Tourism
We now move on to motion S1M-160, in the name of Alasdair Morrison, which is on tourism. I have also selected an amendment.
I welcome this opportunity—as I am sure everyone in the chamber does—to discuss tourism. As the motion indicates, tourism is one of our most important industries and is vital to our economy. It is worth around £2.5 billion annually and employs around 177,000 people.
Tourism is growing worldwide at an estimated rate of more than 4 per cent annually. It is, of course, an increasingly competitive industry, so although there are great opportunities for Scotland, there are also many challenges. This Government is determined to assist our industry to meet those challenges successfully.
Mr Morrison, do you mind if I interrupt you just for a second? I should have said at the beginning that this debate has been cut short because of the two ministerial statements. We have only one and a half hours instead of two and a half hours. We will not be able to call all the members whose names have been put forward by the business managers, so we would like some names to be withdrawn. I recommend that everyone sticks to a limit of four minutes for their speeches. I apologise for interrupting.
Sir David, if it would be of assistance, may I just plough through the speech without taking interventions? That would allow more time.
It is entirely up to you whether you take interventions, but please do not plough—let us listen to it with some joy and excitement.
I am obliged to you, Sir David.
The challenges will be met through a partnership involving the industry, the Scottish Tourist Board and the area tourist boards, the enterprise networks, the local authorities and the many other organisations that provide both direct and indirect support.
I should like to pay tribute to the industry and to put on record some of its achievements in recent times. The industry has embraced the ethos of quality. More than 9,100 accommodation providers are now members of the STB quality assurance scheme, which is known as the star scheme; when
the scheme was launched in 1985, only 800 businesses were members. A new grading scheme for the rapidly growing hostels and bunkhouses sector has been introduced this year and is being well supported. The STB estimates that £138 million of investment in accommodation facilities since 1990 can be attributed to quality assurance. Of that total, £35 million was invested in 1998 alone. A similar scheme also applies in the visitor attraction sector and the STB is considering whether it might be extended further—to restaurants, for example.
Our scheme has been used as a model for the development of quality grading schemes elsewhere—in Iceland and in South Africa, for example. That is very encouraging.
Many people in the industry have recognised the benefits of training. The industry has come together with the public sector to determine what its training needs are and to do something about them. High service standards and quality customer care are priorities; the result has been the successful development of service quality programmes such as "Welcome Host" and "Scotland's Best". To date, there have been more than 50,000 participants in such tourism training programmes. Around 214 tourism businesses, employing a total of more than 15,000 employees, have achieved Investors in People recognition. That is around 15 per cent of all Scottish IIP awards and means that tourism is one of the best sectors in terms of IIP achievement in Scotland.
We want to build on that success and to increase participation in training activities within the industry. The adoption of a lifelong learning culture within tourism will result in improved service standards throughout Scotland. The continued need to upgrade skills is particularly important if tourism businesses are to remain competitive. Consumer tastes are changing, customer expectations are rising and developments in information and communication technology will become an important factor in attracting and retaining good calibre staff.
A major difficulty for our tourism industry has been that we have traditionally had a short season. Scotland has been seen as a summer destination. That problem has by no means been fully solved but progress has been made. With encouragement from the STB and ATB marketing campaigns such as "Spring into Summer", "Autumn Gold"—which was launched a few weeks ago—and others that promote winter breaks, an increasing number of businesses are staying open for much longer periods of the year. That commitment by those businesses has led to additional direct spending by tourists totalling more than £40 million since 1995.
The marketing of Scotland as a tourist destination is primarily a task for the STB. In recent years, the STB has particularly targeted the English market, which, although our biggest market, has shown signs of decline. Those efforts were successful; in real terms, spend by visitors from England has increased from £703 million in 1994 to £1.1 billion in 1998.
In targeting overseas markets, the STB works in close partnership with the British Tourist Authority, whose chairman and chief executive I was fortunate to meet last week. Scotland is promoted in all 27 overseas markets that are targeted by the BTA because of their considerable potential for British tourism. Scottish holiday activities such as golf, walking and city holidays are promoted by the BTA to identified markets and segments. Scotland features strongly in travel trade visits, business conference activity and press trips that are organised by the BTA. The BTA does sterling work and readily concedes that its two most marketable products are London and Scotland.
The minister spoke about the overseas promotion that is being done in conjunction with the BTA, but the STB has the right to promote Scotland independently of the BTA. Will the minister talk about the budget for that? I ask because spending per head by overseas visitors to Scotland is much higher than spending per head by UK visitors.
Marketing of Scotland is most important and the BTA has some £36 million at its disposal. Scotland enjoys roughly a sixth share of that. The BTA does fantastic work.
The STB could, of course, work unilaterally but that would not be in Scotland's interests. The STB is on a concession, but the BTA readily concedes that the two products that are instantly marketable anywhere in the world are London—the UK's best and biggest tourist attraction—and Scotland.
Mr John Swinney (North Tayside) (SNP)
rose—
I will press on.
The Government is satisfied that the partnership between the STB and the BTA works well to the benefit of Scottish tourism. Spend by overseas visitors to Scotland has risen consistently during this decade. We expect that trend to continue; we have no reason to suspect otherwise.
The tourism industry appears to have had more than its fair share of adverse publicity recently. Much of that has been unwarranted. Considerable attention was paid to comments made in the Westminster Scottish Affairs Committee report on tourism about bad experiences that committee members had encountered on their travels. We do not need reminding about the comments, which related to sticky linoleum and so on.
Less attention was paid to the committee's conclusion. It said that it was
"generally impressed with the overall level of improvement which had clearly been made throughout the industry."
It noted examples of that improvement, mentioning informative and entertaining visitor attractions such as Discovery Point in Dundee, the Stirling old town jail, Abbotsford House in the Borders and Loudoun Hall in Ayrshire among others. Committee members also noted that they had experienced welcoming and friendly staff and, in some places, a refreshingly adaptable attitude to meal requirements outside regular eating hours. That is one of the things that is given explicit consideration in our strategy.
rose—
I am going to press on.
To the many industry success stories, I can add another two. The European Union of Tourist Officers convention is being held next month in Maastricht. Representatives from Scotland have been asked to make a presentation on the development and operation of the tourist information centre network in Scotland. Our European colleagues believe that our TIC network is a world leader and they want to learn from us.
Many members will have attended the reception that was given by the STB last week at which Henry McLeish presented an award to Edinburgh for being the best UK city. That is a magnificent achievement, which is made better by the fact that Glasgow secured second place.
The industry has generally enjoyed growth in recent years. In 1994, it generated £2.2 billion in real terms—that is, at 1998 prices. The following year, that figure increased to £2.5 billion, which was a record annual sum. In 1996, income rose again to £2.6 billion, which was another record for the industry. However, in 1998, the figure fell back to just under £2.5 billion, which, although disappointing, was still the third best year ever recorded.
It is, of course, still too early to make firm predictions for 1999. In the period from January to June, overseas trips have been running at about the same level as in 1998 and, although the number of trips to Scotland from within the UK is slightly down, spend has gone up by 7 per cent. There are clear signs that the severe downturn in spend in 1998 in terms of Scots holidaying in Scotland will be reversed, which is very encouraging. Scots once again are seeing the benefits of taking holidays in their own country, for obvious reasons.
I accept that those figures are for the early part of the year and include only a small part of the main season. Although the figures are encouraging, we should be cautious. There are also regional variations which will be of interest to many members.
Will the minister give way?
