Official Report 210KB pdf
Our main item today involves the Scottish year of homecoming. We will take evidence on that important event—although it is not just one event, so that is probably not quite the right way to describe it.
As you said, the work began some time ago. About two years ago, we started to feed in messages about homecoming to the long-lead intermediaries, such as the tour operators and wholesalers across all our global markets, and to the long-lead press—both the consumer press and the trade press. That has been an on-going process involving tartan week and Scotland week earlier this year, our own activity in Toronto this spring and a major trade fair in Australia last year.
VisitScotland is taking the lead in marketing and promoting Scotland, and EventScotland is working alongside VisitScotland, the Scottish Government and a range of stakeholders and partners to deliver the year of celebration. I am pleased to report that, since we took on the responsibility in November last year for the delivery phase of homecoming, we have been engaging hundreds of individuals, organisations and groups in the efforts to make the homecoming year a success for Scotland.
We are working closely with VisitScotland and EventScotland and are, obviously, specifically targeting the business market in Scotland and overseas, because we want to encourage people to bring their meetings to Scotland. One of the key themes of the year of homecoming is great Scottish minds and innovation, which sits closely with our position in terms of attracting investment from overseas. The two aspects complement each other well.
Some people have been critical of the focus of the promotion, not because they feel that North America, New Zealand and Australia are not crucial, but because they feel that the focus should be a bit broader. Do you have a view on that, Denise?
I should perhaps have addressed that matter at the end of my first answer. Promotion is not limited to those markets, although they are the major focus. At the end of the day, we have a big tourism yield target for the project, and those markets will deliver higher-yield visitors for us. However, we recognise that there are segments of the broader European markets that are particularly interested in certain strands, such as German and Swedish golfers; the Latin market, with its interest in whisky; and the Russian market, with its interest in Burns. There are pockets in those markets that offer good opportunities for return, and we are not ignoring them.
Does anyone else want to speak about promotion?
The diaspora markets are crucial to the Scotch whisky industry—the United States of America is our largest market and accounted for more than £400 million of exports last year. Targeting those markets and the visitors from them is important. We also see an opportunity to use the homecoming initiative as a way of reaching out to emerging markets that could become key commercial opportunities for Scotch whisky. We are already marketing Scotch whisky in India, China and Russia. We think that it is a good idea to use Scotch whisky—in partnership with other organisations—as something that can attract people from those markets to Scotland.
Golf provides a huge element of South Ayrshire's income throughout the year, and represents a fantastic opportunity for us and for other local authorities in 2009.
The Robert Burns World Federation has been promoting 2009 for a number of years. This is obviously a crucial year for our organisation, and we have been encouraging our members from overseas and from south of the border to come to Scotland during 2009. There is a feel-good factor about what will be happening in Scotland in 2009. Lots of events are taking place in other parts of the world, too—not just in Scotland—to commemorate the 250th anniversary of the birth of Robert Burns.
Nick Larkin has partly answered my question already, but I will widen it out a little. The promotion of the year of homecoming has been a long-term initiative. To what extent has volatility among airlines—with Zoom Airlines going bust, and so on—impacted on your marketing and promotions? Is it too early to tell? Do you have contingency plans to tackle those problems, as well as the situation vis-à-vis the value of the dollar, to which Nick Larkin alluded?
It is probably too early to say as far as the American and Canadian markets are concerned. Nick Larkin alluded to the fact that, over the past year, and indeed for some years before that, we have been investing more in the European markets. As we followed the developing situation we knew to put more of our money into European marketing this year. We are hedging our bets and are spreading the risk as far as our marketing expenditure is concerned.
Focusing on genealogy, many of our Scottish names are found all over the place, especially in Australia, New Zealand and Canada, and there are many family and clan associations. Has anyone on the panel been working with the clan associations, informing them of all the events that are going on? I am thinking of the clan Home, of course.
Marie Christie will wish to say something about the clan gathering, but I will first mention two things that we have been doing. The most obvious is highland games. We have been supporting our specialist travel agents in attending highland games, selling their products and selling the idea of homecoming.
