An Investment Opportunity

1. An Investment
Opportunity
Scotland’s Tourism

2. An already strong global profile for the country has
moved to a new level following success in delivering
the Commonwealth Games in Glasgow and Ryder Cup
at Gleneagles as well as the World Gymnastics and
World Badminton Championships.
Building on that success, in 2018, Scotland is being
promoted internationally as the Year of Young People.
This is an opportunity to celebrate the amazing young
personalities, talents, and achievers that make up
Scotland.
This year long programme of events, activities
and ideas will give young people in Scotland the
opportunity to show the world what they’re made of.
This will be done by showcasing a number of world-
class events in 2018 and beyond such as the inaugural
European Championships, the Solheim Cup in 2019
and UEFA Euro 2020.
The appeal of the vibrant cultural mix, world-class
events and cosmopolitan cities is further broadened
by a country renowned for its stunning geography,
excellent infrastructure and connectivity and
welcoming environment.
2016 was a record-breaking year for Foreign Direct
Investment (FDI) in Scotland, following on from the
results of the Ernst & Young Scotland Attractiveness
Survey, concluding that the nation continues to attract
more FDI than any other UK region outside of London.
Welcome to Scotland
Scotland’s reputation as a world class tourism destination has gone
from strength to strength.
14.5
TOURISMIN
SCOTLAND
EMPLOYS
SPENDINGBYTOURISTSINSCOTLANDGENERATESAROUND
TOURISTSIN2016
TOOKOVERNIGHTTRIPS
TOSCOTLAND
OFECONOMICACTIVITYINTHEWIDERSCOTTISHSUPPLY
CHAINANDCONTRIBUTESAROUND£6BILLIONTO
SCOTTISHGDP(INBASICPRICES).THISREPRESENTSABOUT
4.5%OFTOTALSCOTTISHGDP.
EMPLOYMENT
INSCOTLAND
2016.
PEOPLEIN
14,090 DIVERSE
BUSINESSES207,000
£11BILLION
MILLION
WITHALANDMASSOFALMOST
80,000KM2
,
787UNIQUEISLANDS,
282MUNRO’SANDOVER
10,000KILOMETRESOFCOASTLINE,SCOTLANDISASMALLCOUNTRY
WITHALOTOFATTRIBUTES.
8%
Strategic
Location
2,686
JOBSCREATEDFROM
FDIIN2016
SCOTLANDISONEOFTHEWORLD’S
WEALTHIEST
NATIONS
(www.scotland.gov.uk)
LOWRISK:SCOTLAND
ISHOMETOOVER
2000FOREIGNFIRMS
WITHACOMBINEDTURNOVEROF
OVER£100BN
(www.scotland.gov.uk)
HIGHRETURNS:
SCOTLANDISONE OFTHEMOST
COSTEFFECTIVEREGIONSINTHEUK,WITHAQUALITYLABOUR
FORCE ANDACONTINUOUSSTREAMOFTALENTED
GRADUATES
OPERATINGCOSTSAREALMOST
30%LOWER
THANLONDON (Ernst & Young)
2016
SCOTLANDACHIEVED
RECORD-BREAKING
LEVELSOFINWARDINVESTMENT
IN2016,WITHANALL-TIMEHIGH
FORTHENUMBEROFFOREIGN
DIRECTINVESTMENT(FDI)
PROJECTS.
A Secure and Stable Market
to do Business
(Scottish Government,
2016)
(Scottish Government, 2017)
(Scottish Government, 2017)
(Scottish Government,
2017)
(VisitScotland, 2017)
(www.ey.com)
(Ernst & Young, 2017)
ATOTALOF122PROJECTSWERESECUREDIN
2016,RESULTINGINSCOTLANDCLAIMINGITSTITLE
ASTHEBIGGESTREGIONINTHEUKOUTSIDEOF
LONDONFOR5YEARSRUNNING.
Scotland: An Investment Opportunity | 3