If Mr Adam does not mind, I will press on; I am just about to wind up.
The evidence is that cities, particularly Edinburgh and Glasgow, have performed better than some of the remoter areas, especially in the north of the country. I have been getting mixed reactions in my constituency in the Western Isles—which, as everyone knows, is a fair place. Although things are going well in some parts with some modest growth, people in other parts are not so content. We will, of course, have definitive figures. It will be a few weeks yet before the first firm information about the performance of the industry in individual ATB areas is available.
In view of the volatility of the Scots market— which was the only market to show a substantial decline last year—and the heavy dependence of remoter rural areas on Scottish short-break business, I have asked the STB and the ATBs to recommend how they could encourage Scots to take more breaks at home.
The Parliament should warmly welcome the progress that the industry has recently made. However, as our motion recognises, the industry faces a number of challenges if it is to become— as we all want—truly world-class.
I will mention only a few areas that we need to tackle. We need to boost tourism in remoter areas. Although the economy of many of those areas is highly dependent on tourism, the season in such areas tends to be particularly short. We need to examine how we market Scotland to focus better on the strengths of those areas.
The number of overseas visitors holidaying in Scotland is increasing year on year and the number of visitors from England, which remains our biggest market, has recently grown, reversing a previously downward trend. However, we face a major challenge in persuading our own people that Scotland is an ideal place for a short holiday. We must meet that challenge while continuing to grow the overseas market and the English market.
The tourism industry needs to improve still further training and skills standards. Tourism must be able to demonstrate that it can provide a first- choice career. People are the industry's most important asset and staff and business practices must be developed to challenge the best in the world.
The industry down to and including the small business level must embrace the benefits of IT, which can be utilised to provide quickly the
information that businesses need to improve performance. Project Ossian, which is being developed by the STB, will provide substantial benefits for businesses and their customers. The increasing number of internet users worldwide will expect to be able to research their holiday—and to book and to pay for it—without leaving the comfort of their homes. If they cannot do that with Scotland, there will be a greater incentive to holiday elsewhere.
As the Government is determined to help the industry to meet those challenges, it has committed itself to publishing a new strategy around the turn of the year. We intend the document to be action-oriented; it will identify what needs to be done and how that will be done.
We want the preparation of that strategy to be as open and as inclusive as possible and to hear from everyone with a contribution to make. The industry clearly has views that it wants us to consider, which we shall do. In response to a request from the Enterprise and Lifelong Learning Committee, we have extended the period during which we will take comments until the end of the month. At the last count, we had received more than 520 responses.
Henry and I have been out and about talking to industry businesses and to representatives of ATBs and local marketing consortia to hear their views at first hand. That has been of immense value. Between us, we have visited areas as far apart as Shetland and Dumfries and Galloway. Those visits will continue, although members will understand that it will not be possible to accept every invitation that we receive in the time available before we publish the strategy.
Last week, I met all the chairs and chief executives of all Scotland's ATBs together, the first time that such a meeting had been held. The ATBs, with around 15,000 trade members, will be key players if the strategy is to be implemented successfully. We are, of course, considering the method of their funding. ATBs have made strong representations that they need greater funding stability and we shall certainly consider whether anything can be done in that respect. We have asked for responses on funding and will endeavour to reach a conclusion as soon as we can, although there are sharply conflicting views as to the way ahead.
Tourism can have a beneficial effect on many other aspects of life in Scotland, which, conversely, can also benefit tourism. My colleague Rhona Brankin, who is beside me today to answer this debate, is responsible for culture and sport. Scotland's wonderful culture, heritage and language and its sporting achievements can and must be used to attract additional tourism to Scotland.
A perfect example is golf. The Open championship was held at Carnoustie in July and the Walker cup was held earlier this month at Nairn, in the Highlands. Both those events attracted massive media coverage worldwide. We must use that to benefit tourism in the long term. I can tell members today that proposals to develop golf tourism will feature in our new strategy.
Government can do only so much. The industry must take ownership of the new strategy and individual businesses must adapt its conclusions to the best benefit for themselves. I am sure that they will rise to the challenge.
As I said, the Government is in no doubt about the importance of Scotland's tourism industry. We are listening to the industry and we are examining what needs to be done. We will produce our new strategy early in the new year. I look forward to hearing members' views about the challenges that Scotland's tourism industry faces and about how those can best be tackled. I am convinced that we can not only match our competitors, but beat them.
I move,
That the Parliament acknowledges the importance of the tourism industry to the economy of Scotland, agrees that the industry faces a number of challenges and notes that the Government intends to publish in the new year a new strategy for the industry that will address these challenges.
I welcome this debate, which is of major importance to Scotland. However, I am disappointed in the Executive's motion, which does not grasp the major issues that concern the industry. The minister gave the industry a litany of compliments, which is fine, but the industry wants to look forward—looking back all the time is not enough. I am disappointed that the debate is being cut short, as tourism is an important issue. The industry will be looking closely at us today.
On 1 September, Henry McLeish, in elaborating on his statement of his department's priorities to the Enterprise and Lifelong Learning Committee, said that tourism was a particular priority. However, despite the fact that the House of Commons select committee inquiry into tourism stated that there should be a minister with responsibility for tourism, the minister told us that he did not believe that having a separate minister would benefit the industry.
We agree that tourism is a major industry in Scotland and we have heard the figures. However, the minister did not talk about the potential for growth. We have a unique product with quality and diversity—that product is Scotland. Despite that, the Executive puts tourism in a bag with other
issues for a minister to look after. With 23 ministers—in addition to those in the Scotland Office—surely the Executive can spare someone to give leadership to this industry. am not happy with the way in which the Executive is handling this issue. I was concerned to see The Scotsman today quoting Henry McLeish as saying:
"It's about time Scots believed in themselves".
We need a clear signal that the Executive believes in the industry and accords it the importance that it deserves. We must ensure that our communities in rural areas can benefit from tourism. We know what the problems in those areas are—many of them relate to the damage that has been done to the agriculture sector, much of which has been caused by this Government's policies.
We have heard time and again, from the industry and others, that we must streamline the structure and stabilise the funding. The minister gave us a hint that that will be looked at, but I would have liked to hear a little bit more about how it would be possible.
In 1992, the Conservative Government conducted a review that led, in 1994, to the Scottish Tourist Board being given responsibility for tourism, marketing and sponsorship of the area tourist boards. At the same time, Scottish Enterprise and Highlands and Islands Enterprise were made responsible for business development and training.
In 1996, the Conservative Government consolidated the ATBs to provide critical mass and greater focus. Today, we must move to the next rational stage. We believe that, to sponsor ATBs effectively, the Scottish Tourist Board must manage core-funding support and deliver it directly to the ATBs. No longer should area boards continue to suffer from the inherent instability of the allocation of public sector funding through local authorities. Budgets cannot be planned effectively while councils chop and change their short-term political agendas, giving little notice of funding stream changes.
Rivalries and disagreements over tourism priorities between councils within ATB areas deflect the boards away from long-term planning and strategy implementation and waste time and manpower in the attempt to secure resources. The Conservatives would rather that boards focused on raising standards, on widening choice and on selling their product. The tourism industry is too important for this muddle to continue. Direct funding would give the area boards more independence and would allow for three-year budgeting, which would assist in long-term planning. In return, the STB would be better able to monitor performance and co-ordinate support for the industry, including dialogue with the enterprise network.
