New survey of Scotland’s tourism sector published as national tourism conference enters second day

“From Covid to the cost of living, Scottish tourism faces unrelenting challenge with the new tourism tax proposals adding to uncertainty and risk at the worst possible time. It is vital that any resource raised is channelled back into the sector.”

– Marc Crothall MBE, CEO Scottish Tourism Alliance

A major two-day national tourism conference concludes today at the EICC in Edinburgh as more than 500 delegates from all sectors within Scotland’s tourism industry gather to discuss the state of the industry, the threats it faces and what opportunities may lie on the horizon.

The STA has partnered 56 Degree Insight in the study, the results of which are revealed this morning at the event hosted by Scottish Tourism Alliance (STA), Association of Scottish Visitor Attractions (ASVA) and HIT Scotland (Hospitality Industry Trust).

Key Findings:

• While nearly three quarters of Scots have been taking holidays in 2022, they are still taking fewer than pre-pandemic and the cost-of-living crisis is now really biting into consumer holiday intentions for 2023.  58% felt their holiday choices were still being impacted by the pandemic.
• However in 2022, the biggest impacts have been caused by rising costs of living – three quarters of Scots said this affected their holiday choices and decisions (74%), further driven up by rising fuel costs for 60% of Scots. The result – fewer holidays, if any in 2022 for some, and for those who did holiday, less spend on the trip.
• More positively however, there is a latent desire amongst Scots to increase their holiday taking in 2023; 38% hope to take more holidays than this year, although 20% expect to take fewer, this is a potential net increase of +18%.
• Tourism tax brings a clear division of opinion amongst Scots who would oppose its introduction (48%) versus those who would support it (44%). Support was highest among Edinburgh residents (57%).
• Although 29% would be against paying anything at all, some 22% would be willing to pay up to £1 per night, 24% would pay £1-2 and 13% would pay more than £2, averaging out at just over £1 per night overall.  However, this is lower than the levels currently being considered.
• And if tourist taxes were in place throughout Scotland, 46% claim they would be more likely to consider other parts of the UK instead if such taxes were not in place there: only 9% would be more likely to consider Scotland.

Commenting on the results and their implications, Marc Crothall MBE, Chief Executive Officer of the Scottish Tourism Alliance said:

“Our industry is key to the recovery and growth of the Scottish economy as a major export earner, employer and contributor of revenue to every one of our communities.”

“The latest survey demonstrates both resilience and fragility. People need a break and want to do that at home and abroad, however the cost-of-living crisis is biting hard on a sector which has not yet recovered from the impact of the pandemic. For many, Covid continues to be a concern and a major factor in their travel choices.”

“From Covid to the cost-of-living, Scottish tourism faces unrelenting challenge with the new tourism tax adding yet more uncertainty and risk at the worst possible time. While opinion is broadly split on whether this tax is a good thing, appetite for anything over £1 per visitor a night is negligible. These findings assume the money raised goes to help the sector; it is simply vital that it does if the tax proceeds.”

Jim Eccleston, Managing Partner at 56 Degree Insight said; “Whilst 2022 has provided some continued recovery for the Scottish tourism industry, this research has confirmed that the impacts of the cost-of-living crisis are introducing new uncertainties for next year.”

“This is backed up in our recent ‘Mood of the Nation’ research undertaken in partnership with The Union agency which showed that almost half of Scots (46%) were delaying any decisions about holidays in 2023 because of the uncertainties around the economic situation.”

View the survey results here.

