Scotland’s Visitor Economy: Tackling Challenges in a Changing Climate

It’s no secret that the recovery of international tourism to Scotland over the past five years has been one of the country’s greatest success stories. But while international visits and spend are up, UK visitors continue to be affected by the rising cost of living, which is holding back the overall growth of Scotland’s tourism and events sector. 

Despite the challenges, we know that strategic investment in the visitor economy generates sustainable growth. We’ve seen growth in the value of tourism to the Scottish economy, rising from £10.8bn (2023) to £11.4bn (2024) - adjusted for inflation, that’s an increase of 8% in value. 

More than 90% of Scottish tourism businesses are small, medium, or micro-sized. Many don’t have direct access to international markets and rely heavily on domestic visitors. That means the UK market remains critical, not just for the number of visitors and the value of their spend, but for the sustainability of the visitor economy.  

Our research tells us that while the appetite for Scotland remains strong, domestic visitors are concerned about cost. Visitors are often opting to cut spend while they are on holiday by eating out less, doing free activities or choosing cheaper accommodation options. 

The consumer uncertainty around cost of living, the influence of wider geopolitical factors and the cost of doing business presents a challenging climate for our sector. That’s why we’re taking clear and tangible steps to support the sector and stimulate growth, with a renewed focus on reinvigorating the domestic market. 

We’re currently making investments in the channels our audiences use, partnering with organisations they trust and delivering activity we know works. Our targeted, multichannel approach delivers strong in-year returns, with every £1 spent in 2024/5 generating £18 back into the Scottish economy, up from £11 the previous year.  

Recently, we’ve been focusing our efforts on encouraging visits in the autumn and winter months. This won’t just help grow the overall value of Scotland’s visitor economy but also supports our responsible tourism ambitions by spreading visitors across the year and the country. 

Using data and insight to inform our plans, we look to inspire the people who are most likely to travel to Scotland. We’re telling the story of what a visit in the autumn and winter looks like across a multitude of channels - from website articles to media partnerships with the likes of NBC, to working with partners and investing in travel platforms including Skyscanner.

And it’s not just leisure visitors. Through our Business Events activity, we position Scotland as a destination to attract association conferences and corporate incentive travel, which are popular in the quieter months of the year. 

Showcasing Scotland is a privilege, with unique assets like our stunning landscapes, vibrant events and a fantastic welcome right across the country. Just last month we celebrated the very best in the sector at the Thistle Awards National Final. Those standout businesses, individuals and community enterprises deliver memorable, quality experiences, all year round.

To support even more of Scotland’s businesses, this year we launched a free to access Business Support Hub platform. It’s helping tourism and events businesses to grow, reach new audiences and develop their inclusive and sustainable practices. 

As well as our ongoing work to stimulate domestic demand for Scotland, I believe there also a clear opportunity in the long-term for more businesses to sell to international markets, making this internationalisation effort an important focus for VisitScotland.

We are supporting businesses to develop their product and identify and reach the right audiences to sell to. In many cases this means providing support to help them reach and connect with these markets, either directly or through travel intermediaries.

Challenges like the cost of living and doing business make it even more important for us to be strategically focused, working with industry, stakeholders, partners and Government to maximise our efforts.

Through this, we’ll support businesses to grow and develop and encourage visitors to stay longer and spend more, ultimately growing the value of the visitor economy for Scotland.

This article is sponsored by VisitScotland.

www.visitscotland.org