Strategic Management of Scottish Tourism and Hospitality Industry

Topics: Tourism, Hotel, Tourism in Scotland Pages: 16 (4225 words) Published: January 4, 2011


Tourism injects £4.5 billion annually into the Scottish economy and is one of Scotland largest employers, employing 197,000 or 9% of the workforce (13% in the Highlands & Islands). It pays the wages of more people than the oil, gas and whisky industries combined.

Scottish tourism has grown since 2002; hotel occupancy rates are running at record levels. Growing overseas markets is very important, because overseas visitors stay longer than UK tourists. It’s also important to remember, though, that they represent only 19% by value (9% by volume) of Scottish tourism activity (for business tourism 15% by value). 44% of tourism trips in Scotland are by Scots themselves, while 47% are made by visitors from England and Wales. (The Next Decade)


The Scotland tourism and hospitality industry also has same features to that of the Global tourism industry. Through the help of PESTLE analysis it will be able to get the external and internal environment of the Scottish tourism and hospitality industry providing the impacts based on which a response reaction can be plotted.


1. Fresh Ties between US and Scotland

“The Scottish Government has refreshed its plan for engagement with Scotland's single largest overseas market for exports, inward investment and tourism - the USA. Scotland attracts more visitors from the USA than from any other overseas market - in 2008, 340,000 trips were made by US visitors, contributing £260 million to the Scottish economy (21 per cent of all visitor spend that year)” (Congressman-John Duncan,2010)

2. Strict acts ensuring wild life protection

"Wildlife tourism is becoming increasingly popular, generating significant benefits for the economy and coastal communities. With this in mind, we need to ensure that we safeguard our marine environment for the future. Scotland's Marine Act offers enhanced protection for wildlife and will help deliver economic growth for key business sectors”. (Tourism Minister Jim Mather, 2010)

The wildlife tourism annually brings in a net economic impact of £65 million to Scotland's economy and creates the equivalent of 2,760 full time jobs. Around 1.12 million trips were made every year to or within Scotland with the main aim of viewing wildlife. This form of tourism appealed greatly to UK-based visitors and Scots themselves, accounting for 56 per cent of trips. And it was these UK visitors who generated 75 per cent of the income. (News-Tourism Scotland-Govt)

3. Increasing tour with Europe

With VisitScotland and using the Route Development Fund, it was possible to build the Rosyth, Zeebrugge ferry and several new direct air links to Europe. Mainland Europe presents enormous opportunities for Scottish tourism, particularly in view of the growing trend for short breaks. Campaigns will be enhanced by attractive carrier messages, presenting Scotland as accessible and affordable. VisitScotland continues to work with partners through the Route Development Fund to assess the scope of opportunity for new routes. In doing so, VisitScotland considers the strength of the inbound/outbound potential and partnership opportunities. (European Strategy-Scottish Executive2010)


1. Exchange rate

Europe being a major touring spot for Americans and Asians the exchange rate in Europe is far more attractive than that of UK which over rides the exchange rate of EURO. This has a huge impact on tourist who tend to visit Scotland while countries like India and China with lower exchange rate possess a potential threat for the tour operations which influences most of persons getting diverted to these countries

2. Air Passenger Duty

The tax on aviation — through APD — has risen disproportionately in the UK in recent years and thus has the potential to have a very detrimental effect on outbound and inbound...
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