3. 2.75MILLION
IN2016
INTERNATIONALTOURISTSAND
BUSINESSTRAVELLERSVISITED
SCOTLAND,A6%INCREASEON
THEPREVIOUSYEAR.
(VisitScotland, 2017)
EDINBURGH
ISTHEMOSTVISITEDCITYINTHEUK
AFTERLONDON,ATTRACTING
ALMOST1.7MILLIONVISITORSIN2016
WHOSPENTAROUND£840MILLION.
(VisitScotland,2017)
Strong International Market
INTERNATIONALVISITORSSPENT
£1.85BILLIONIN2016,ANINCREASEOF9.1%ONTHE
PREVIOUSYEAR.
(VisitScotland, 2017)
HOLIDAYVISITSROSEBY4.2%
THENUMBEROFPEOPLE
TRAVELLINGTOSCOTLANDTO
VISITFRIENDSORRELATIVES
INCREASEDBY30%ONTHE
PREVIOUSYEAR,WHILST
TOURISTSTRAVELLINGON
HOLIDAYREMAINEDTHEMOST
POPULARSEGMENTWITH
VISITORSIN2016AND£1.18
BILLIONTOTALEXPENDITURE.
(VisitBritain, 2017)
1.47MILLION
SCOTLAND'SBUSINESSTOURISM
MARKETREMAINEDSTRONGIN2016
WITH413,000VISITORSSPENDING
THISLOOKSSETTOCONTINUEIN2018
ANDBEYONDWITHMANY
INTERNATIONALCONFERENCESLINED
UPACROSSGLASGOWAND
EDINBURGH'SVENUES.
(VisitBritain, 2017)
£204MILLION
TOP5MARKETS(VISITORS)
VISITSFROM
FRANCEGREWTO
152,000
VISITORS
ANDSPENDINGROSETO
£75MILLION
VISITSFROM
CANADAGREWTO
149,000
VISITORS
ANDSPENDINGROSETO
£130MILLION
VISITSFROM
AUSTRALIAGREWTO
132,000
VISITORS
ANDSPENDINGROSETO
£102MILLION
VISITSFROMTHE
USAGREWTO
451,000
VISITORS
ANDSPENDINGROSETO
£510MILLION
VISITSFROM
GERMANYGREWTO
355,000
VISITORS
ANDSPENDINGROSETO
£212MILLION
(VisitBritain, 2017) (VisitBritain, 2017) (VisitBritain, 2017)
(VisitBritain, 2017) (VisitBritain, 2017)
£900SPEND
VISITORS
FROMCHINA
SPENT£36.3
MILLIONIN
2016,AN8%
INCREASEONTHEPREVIOUS
YEAR.CHINESEVISITORSARE
AMONGSTTHEHIGHEST
SPENDINGINTHEWORLD,
WITHANAVERAGEOF
PERVISIT. (VisitBritain, 2017)
Scotland: An Investment Opportunity | 54 | Scotland: An Investment Opportunity

