Tourism
Our first item of business is the Scottish Conservative and Unionist Party debate on motion S1M-1216, in the name of David Davidson, on Scottish tourism, and two amendments to that motion.
Here are the facts. First, Scottish tourism has had three poor summers with flattening growth trends against a world tourism trend of continuous growth. Secondly, according to the House of Commons library, business costs have increased by £1,500 per employee since 1997 because of Government regulatory burdens. Eighty per cent of tourism businesses are small, so such costs have a disproportionate effect on them. Why should a small part-time bed-and-breakfast have to jump through the same hoops to get going as would an hotel? Thirdly, the pound is strong because of Labour's handling of the economy and the situation could get worse through Gordon Brown's inflationary spending plans. Fourthly, the euro's weakness is cutting the spending ability of visitors from the European Union.
Fifthly, in the 1999 tourism attitudes survey, the car was the preferred form of transport for travelling within Scotland. Sixthly, UK fuel costs are the highest in Europe—about 75 per cent of the cost to the consumer goes to the Government in tax. Areas such as the north-east and the Highlands—which already suffer from peripherality—are further disadvantaged by those costs. As the minister knows, the industry is pressing for a voucher or discount scheme for visitors. However, would not it be simpler to reduce the Government's take from fuel?
Government policy is reducing visitor spending power and increasing costs to tourism businesses. The net result is serious damage to Scotland's competitiveness. A 1999 tourism attitudes survey said that value for money was a
"concern across all aspects of the product from all markets".
The Scottish Tourism Forum is extremely concerned about the Executive's commitment to backing its own strategy. Has the Executive done anything concrete to make Westminster understand the issues and to address the problems in Scotland's largest industry, which is worth £2.5 billion? The industry employs 180,000 people throughout Scotland and can add value to almost every local economy. Furthermore, it is a vital industry in rural Scotland, which suffers from a lack of Government understanding. Tourism supports local services and facilities such as sports centres, theatres and museums. The Executive claims to believe in sustainable communities, but it fails to appreciate the role of tourism in keeping such facilities open for local people.
On support structures, membership organisations such as the area tourist boards are struggling for resources. The Executive will not listen when we ask time and again for direct funding for the ATBs through the Scottish Tourist Board. Councils are strapped for cash—which is due only in part to Jack McConnell's settlement—so they have chosen to reduce their share of support. Since 1996, Aberdeen and Grampian Tourist Board has suffered a reduction in local authority support of 47 per cent after inflation.
David Davidson complains about inadequate and insufficient funding for ATBs. By what amount would the Tories increase such funding, if they were in charge?
We would certainly want that funding to return to the level at which it was before. However, the trouble is that the money comes from local authorities that have, as Mr Ewing knows, different political agendas, and which do not always agree with each other. We need a thorough review of the process.
In the rest of Scotland, the area tourist boards' budgets seem to be down by about 12 per cent. A chief executive's report says that standstill budgets are forecast for the next three years. The Executive's plan for three-year commitments by councils does not work and, as I stated in the Enterprise and Lifelong Learning Committee, the Executive has virtually made such commitments optional.
A review in three years' time is, to be frank, a cop-out. Where ATBs cover more than one local authority, the differing political agendas cause uncertainty and difficulty that could be resolved by direct funding. Poor resourcing is causing ATB members to lose confidence in their organisations and making it hard to recruit to the industry. That results in a lack of cohesiveness and critical mass in marketing any particular area of Scotland.
The problem of public toilet closures in tourist areas has a direct effect on tourism—that has been picked up by many surveys. I suggest to the minister that toilets in tourist areas should be operated by the STB, with resources to do so being transferred from council budgets. I know that it sounds extreme, but if we want to provide facilities for tourists and local authorities will not play their part, we will have to provide the resources centrally.
Public relations and marketing require greater support, but are not mentioned in the national strategy in relation to funding or objectives. Perhaps the minister will comment on that. The roll-out of project Ossian is, to say the least, erratic. At a cost to the public purse of more than £6 million, it is also expensive. It is not, however, comparable to existing commercial systems, some of which were allegedly offered free of charge. I wonder why those offers were turned down. My colleague, Nick Johnston, will address that in more detail.
Yesterday, a member of my staff tried to book a double en-suite room in Portree and got nowhere. When he broadened his search to include all of Skye, he discovered that project Ossian does not know about Skye. I trust that the minister will tell us why. Why cannot we have harmonised accommodation rating systems throughout the UK? Scotland, England and Wales; each has a different system. It is time to reduce confusion for people coming to the UK.
The Scottish Executive has carried out a necessary review of Scottish Enterprise. Can it now do a review of the STB? Many in the industry claim that it has lost dynamism, credibility and the ability to take any form of cohesive action. That must be addressed and the board must be refocused. I suggest to the minister that Parliament and the Enterprise and Lifelong Learning Committee have a clear role to play in ensuring that that happens.
The chief executive of the STB said that nobody should be under any illusion about the strong and positive impact of tourism on the Scottish economy. The industry creates jobs the length and breadth of Scotland and ensures that visitor spending trickles down through local economies probably more effectively than spending does in any other economic sector. However, who is doing the marketing? The STB appears to have neither the resources nor the remit. We must address how to focus on selling Scotland.
I know that the nationalists support much of what the Conservatives say. However, we will disagree this morning about putting tourism into the hands of Scottish Enterprise and Highlands and Islands Enterprise. A potential strength of ATBs lies in their membership. We do not want a privatised and centrally controlled system that will add to bureaucracy. Tourism bodies must have separate function and focus. The industry is sufficiently large and important to require that specialised focus. If we do not get that soon, some elements of the industry will simply pack up and go home.