ENDS

Notes to Editors – full findings of the Scottish Tourism Index 2022

2022 Holiday Attitudes and Behaviour

• While nearly three quarters of Scots have been taking holidays in 2022, they are still taking fewer than we did pre-pandemic and the cost-of-living crisis is now really biting into holiday intentions for 2023
• 73% of Scots will take holidays somewhere in 2022 (67% have already done so).  Some 46% of Scots will holiday in Scotland – the main destinations being the Highlands (12% of Scots) and Edinburgh (10%).
• A third (33%) are taking trips elsewhere in the UK – particularly the Lakes & the North West (11%) and London (9%).
• A third are visiting Europe this year with Spain and its islands the main destination (15% of Scots).  In terms of long haul, only around 11% are travelling further afield – the USA is the main destination.
• Self-catering accommodation remains the preferred choice on Scottish holidays amongst the home market (used by 29% of Scots who took holidays).  In terms of activities, rest and relaxation was undertaken on 63% of trips, as was eating and drinking out.
• Impact of the cost-of-living squeeze is evident with a drop in the numbers eating out, and for shopping for gifts and souvenirs. There is of course a dichotomy – whilst some have tried to cut back and spend less on their holiday, others have had to spend more because of higher costs.
• 58% felt their holiday choices were still being impacted by the pandemic (a wariness of travelling too far for some and nervousness that plans might need to change for others).
• However, in 2022, the biggest impacts have been caused by rising costs of living – three quarters of Scots said this affected their holiday choices and decisions (74%), further driven up by rising fuel costs for 60% of Scots.
• The result – fewer holidays, if any in 2022 for some, and for those who did holiday, less spend on the trip.
• Disruption at airports and on the railways also impacted holiday decisions and behaviours for 43% and 37% respectively – the former having a greater impact on foreign holidays, the latter impacting more on domestic breaks.  The war in Ukraine impacted on the holiday choices of around a third of Scots (32%) – both in terms of avoiding the region and the indirect impact of the conflict on costs for holidays generally.
• Almost half of Scots cut back on their spending when choosing their holiday and destination (47%), whilst a similar proportion cut back on their spending whilst they were on holiday (49%).
• Almost four in ten booked their holidays much closer to when they actually took them (39%).  This reflects continued uncertainties around costs as well as the pandemic, and also resulted in 29% of foreign holidays being booked through a third-party operator.
• Ultimately, the range of uncertainties and higher costs in 2022 have resulted in Scots taking fewer holidays in 2022 than they did pre-Covid – in 2019 and earlier, although 17% took more holidays this year than in 2019, more than half of Scots (51%) took fewer (a net change of       -34%).
• This was especially the case for overseas travel (-37%). Whilst main holidays and short breaks in Scotland are also down compared with 2019 (-12% and -15% respectively), the resultant share of Scots domestic holidays vs holidays to the rest of the UK and overseas has therefore increased slightly.

2023 Intentions Findings

• Further increases in the cost of living would impact three quarters of Scots holiday plans (75%), with inflation (74%) and rising fuel and energy costs (69%) being the primary economic levers which could negatively impact.
• There is a clear message that increased costs introduced by the tourism industry itself will also negatively impact the likelihood of domestic or overseas trips (66% and 65% respectively).
• More positively however, there is a latent desire amongst Scots to increase their holiday taking in 2023 compared with 2022, if possible.  Some 38% hope to take more holidays than this year, and whilst 20% expect to take fewer, this is a potential net increase of +18%.  Of course, the extent to which this might happen will clearly depend on the various barriers to trip-taking already highlighted.

Tourism Tax Findings:  

• There is a division of opinion amongst Scots about the merits of the introduction of a tourist tax.  Without clear messaging of how the income would be applied to benefit the local tourism economy, there is a threat that tourists may choose to visit alternative destinations
• With the potential for a tourist levy – or ‘tourist tax’ – being considered in several parts of Scotland in the next few years, the Scottish Tourism Alliance partnered 56 Degree Insight to investigate the views of the Scottish population on the introduction of such a tax.  Asked as part of the October ‘Scottish Tourism Index’, a nationally representative sample of 1,000 Scots were surveyed to provide their opinions.
• A description of the proposed tax was provided and there is a clear division of opinion amongst Scots who would oppose its introduction (48%) versus those who would support it (44%).  Interestingly, support was highest among Edinburgh residents (57%) – the city most advanced in its plans for such a tax.
• Objections tended to focus on additional costs being added to domestic holidays, whilst supporters saw it as a good means of generating additional revenue to reinvest in the local area with several citing personal experience of paying local taxes abroad.
• Although 29% would be against paying anything at all, some 22% would be willing to pay up to £1 per night, 24% would pay £1-2 and 13% would pay more than £2 – averaging out at just over £1 per night overall.  However, this is lower than the levels currently being considered.
• There is also the potential threat that some would choose to avoid destinations with a tourist levy in place. Whilst a tourist tax would not impact on the decision to visit for the majority (58%), over a third claim they would be less likely to visit that destination (37%).
• And if tourist taxes were in place throughout Scotland, 46% claim they would be more likely to consider other parts of the UK instead if such taxes were not in place there: only 9% would be more likely to consider Scotland.
• In summary, if tourist levies of the type proposed are to be introduced, clear communication of how the income would be reinvested in the local economy will be required, if it is not to act as a potential barrier to taking domestic holidays.

About The Scottish Tourism Alliance

• The STA is the acknowledged representative body for all sectors within Scotland’s tourism industry.
• It comprises over 250 trade associations, businesses, destination groups and other organisations with an interest in tourism.
• The organisation is able to offer the best possible representation of the issues and challenges faced by Scotland’s tourism industry through continuous engagement with more than 70% of tourism businesses in Scotland.
• Its membership is spread across all regions and destinations in Scotland.
• The programme for Scotland’s Tourism Industry Conference 2022, taking place 9^th and 10^th November is here.

About 56 Degree Insight

• Edinburgh based 56 Degrees Insight is a research consultancy which provides the latest in thought leadership, market research and insight.
• The Scottish Tourism Index analysis is based on a series of questions contained within Scotland’s Viewpoint – a quarterly survey of 1,000+ Scots – statistically representative of the Scottish population and undertaken by 56 Degree Insight.
• It is conducted online over a two-day period each quarter.
• The results reported are taken from the 4th wave of the survey which ran over the 26th-27th October – 1,000 Scots were interviewed.