Denise Hill has highlighted how we are communicating to those groups; it is also important to highlight the strength of the programme that provides the offer for those groups, especially from a genealogy perspective. The biggest clan gathering is planned for July next year, and it is doing very well in terms of advance ticket sales. The gathering has been promoting itself for some time now. Over the past couple of years, communication has been extending out to highland games and various organisations all over the world.
I have a couple of questions about the written evidence that EventScotland and VisitScotland have presented. Forgive me if the questions have been asked and answered in previous meetings—as a new committee member, I do not know whether they have. I see that a key objective of homecoming is to ensure an additional £40 million of tourism spending. How many additional tourists coming to Scotland, above and beyond the normal level, does that figure represent?
I am unable to tell you that. We focus very much on yield as a target, rather than on the number of individual travellers. We are confident in relation to the returns on investment that we have been able to deliver in previous campaigns. Considering the strength of the homecoming programme and how targeted the marketing is, we should be able to deliver that £40 million target. I would need to go away and do a calculation to work out the actual number of people. For us at VisitScotland, it is always about yield, rather than numbers of people
It might be helpful to have that calculation, if it could be done.
The first point to make is about segmentation. Scotland is not a cheap destination and should not position itself as such. It offers excellent value as a quality destination, which is very much how we position it. The trick is to ensure that we target potential travellers who have money and who are less affected by current circumstances than other people are. That has long been VisitScotland's strategy, but we must focus on such people more keenly than we have before. Therefore, as I said, we are focusing on the North American market. There is high-end potential from the US market, and the Canadian market is faring better and has shown good growth during the past few years. In every market in the world we are looking for the higher-yield individuals.
Do you remain confident that targets can be reached?
I absolutely do.
You mentioned the legacy. The written submissions from EventScotland and VisitScotland list key project objectives of homecoming, one of which is to provide
We will have our biggest-ever campaign in our long-haul markets, and we will invest in European and UK markets. Through that work we will develop databases of hot prospects, by which I mean the people who stick up their hands, give us their names and addresses—often e-mail addresses, these days—and invite us to communicate with them about Scotland. A big key performance indicator for us will be generation of hot prospects, so that we and our partners can exploit the database in the future.
The Economy, Energy and Tourism Committee suggested that there should be a diaspora database. You sound positive about the initiative. Do other witnesses want to comment?
In the context of homecoming, the globalscot network, which comprises more than 800 business leaders, is being encouraged to promote homecoming in its interactions with businesses throughout the world. There are different levels of activity.
On a different aspect of promotion, logos or mascots are attached to many international events. Will memorabilia be produced for people to take home from Scotland? Are there plans for a corporate mascot or logo?
It is worth pointing out homecoming's cross-promotional value. Homecoming is one of the largest initiatives: it will involve many events and bring together many organisations. We are working with everyone from community groups who are hosting community Burns events to professional events organisers and the Edinburgh International Festival. The key point is that all those organisations have their own databases and communications channels, which will carry the homecoming Scotland mark in 2009. That network of organisations will help us to promote the homecoming Scotland brand.
Yes, and about whether there will be a single symbol for the event, which people will be able to take home, such as a cuddly toy. Most international events have a mascot that is readily identifiable.
The programme is so diverse that every event that visitors and Scots engage with, such as the gathering 2009, will create its own merchandise, which will carry the homecoming Scotland mark. Take-homeables will be developed for events when that is appropriate.
There is also a homecoming tartan, so people will have an opportunity to buy a kilt or scarf, for example.
Many sponsors are marketing their products through homecoming Scotland. Are you looking for one or two big, overarching sponsors, such as most international events have?
In the initial planning stages we thought that to go with one or two key sponsors for homecoming might be too exclusive an approach. We have tried to encourage as many organisations as possible to get on board and carry the homecoming brand. An exclusive association with one brand would not send the right message about inclusiveness.
Members and witnesses might be interested to know that the Commonwealth Parliamentary Association, of which I am an executive member, is sending a cross-party delegation from Scotland to the maritime provinces in November—sadly I will not be going. Part of the purpose of the visit is to attract interest in the year of homecoming and the group will help with promotional activities in that regard.
