Further evidence emerged today of the vast economic influence of Taylor Swift.
New figures have signalled that the three sell-out shows performed by the US superstar at Murrayfield, Edinburgh, drove hotel occupancy in Scotland to a higher level than recorded for the UK as a whole in June. It is the latest illustration of the impact the singer’s Eras world tour has had on the UK economy, after the influential musician was previously credited with having an upwards effect on inflation.
The latest RSM Hotels Tracker, published today, shows that occupancy in Scottish hotels rose slightly to 83% in June from 82.7% the previous month, and ahead of 81.7% in June 2019- before the pandemic. UK occupancy was measured at 81.9% in June, meaning it was overtaken by Scotland.
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Average daily rates (ADR) of occupied rooms across the UK were found to have reached their highest rate on record at £175.91 in June, up from £169.08 in the same month last year. Scotland room rates also jumped in June, rising to £173.46, compared to £147.25 in June 2023 and up from £153.08 in May 2024.
RevPAR (revenue per available room) of Scottish hotels rose year-on-year in June, to £143.93 from £123.77, while gross operating profits climbed to 45.5% from 42.7% - overtaking UK GOP of 44.5% “Scotland’s hotel sector continues to show its resilience despite the cost pressures faced by the industry and wet weather, despite the drier than average June across the rest of the UK,” said Stuart McCallum, partner and head of consumer markets in Scotland at RSM UK.
“With Scotland’s gross operating profits edging above the rest of the UK in June, hoteliers will feel less of a squeeze as costs start to stabilise, following the increase to national minimum wage.
“Consumer confidence is slowly making a return and booking a UK trip appears to be top of the priority list, with Scotland likely to draw in more tourists throughout the summer due to the arrival of warmer weather and various events including The Open at Royal Troon and Edinburgh Fringe Festival.”
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He added: “This follows the success of recent events including the Edinburgh International Film Festival, and Taylor Swift’s Eras Tour in June. While the latter boosted the wider UK hotel industry, this was most noticeable in Scotland, given the uptick in room rates and gross operating profits. The new direct international flights to Scotland will also support the expanding premium hotel market throughout the summer, including Andy Murray’s Cromlix hotel, where we expect to see greater demand off the back of his high-profile retirement at the Paris 2024 Olympics.”
Thomas Pugh, economist at RSM UK, said: “The positive result for the UK hotel sector last month is another piece of evidence suggesting that the strong economic recovery continued in June. Indeed, it appears that improvements in consumer confidence and real disposable incomes are feeding through into stronger demand for hotel rooms.
“We expect consumer spending to continue to increase through the second half of this year and in 2025 as real incomes rise, which should further support demand for hotel rooms. However, with inflation in the accommodation sector running at around 7%, compared to 2% inflation overall, price pressures in the industry are clearly still an issue.”
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