The area boards must be encouraged to participate in partnerships with local authorities and local enterprise companies to develop local initiatives. Local authorities have an important responsibility in planning. That, too, must be reviewed to modernise the process, which is costly and slow. Planning must better consider the needs of the industry without losing control of the quality of our environment. Before the Convention of Scottish Local Authorities gets too excited, I will add that we also believe that the input of councillors at board level should be retained to ensure accountability to communities.
Many small businesses in the industry are struggling under the bureaucratic burdens that the Labour Government has imposed. More than 2,500 pieces of legislation have been introduced since Labour came to power. The Government does not seem to understand enterprise. Business contributes a large portion of ATB resources. If we include the commercial activities of the boards, the contribution amounts to almost half of some boards' incomes. Unlike the SNP, we believe that the private sector must play a larger part in the development of the industry. In particular, there have to be better links between tourism and many of our speciality Scottish businesses. Membership schemes must be modernised and must not become a barrier.
I know that the minister was a town planner in a former life, but I hope that he is prepared to take on a new profession. I would like him to become an advocate of Scottish business at Westminster and fight for the reduction in bureaucracy that Tony Blair promised before the election. One has to wonder what went wrong. If devolution is to mean anything, this Parliament must take that message south.
Tourism outside the central belt is a greater relative contributor to the local economy, but is dependent on the use of the motor car. In Grampian, more than 60 per cent of tourists use cars. This Government's fuel taxation policy must be the greatest danger to the sustainability and the development of the industry. If we impose road tolls and entry charges and increase parking charges, tourists will not drive about in Scotland. Is the minister aware that more bed nights are spent in caravan parks and camp sites than in hotels? That sector is dependent on the motor car.
The Parliament must recognise that taxation and over-regulation are brakes on an industry that must compete in a global market. Business can drive down cost through flair and training, but it desperately needs a Government that is prepared to establish an enterprise-friendly environment for ultimate success. I will not list the evidence, but
suffice it to say that many potential entrants are deterred by the bureaucracy before they even start to trade. I hope that the minister will pass on to his colleagues the fact that Chancellor Brown would do well to recognise the effects of the weak euro and the variance of tax rates in other parts of Europe.
Luckily, the industry has not had to face the preelection threats of what used to be the Liberal party, whose proposals for turnover tax, payroll tax and their ludicrous caravan tax have gone. I suppose that we must thank the minister for that, as well as for throwing out Keith Geddes's proposal for a bed tax.
I recall Liberals talking about paid days away for training. How can a small business that trades seven days a week with two or three staff afford to have people away? The minister talked about the use of the internet. Why cannot further education colleges and local enterprise trusts be involved in delivering on-the-job training, whether as distance learning packages, as videos or in some other form? I am sure that most people would be quite happy to give their staff an hour a day for training if they could not afford to send them away for a day, especially when public transport in some areas is just not up to it.
I agree with the minister that commerce needs to use the internet, but it needs to learn how to use it. That, again, is a role for the minister to direct. If he was happy enough to get involved in discussions with the ATBs this week, he will know that what I have said has been repeated several times in different parts of the country.
The Conservatives propose that the STB should not be totally tied in to everything that the British Tourist Authority says and does. Yes, the BTA has a supporting role and there are many shared areas of responsibility. However, we think that the STB must not be tied in too tightly when we are competing in a world market even against our neighbours.
The STB is not only the national face of the industry, it is the correct conduit for core public sector funding, ensuring a uniform roll-out of standards and support through the ATB network and eliminating unhelpful interference from local government decision making.
On behalf of the industry and Scotland, we ask this Parliament to agree that there should be a distinct minister for tourism, with responsibility for overseeing on our behalf the modernisation of the industry structure and the creation of the correct culture for the industry to become sustainable and grow to its full potential. I beg the minister and his colleagues in the Executive to recognise that the taxation and bureaucratic burdens faced by Scottish business, and by tourism in particular, must be reduced to allow Scotland to take her rightful place in world tourism.
I move, as an amendment to motion S1M-160 in the name of Alasdair Morrison, to leave out from "and notes" to end and insert:
", including additional taxation and regulation, and calls upon the Scottish Executive to use its influence to reduce such burdens and radically review the structure and funding of tourism in Scotland."
We in the SNP welcome the fact that there is to be a strategy on the tourism industry in Scotland, not only because the first mention of the strategy was made in response to one of the questions that I asked on 17 June, but because the industry is vital to everyone in Scotland. We believe that our country has tourism potential that is unmatched in any other country, and the minister's comments reflected that opinion.
Perhaps we should begin by considering the very word tourist. When somebody comes to our house to stay, do we call that person a tourist? Or do we call that person a guest or a visitor? The word tourist has pejorative connotations; it is something that we put up with or thole, but about which we are not very enthusiastic. Perhaps we should be talking about visitors and guests.
If we extend that argument, whatever we may decide about the structures—and I hope that they will be considered in the review—we should think about the name of the Scottish Tourist Board. Is not that old-fashioned? Should not it sum up what we want to achieve for Scotland? Should not it be called Welcome to Scotland, especially for our friends from south of the border? Whether they consider themselves English, British, Scottish, Scandinavian or whatever, they are all welcome here in Scotland as our visitors and our friends.
I understand that the Scottish Tourist Board defines a tourist as someone who spends one night in Scotland away from home. I suppose that I will be a tourist when I visit Hamilton tomorrow evening. Perhaps we have 129 tourists here; perhaps everyone in the chamber is a tourist. By the way in which we treat visitors and guests from other countries, everyone in Scotland is an ambassador. As Annabel Goldie said in a committee recently, how we comport ourselves is important, because it sends a message to Scotland about the image that we wish to convey to the wider world.
We welcome the review. We believe—and this is my view following an extensive 17-week surgery tour during the infamous holidays that we are supposed to have had—that there is an appetite
for a minister for tourism. There is an appetite for one individual, not three—estimable though we know Henry McLeish, Rhona Brankin and Alasdair Morrison to be—so that the buck stops with one person. One person would be responsible; one person would be accountable—one person has to do the job that is so important for Scotland over the next few years. It is vital that we get that strategy right, and I ask in a non-partisan way that the decision not to appoint one dedicated minister for tourism be revisited. It is not a political point—it is one of substance—and I hope that it is considered.
The review that was announced on 3 August mentioned some important aspects that we need to address, such as identifying our future markets, both domestic and overseas. Surely we have to look at the performance of the Scottish Tourist Board and the area tourist boards. It is wrong for Lord Gordon to say that it is not the function of the review to consider structures—we must consider that to get the strategy right. Strategy is most important, but of necessity it entails looking at structures. Will Alasdair Morrison revisit that decision, so that we can look at the structures as well?
I hope that a thousand flowers will bloom as a result of the responses to the review and that there will be more excellent suggestions such as those in the considered piece by Trevor Grundy and Robert Dawson Scott in The Scotsman today. I think that we will get that positive response.
There are a number of challenges—the minister's word, which I admit is a Hebridean euphemism. We cannot remain competitive because we are not competitive. Scotland is too expensive; it is not just the Scottish National party that is saying that. In a letter to me dated 8 September, Tom Buncle of the Scottish Tourist Board said, on fuel tax, that
"there is clearly a correlation between the cost of fuel and the propensity of visitors to travel widely throughout Scotland."
Will Alasdair join us in supporting the campaign run by the Sunday Post to scrap the fuel escalator? I am happy to accept an intervention from any Labour member—I have the application forms here. No takers? That is a shame, because the Sunday Post is doing a grand job.