In the broadest sense, we have worked with golf tour operators to encourage them to package up homecoming golfing packages, which will be communicated through the channels that I mentioned. Our PR teams in all the different markets that we are focused on are also getting out the golfing message.
You will be aware that this year, for the first time in my memory, there have been spare tee times on the Old course at St Andrews—things have not been going quite as well as in previous years. I know that it is early days, but does that situation look like being reversed? Is there tremendous interest in golf in Scotland next year?
There is still interest, but the danger is that people prevaricate and postpone. Despite solidly intending to come and play at the home of golf at some point, they may put off their visit. We hope that the promotion will spur people's interest and that the promise of a four-ball free of charge might make them think seriously when otherwise they would have postponed.
It is important that, in respect of the programme on the ground, we work with our international stellar events. We are working closely with the open championship to enable it to develop a homecoming programme and product for 2009, so that it assists us in getting out the message about coming home for golf. The open has a great reach that we can tap into. Additional activities range from Scottish classics—a golf programme that will involve thousands of golfers taking part in events across the country—to the hole in one exhibition that we are supporting at South Ayrshire Council, which will run before and after the open, so there will be on-going visitor attractions before and after the event.
My colleague has filled in many of the details. Specifically, in South Ayrshire, we have the open championship in 2009. That is one reason why South Ayrshire has got behind homecoming so strongly, in addition to doing so because homecoming is a wonderful opportunity in general. Denise Hill is correct that we are always looking for a unique selling point, and homecoming gives us that. A USP is all the more important in the difficult years as opposed to the years of plenty.
On the Burns pillar, with direct reference to South Ayrshire, perhaps you can update us on what is happening with the Burns centre. We are disappointed that it will not be ready in time for 25 January. Perhaps you can explain the situation and describe the focus on the Burns tradition.
I will take the lead on that, but Shirley Bell might also want to comment. It is perhaps fortuitous that I am the officer in South Ayrshire Council who has been acting on the matter, because most of the land on which the new centre will be delivered is South Ayrshire's land. The council took a decision last Tuesday to transfer the assets to the National Trust for Scotland, which is a huge step forward. I believe that the NTS will meet today, or certainly in the next couple of days, to consider its position. I hope that things will move forward significantly as a result of both those decisions. There has been great enthusiasm for the project, because we see it as a wonderful opportunity for our tourism product.
I am not terribly concerned that the cottage will not be ready by 25 January. Life does not start and end in 2009. As long as renovations are done properly and the cottage is open to the public, I will be more than happy. We have lots of Burns-related sites to offer throughout Ayrshire, Dumfries and Galloway, Edinburgh and the rest of Scotland.
I have two questions, the first of which develops Ted Brocklebank's point about the product. I live in Ayr, and I saw the much-improved cottage at the weekend. If I live in America or Canada and I buy a ticket to the homecoming, will I be able to buy a ticket that gets me into the Burns cottage, a look at the Batchelors club in Tarbolton, a tour of Ellisland in Dumfries and so on, or will I have to buy individual tickets for each attraction? Is there linkage in the homecoming marketing?
I am not sure about that. Perhaps VisitScotland can comment.
There is a homecoming pass on which Historic Scotland and the National Trust for Scotland have worked together. I am not sure how many other groups and organisations they have collaborated with, but I will check. The idea is that, for the first time, instead of having to buy individual passes to get into Historic Scotland or NTS properties, there will be one homecoming pass. I hope that the pass will include the properties that Alex Neil mentioned. The pass is being lapped up by overseas tour operators, who love the idea of it, and they are packaging it as part of their product.
Ayr has good visitor attractions in and around the cottage. However, in and around Mauchline, for example, or the Batchelors club at Tarbolton, facilities are closed at many times of the day and year. There is no point putting all that effort into getting large numbers of people to come from North America, Australia, New Zealand, South Africa and other places for a wee tour of the Burns facilities and the cottage if they cannot see the Batchelors club because it is closed until a week on Tuesday. Perhaps Nick Larkin and Shirley Bell are best placed to answer this question: will there be a focus on ensuring that those facilities are open and available to people when they come?