4. High Performing
Accommodation Sector
Scotland's accommodation sector is strong, growing and continues
to attract leading brands and operators from across the globe.
And, as ever, strong performance in the hospitality
sector is a barometer of the strength of the wider
economy.
Scotland’s ongoing development and global appeal
is clear from the presence of leading brands such as
Hilton, Marriott, Malmaison, Fairmont, Radisson and
Gleneagles, many of which have been an integral part
of the Scottish scene for years.
2017 was another strong year for Scottish hotels, with
RevPAR and occupancy levels having increased in the
main cities across the country.
Strong markets in Scotland’s leading cities drive
year-round occupancy, and high room rates in
Glasgow and Edinburgh mean that demand for
additional accommodation – particularly 4-star
and above – point to significant opportunities for
providers, developers and investors.
And the outlook for the sector is set to improve
further with Scotland’s cities now seen by major
brands as key locations to establish new business
with many operators viewing Scottish hotels as
ideal platforms for diversification.
Scotland’s Hotel Market – 2016
City Occupancy ADR RevPAR
Edinburgh 82.3% £93.27 £76.80
Glasgow 80.2% £73.90 £59.31
Inverness 83.7% £75.38 £63.07
Dundee 75.7% £57.55 £43.57
Aberdeen 62.5% £61.68 £38.55
Stirling 77% £62.80 £48.35
Perth 73.5% £49.84 £36.65
Hotel Construction Costs (£/m2)
Country Budget Hotels
Mid-market
(Low)
Mid-market
(High)
Luxury
UK £1,430 - 2,280 £1,970 - 2,720 £2,560 - 3,870 £3,190 - 4,830
France £1,770 - 2,330 £2,330 - 2,990 £2,890 - 3,880 £3,500 - 4,980
Germany £1,810 - 1,990 £1,890 - 2,220 £2,030 - 3,160 £2,630 - 3,720
Ireland £1,570 - 1,920 £1,920 - 2,270 £2,070 - 2,540 £2,860 - 3,480
MARRIOTTWILLDEBUTTHE ICONIC
WHOTELS
BRANDWITHTHE214ROOM
WEDINBURGH,OPENINGIN2021.
THEWEDINBURGHWILLFORMTHE
CENTERPIECEOFTHE1.7MILLION
SQUARE FOOTSTJAMESCENTRE
DEVELOPMENT,SUPPORTINGTHE
CITY’STOURISTINDUSTRY WHICH
CONTRIBUTESANESTIMATED
£260MTOEDINBURGH’SECONOMY
EACHYEAR.
ENNISMORE,WHICHACQUIREDTHE
GLENEAGLESHOTEL&SPAIN2015FOR
£150MILLION,
THEREARE24HOTEL
DEVELOPMENTSINTHE
PIPELINEDUEIN2018
AND2019,ACROSS
SCOTLAND'SFOUR
LARGESTCITIESOF
GLASGOW,EDINBURGH,
ABERDEENAND
DUNDEE.
NEWHOTEL
DEVELOPMENTS
24
TWOOFSCOTLAND'SLEADINGFIVE-STAR
RESORTS,CAMERONHOUSEANDTHE
FAIRMONTSTANDREWS,HAVERECENTLY
UNDERGONEMULTI-MILLIONPOUND
REFURBISHMENTS.£
(STR Global)
AVERAGEOCCUPANCYIN
INVERNESSREACHED83.7%FOR2016,THE
HIGHESTOUTOFALLCITIESIN
THEUNITEDKINGDOM.
THESSE
HYDROINGLASGOWISTHE
WORLD'SSECONDMOSTPOPULARLIVE
ENTERTAINMENTVENUE,CONSISTENTLY
ATTRACTINGOVER1MILLIONVISITORS
EVERYYEAR.
TOFULFILTHE
GROWINGDEMAND,
EDINBURGHALONE
REQUIRESAN
ADDITIONAL
9000ROOMSBY2021
(CityofEdinburghTourism&AccommodationAudit,2012)
(Savills, 2017)
EDINBURGHHASCONSISTENTLYBEENCLASSED
ASTHETOPLOCATIONFORHOTEL
INVESTMENTINTHEUKOUTSIDEOF
LONDON.
(Pollstar, 2017)
ARESETTOCONVERTANDOPENA
GLENEAGLESCLUBINSTANDREWS
SQUARE,EDINBURGH.THISWILLBETHEFIRST
INTHEWORLDANDWILLFEATUREABAR,
RESTAURANT,LOUNGEANDSMALLNUMBER
OFBEDROOMS.
(STR, 2017)
(Whitebridge, 2016)
(STR, 2017)
Scotland: An Investment Opportunity | 76 | Scotland: An Investment Opportunity