I am not sure what point Fergus is making, but is he prepared to rewrite his economic strategy for independence? He included the fuel tax levy in the figures that he used to fight the election.
As Allan knows, since the election the chancellor, Gordon Brown, has increased the fuel tax by 22 per cent. The Highlands and Islands has the highest fuel tax in the world. I am surprised that Allan chooses to make that the subject of his intervention.
As Tom Buncle said, it is clear that business rates represent a significant burden on marginal tourism. We have the power to slash business rates for small businesses in the hotel trade. We can do that in a cost-neutral way—that will probably appeal to Allan—by shifting the burden to big businesses, for which business rates are a much smaller proportion of their turnover.
The high pound is a crippling cost to many— again, that is the responsibility of Mr Brown. We have the second highest VAT rate in Europe. Our tourism industry is being taxed out of existence by Gordon Brown.
I say to Labour members, in all seriousness, that if Scotland is to become competitive, those matters must be addressed—[Interruption.] Perhaps that is Gordon Brown on the phone. One way in which we can address those matters is by slashing business rates. I hope that the Enterprise and Lifelong Learning Committee will display a little more enthusiasm for those ideas, which I recently expressed to Allan and others.
I believe that we can make this Parliament work as we want it to by using its power to help small businesses throughout Scotland, especially those in the rural areas, which have been hammered this summer. Alasdair Morrison mentioned no figures for that whatever. I hope in all sincerity—it is about time—that we get some answers from the Executive about the effect that reserved matters are having on our economy. The Executive cannot duck and dive for ever. One of these days, people in Scotland will say, "They have nothing to say because they will not stand up to Gordon Brown, they will not say a word against Millbank and they will not do anything in case Tony Blair says that it is the wrong thing." One can get away with that only for so long.
I am just winding up, George.
Just a very short one.
I am a decent bloke, as you know.
How many times have SNP members been at Westminster, lobbying hard on this subject? I take it that their attendance has been 100 per cent.
I do not intend to join the behoochie tendency. It is what we say, when we are here and when we are down there, that matters. And what has the Executive to say about fuel tax, VAT, the high pound and business rates? That is what Scotland wants to know. That is what my constituents want to know.
It is not all about money. Lurking between the boundaries of my constituency and of John Farquhar Munro's is one of the most cost-effective tourist attractions—the Loch Ness monster. He did not cost £758 million; he was not sponsored by Sainsbury's, nor by any other of Tony's crony companies. Long after Scottish folk have not paid their 58 quid to go down to the dome, people will still be travelling to my constituency to watch out for Nessie. With those words, I wish Alasdair well in the strategy ahead.
In opening the debate, Sir David indicated that a large number of members wished to speak, but that because of the reduction in time, it would not be possible to accommodate everyone. I reiterate that point. Members will be allowed four minutes each to speak; in an effort to assist members to keep to time, I will indicate when you have one minute left and encourage you to wind up. In that way, we will accommodate as many members as possible.
I am tempted to ask whether Fergus is one of the lucky few who have sighted the Loch Ness monster, and whether he has done so recently. He might answer that one outside the chamber.
I welcome the debate. It sends a strong signal to the Scottish tourism industry of how much we in the Parliament value its contribution to the Scottish economy. That is an important statement to make. I will reiterate some of the key indicators of the importance of the industry to the Scottish economy. It brings in £2.5 billion per year and directly employs 180,000 people. In the tourist board area that covers my constituency, tourism accounts for 14,400 jobs—nearly 10 per cent of all employment in Argyll and Bute. Those are important figures. They demonstrate that the tourism industry is vital to much of rural Scotland, especially in areas where there are no alternative industries offering such employment.
The tourism industry has enormous potential for growth in Scotland, although we are experiencing a slight downturn because of the failure of overseas visitors to come and because Scotland's own people are not spending as much in Scotland. Nevertheless, the Westminster Scottish Affairs Committee's report, which was published earlier this year, highlighted one of the key issues that face our industry: quality of facilities and standards of service. It is a fundamental prerequisite for all markets and sectors that we deliver a quality product. Consistent quality must be one of the Scottish tourism industry's key objectives.
Many members spend a lot of time travelling round the country. When we stay in a hotel or boarding house, we know that if one star is displayed outside the accommodation, we can expect four-star accommodation to be of better quality. The question that we must ask ourselves is: what exactly are our expectations of four-star accommodation? What does it mean? What kind of benchmarks do we expect? Do four stars mean that the accommodation simply has more fixtures and fittings? Or do they describe the quality of service that we should expect? Does anyone know? Has the customer been informed of what the benchmarks are?
Another question that we must ask concerns whom we should complain to if we have had a bad experience or if the four stars did not deliver what we had expected. Is it the tourist board, or the hotelier? If we complain, what action is likely to be taken? I suggest that we should continue improving the quality of the product in Scotland. If we want to continue to compete against worldwide competition, we must drive up the quality of the product. That quality must be consistent for every tourist.
To eliminate bad experiences that can do much to damage Scotland's reputation for quality, the Scottish Liberal Democrats believe that we need a classification and grading system, whereby the customer will understand exactly what the benchmarks are for determining the different star ratings.
Will you wind up, please?
Our customers must have a clear understanding of those benchmarks and know exactly what to expect and to whom they should complain if their expectations have not been satisfied. Most important, sanctions must be in place if benchmarks are not met regularly.
With those easily understood and rigorously applied quality standards in place, bad experiences should be eliminated. That will allow Scotland to build on and expand its share of the global tourism market.
I represent a constituency that is highly dependent on tourism. In 1995, 4,400 jobs in Dumfries and Galloway, constituting 8.9 per cent of all employment, were related to tourism. Tourism brought in an average of £521 per head in 1996, although controversy has surrounded the regional tourist board in recent times—not that I want to dwell on that during the debate. I am pleased that the importance of the tourist trade is being debated today, and I hope that this is the beginning of a process that will stabilise and promote that important industry.
The minister identified as one of the problems the decline in spending by Scottish tourists in their own country. I am afraid that I am as guilty as anyone else of chasing the sun during the summer vacation, and I do not think that we will change the desire of many Scots for a couple of weeks of climatic reliability during the year. However, people no longer take only one holiday. We need to improve the way in which we market short breaks in Scotland to Scottish and UK residents. That impinges on three of the Scottish Tourist Board's corporate objectives: to increase visitor expenditure, to extend the tourist season and to develop tourism outwith the main tourist areas. That means recognising not only that leisure and tourism are inextricably linked, but that there are different leisure markets that need to be exploited effectively.
On Monday this week, a major shopping development opened in Gretna. Gretna is better known for other tourist attractions, but it now also has a factory village outlet. It aims to attract shoppers from within two hours' driving distance— from Carlisle, Newcastle, Edinburgh, Glasgow and possibly further afield.
I had pleasure in joining Dr Murray at Gretna—
People might misunderstand that.
—and in taking away the goodie bag provided. Does Dr Murray agree that one of the things that puts Scottish tourists off visiting Dumfries and Galloway is the cost of petrol, and that the single most significant thing that we could do to encourage tourists to visit Dumfries and Galloway and to tour in the traditional way would be to reduce the cost of petrol by reducing fuel tax?
That is not the most off-putting thing, as Dumfries and Galloway are rather nearer other parts of the UK than other parts of Scotland are. I agree that petrol prices are a problem, but much of that is to do with the oil companies, not the Government.