I expect that the nationalists might mention that tourism performed well under the previous Government. However, we want to improve on those figures and implement effective strategies that will support the industry and that recognise Scotland as a world destination. We have a quality product and we must do more to ensure that the rest of the world knows about it.
I trust that the minister will stifle demands from the Scottish Liberal Democrats for tourist taxation—caravan taxes and the like—which we heard before the previous election. Our tourism industry is being smothered by the burdens of bureaucracy and taxation and the Government is displaying a distinct lack of activity. We need action to turn tourism support organisations into sleek and effective bodies that respond to the industry's needs. We do not need more glossy documents—we need action.
The amendments in the names of Alasdair Morrison and Fergus Ewing are not completely acceptable. The amendment in the name of the Deputy Minister for Highlands and Islands and Gaelic might as well read, "Aren't we doing well?" The answer is no, the Executive is not doing well. I thank Fergus Ewing for submitting his speech in advance—in the form of his amendment. I notice that he does not seem to be terribly clear about where he stands on the Executive's tourism strategy—he shows a hint of support for it. However, he lists many other issues about which we share concern.
I ask for Parliament's support in calling for the Executive to state clearly—I invite the minister to do so this morning—what it will do to give this vital industry the support and confidence that it needs at this testing time and when it will do it. It is vital that action be taken now. The industry cannot cope with continued inaction from Government.
The number of letters, e-mails and telephone calls on tourism that I have received from various parts of Scotland during the past few weeks has been amazing.
How many?
If Duncan McNeil wants to come to the Conservative office, I will let him see them.
The story in each is the same: there is no leadership from the Government and the industry is banging its head against a brick wall. The purpose of the Conservative motion is to make the Executive come clean and outline its distinct plans.
I move,
That the Parliament recognises the tremendous difficulties faced by Scottish tourism and calls upon the Scottish Executive to make an urgent statement, clearly stating its plans to deal with these difficulties and to improve efficiency in tourism support.
I am delighted to have the opportunity to outline what the Executive is doing on tourism. In February, we published our strategy for developing Scotland's tourism industry. That strategy promised that we would take action to improve marketing, quality and skills and promote increased use of modern technology. Such action, as I am sure Mr Davidson will agree, will assist the industry in meeting the challenges of the 21st century. Only seven months on, we are making good progress in implementing that strategy. Today's debate gives me the opportunity to describe some of the action that we have taken so far.
Members will all agree that businesses must provide world-class service if our industry is to prosper. For businesses to improve, however, they need information. We said in our strategy that we would introduce new ways of providing businesses with that information and we have done that. A dedicated tourism industry website has been developed using the project Ossian technology. The website provides businesses with market research and information about promotional and training opportunities. Since I launched the website in June in Inverness, it has attracted more than 13,000 user sessions. Businesses clearly find the information that it provides helpful and the public agencies that are involved will continue to develop and expand the site.
Provision of information on a one-to-one basis is often the best way to persuade businesses to do things differently. We promised in the strategy that the Scottish Tourist Board would establish a new quality advisory service. It has done so, with financial support from the Executive. The service has been available from the beginning of this month to all members of the quality assurance schemes. We have set up a new industry group to develop skills and promote the uptake of modern apprenticeships and individual learning accounts. That group will also work to identify and establish centres of training excellence—another strategy promise that we have kept.
One of the most difficult tasks that the tourism industry faces is the extension of the benefits of tourism to remoter areas. Although good progress has been made in recent years in extending the tourism season—in both spring and autumn—everyone recognises that more must be done. As our strategy says, we believe that the development and marketing of niche products can help with that.
Golf tourism is an important national niche. Scotland has more than 500 courses and there is a great opportunity to increase the value of tourism by doing more to develop and promote golf tourism. In June, we announced actions to do that. Our aim is to ensure that when golf tourists consider their holiday venue—irrespective of which country they live in—the first country that they think of is Scotland. We need to re-establish Scotland as the home of golf. To help in achieving that, the STB has already increased its golf marketing spending fivefold.
Genealogy—or roots tourism, as some call it—is another important niche. We will presently announce actions to encourage more people who have Scots ancestry to visit Scotland. That issue was touched on in yesterday's members' business debate, which was initiated by Jamie Stone. Rhona Brankin chairs a group that is considering how tourism can obtain greater benefit from Scotland's diverse culture and heritage. That work should be completed by early next year.
We have also provided financial support to the area tourist boards to enable them to develop local niche products. Six new projects will be in place for the 2001 tourist season. The projects have been developed by ATBs that are working in partnership, which is a welcome development. Our two great cities, Edinburgh and Glasgow—although I appreciate that there are other great cities in Scotland—are, with support from Scottish Airports, taking joint action to attract additional business between October and March.
I have listened with interest to the minister's comments. Does he accept that, while certain initiatives in Edinburgh, Glasgow and the central belt are laudable, much of Scotland is crying out for tourists? How will they get to the remoter parts of Scotland while fuel prices are at their current level?
Miss Goldie began her intervention well, but sadly ended on a quite ludicrous note. It is appropriate to point out what is being done by Edinburgh and Glasgow. We appreciate that there are challenges related to fuel. Let me cite one example from Highlands and Islands Enterprise.
Will the minister give way?
I will respond to Miss Goldie first.
