.” We have good and, in some cases, excellent tourism and business tourism agencies. I am delighted to support the Government’s motion and the amendment.
15:48
In the same item of business
The Deputy Presiding Officer (John Scott)
Con
The next item of business is a debate on motion S4M-04886, in the name of Fergus Ewing, on business tourism. I invite members who wish to speak in the debate...
The Minister for Energy, Enterprise and Tourism (Fergus Ewing)
SNP
Thank you very much, Presiding Officer.I am delighted to secure this debate on business tourism and I am pleased to see the cross-party recognition of the im...
Margo MacDonald (Lothian) (Ind)
Ind
Just before the minister moves on, what did the gentleman whom he met who organised conferences—or who knew all about them—say were the priorities for gettin...
Fergus Ewing
SNP
There are a variety of priorities. Conference managers want to have top-class venues. They want to have splendid hotels and good food and drink. They receive...
Christine Grahame (Midlothian South, Tweeddale and Lauderdale) (SNP)
SNP
Will the member give way?
Fergus Ewing
SNP
In a minute.I cannot think of many uses to which taxpayers’ money have been put that have seen such returns. The total return to the public purse for every £...
The Deputy Presiding Officer
Con
A tour de force of arithmetical explanation. Christine Grahame?
Christine Grahame
SNP
Am I the tour de force? No. Of those successful bids, were any from other than urban areas? My concern is that rural areas such as the Scottish Borders are l...
Fergus Ewing
SNP
Christine Grahame is absolutely right—as I have already alluded to, the successful fund applications to the bid fund have largely been in Glasgow and Edinbur...
Margo MacDonald
Ind
Although the bid fund is excellent and good use of it has already been made, an internal programme of explanation and information for the smaller people in r...
Fergus Ewing
SNP
I am happy to agree that we want to do more to spread information about the fund. That is why I travelled recently to Aberdeen, which, as Labour’s amendment ...
Fergus Ewing
SNP
I am sorry to disappoint members. I very much look forward to the debate, and have pleasure in moving the motion.I move,That the Parliament recognises that t...
Ken Macintosh (Eastwood) (Lab)
Lab
I thank the minister for his opening speech. Despite the disappearing coin trick, the shameless playing to the gallery and even the two caveats on Labour’s a...
Margo MacDonald
Ind
I speak as a proud grandmother, whose eldest grandson just this week started as an apprentice in the hotel industry. He is a graduate and he is never going t...
Ken Macintosh
Lab
Hear hear. I echo the member’s remarks. There is a difficulty, in that attitudes in Scotland are perhaps still a couple of decades behind. The industry has c...
Margaret McCulloch (Central Scotland) (Lab)
Lab
Does the member agree that hospitality should be regarded as a profession, as is the case in France, and should be treated as such by schools, careers servic...
Ken Macintosh
Lab
Indeed. That is behind the whole idea of boosting the industry’s status. We can do that in a number of ways, including through schools and careers services. ...
Mary Scanlon (Highlands and Islands) (Con)
Con
I welcome the debate and I welcome the conference bid fund. I also thank the minister for his briefing earlier today, which I found helpful. We will support ...
John Mason (Glasgow Shettleston) (SNP)
SNP
Does Mary Scanlon accept that people thought that they could not go to London during the Olympics because the Olympics were on? We do not want such a message...
Mary Scanlon
Con
There are lessons to learn from the Olympics. The lessons are 90 per cent positive, but we must also look at any deterrents.To maintain and increase our comp...
The Deputy Presiding Officer (Elaine Smith)
Lab
You need to start to conclude.
Mary Scanlon
Con
Business tourism in Islay, with its distilleries, is first class. I appreciate that business tourism is a vital ingredient in the economy of the Highlands an...
The Deputy Presiding Officer
Lab
We turn to the open debate. Members have six minutes for speeches, but we are very tight for time so interventions must be contained within those six minutes...
Mike MacKenzie (Highlands and Islands) (SNP)
SNP
In beginning a speech in a debate about tourism, it is only proper that I first pay tribute to the man who is credited with single-handedly starting the Scot...
Margaret McCulloch (Central Scotland) (Lab)
Lab
I welcome the opportunity to speak on this topic and to discuss how we can make Scotland the world-class destination that we all know it can be.This is not t...
John Mason
SNP
Will the member give way?
Margaret McCulloch
Lab
Let me continue.If we are serious about developing this high-value sector and realising all its potential, we need transport links that sit at the top of the...
Dennis Robertson (Aberdeenshire West) (SNP)
SNP
It will come as no surprise to the minister that I will focus most of my attention on the north-east of Scotland—in particular Aberdeen and Aberdeenshire.
John Mason
SNP
No!
Dennis Robertson
SNP
Well, yes.First, however, I say that I would love to invest £1 with the minister; I hope that I would get a good return at the end of the week.The north-east...