We need to persuade shoppers not just to drive to Gretna and back, but to make a weekend break of it. We need to persuade them to turn off down the A75, book a room for a night or two and enjoy some of the other leisure pursuits available— sporting and cultural pursuits, the Burns connection, the scenery, the wildlife and the natural heritage of the area. That would turn shoppers into tourists. Fergus referred to the STB's definition of tourism. It would not be difficult to make that connection for people. Those activities can also be promoted to business visitors—even businessmen do not work all the time.
I do not want to anticipate the results of a tourism strategy debate nor discussions that the Enterprise and Lifelong Learning Committee might have about the structure of the industry. It is inappropriate for the Parliament to decide those things when there will be ample opportunity for the committee to do so. I very much hope that time and effort will go into improving the way in which we sell what we have to offer to ourselves and to others. We are far too negative and apologetic about ourselves—Henry McLeish was right about that—and if we do not believe that this country has a lot to offer, how can we expect others to do so?
I hope that Alasdair Morrison will correct me if I am wrong, but I think he said—and I was horrified to hear him say it—that the Scottish tourist boards will be meeting in Maastricht shortly. As someone who is wary of all things European, I pray that there will not be another Maastricht agreement in my lifetime.
Rural Scotland today relies on an economy generated from the traditional sources of agriculture and fishing and the more recent sources of forestry and tourism. As the input of the traditional wealth creators diminishes annually, the input of the modern economic generators rises in importance. For some years, because of a multiplicity of factors, manufacturing industry has tended to polarise away from rural areas such as Dumfries and Galloway, which I know best. As a result of that shift, tourism is becoming the major if not the only area of potentially massive growth for rural Scotland.
As the world becomes more accessible to an increasingly large percentage of its population, tourism should be the jewel in our Scottish crown, given the magnificent raw materials in our history, culture and scenery. I agree with Fergus Ewing that it is a combination matched by few other countries. However, tourism is not the jewel in our crown—it is on a downward trend and not the great success story that it should be. We must ask ourselves why.
To that end, I commend the Executive on its consultation exercise, because it is right to try to pinpoint both the way ahead and the problems faced by an increasingly vital industry. I beg the Executive to listen to all the submissions, and in particular to pay attention to the grass roots of the industry: the bed-and-breakfast landladies, hoteliers, shopkeepers, caravan site owners and filling station owners, who provide the real barometer for trends in the tourism trade.
If the Executive listens to those people, it will discover several key pointers towards reversing the downward trend. The first, I am sure, will be to
cut the red tape that so bedevils all today's society, which I keep coming up against in Galloway. For instance, one landlady I met is limited to having six guests. That is not unreasonable for three double bedrooms, but if a couple with a small baby—for whom she would not charge—arrive at that guest house, she instantly loses not only the use of one of the four remaining beds, but up to £2,000 per annum because of that petty bureaucratic regulation.
The second key pointer will be the cost of travelling in Scotland, a matter that has already been raised today. It is a simple problem to solve. If the Labour Government and the Scottish Executive are serious about increasing tourism throughout Scotland, they must get Gordon Brown's foot off the fuel escalator and cut the cost of petrol. That would bring many other benefits and would do more than anything else to boost the tourism industry.
Thirdly, we must take a long hard look at the operation of the area tourist boards, and particularly at how they are financed. In Dumfries and Galloway and, no doubt, in several other areas, the area tourist board has to prepare its budget without knowing the contribution that will come from the local authority. Funding must come directly through the Scottish Tourist Board, and the local authorities must be removed from the equation. The tourist board network must focus its attention increasingly on promotion and decreasingly on the red tape and bureaucracy that I have described.
We must become more flexible in allowing seasonal tourism-related businesses to advertise themselves in a reasonable manner. Far too often, facilities are prevented from promoting themselves by an overzealous authority, which will allow only those awful dull brown notices for tourists, which suggest a field of mud rather than a field of dreams.
If the Executive is serious, I beg it to examine the key points that I mentioned. If it does so, and if they are properly addressed, the future of Scotland's tourism industry will be bright indeed. I commend the amendment.
I shall concentrate on the structural and financial challenges facing the public sector of the tourism industry. I have been fortunate enough to have had a unique insight into the challenges and difficulty that the public sector faces. From May 1996 to May this year, I was not only leader of a local authority, but served on the boards of an area tourist board and a local enterprise company.
On the structure of the public sector, we have inherited a situation in which the lines of responsibility are, to say the least, confused, and in which transparency of policy formation and of delivery mechanisms is severely lacking. That has created an environment in the private arm of the industry where innovation and investment are stifled, and where ownership of strategic direction is low or non-existent.
The public sector players are at national level: the Scottish Tourist Board and Scottish Enterprise. At a local level, there are the area tourist boards, the local enterprise companies and the local authorities. All those bodies, to a greater or lesser extent, are trying to ensure that we have a tourism product that we can be proud of. They all mean well and attempt to do their bit through various partnership arrangements. The unfortunate reality is that, if we look beneath the veneer of partnership working well, we find territorial disputes, suspicion, considerable frustration, slow decision-making processes and perceptions of a lack of support among other partners. In short, the public sector of tourism is fragmented. It is unable to form a common position for direction or delivery and it is in dire need of realignment, refocusing and integration.
I will now refer to financial support and the sustainable funding of ATBs. Area tourist boards find themselves in the incongruous and unenviable position of being creatures of statute but without statutory obligation to raise funds themselves or to be supported by other public bodies. That unsatisfactory situation has left eight ATBs struggling financially since their inception. Many of them are also currently reliant on EU structural funds, and when that picture changes soon, many ATBs will go out of business.
From the local authority perspective, with further swingeing cuts inevitable again this year, the area tourist boards are in a no-win situation. In the competition for resources with the likes of education, social work and police, they do not stand a snowball's chance of receiving a sustainable funding package. Instead of being fed on a diet of uncertainty with, at best, standstill budgets, which means cuts in real terms, area tourist boards should be nourished with the certainty that they are funded on a sustainable basis through three-year funding packages. It would be useful if the Tories at least apologised for the fuel escalator and for the damage to area tourist boards caused by the cuts that they made in previous years. In all likelihood, the review of tourism will be the last chance in a generation for Scotland to get it right. We have a chance to become a world-class tourist destination with a world-class product.
I would like to say well done to the Executive for undertaking the consultation process to develop a
new strategy for tourism. That is an important first step, but at the end of the day, the Executive's actions will speak louder than words. For Scotland's sake, we must get this right. The tourism industry and the minister have been heard to say "service, service, service". However, the public service requires funding, funding, funding to ensure that it can deliver.
More than any other part of Scotland, the Highlands and Islands relies on the tourist industry, as members have said already. About one person in seven depends, ultimately, on tourism for their livelihood. Some parts of the Highlands have sustained their level of visitors this year—particularly Skye, despite fuel crises and the Skye bridge tolls. Rather than simply saying that numbers of visitors are down because of the fuel crisis, we should recognise that there is something else at work.
I was a tourist in Sutherland last weekend. The hotelier where I stayed said that fuel prices were not an issue. The amount of salmon coming up the river was an issue for him. Some people think that the dearth of salmon is a direct result of global warming and that global warming is a result of fuel emissions. Please could we have some joined-up thinking on this matter?
