How well is Scottish tourism preparing for future?

A debate focused on taxes, Airbnb and holiday homes may not drive the change that is needed. This is a time for a more strategic view and longer term planning. And a narrow debate misses the opportunity in new trends for more sustainable travel. This offers the potential for visitors to be better connected with Scotland’s communities during their stay; meaningful engagement rather than mainly transactional spend.

Preserving the value of a destination should not be a battle between visitors and residents. Recent surveys point to a growing desire of travellers to enjoy a more immersive experience that links to the culture, history and people of an area. Meeting this need should mean that communities can be strengthened by visitors, with roles for guides and local enterprises in sharing heritage. But numbers and accommodation need to be managed. That destination management is as important in rural areas as in the big cities. Scotland needs to think in terms of providing visitors with meaningful engagement, and supporting communities and enterprises that are focused on this.

In an age of over-tourism, simply chasing visitor numbers is unsustainable. Each area needs a balanced economy and this should be able to incorporate the visitor economy in a sustainable way. There is a global shift towards authentic travel and deeper cultural connections. This plays to Scotland’s strengths, but change is needed to deliver more experiences that are unique to a destination. That will involve many small local enterprises, often social, that will need encouragement.

Scotland’s visitor economy sustains 200,000 jobs with typical annual spend of £4 billion. UK visitors predominate but Scotland continues to attract many international travellers. And half of UK visitors to Scotland want to connect with nature and outdoors, with the Highlands seeing growing interest. But the traditional approach of marketing Scotland’s strengths in golf, fishing, food and drink must evolve. As a growing proportion of travellers search for responsible and meaningful experiences, businesses need to adapt to meet that demand.

Scotland has many strengths that could be a bigger part of the future tourist economy given more investment. Our Geoparks, for example - two of which are UNESCO recognised - showcase Scotland’s heritage in geology and its unique landscape. These are well integrated with communities and cater for growing interest in travel as a learning experience. They show that social enterprises can usefully anchor more activity in less populated areas.

In contrast, the North Coast 500 has been spectacularly successful in terms of numbers but raises questions over how much it embeds locally and whether infrastructure and resources can cope. It will take thought and investment to spread the benefits of the tourist economy across the remoter parts of Scotland but other nations have demonstrated the demand for new experiences.

The pressure in peak periods is driving changes in behaviour. Across Europe there is a trend to a longer season, with more activity in the shoulder months versus the crowded summer. Northern Europe, including Scotland, is benefiting also from some of the adverse impact of climate change, as extreme weather events become more prevalent elsewhere in Europe. This does not look sustainable but the increase in bookings for cooler months is currently a positive in relieving peak pressures. If this trend does continue it will bring new challenges. Not least, staffing in less populated areas is a significant problem for an extended season.

Scotland’s plans for tourism must run alongside transitional to sustainable practice. Globally, tourism is estimated to generate 5% of greenhouse gas emissions, almost entirely from transportation. This is expected to grow over the remainder of the decade.

Fortunately, many younger travellers are more aware of the environmental cost of travel and are incorporating rail and public transport into their plans. But sustainability is complex - solutions are also needed for depletion of local natural resources and impact on habitats. Trends in sustainability will likely mean that Scotland needs to do more to promote experiences that cater for environmentally-conscious visitors. Net-zero carbon emissions can only be a meaningful ambition if it attempts to mitigate the contribution of air travel.

There are many positives for Scotland in current trends. Scotland is seen and welcoming and authentic. Where it focuses on self-discovery, unique experiences and well-being, it is an attractive destination for younger travellers.

But new demands must be met. We cannot just rely on outstanding landscape but should offer visitors more understanding of it. And Scotland may increasingly be held to account by travellers for the sustainability of its offering. Addressing that should also be a positive for our communities.

Scotland’s tourist industry has recovered well from the pandemic and continues to make a major contribution to the overall economy. It has been helped by the impact of film and TV series that feature iconic locations and encourage interest in our heritage and culture.

The challenge now is to manage the impact on individual cities and destinations, broadening Scotland’s offering in terms of location and experiences.

Tourist taxes may be part of the solution, providing finance to keep our cities attractive. But international experience suggests the levies will not solve the problem of growing numbers and limited capacity. They seem unlikely by themselves to create the tourist economy of the future. With thought and planning, there is opportunity; changing patterns of demand mean that tourism benefits could be more widely spread and sustainably integrated within Scotland’s communities.

Colin McLean is a director of SVM Asset Management Holdings