Thanks to an excellent initiative, 23 petrol stations throughout the Highlands and Islands now offer liquefied petroleum gas. That is an important development for the Highlands and Islands, because LPG is the cheapest form of fuel that is available in the United Kingdom. One million Italian motorists and 400,000 Dutch motorists use bi-fuel cars. It is an important initiative and a way in which we can get people to remoter areas, particularly the Highlands and Islands.
One of the main thrusts of our strategy is to further develop the Visitscotland information technology system. That system has been developed—with considerable Government support—to provide some of Scotland's smallest businesses with access to the world tourism marketplace. At its core is a database that contains detailed information about almost 16,000 tourism products and services. The number of products coming on to the system is increasing by about 100 per week. Approximately 10,000 potential visitors to Scotland access the website every day. That is serious exposure for Scotland and Scottish tourism products.
Will the minister give way?
I must make progress. I have less time than Mr Davidson had.
Visitscotland and the Ossian system, contrary to what some Opposition members say, are a success. Ossian will, of course, require further investment if it is to keep ahead of the competition. That is why we are moving towards a public-private partnership, which will be in place by next spring.
The Ossian technology provides businesses with the opportunity to trade by e-commerce. It is true that take-up by small and medium enterprises has been slow, but that is not too surprising. The e-commerce module was fully developed and made available to serviced accommodation providers only in July. The period after July is the height of the tourist season. Most of those who are employed in the industry and who are working at developing new skills do so outwith the main season. We need to ensure that expertise in trading by e-commerce is one of the skills that is developed.
I am therefore asking all area tourist boards to promote vigorously to their members the benefits of e-commerce. I am also asking Scottish Enterprise and Highlands and Islands Enterprise to ensure that arrangements are in place to provide assistance with training for all businesses that wish to use the Ossian system.
I have set out a number of actions in our tourism strategy, which I believe are the way ahead for the industry. All the evidence that we have points to the fact that businesses that provide a quality product that is backed up by quality service do better than those which do not. The actions that we are taking to support the industry—backed by the new funding that was announced last week by Henry McLeish—will provide all tourism businesses with the opportunity to compete with the best. It is up to all businesses to meet the challenge and I am confident that they will.
I move amendment S1M-1216.2, to leave out from "recognises" to end and insert:
"acknowledges that tourism has had a difficult year, but recognises and supports the Executive's on-going implementation of the New Strategy for Scottish Tourism, published in February this year."
The Conservative motion states:
"That the Parliament recognises the tremendous difficulties faced by Scottish tourism and calls upon the Scottish Executive to make an urgent statement, clearly stating its plans to deal with these difficulties and to improve efficiency in tourism support."
In short, the Conservatives have come here today with a simple message: "Woe is me, tourism is doomed—something must be done."
I waited to hear what that something was. I waited for the Conservative master plan on how tourism would be turned around. I waited to hear by how much the Conservatives would cut fuel tax, whether they would give up their love affair with the strong pound and whether they would apologise for Mrs Thatcher's increase in VAT—the bed tax—from 8 per cent to 17.5 per cent.
Did we hear any of that? No. What is their master plan? It is that the Scottish Tourist Board should run the toilets.
Will Mr Ewing give way?
Perhaps David Davidson will expand on the Conservatives' policy in his intervention.
If Mr Ewing had paid attention during the past few weeks, he would know what we would do about fuel taxation. Many of the things that we did in the past have been undone. The damage that was done to business by increased taxation and its problems and woes do not affect only tourism. The Deputy Minister for the Highlands and Islands and Gaelic is supposed to represent the Government. Would not Mr Ewing prefer to ask him that question? Mr Ewing should vote for the Conservatives—we would happily deliver a better strategy for Scottish tourism.
It might come as a surprise to David Davidson, but I was going to mention the fuel tax. I am delighted to say that Kenny MacAskill and I reiterated the SNP policy of September 1999 at our conference last week—we restated the SNP's commitment that fuel tax in Scotland should move towards the average level in Europe. I believe that that is a principled and fair commitment. Despite the fuel tax protests, we have not heard Labour's true policy in the past three weeks.
Will the member give way?
Not just yet, Phil. Haud yer wheesht for a wee minute.
Labour's policy is that the fuel tax is too low—it is committed to increasing fuel tax by at least the rate of inflation at the next budget. Does any member from the Labour or Liberal Democrat parties agree that that is the right policy for Scotland? I am happy to take interventions, but there are no offers from Labour or the Liberal Democrats.
I understand Mr Ewing's frustration about the silence of the Labour and Liberal Democrat members in the chamber. He mentioned the cut in fuel tax that the SNP would bring about, but cuts in tax require cuts in spending commitments, so will he tell us what spending commitments the SNP would cut?
Phil Gallie's appearance on "Newsnight" the other night was better than that question. If someone will supply me with an interpreter, I will be happy to deal with it later.
Phil Gallie is right about the silence of the Labour lambs. During the life of this Parliament, no Labour MSP has expressed a word of criticism about the fuel tax. Labour MSPs are the only people in Scotland who think it is a great thing—they even think that it is too low. I am happy to take an intervention from anyone who disagrees with Tony Blair.
I thought that we were talking about tourism, but we seem to be talking about fuel tax. Mr Gallie's question was fair. The nationalists incorporated the fuel tax escalator into their economic programme for independence and it has not been dropped from the programme. If Mr Ewing is going to say that he wants to freeze the fuel tax escalator, he will have to tell the chamber where he would make the spending cuts that would compensate for that.
Yesterday, Mr Mandelson said that spin was bad—today we hear complete fiction from Allan Wilson. All SNP MPs have always voted against the fuel tax escalator; it has never been part of our policy commitments and it never will be.
