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Scotland Tourism
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- 2. An already strongglobal 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 InternationalMarket 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'saccommodation 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 Highquality 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 offersits 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 Ajoint 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 informationplease contact: Scottish Development International 5 Atlantic Quay 150 Broomielaw Glasgow G2 8LU United Kingdom T: +44 (0) 141 247 0734 www.sdi.co.uk