5. Expanding International Aviation
High quality connectivity - whether via motorway, flight path or digital
superhighway - is key to the appeal of Scotland’s tourism offering.
Whether you are living, working, visiting or investing,
the benefits of Scotland's compact geography are
further reinforced by the strength of a road, rail, ferry
and flight network which draws the country together
and connects it to the international marketplace.
Scotland’s aviation sector, in particular, is enjoying
strong growth and key airports are set to benefit from
major infrastructure investment over the next 10 years.
Five international airports serve over 150 destinations
with increasing numbers of direct flights to Europe,
North America and the Middle East while numerous
domestic airports meet demand from outlying areas.
Most Scottish airports are positioned just an hour's
flight time from London and also link seamlessly to the
country's rail network which connects to hundreds of
destinations across Scotland and England.
In 2016, Edinburgh continued its success as Scotland's
busiest airport, with 12.4 million passengers travelling
through its doors throughout the course of the year.
86%OFSCOTLAND’S
POPULATIONLIVES
WITHINANHOUR’S
DRIVEOFATLEAST
ONEOFITSCITIES
EDINBURGHAIRPORTPASSENGER
NUMBERSINCREASEDBY11%IN2016TO
(www.edinburghairport.com)
PASSENGERNUMBERSATGLASGOW
AIRPORTINCREASEDBY7.5%IN2016TO
9.4MILLION
12.4MILLION
OVERTHELASTTWO
YEARS,MORETHAN
NEWROUTESHAVEBEENOPENED
ATSCOTTISHAIRPORTS,BRINGING
OPERATORSSUCHASUNITED,
QATAR,AMERICANAIRLINESAND
LUFTHANSATOSCOTLAND.
100
£57MILLIONOFFUNDINGINTHECOMINGDECADE
HAVINGALREADYSEEN
MORETHAN£50MOF
INVESTMENTINTHELAST
10YEARS,ABERDEEN
INTERNATIONALWILL
BENEFITFROMAFURTHER
£
INVESTMENTIS
PLANNEDFOR
GLASGOW
INTERNATIONAL
OVERTHENEXT
FIVEYEARS
£100
MILLIONINVERNESSAIRPORTISPROJECTING
OFINFRASTRUCTUREINVESTMENTBY2022
£44MILLION
SCOTLAND'S
INTERNATIONAL
LOCATIONS
CALGARY
HALIFAX
TORONTO
VANCOUVER
DUBAI
CHICAGOPHILADELPHIA
ISTANBULPRAGUE
NEWARK
SALZBURG
BRUSSELS
CHARLEROI
DUBROVNIK
PULA LYON
SPLIT
PAPHOS
COPENHAGEN
ESBJERG
BERGERAC
BEZIERS
BORDEAUX
CARCASSONE
CHAMBERY
GRENOBLE
LA ROCHELLE
MARSEILLES
NICEPARIS
POITIERS
TOULOUSE BERLIN
BREMEN
COLOGNE
DUSSELDORF
FRANKFURT
HAHN
HAMBURG
MUNICH
WEEZE
ATHENS
CHANIA
CORFU
HERAKLION
KOZ
RHODES
ZAKYNTHOS
BUDAPEST
REYKJAVIK
CORK
DONEGAL
DUBLIN
KNOCK
SHANNON
BOLOGNA
GENOA
MILAN
NAPLES
PISA
ROME VENICE RIGA
KAUNAS
MALTA
MARRAKECH
AMSTERDAM
BERGEN
KRISTIANSUND
OSLO
STAVANGER
BYDGOSZCZ
GDANSK
KRAKOW
POZNAN
WARSAW
WROCLAW
FARO
FUNCHAL
LISBON
BRATISLAVA
ALICANTE
BARCELONA
FUERTEVENTURA
GRAN CANARIA
LANZAROTE
MADRID
MALAGA MENORCA
MURCIA
PALMA DE MALLORCA
REUS
SANTANDER
TENERIFE
GOTHENBURG
STOCKHOLM
GENEVA
ZURICH
ENFIDHA
BODRUM
DALAMANISTANBUL
(www.glasgowairport.com)
Scotland: An Investment Opportunity | 98 | Scotland: An Investment Opportunity