To return to tourism, the SNP is, as our amendment indicates, not wholly negative in its response to the Executive's strategy. The strategy has some good parts; but it also has many failings. The amendment in my name concentrates on some of those failings.
A firm grip must be taken of the Ossian booking system, which is seriously defective. Area tourist boards are in need of reform—local economic forums are the way to deal with that. Landing charges are a serious problem for Scotland and Kenny MacAskill will expand on that matter. Local marketing initiatives, such as the one in Nairn, are the way ahead. Local consortiums in public-private partnerships are marketing themselves directly without the use of generic advertising. That has been done in Nairn, Lochaber, Aviemore and the Borders. That is a positive suggestion, and the SNP is, as ever, delighted to be able to make a positive contribution to the debate.
I move amendment S1M-1216.1, to leave out from "recognises" to end and insert:
"notes that tourism in Scotland faces considerable competitive disadvantages in comparison with countries such as Ireland in respect of the high pound, high levels of tax on fuel, high business rates and lower resourcing for generic and other promotion; believes that those involved in the tourism industry are to be congratulated for their work and the measure of success achieved despite these disadvantages; further believes that the tourism strategy launched by the Scottish Executive, whilst it has certain good elements, cannot in itself meet the needs of the sector, and calls for (a) an immediate assessment of the efficacy of the Ossian on-line booking system, (b) targeting of resources to permit locally based marketing, (c) a review of the level of landing charges in our airports and (d) a commitment that the area tourist board structure will be amended in the light of the conclusions of the local economic forums with the aim of finding the best solution for each area."
I can hardly believe that. I am shell-shocked—a positive contribution to a debate from Fergus Ewing. Well done.
I welcome the chance to discuss the tourism industry, which is such an important industry for Scotland. I would like to move the debate back to tourism, rather than staying on some of the issues that Fergus and others have wanted to discuss. Tourism is very important for my constituency. There is no doubt—as David Davidson, Fergus Ewing and Alasdair Morrison have said—that the industry faces some real challenges. The biggest challenge that it faces is the exchange rate, which works against the competitiveness of our industry vis-à-vis the rest of Europe. Other challenges are the cost of fuel, a static market and intense competition from our overseas competitors. Taking all those factors together, Scotland's tourism industry faces challenging times indeed.
Is the industry dying? Is it on its knees? Anyone who read some of the press reports after the publication in July of the Scottish Tourist Board's annual report would have been forgiven for thinking that Scotland's tourism industry was on its knees and about to go into its final death throes. Commentators and some politicians seem to delight in talking the industry into an early grave.
In its news update on 21 August, the Scottish Tourism Forum stated:
"Press reports and analysis ranged from the sublime to the ridiculous and have only been successful in talking down the industry".
It is wrong that such reporting happened. We face challenges in our tourism industry, just as we face challenges in all our primary industries, but there are some positive aspects. Tourism in Scotland grew throughout the 1990s and peaked in 1997. However, there has been virtually no growth since then. Why? The answer, if one looks closely, is quite simple: the exchange rate. It also explains the tremendous rise in tourism during the 1990s before it levelled off in 1997. From 1992 to 1996, £1 was worth DM2.20. Today, £1 is worth DM3.20. That means that Scotland is 40 per cent more expensive as a destination than it was.
I take it that Mr Lyon is heading towards an explanation of why we should join the euro. If he is, and if he wants to join, what should the exchange rate be?
If Mr Davidson considers our competitors in Ireland—who joined the euro at IR£1 to DM2.40 or DM2.50—he will see that Ireland now enjoys a 25 per cent competitive advantage over Scotland.
Will the member give way?
I would like to make some progress, if the member does not mind.
Compared to other countries, Scotland is a much dearer destination for our European friends. Going abroad is a much cheaper option for Scots, because of the advantages of the exchange rate. The Scottish Tourism Forum stated in its August update that
"the Pound's relationship to European currencies and the Euro is identified by businesses across tourism as a prime cause of reduced visitor numbers in Scotland".
That is a fact. The sad truth is that, until United Kingdom entry into the euro is finally resolved, wild fluctuations in our exchange rates are a cross that all our primary industries and the tourism industry must bear. The impact, unfortunately, is felt disproportionately in rural Scotland.
However, it is not all gloom and doom. Numbers of American visitors are at their highest for four years. That is also because of the exchange rate; we have seen a devaluation of some 20 cents of the pound against the dollar. We have also seen a reversal of the decline in the number of Scots who holiday in Scotland, which was a big feature of the downturn in 1998 and 1999.
During my summer tour of my constituency, I found that some areas such as Tiree and Islay were doing well, whereas others were not doing so well. One of the key issues was that the hotels and guest-houses that had invested in quality—by upgrading accommodation and reinvesting in their businesses—were weathering the situation well. The other day, I spoke to an hotelier in Tarbet who reported a 10 per cent increase in business.
We have also heard reports from Caledonian MacBrayne that, despite higher fares and the price of fuel, there has been an increase in the number of travellers in cars using CalMac services.
Regardless of all the predictions of an early death, our tourism industry is alive and well and fighting hard to win its share of business, despite a large competitive disadvantage. The Scottish and Westminster Parliaments must address certain issues in order to help the industry. First, we must make the argument for the benefits of entry to the euro. Secondly, we need measures to tackle the high cost of fuel. Thirdly, we must ensure that the tourism strategy document—to which every party in the Parliament signed up when it was discussed in the Enterprise and Lifelong Learning Committee—progresses towards early implementation. I see Fergus Ewing nodding, but I remind him that he sat in the committee and agreed to that.
I was shaking my head.