The bed and breakfast market in the Highlands has done particularly well this year, although other areas and sectors have seen a drop in numbers. However, the drop is not disastrous and we should remember that we are speaking of small fluctuations, not enormous drops. There has been very bad publicity over the summer and our faults have been blazoned across the newspapers and reinforced by anecdotes throughout the Highlands. There is nothing that Highlanders love more than telling terrible stories about their own tourist industry. We must stop doing that. We seem to take a delight in putting ourselves down. We must stop being so negative, because we have a very high-quality tourist experience in the Highlands and we must stop denying that. We must work on that attitude.
Our challenge is to continue to raise the quality and to market ourselves more effectively. We must target particular niche markets, such as wildlife— and I do not just mean ceilidhs—and culture, particularly in more remote areas. For example, only 2 per cent of our visitors come for golfing holidays, yet Scotland is the home of golf. I am glad to hear that there are plans to redress that situation.
Our marketing must be more focused, modern and up to date. We are already developing Project
Ossian, as Alasdair mentioned, which will allow us to access information on the website. The challenge to improve our marketing and quality must continue. Some people have said that compulsory registration is the way forward, with training, sanctions and inspectors. At the moment, registration and quality control are voluntary. I am a bit wary of compulsion, as it might drive away that sector of the Highland industry that is most attractive—the small B and B in remote areas. Ultimately, compulsory registration may be appropriate for hotels and restaurants, but I favour the carrot rather than the stick. We should be careful not to drive away the small B and B.
Training is crucial, but college courses in hospitality must be backed by good management practices and that does not always happen. We need a well-paid and well-motivated work force in the tourist industry. In the past, the industry has had a bad image and we must get away from the idea that service is somehow servile; it is not, although part of our history makes us feel that it is.
Maureen mentioned the importance of training, which I am sure we all endorse. In relation to shortages, does she accept that the single biggest problem in hotels in the Highlands is the shortage of skilled chefs that has arisen since the closure of Duncraig college? If so, what should be done about it?
The shortage of skilled chefs has existed for a long time, not just since the closure of Duncraig. Careers education in schools has a lot to do with that shortage and I would like careers in tourism—particularly for chefs and in cookery—to be promoted more in schools. We want an attractive career structure.
We also have infrastructure problems such as the lack of a Heathrow to Inverness air link; we have campaigned for a long time to have that link restored. I look forward to the benefits of an integrated transport system, which will encourage more visitors to come to the Highlands.
We must maximise our efforts. The Scottish Tourist Board and the area tourist boards must have clearly defined roles and not trip over each other. Area tourist boards must be properly funded—people have discussed that already—and if they are losing members, they must take steps to redress the situation. Boards must represent the whole disparate and diverse industry in their area, and individual traders in the industry must sometimes be reminded that a fragmented industry will not prosper.
Let us look at the big picture. Scotland gives people a great holiday. Overseas visitors and visitors from England realise that, and I hope that the Scots are listening to me now.
I am rather disappointed by some of the contributions today. Maureen Macmillan referred to small fluctuations in the Highlands, but a small fluctuation can mean bankruptcy. The reported drop of 6 per cent this year is an official figure from the Highlands of Scotland Tourist Board, not a fabrication of anyone's imagination, and is likely to be an underestimate. That 6 per cent drop must be considered against the background of last year's drop of almost 20 per cent. Please do not insult people by talking about small or minor fluctuations. If the review is to mean anything, it must mean a partnership in which we listen to everyone in the industry.
Now I turn to Alasdair Morrison. A few weeks ago, in response to a Scottish nationalist member's question, Alasdair said that tourist numbers had not changed. I am glad that he acknowledged today that although numbers are up in Edinburgh, they are seriously down in the Highlands and elsewhere. I hope that the Scottish Executive's approach to the review will be similar to that endorsed by Henry McLeish when I met him in Inverness. He acknowledged, examined and discussed the problems in a mature, responsible and professional manner, in contrast to the dismissive comments that have been made today. For example, Elaine Murray said that fuel duty is a minimal part of the price of petrol; in fact, it is 85 per cent of the price. We need a bit of honesty here.
As Maureen and Fergus said, tourism is the crucial industry in the Scottish Highlands. This week the Highlands of Scotland Tourist Board announced that tourist numbers for the far north of Scotland have fallen by 16 per cent; that is the most dramatic drop this year. Perhaps Maureen Macmillan's bed and breakfast weekend in Sutherland was all right, but that is not the whole picture. We must look at the problem professionally, rather than having a bit of by-thebar chat.
Another point for Alasdair Morrison to consider is that Caledonian MacBrayne passenger numbers for this summer have fallen by 20,000 while car numbers are down by 4,000. We must have a proper review and an honest debate.
I am concerned about many aspects of the Scottish Tourist Board, but it exists for one reason: to promote and market Scotland. Any marketing organisation can plan for the future only if it devotes enough of its budget to marketing and knows its current and potential customer base. The Scottish Tourist Board devotes 12 per cent of its budget to marketing while the rest goes on salaries, expenses, buildings and other costs. As of yesterday, the Highlands of Scotland Tourist
Board still did not have breakdown figures for overseas visitors for 1998, as it is planning for 2000.
The Scottish Tourist Board is supposed to be a marketing organisation, but it cannot get the information that it requires from the Department of Trade and Industry. I suggested that it talk to its counterparts, and to Brian Wilson. It is not good enough to be two years behind with figures. The clear message from the industry is that we must promote Scotland. There can be no excuses. Henry McLeish tells us today in The Scotsman that Scots should believe in themselves. That is not the issue: we need the Scottish Tourist Board to believe in Scotland.
Finally, I want to mention Project Ossian. It has already cost £5 million. It is funded from the marketing budget. After two years it is still not up and running. It does not sell tourist beds in Scotland: it is simply the yellow pages of the tourist industry. If we are to take it seriously, we must ensure that it moves along in a business-like manner to provide the services that are required.
I welcome the minister's statement today, and I welcome the tone of the debate. There is much that we can agree on across the chamber. Having listened to the minister, we can have no doubt that the Executive recognises the tremendous economic importance of tourism throughout Scotland. It is vital that we have a strategy that is robust and practicable. I welcome the consultation process that lies behind this motion.
I want to say three things, some of which have been said already. I find myself in agreement with the Tories—[Applause.] I agree with them about the funding of area tourist boards. It is essential that some stability exists for the boards, so that they can plan ahead and not be dependent upon hard-pressed local authorities' annual heart- searching. I do not want to see the removal of democratic oversight, because that does not need to happen. Core funding should come from the Scottish Tourist Board. Of course, European funding is important when objective 2 and objective 3 structural funding is being discussed. I hope that the Government and the Executive have put the case for Scottish tourism with regard to that funding.
The second issue that I wish to address has been spoken about already, so I do not want to labour it. Quality is desperately important. I am not sure that we cannot find some middle way between what Maureen said and what people in the tourist trade have been telling me; that they
must have quality assurance and that they want compulsory registration so that they are not let down by the lowest common denominator. As we have read in The Scotsman and in the House of Commons report, anecdotes that rubbish the Scottish Tourist Board and the Scottish tourism industry are powerful, and when people let the industry down it damages its fabric. At least some kind of compulsory registration must be considered.
I am skipping some bits. I, too, welcome Project Ossian and I want to address the issue of winning back the market that has been lost and which seems not be holding up as well as others are. I think that it was Harold Macmillan who, when asked why his policy changed, replied, "Events, dear boy, events". I want to draw attention to the importance of events to tourism; for example, the Thirlestane horse trials, the Highland games and other local festivals in my area. People take day trips to those events.