6. Tourism Snapshot
Scotland offers its visitors a unique tourism menu, with a mix of ingredients
encompassing rich heritage and history, diverse leisure, sporting and
cultural attractions, superb food and drink, stunning areas of natural beauty
and vibrant, cosmopolitan cities.
World famous resorts such as Gleneagles Hotel, which
is hosting the 2019 Solheim Cup, the Old Course Hotel,
Fairmont St. Andrews and Turnberry have built Scotland’s
reputation as one of the world’s premier golf destinations.
And its appeal as a location for a wide range of other
sports continues to grow with stunning landscapes
offering a fabulous backdrop for adventure travellers.
Scotland’s hills and mountains are a huge draw for
sporting thrill-seekers attracting skiers, rock climbers,
and hillwalkers and developments such as the Glentress
Centre in the Borders and Fort William, home of the
Mountain Bike World Cup, are a huge attraction for
cyclists globally.
Sailing tourism is buoyant with racing regattas, cruises
and yachting also providing a huge attraction while the
many beautiful islands circling Scotland’s coastline can be
accessed via award-winning ferry services.
Marinas are another area of growth in Scotland with
developments such as Portavadie and Rhu benefitting
from major investment in high quality facilities.
DUNDEEHASFOLLOWED
INTHEFOOTSTEPSOF
BERLINANDBEIJINGBY
BECOMINGTHE
FIRSTUKTOBEOFFICIALLYNAMED
BYTHEUNITEDNATIONSAS
AUNESCOCITYOFDESIGNCITY
PEOPLEHAVEWITNESSED
PERFORMERSFROM48COUNTRIES AT
THEROYALEDINBURGHMILITARY
TATTOOSINCETHEEVENTBEGAN,WITH
2016'SDISPLAYSELLINGOUTFORTHE
18THCONSECUTIVEYEAR.
14
MILLION
THEVALUEOF
EDINBURGH’S
FESTIVALSHAS
SOAREDBY25%TO
INTHESPACEOFJUST
FIVEYEARS,
SUPPORTINGOVER
6,000JOBS.
£313MILLION
IN2016,EDINBURGH ATTRACTED
1.7MILLIONVISITORS,SPENDING
£840MILLIONTHROUGHOUTTHEYEAR.
THE£333MILLION
ABERDEENEXHIBITIONAND
CONFERENCECENTRE(AECC)
DEVELOPMENTWILLINCREASE
THEMAXIMUMCAPACITYOFTHEARENAFROM
4,750TO12,500PEOPLE.THEPROJECTISDUE
FORCOMPLETIONIN2019ANDWILLBOOST
THEREGIONSBUSINESSTOURISMANDEVENTS
CAPABILITIES.
GOLFINSCOTLAND
ISWORTHOVER
£1BILLION
ANNUALLY
£1BILLION
OPENINGIN2018,THEV&ADUNDEE
WILLFORMTHECENTERPIECEOFA
£1BILLIONWATERFRONTDEVELOPMENTIN
THECITYANDBOOSTTHEREGIONS
INTERNATIONALPROFILE.
(VisitScotland, 2017)
(www.scottishgolf.org)
(www.scotsman.com)
Scotland: An Investment Opportunity | 1110 | Scotland: An Investment Opportunity

7. Brands in Scotland
12 | Scotland: An Investment Opportunity Scotland: An Investment Opportunity | 13

8. DÜSSELDORF
COPENHAGEN
RIODEJANEIRO
HOUSTON
NEWYORK
BOSTON
STAVANGER
MOSCOW
NEWDELHI
HYDERABAD
HONGKONG
TAIPEI
SYDNEY
TOKYO
DUBAI
BRUSSELS
PARISTORONTO
CHICAGO
CALGARY
SANJOSE
ALKHOBAR SHENZHEN
SHANGHAI
BEIJING
SEOUL
ACCRA
MUMBAI
LONDON
GLASGOW(HQ)
SINGAPORE
Scottish Development
International
A joint venture between the Scottish Government, Scottish Enterprise
and Highlands and Islands Enterprise, SDI has a highly successful track
record of aiding the growth of the Scottish economy by encouraging inward
investment and helping Scottish companies to develop international trade.
The team has supported companies to invest over £330
million in capital expenditure to build new hotels and
refurbish existing buildings in the last 4 years. These
investments also introduce new business and leisure
tourists to Scotland.
Our role is to make investing, setting up and succeeding in
Scotland as easy as possible.
We can assist you with:
• Finding the right location – including access to sites
and deals not available on the open market
• Identify partners, investors, developers and operators
• Provide market intelligence and key performance
statistics
• Liaise with local authorities and Scotland’s
government bodies to aid project completion
• Offer an after care package for inward investments
to help business development such as marketing
support, market research, PR services, investment
advice and specialised training
Based in Glasgow, we have 30 offices in 15 countries
around the world, including Japan, Russia, China, Brazil,
UAE and in the USA
We can help you to find the right location for
your business including access to sites and
deals not available on the open market and
properties that fit your development criteria.
Scotland: An Investment Opportunity | 1514 | Scotland: An Investment Opportunity

9. SE/4283/Dec17
For more information please contact:
Scottish Development International
5 Atlantic Quay
150 Broomielaw
Glasgow G2 8LU
United Kingdom
T: +44 (0) 141 247 0734
www.sdi.co.uk