Now I am confused as to whether that represents a no or a yes.
The Executive must re-examine funding of ATBs. If we want to put tourism centre-stage, direct funding is the only way to go. There have been cuts in council funding to ATBs. Finally, it is up to everyone to stop talking Scotland's tourism industry down and to begin to look on the positive side.
This is a very short debate so I must restrict speeches to three minutes.
I am glad that we are having this debate, because tourism is now Scotland's most important industry and is especially important to my constituency.
The industry pays more people's wages than the oil, gas and whisky industries combined and acts as a stimulus for other sectors of the economy, attracting inward investment. Tourism should promote a positive image of Scotland throughout the world, promoting the beauty of our landscape and the historical importance of Scottish buildings.
It was thoughtful of the Scottish National Party to send us its brief; the SNP's prediction that the Conservatives would use today's debate to emphasise that tourism did well when we were in power, but has declined under Labour, was spot on. Never was a truer word spoken. Popular destinations such as Loch Lomond, the Trossachs, and Argyll and its islands have experienced a fall in visitor numbers of almost 20 per cent. In some places in the Highlands, such as Helmsdale, numbers are down by 60 per cent. That follows a bad drop in last year's figures. If it were not for Edinburgh and Glasgow, which seem to be holding up, Scotland's tourism industry would be in freefall.
Why should that be? Scotland's exceptional beauty will always sell itself and its history is the stuff of legend. Fundamental questions must be asked. First, how can it be that the Scottish Tourist Board booking site, Ossian, which cost £6 million, has had only 30 bookings since its launch? When Henry McLeish launched the project in July, he forecast that internet bookings would increase revenue by £360 million within three years. Ossian has not had a very good start.
Secondly, a rise of 26p per litre of petrol, or £1.17 per gallon, was bound to make Scotland an expensive destination. Why has the Executive not planned for that and why has the Government not cut fuel tax?
Thirdly, by insisting on high interest rates, which have inflated the value of the pound against the euro, the Government has been destroying foreign tourism. On that point, how can the Lake District boast 12 million visitors per year, while the whole of Scotland gets a maximum of 10 million? If the currency is such a problem, why does the Executive not concentrate on selling Scotland to tourists from other parts of the UK? Tradition says that one normally does business with one's neighbours. Scotland's neighbours are those who live in the north and the midlands of England, and there are plenty of them.
The main criticism that I have heard from those at the coalface of the tourism industry is of a lack of investment and professionalism from tourist authorities. The accommodation sector is the most vital because all other facets of tourism service it, but in the Highlands a huge number of hotels are for sale; as a result of lack of investment, they do not live up to what the modern tourist wants. Unless they are completely refurbished they have had their day, but 90 per cent of grant money is wasted because it is going into old properties and simply pasting up cracks.
We need a rebuilding scheme in Scotland. Our infrastructure in the Highlands was greatly improved under the Conservatives, but trunk road building has been cut tenfold since then. People judge a country by its roads system, which is one of the oldest marks of a civilised society. Many Highland roads have a hardcore base of around 8 in, which is inadequate and easily pulled to pieces by heavy lorries.
The other area in which we fall down is staff training. Staff are being trained the wrong way, with no ethic. In France, being a chef or a waiter is something in which people take pride. Here, it is seen as a dead end and a last resort. Tourism is Scotland's biggest industry. Those who work in it should be proud of their jobs and careers. Hotel-keeping is a hands-on trade. Success is achieved in the kitchen, the reception and the dining room. We may laugh at Americans for saying, "Have a nice day" or, "Missing you already" before one has left the room, but they know that he who pays the piper calls the tune. Scotland's tourist trade must attract high-quality applicants who can be trained to give excellent service.
If ever there was any doubt about whether the Liberal party was a party of government or of opposition, Mr Lyon answered it today by seeming to deny some of the serious problems that are faced by Scotland's tourism industry. I read the same figures as he did, but he decided to omit some of the key facts. He omitted the fact that we have had a 9 per cent drop in visits to Scotland this year. He seemed to omit the fact that we have had a drastic drop in the number of visits to tourist information offices, which is a key indicator of activity. He omitted to mention the drop in the number of visits to sites owned by Historic Scotland, which is another such indicator. Let us be clear: we are not talking down Scotland's industry, but attempting to put the problems on the table so that we can deal with them and start to make an improvement.
Today's motion and amendment highlight two areas that need to be developed. The first is the structure of, and funding flow between, area tourist boards and local authorities, and the need to bring them together. We are at one in agreeing that that must be done at a local level. There is a strategic role, but it is important that the local aspect is emphasised—that is why Fergus Ewing included it in his amendment—because local people and local businesses understand clearly the marketing needs of their area.
The second area is the Ossian website, which is in danger of turning into the Executive's equivalent of the millennium dome—£6 million has been put into it for 30 bookings to date. We heard today that the website needs even greater investment, despite the fact that we have yet to see a positive outturn from it. Internet bookings and the internet are an excellent way forward, and we all embrace the concept and the challenges of e-commerce, but it is important also to note—and I cite in support of this argument the evidence from the Moffat Centre for Travel and Tourism Business Development at Glasgow Caledonian University—that they form only one aspect of promoting tourism. The target, set by Henry McLeish, of 90 per cent of bookings being made online is interesting and challenging, but we must ask whether it is realistic. Is not it the case that we are in danger of cannibalising, and that there will always be a role for the travel agent and the tour operator, as opposed to simply putting everything online? I suggest that the Executive reconsider that target.
