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Key research project into Scottish tourism sector's rising costs announced today at industry co


The research will provide greater clarity around how businesses and sectors will be affected by costs that the industry has had to contend with and absorb over the last five years; costs which are at unprecedented levels such as the National Living Wage, pension auto-enrolment, business rates, apprenticeship, immigration and insurance premium levies and inflationary costs.


The tourism industry is currently facing the ‘perfect storm’ of business costs and the research is expected to paint the picture of a complex and challenging time for Scottish tourism.


The project will explore business revenue and growth levels, the costs of commission from online booking agencies, labour costs including the effect of the National Living Wage, the costs of pensions and the administration and professional fees associated with labour and pension changes, fixed costs and the costs of licensing, utilities, waste disposal and other industry/sector costs.



Scottish Tourism Alliance Chief Executive, Marc Crothall said; “Tourism has been acknowledged by Scottish Government as being “Scotland’s most important industry”, however what the industry is facing in relation to actually doing business and staying in business is unprecedented. The past 12 months have seen huge political and economic change for the UK, for Scotland and all industries, the outcome of which is still to be felt as we move closer to our EU exit date.  There are many unknowns that have the potential to challenge Scotland’s tourism industry in ways we have never experienced.


The rising costs the industry is currently experiencing have a direct impact on our ability to deliver the quality, authentic experience which is at the heart of Scotland’s tourism strategy and for us to be a destination of first choice. We look forward to working with French Duncan on what is a critical piece of research announcing our findings in the summer.”


Ian Bremner, Hotel Accounting Director, French Duncan said: “Our tourism team is working in partnership with the Scottish Tourism Alliance to map the range of cost increases facing the sector.  Our research will seek to establish a baseline that quantifies and highlights the factors which are having the most detrimental impact and identify mitigating measures to drive future growth.”  


“Going forward, the utilisation of real-time data will enable businesses to better understand and rapidly respond to market conditions.”  

Last Modified: Wednesday 15 March 2017 06:26
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