A number of those places are owned by the NTS, which is responsible for staffing them. The Burns federation provides lots of volunteers to take people around various sites. If someone said, "We want to visit the Batchelors club," one of our members would arrange for the club to be open and take them there. However, that happens only if people know to come to the federation. I agree that too many places are closed, and I understand the reasons why, which can relate to budgets. In 2009, a special case has to be made for all those places to be open seven days a week, because we have to ensure that we are available to the people who come to see what we want to offer and promote.
I say to Nick Larkin that we could take Ted Brocklebank down to the Red Lion in Prestwick to show him where golf tournaments started. I am sure that he would welcome that.
I am certainly interested in fables.
They started at Leith Links, did they not?
No, the first tournament was in Prestwick. Sorry, Nick, you were going to say something.
Just a couple of things. First, a passport to Burns is a really clever idea. South Ayrshire is leading on homecoming for Ayrshire and we are trying to develop, as much as anything, a modern government agenda on sharing resources and agendas with colleagues. I will develop that with colleagues in East Ayrshire and North Ayrshire, and indeed in Dumfries and Galloway, with whom we are trying to work much more closely. We have done introductory work on what is almost a Burns trail. A passport to Burns is a cracking idea for 2009, and we will happily take the idea back to Ayrshire.
You heard it here first.
Yes—there is a wee copyright symbol on that.
A small passport was produced in 1996—it was mostly for children who went to the various Burns sites and had their passport stamped. At the end of the tour, they received a Burns badge. It was another way of encouraging people to visit all the Burns sites.
My final question is about marketing and the database. The obvious contacts, such as global Scot, are all in there. I worked for the Digital Equipment Corporation, and I am a member of its alumni club. Many companies that have operated in Scotland, such as IBM, have alumni clubs for people who no longer work for them. In Digital's case, they share a magazine that is distributed regularly worldwide and goes to something like 100,000 people. Similarly, the universities have alumni clubs. Are the likes of the Digital, IBM and university alumni being built into the database?
I am not aware of such contacts, although some of my SDI colleagues engage directly with IBM. However, I will check it out, because examining how we can reach that wider audience through other channels is a great idea.
We work closely with Universities Scotland to develop what universities are already doing for homecoming. As I mentioned before, Strathclyde University and Aberdeen University have specific events for homecoming. We need to work with them to get the message out through their alumni networks. We also need to get students who will graduate in 2009 to be smart and put the offer out to their friends and families to come to Scotland to see them graduate.
You touched on university alumni. The enlightenment happened in this very city, and Hutton, the father of modern geology, came from Edinburgh. Is any work being done to encourage people who are interested in such subjects to come back to Scotland to see where the initial thoughts occurred?
I am happy to say that there are curling societies on our great big database. We went through it and were amazed at how many different affinity and interest groups there were. Curling societies are included, and will therefore receive the updates.
There is a curling event in the homecoming programme, which looks forward and backwards to other major activity that is organised by the group to which Mr Hume referred.
You mentioned repeat business. We do not want the homecoming to be a one-off event; we want it to be a platform for reaching our target to increase tourism numbers by 50 per cent by 2015. If someone comes to the homecoming and agrees to come back in 2011, 2013 and 2015, do they get a special deal?
A very special deal.
Exactly. Is there some kind of built-in incentive for repeat business?
Not exactly as you have described, but our colleagues in customer relationship management have developed a sophisticated CRM programme, particularly for near-markets such as the UK, which have much greater potential for repeat visits. In the case of the UK, there is potential for annual repeat visits. The CRM programme takes into account the interests of the people on the database, their level of loyalty and the likely frequency of their return visits, and tailors specific deals to them. If you are on that database, it is guaranteed that special, tailored, money-off deals will be sent to you monthly. As I said earlier, getting people into the database is critical, because we can then manipulate the messages and, we hope, give them special deals that will keep them coming back.
We can invite them to the independence day celebrations.
At which point we will move on to Irene Oldfather.
I want to ask about the budget. We understand from an answer to a parliamentary question that £1.5 million was allocated to signature events, £1 million to themed events and £500,000 to support a rolling programme. What is the difference between the signature events and the themed events? Who is in charge of those budgets and how are they being allocated?