I was struck by something that Allan Wilson said, because in many ways it summed up everything that is wrong with the Executive's approach to tourism. In answer to Fergus Ewing's predictable, but none the less accurate, comments about fuel, he said, "I can't understand why we are talking about this. I thought that we were talking about tourism."
Will the member give way?
No.
If the Executive does not think that the price of fuel and petrol in Scotland is directly linked to tourism, it is wide of the mark.
There is a difference of opinion between the Highlands of Scotland Tourist Board and the Forum of Private Business; one cites the strong pound as the major problem, while the other cites the price of fuel. Whichever of those problems we care to highlight, the one thing that they have in common is that the Parliament and the Executive have no control over the two key drivers in the decline of Scottish tourism. That is the ultimate disgrace. The Executive must first ensure that the representations from the Executive and the Parliament on those two key issues start, finally, to address the fundamental problems.
Several comments that I wanted to make have been made, so I shall try to make different points.
It is obvious that tourism is important. The tourism industry generates £2.5 billion per annum and employs 177,000 people, which I gather represents 8 per cent of employment in Scotland.
Wider issues such as the exchange rate and the price of petrol have been mentioned. Unlike Duncan Hamilton, I do not think that we do not realise the importance of those factors. The speeches from SNP members have focused on negative aspects of tourism and its future, and have not tried to take a balanced approach. I will take a balanced approach.
The Ossian IT project and the online booking system have been mentioned, but little has been said about the rest of the website. As Alasdair Morrison said, the site attracts 10,000 user sessions a day and has received 37 million hits so far this year. The Scottish Tourist Board's site is the most visible of the tourist board websites in the UK and 53 per cent of UK travel website users recognise it. Of the people visiting the STB site, 70 per cent ranked its range of information as good or very good, and a recent newspaper survey of websites rated the STB website second behind the Spanish tourist board's site. Duncan Hamilton did not mention any of those points.
In the first two years, £2.2 million has been invested, which I gather is a small amount compared with the money that is invested in IT systems. That is why future investment is needed. Private sector players need to be brought on board the Scottish tourism e-business project, or STEP 2000, a public-private partnership. No mention has been made of encouraging other private sector players who want to provide further investment.
I am curious about the argument that Ossian is value for money. In evidence given to the Enterprise and Lifelong Learning Committee, Richard Irwin said that Ossian was extravagant. He was angry about the amount of money that had been put behind it. Is it not true that that public expenditure is much greater than the expenditure on a standard private sector site and that the Executive stands accused of wasting money?
To be fair, the general impression is that the amount of money that has been invested so far is small compared with the benefits of the system.
David Davidson questioned whether the system should be incorporated into a UK-based system, but there might be disadvantages in that. The importance of keeping it in the Scottish context is that we keep the branding and the niche marketing. David Davidson's suggestion should be considered carefully, because we could lose many advantages by going into a UK scheme. It is something to discuss for the future. Rather than dismissing ideas that are put forward by the SNP and the Conservatives, let us try to be constructive for once.
Please wind up.
Time is short. A few more things—
There cannot be a few—just one.
On a rather negative note, the rural hoteliers in my constituency are experiencing difficulties along the lines of those that were mentioned by the Conservatives. To end on a positive note, I hope that the new tourism skills group will be able to deliver continuity and help to bring to that hotel sector the skills that exist in the larger hotel groups.
Given all the talk of public lavatories, it may be at my peril that I speak in this debate, as I am probably the only member of the Scottish Parliament who was once employed as a lavatory cleaner. I did that job for several months and am an expert with the Vim and the brushes.
Perhaps my good friend, young Duncan Hamilton, is missing the point about project Ossian—it gives the B&B lady in the far-flung parts of the Highlands a shout in a way that would not have happened unless it was done on the widespread, publicly funded basis of Ossian. We must remember that those features underpin Ossian.
A problem that we face in Scotland and in the Highlands is that the tourist market has changed. We have moved from the coach tour market, which is going abroad these days, to a much more detailed type of tourism. We must play to our strengths in cultural, artistic and natural heritage, and the minister is exploring those avenues.
With the development of e-commerce, the web and the internet, one finds that a small place, such as my home town of Tain, can access the international market in a way that was not possible previously.
Let us get to the nitty-gritty. The question that faces all of us is, "What is the role of the STB and the area tourist boards?" An argument is being made that more money should be taken from the STB and placed at the local level. I know that a wholesale restructuring of tourist boards would daunt some members, although I understand that the nationalists are sympathetic to the idea. Local tourist initiatives are the way through the problem and were hinted at by Fergus Ewing. It is no accident that, this Saturday, a farmers' market will take place in Tain, as that is the sort of initiative that attracts tourists.
Tourists are no longer interested in "France: the concept". They are interested in the Dordogne, or in a particular town or aspect of French life. The detail is important and we should remember that the tourism market is becoming more sophisticated.
It would be wrong of me to miss the opportunity to stress the importance of Scottish food in the tourist market. [Members: "Cheese."] The word "cheese" will not pass my lips. Nevertheless, the days of going to an hotel somewhere in Scotland on a grim day and being faced with a piece of leathery steak and some stale chips have gone. The market is much more sophisticated than that.
Unfortunately, Jamie McGrigor did not mention scallops in his speech, but I am sure that he will do so on another occasion. We must play to our strengths: scallops, whisky, meat and—dare I say it—good cheese. All of us know that there is nothing better than Scottish beef. Make no mistake: we would bring tourists back if hotels and restaurants could get properly hung beef.
On the subject of good, clean Scottish air and food, does Mr Stone agree that we should advertise some of the dangers that are involved in going abroad for holidays, such as packed airports, dodgy hotels and Delhi belly?
