An election was the precursor to a summer of sport and culture, during which we have witnessed tens of thousands of fans head to Europe for Euro 2024 and they Olympics for what was no doubt for many an alternative to a more traditional vacation.

We have to hope that the downturn in visits and fall in spending by UK residents, some of which will be due to alternative destinations being chosen, will be more than balanced out by the ambassadorial job the Tartan Army and sports fans did so well to put Scotland on the map as a warm, welcoming nation to potential first-time visitors. This summer, Scotland has played host to a series of landmark events that have drawn tourists from far and wide, injecting much-needed vitality into local economies.

The monumental Taylor Swift concerts, which took place over three nights in Edinburgh, according to data from Barclays revealed in a “Swiftonomics” report, injected around £185 million into Scotland’s economy.

No fewer than five major golf championships took place over July and August, with predictions that more golf tourists will have visited Scotland from more countries in 2024 than ever before. The Royal Highland Show produced a record £3.3m gross ticket return this year, while TRNSMT, the Summer Sessions, the packed Edinburgh festivals (it has been reported 2.6 million tickets were issued during the 2024 Fringe) and the rich array of cultural events which took place all over Scotland this summer welcomed thousands to our urban and rural communities.

(Image: Newsquest)

Liam Gallagher headlining TNSMT this summer

The impact of these events on the economy cannot be disputed, bringing visitors and discretionary spend to local businesses across our destinations, showcasing the best of Scotland to many who we hope can be attracted back in future.

The export earnings, jobs and tax revenues from welcoming international visitors should never be underestimated, with visitors from the US spending an average of £1,550 per person. They remain our number one source market and, compared to Germany and France, they provide more than double the number of visitors and roughly five times the level of value.

The Scottish Tourism Alliance (STA) will continue to make the case for tourism and hospitality to remain high up on every government agenda. We have faced significant threats through and since the pandemic – many of those have been due to self-harm policies.

Despite the recent successes in Scotland’s tourism calendar, challenges persist. Strikes, transportation disruptions, the ongoing cost of living crisis and, the cost of doing business all still pose significant hurdles.

The election brought a seismic result for the new UK Government, whose focus on growth has been welcomed by businesses across the country and many sectors.

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The rubber will hit the road soon on whether the new Labour government’s intent will and can be backed by policy action that will have a material and positive effect on the performance of the economy. Many nervously await the Autumn Budget as the Chancellor weighs up a balancing act between funding public services and pay demands, with initiatives to drive growth and put money where it can drive the investment needed for sustainable growth.

As the recent publication of 56 Degree Insight’s Scottish Tourism Index demonstrates, the domestic market is down on last year and likely to continue to decline, with fewer intending to take vacations at home. With the summer weather we have had, it is hard to question that call by some, but the subsequent impact of that on the economy highlights the critical importance of building on Scotland’s appeal as an international destination, particularly within the US market.

In light of these challenges, there remains growing concern over the introduction of a transient visitor levy (TVL) in Scotland.

While intended to generate additional revenue for local councils with a view to ringfencing and investing in tourism projects, the adoption of this levy must be given careful consideration.

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Price sensitivity is a critical factor for many tourists, particularly in relation to our domestic market. Implementing the tax could risk alienating a portion of the market that is already grappling with affordability issues.

Policymakers must tread cautiously, ensuring they strike a balance between revenue generation and maintaining Scotland’s competitiveness as a tourist destination. Scotland’s tourism industry stands at a pivotal juncture, where opportunities exist, yet barriers remain.

This summer’s tourism successes serve as a testament to the calibre of events we deliver, the warm hospitality of our people, and the ambition and spirit we have for being a top global tourism destination. However, to maintain momentum and build on those successes we need to see strengthened collaboration between business leaders, policymakers, and tourism and hospitality leaders. We need innovation, sound strategic planning, supportive policies and investment in an ever-challenging global marketplace.

The road ahead may be challenging, but with the right strategies in place, meaningful consultation and bold investment, Scotland’s tourism industry can realise the vision of our national tourism strategy.

Marc Crothall is the CEO of the Scottish Tourism Alliance