EventScotland is in charge of those budgets. What you describe is a mechanism for delivering the programme. Those are not customer-facing programme strands. The signature events programme supports a range of what we see as flagship activity, such as the Burns anniversary on 24 and 25 January, when there will be activity in Ayrshire, Edinburgh, Dumfries and Galloway, and Glasgow.
So it is all new money and it is all ring fenced.
It is all new money, going into specific new activity to celebrate homecoming. Our programming strategy has largely been to work with existing asset events so that they gain a legacy and we have a stronger events portfolio at the end of homecoming.
Has that money already been allocated?
Yes. All the programming money—£3 million in total—has been allocated. Most of the programme is in the public domain, but final negotiations are still to take place. Over the coming weeks, we will launch an exciting events programme.
It might be helpful if the committee had a list of those projects and how the money is being disbursed.
You already have the events programme. Are you looking for a breakdown of the amount for each event?
Yes.
That is no problem.
I understand that in addition to those funding streams, partner events that fit in with the general homecoming theme but which are not directly funded by homecoming will be considered and will receive, for example,
The criteria for partner events have been issued through our local authority partners and some key organisations and non-departmental public bodies, which we asked to assist us in identifying key events that should be featured in the next iterations of the homecoming programme, featured on the website and promoted through advertising, PR and so on.
Have sufficient funds been allocated or could you do with more? I ask that question of the other organisations as well.
In local authorities in particular, we have to live within our means. Because of the significant economic benefit that homecoming can bring, my council has been extremely pleased—difficult though it was—to make significant funding available. I appreciate that this is a wish rather than a reality, but it would have been wonderful if Parliament had matched us pound for pound. It would have given us even greater encouragement. However, I recognise the difficulties in that. My council put forward £150,000: matching that would have been a huge plus. However, we will live within our means and make the best of what we have got. Homecoming represents a huge opportunity. It could have been a wee bit better with matched funding, but it is still a great opportunity.
I will bring in the Scotch Whisky Association on that. You made a very good written submission, which is perhaps why we have not asked you many questions. Would you like to comment on that one?
I was going to say that I think that the point is covered in our written submission.
This is a question to everybody, but we could start with the Scotch Whisky Association. What are your expectations? What do you hope to get out of homecoming, and how will you monitor and calculate the impact after the event?
There are a number of reasons why individual companies have decided to support homecoming. First, it is a commercial opportunity: businesses want to promote their brands, and they see the opportunity to do so. They are already doing various things that draw on Scotland's image overseas, which is very important to the industry. We have to make Scotch whisky here, so ensuring that the image is as good as possible benefits the industry as a whole.
SDI's main focus in its overseas activities is driving inward investment, and homecoming gives us a key opportunity to add to our messaging. We are using it to complement our messaging wherever possible, and the more visitors we can generate for Scotland, the more awareness there will be of Scotland, and the more likely it is that our inward investment will grow. Homecoming will assist inward investment over the medium to long term.
I would like everyone to recognise the amount of work that is being put in by volunteers for 2009. No figure has been put against that, but given what all the clubs are doing without any public funding, we must recognise that a lot of unseen time and money is being spent by volunteers.
I am sure that we will take that on board.
In fact, it has to be built in right from the beginning. We will monitor the effectiveness of the marketing, which is the VisitScotland element, and we will conduct various studies as we proceed. For instance, we are doing some work at highland games. We will monitor and profile the responses and the data that we receive from the people who find their way on to our databases.
We have a wider research programme, which will supplement the conversion studies with research at the events to see where people come from, whether they were drawn primarily by homecoming, what their experiences were and whether their expectations were met.
I have a quick supplementary for Shirley Bell, picking up on Alex Neil's attempts to hijack the home of golf for Prestwick from St Andrews. Is there anything in the Burns trail that is not in Ayrshire but is in the Mearns of Kincardineshire—Gilbert's farm, Clochnatill, the Burns and Burnesses in Arbuthnott kirkyard and so on?
Absolutely. The Burns clubs in the Grampian region are pulling out all the stops. There will be trails and all of those places will be mentioned in 2009.
There are no further questions. We have had more than an hour. I thank all the witnesses for coming along. It has been extremely useful for us all.
Meeting suspended.
On resuming—
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