While I am sure that Mr McGrigor has a point, I am sorry that his most recent holiday abroad was so unsuccessful.
The Scottish National Party agrees with much of what David Davidson said. It is clear that high fuel costs and the high pound are fundamental to the problem. As the Conservatives borrowed our brief, we will borrow their phrase: the problem is Labour's double tax whammy. Until those issues are addressed, we will continue to face incredible problems.
Yesterday, and when I was in the Highlands earlier this year, I met some Scandinavians, which took me back to the time when, many years ago as a student, I travelled by inter-rail to Scandinavia. The only people who could afford to go to Scandinavia during the 1970s were either the very rich or backpackers who were prepared to live rough. In the north of Scotland, we are losing the middle market; the only people who tour northern Scotland now are either backpackers, who are prepared to live off the land—as I did when I went to Scandinavia in the 1970s—or those who are affluent and can afford to pay the prices.
Will the member give way?
No. I do not have time.
We are pricing out of the market people who used to come from Manchester, Liverpool and elsewhere for the fresh air and the break away from the smog and the big city. We must address that problem.
In responding to those issues, the minister talked about golf. If he had read the SNP brief, he would have noticed the reference to the ITB in Berlin. I spoke to a travel agent who visited that show, who said that the only country that advertised golf was Qatar. Scotland, which was represented at the British Tourist Authority's stall by a man in a kilt, did not advertise golf. The stall did not present an objective perspective of the services that are available in Scotland.
The minister talked a good game about what airports are doing. Not that long ago, I asked what the Government proposed to do about the loss of the air link between Edinburgh and Vienna. Austria is a rich country and flights from Vienna should be coming directly to Scotland, bringing high-yield, high-spend tourists. The minister replied that that is a problem for the industry. It is not; it is for our Government to target how we bring people into this country. We want to bring Austrian tourists in directly.
Will Mr MacAskill give way?
I do not have time to take interventions. If Austrian tourists have to fly to Manchester or London, they cannot come to Scotland for a weekend. We must be able to bring them in directly.
Whatever Mr Lyon may say, I am not bound by the strategy document, which states:
"Scotland is an important and attractive brand for the BTA and it represents Scotland in 27 overseas offices, including all of Scotland's most important overseas markets."
No wonder we do not get a good deal, with tourists going to competitor airports and competitor locations south of the border. We need to market Scotland ourselves and bring people into Scottish airports, not to Manchester, Newcastle or London.
As for LPG, all I can say is that I think the minister must be vying with Allan Wilson to be the voice of Brian Wilson in this chamber. I would rather deal with the organ grinder than with one of the monkeys. The suggestion that LPG is a solution for the north of Scotland is lamentable. Are Italian tourists queuing up in their LPG motors now that there are apparently a few outlets in the north of Scotland? Where are they to fill up on the M6 or the M74? That pathetic excuse might well be offered by Brian Wilson, but his two comrades in this Parliament should know better and do better.
Although this debate on tourism has been short, the Opposition parties have managed to highlight their lack of understanding about an important industry.
I formally welcome the voice of reason in the debate, Kenny MacAskill, who said that he would not be bound by the strategy. I must enlighten him to the fact that his newly elected leader is indeed bound by that strategy. It would be churlish not to concede that, when John Swinney chaired the Enterprise and Lifelong Learning Committee, he did so in a constructive and responsible manner. But Mr MacAskill is being Mr MacAskill and is flying in the face of his recently elected leader.
Mr MacAskill said that we are doing nothing to promote golf tourism. He is clearly not a man to listen to reasoned debate; I stated that investment in golf tourism had increased fivefold in recent months. That is clearly outlined in our strategy and that commitment is being delivered.
Other members, thankfully, have a greater understanding of tourism than have the nationalists, and I shall address some of their comments. George Lyon was absolutely correct to mention the important point that no member of any party should talk Scotland down. He mentioned ATB funding, as did Mr Davidson. When we launched the strategy last February, Henry McLeish said that he would review it over the next 12 months and revisit the matter next February. George Lyon also mentioned his constituency and cited examples of people who have invested in staff and infrastructure. Such people have fared well this season. Quality and investment are clearly outlined in our strategy, and I remind Mr MacAskill that every single party signed up to that strategy.
Jamie McGrigor mentioned training, which is an important point. Sylvia Jackson mentioned Ossian. She understands what Ossian is about and she cited a national survey that appeared in The Daily Telegraph, in which Ossian appeared in second place—second only to the Spanish website. Ossian is a success story, but it is obvious from the remarks that have been made by Opposition members that they have not even bothered to find out what it is all about. It is not about e-commerce. It is about the development of systems, databases and new working practices in tourism to ensure that Scotland is leading, not following, the competition. Ossian has a central database of 16,000 products, with 100 more products being added every week, and is accessed by 10,000 potential visitors to Scotland every day. It provides access to the worldwide marketplace for some of Scotland's smallest businesses. The smallest business has the same global reach as the biggest hotel here in Edinburgh. I can assure members that that is not failure.
Will the minister give way?
I do not have time. I would be delighted to hear more from Mr Hamilton, but three minutes in an hour is quite enough.
As always, the Opposition has talked down the industry. It has ignored the many success stories from around the country. It has not mentioned businesses that have developed websites and that have increased their business substantially through the use of IT. It has not mentioned businesses that have progressed up the STB star scheme—businesses that have put in time and effort to train their staff and that are providing excellent standards of service. It has not mentioned businesses that have taken the trouble to research their markets and to promote their strengths.