I was surprised, although I understand the logic, that the figures for tourism do not include day visitors. If we have events, we can turn day visitors into overnight stays. Who would have thought that events such as the Hogmanay celebrations in Edinburgh or the tall ships event in Greenock would attract hundreds of thousands of people? Events attract people. They do not have to be big events. If we offer good value and good packages we can turn day visitors into overnight stays. That would restore the Scottish market and improve the tourist figures.
Finally, I ask all members to spend some time in the Borders, where they will see lovely houses and lovely scenery, where there are tremendous places to walk and where the hospitality is second to none. We want people to come, to stay and to spend their money liberally.
I call John Swinney to wind up on behalf of the Scottish National party.
I want to begin by referring to the amendment. Amendments should be put down when a party has something worth while to add to the motion that is before Parliament, but there is nothing in this amendment to make it worthy of support.
The Government is undertaking an important tourism review. My colleague Fergus Ewing signalled our support for the concept of a review. It must set a clear strategic direction for the industry in the years to come, a direction that is sustainable and that can be delivered and supported throughout Scotland and in the wider marketplace.
I am troubled by some of the documents that inform the debate on tourism, particularly the "Pathfinders to the Parliament" report that was produced before the election. It refers to a tourism futures sub-group that was established in 1998. We have an opportunity to make this review meaningful and a landmark in the process of tourism development. Unless we do that, we are in danger of lurching from one review to another and of failing to give a clear direction to the industry.
Input from the tourist boards in the area that I represent—Perthshire Tourist Board and Angus and Dundee Tourist Board—has assisted me in my preparation for this debate. I would like to refer to a number of common themes that they have highlighted.
The first concerns the way in which the industry is often maligned. I agree with what Ian Jenkins said about the danger of the sort of statements that appeared in the House of Commons Scottish Affairs Select Committee report. However, anecdotes can have a positive as well as a negative impact. I represent a county that has benefited hugely from the "Autumn Gold" initiative, because Perthshire happens to look absolutely stunning—even more stunning than usual—in the autumn months. I would encourage all members to visit; it is great to drive home there every night.
I would also like to celebrate Project Ossian. This is a hugely imaginative and exciting project that should transform accessibility to the tourism market in Scotland. I do not understand why it is not being shouted about loudly and clearly enough, and would like to know from the minister in her summing-up what progress has been made on the project and how effectively it is contributing to the marketing and promotion of Scotland overseas.
In response to Keith Raffan's intervention, the minister made a statement that is difficult to sustain: that it would not be in Scotland's interests to be marketed distinctively overseas. That strikes me as a complete contradiction in terms, although that may be because of my politics. I would like to understand what the minister is driving at when she says that it would not be in Scotland's interests for us to take control of marketing our community and our tourism, investment and business development products to a wider audience. There are inherent attractions in promoting Scotland overseas in a unified way. That is the sort of strategic thinking that underpins the initiative Scotland the brand, which not only applies to the marketing of particular products, but has been incorporated into the marketing overseas of companies such as Stagecoach. That is interesting.
wonder whether Mr Swinney would care to
address, within the context of what he has said about building a successful tourism industry in Scotland, the role of the industry's work force. Does he agree that the introduction of the national minimum wage has made a massive difference to about 175,000 Scots, who have benefited from an increase in wages, and that the poor conditions in the industry are not doing anything to promote it? Will he say what we can do to make the tourism industry more attractive to work in?
Fergus Ewing.
Actually, I am John Swinney.
I am sorry, John.
Please do not accuse me of being Fergus Ewing. I have been accused of many things, but that is not one of them.
As Pauline will know, the SNP supports the national minimum wage and, as my colleague said earlier, we want to see a quality working environment for people in the tourism industry. That will create a sustainable work force. We also have to tackle some of the issues surrounding the duration of the tourist season, to guarantee that people can be offered long-term employment within the industry rather than having to take the limited contracts that are more often available.
The funding of area tourist boards is a subject that has been raised many times today, across the Parliament. Fundamental to all the material that I have read—whether it is "Pathfinders to the Parliament" or the select committee report—is the issue surrounding the stability of area tourist board funding. That is important for the area tourist boards, because they are under intense pressure from local authority cuts, which ultimately relate to the proportion of the cake that is being distributed by the Scottish Executive to local organisations. Beyond that, there is a huge voluntary sector that supports initiatives in the Scottish tourism sector, where the lack of resources at the level of area tourist boards means that there is insufficient support for particular projects.
From my experience of the towns and villages that I represent, I know that much good will goes into creating initiatives, such as folk festivals or Victorian festivals, which, as Ian Jenkins said, attract visitors to particular areas. Those projects are worthy of support and the constraints on the area tourist board funding have a severe impact on that.
I will close with a point about the wider dimension. "Pathfinders to the Parliament" highlights the context in which we must consider tourism. It is not just about the promotion of one industry, it is about the linkages to issues such as transport and fuel costs, as well as the exorbitant cost of plane flights from London to Edinburgh, the stranglehold that market has on access for foreign visitors and the need for direct transport links from Scotland to our European partners. That would help to strengthen our tourism industry, and I hope that the tourism strategy review will create the environment in which those sensible and imaginative issues can be addressed positively, for the benefit of Scotland.
John Swinney's remarks about our amendment were astonishing, considering that every point made by my colleague David Davidson has been mirrored by the SNP. Perhaps SNP members are a little peeved that they did not lodge the amendment—they were probably too busy in-fighting in Inverness.
We have a world-class asset, although not yet a world-class service—that is what Henry McLeish said yesterday. The point about service could apply to the Scottish Executive. I disagree with Alasdair Morrison's opinion that there are many different views about the way in which to reform and improve the tourist industry in Scotland. The one thing that was crystal clear to me when I was the Conservative tourism spokesman was that so many institutions throughout Scotland had a clear idea of what the industry needed. Indeed, Brian Wilson, two years ago, when he was the minister, seemed to be well aware of that—he must have left the details in the in-tray.
The burdens imposed on the tourism industry by the Labour Government, the failure to improve our roads and the increase in fuel tax have all helped to destroy tourism. They have all helped to cut the 6 per cent—
Will Ben Wallace give way?
No, I will not.
The minister espoused the report from Westminster and talked about the good things for tourism, but conveniently left out the recommendation for a dedicated minister for tourism to focus on the needs of the Scottish industry. The tourism industry is so big that it deserves that attention.
On 7 July, I wrote to the minister, asking him to visit a constituency event—a pipe band, organised by a tourism community group. The event demonstrated the way in which communities have promoted tourism in Aberdeenshire; that has a direct effect on Highlands and Islands and European funding. When I received the reply on 2 August—as I expected, the minister was busy doing something else—it was interesting to note that it arrived the day after the event. That he
cannot give attention to such events shows the need for an individual minister for tourism.
Because of the loss of European funding—or the changes in the structure of European funding— local authorities are desperately looking round for more money. It is a priority that the review be carried out. I also believe that, before the end of the year, we must solve the way in which we fund our tourist boards; core funding is an important issue.
I ask the Executive to use its influence on Gordon Brown at the Treasury to consider ways in which to cut VAT for tourist outlets. I also ask the Executive to make further representations on the effects of the high fuel tax.
Scotland could be a world leader in tourism. We have the beautiful land, the quality foods and the quality of life to make Scotland competitive on the world market. However, the burdens must be lifted. We need to compete with our colleagues in Ireland, where VAT has been cut, leading to a massive increase in tourism. That is what we need, not regulation and the extra taxes that I talked about earlier. We need the Executive to take the issue seriously. I therefore ask members to back the amendment, which will remove burdens and allow Scottish tourism to flourish.
I am pleased to have been given the opportunity to wind up what I am sure members will agree has been a useful and, at times, almost consensual debate on tourism. In the time available, I will try to respond to some of the points that have been raised. I hope that members will forgive me if time runs out and I do not manage to cover them all.
Tourism is an issue for ministers across the Scottish Executive. As Alasdair Morrison said in opening the debate, tourism has a strong connection to my portfolio. A good way to promote the country and to attract visitors is to encourage them to come to Scotland for a specific activity or purpose. Alasdair mentioned golf and the worldwide attention that Scotland received through hosting the Open and the Walker cup. Scotland will be in the spotlight again next year when the Open returns to St Andrews—indeed, more so because it will be the millennium Open. That is an opportunity which we must not miss.
There is growing interest in staging the Ryder cup in Scotland at the next available opportunity, which is in 2009. The Scottish Executive would be delighted to see a successful Scottish bid for that major event, which attracts worldwide public and media interest. I have recently had discussions with the Professional Golfers Association about what is involved in mounting a successful bid, and I will be attending the Ryder cup match in Boston this weekend to fly the flag for Scotland.
Will the minister give way?
I am sorry, but I must press on, as I have a whole load of points that I must get through.
In Boston, I will lend my support to the bid to bring the 2009 Ryder cup match to the country that is the home of golf.
Other examples of sports tourism that attract visitors from the United Kingdom and overseas include walking, fishing and sailing. Scotland has a competitive advantage over other destinations when promoting those activities thanks to our spectacular natural environment. Of course, it is essential that in developing such activities, we take great care not to affect adversely the environment, which is Scotland's greatest tourism asset.
As has been mentioned, one of Scotland's largest niche markets is cultural tourism. Scotland's museums and galleries alone received more than 9.5 million visitors in 1998. Scottish history, culture, arts and of course language are famous throughout the world. Images of Scottish built heritage are instantly recognisable. In fact, Edinburgh Castle has received 1¼ million visitors so far this year.
For some time, the link between culture and tourism has been developed and fostered by a public-private partnership whose remit is to promote closer working relationships among tourism, arts and economic development bodies. Last year, the group reviewed its activities and produced a three-year action plan. Guidelines on developing cultural tourism have been produced for area tourist boards and other local agencies, for use in area tourism strategies. Local groups of arts and tourism organisations have been developed, and the Scottish Tourist Board and the Scottish Arts Council are leading a traditional music initiative. The group also promotes a cultural tourism award, which is sponsored by the Bank of Scotland. Much has been achieved, but we look to see whether we can do more.
Our consultation on a national cultural strategy will seek views on how culture, in its broadest sense, impacts on all aspects of government. If we are to preserve and enhance Scotland's rich diversity of urban areas and natural landscapes, and to continue to attract visitors, we must have proper regard for the quality of our new buildings and of new developments in our towns, cities and countryside. That is why we have made a commitment to develop a policy on architecture for Scotland. The economic benefits of architecture
and its role in promoting tourism are among the issues that are covered by the architecture framework document that I will launch next week.
I have emphasised the link between tourism and sports and culture, as they are my particular remit. However, there are many more examples of cross-cutting issues that relate to tourism. The tourism industry is not self-contained. Like any other industry, if it is continually to improve and to compete, it must address all the factors that determine success, such as skills, training, marketing and, above all, quality of service. All the departments in the Scottish Executive will continue to work together to ensure that the tourism industry in Scotland remains competitive, but the bottom line is that responsibility for success rests with the industry.
Will the minister give way?
No. I have too many points to get through. I assure Alex Johnstone that I will respond to some of the points that were raised by the Conservatives.
There have been calls for the Government to invest more public money in the tourism industry. Direct support, through the Scottish Tourist Board, Scottish Enterprise, Highlands and Islands Enterprise, the British Tourist Authority and local authorities, totals around £60 million annually. The industry also benefits from funding from the European Union and indirectly from support from bodies such as Historic Scotland and Scottish Natural Heritage.
However, no amount of money guarantees success.
Will the minister give way?
No, I am sorry; I want to continue, but I will cover many of Fergus Ewing's points.
We need to get the strategy right. We need to identify the key actions that will improve our tourism industry, and to identify who is responsible for taking them forward. We need to release the ideas, energy and potential of those who work in the tourism industry. The Scottish Executive is committed to a programme of action that will put tourism in the best position to compete and win.
On the matter of a minister for tourism, tourism is at the heart of the Executive's main economic department, which is where it ought to be. Tourism is well placed to benefit from our drive to link enterprise and lifelong learning, which is the key to a prosperous future. Alasdair Morrison has specific responsibility for tourism within the enterprise and lifelong learning department.
As Alasdair Morrison said, funding for area tourist boards must be examined carefully. It is important that we get this right. We are willing to listen to all the arguments.
We reject the accusation of over-regulation. Area tourist boards are membership organisations, whose policies are dictated by their members. The STB's quality assurance scheme is widely supported, and is the key to improving quality in the industry.
On taxation, it is important to look at the whole picture. The UK VAT threshold—£50,000—is the highest in the EU; that helps many small tourism businesses. UK corporation tax is lower than in most other EU states. Food and travel are zero- rated.
The final flaw in Mr Davidson's speech was the assertion that Alasdair Morrison had been a town planner. Alasdair Morrison is under the impression that he was a BBC journalist.
I was referring to the minister, not the deputy minister.
I see—was he not a footballer?
I have covered Fergus Ewing's point about a minister for tourism.
We are willing to listen to views on structures. Fergus Ewing and Mr Swinney welcomed the fact that we are having a review and developing a tourism strategy. However, it is important to find hard evidence that change is needed. It is too easy to fiddle with structures; it is more important to consider the underlying issues.
Despite what has been said about Scotland being too expensive, tourist spending in Scotland has grown strongly in recent years. Last year was disappointing, but the early signs this year are encouraging. Come on—let us not talk Scotland down.
Will the minister give way?
I am sorry—I have to wind up now.
Alex Fergusson talked about Maastricht. I know that Alasdair Morrison was speaking in his second language, but what he said was that representatives from Scotland had been asked to make a presentation at the European Union of Tourist Officers convention in Maastricht. Alasdair was involved in a meeting with area tourist board representatives just last week.
There is no downward trend in tourism. The trend was upward until last year. This year might also see an improvement, but it is too soon to tell. Mary Scanlon talked about figures for the Highlands being 6 per cent down. There are no official figures for individual regions yet, and figures for visits to tourist information centres are not reliable. It is too soon to rush to judgment this
season. The figures are modestly encouraging, so again—please do not talk the Highlands down.
John Swinney talked about Project Ossian. All 14 area tourist boards are now linked to a national database. Information on 7,000 accommodation businesses is now available on the internet, and there will be 1,000 more by the end of this month. A pilot booking service scheme will begin in October. All told, significant progress is being made.
I am running over time, so I will conclude by saying that the prospects for tourism in Scotland are good, and that there are real opportunities for further substantial growth in the years ahead. If the public agencies can work with the representative bodies—including the area tourist boards and the Scottish Tourism Forum—we can improve things and we can stop talking Scotland down. I am in no doubt that the Scottish tourism industry can become truly world class. I urge members to support the motion.
The minister started late, which is why I allowed a couple of minutes of injury time.