A few weeks ago, I met the businesses that have been shortleeted for the thistle awards, for which there was a record number of entries—up by some 30 per cent. The awards are a reminder that quality and excellence exist in Scottish tourism right across the country and across the range of tourism businesses.
I had planned to mention the nationalist policy on fuel, but I am at a loss as to which to choose. We have heard four in the past fortnight. Fergus Ewing cited the current position. I remind that his newly elected leader stated quite clearly, at the Scottish Grand Committee, that the nationalist position was to freeze fuel duty. In recent weeks, in typically opportunistic style, the SNP has changed position time after time, day after day.
Many businesses in Scotland provide excellence. The action that we are taking will provide an incentive for many more to join them. In our programme for government, we promised that we would promote tourism and that is what we are doing. We have taken action to encourage businesses and individuals working in the industry to improve their marketing, the quality of the product and their skills. All that is backed up with a record level of resources. While the Opposition talks, we act. I ask Parliament to support the amendment.
This has been an interesting, if short, debate. I liked Fergus Ewing's speech. He started in a fit of pique because the cloak of misery in which he usually garbs himself has been stolen, not by my colleague Mr Davidson, but by the minister. The minister's speech today showed complacency, lack of vision and the acceptance of failure. However, if someone has their head buried in the sand, the only place that they can talk from is the other end of their anatomy.
Colleagues today have given the figures. Scottish tourism is down, whereas UK and worldwide tourism are up. The situation is made worse by the fact that Glasgow and Edinburgh have prospered, while figures for the Highlands, Fife and the Borders are well down.
What all the problems have in common is detachment—ministers detached from the industry, the STB detached from the tourist trade, the ATB semi-detached from the STB, often shunned by the trade and lacking funds, and the STB failing to engage with, or to answer the needs of, the tourist industry. That is the result of a lack of leadership from the Executive. As one hotelier asked me yesterday; is not it an indictment of the industry that at no time since the creation of the STB has anyone from the industry headed the organisation?
As Duncan Hamilton pointed out, Ossian is an extreme, expensive failure. It was launched with a bang, on 29 March 1999, by Lord Macdonald, who stated:
"The Ossian system is a world first, developed in Scotland".
Ossian was to be a working system of online booking—collect £1 million. On 22 July 1998, we heard of a review covering marketing, visitor servicing and development of the Scottish Tourist Board—collect £1 million. In December 1998, Gus Macdonald collected another £1 million. On 19 March 1999, Henry McLeish said, "Tourist spend is down, but let's blame the weather; by the way, don't forget the £1 million that I gave Ossian in January." In March 2000, Henry McLeish pledged £4 million—I presume that it was the same £4 million that had already been announced, but with the Executive one never knows—and said that Ossian now had 14,000 listings for accommodation. On 6 April, Henry McLeish earmarked another £3.9 million for further development of Ossian—or was that the same £4 million that had been declared by Lord Macdonald and by Henry McLeish in March 2000?
Ossian was to be the world's first online booking system, as demonstrated by Gus Macdonald in March 1998. On 6 April 2000, it had not taken one booking. By the time the new strategy for Scottish tourism was launched, the listings figure had dropped to 10,000; where have the other 4,000 places disappeared to? I suggest that they have been registered with one of the other sites that are up and running—not in development, not costing £4 million, but taking bookings. As Duncan Hamilton mentioned, Richard Irwin offered to develop the site for the Scottish Tourist Board at a cost of £200,000, rather than £4 million. I know about the site; I know that it is not just a booking agency, but it is an extremely expensive database.
I venture to suggest that Ossian has been an expensive blunder. As Duncan Hamilton said, Ossian—like the dome—is an embarrassment for ministers. Money will be poured into it. Why not call a halt now and give the project back to the private sector. Let the private sector do what it is good at, and the public sector stick to doing what it is not so good at.
The minister did not mention the fuel crisis in Europe—not so much a matter of "let them eat cake" as "let them sniff gas." We hoped to hear today how the £12 million—yet more money that is being poured into the STB—would be distributed, but what we heard was waffle.
As for George Lyon and the Liberals, sometimes I despair; they have no strategy at all for tourism, apart from dragging us into the euro at a totally unrealistic rate. At least Jamie Stone, who unfortunately is not in the chamber, pointed out that the high point of his career allowed him to say that Ossian was value for money. If lavatory cleaning is a measure of how to set up a database, I had better start on a new career.
Kenny MacAskill made some good points; the air links are extremely important. As members will know, my wife is Spanish. When I want to travel to Spain, I have to go via Stansted, Luton or Heathrow. Why do we not have direct flights from Barcelona to Scotland?
Because your lot did nothing about it.
We would these days.
Now for Sylvia Jackson, the member for platitude north. I am glad that she has learned to read—all that she did today was to take the STB brief, which was sent to us yesterday, and read it out.
What is the measure of Ossian's success? The STB stated that its e-commerce function was launched eight weeks ago on 24 July and is already attracting bookings. It said that it was untrue to suggest that the system is not working, as it has taken 17 bookings in total from 48 businesses. Seventeen bookings—what a success.
The criticisms are not just mine. Ivan Broussine of the Scottish Tourism Forum stated:
"The world tourism industry may be growing at about 4 per cent a year but in Scotland we are plateauing out."
In reality, when the figures for Edinburgh and Glasgow are removed from the Scottish total, we are in freefall.
Donald Macdonald stated:
"In my opinion, the Scottish Tourist Board has been losing dynamism and credibility over a number of years".
If that is the case, it is merely following the Executive. He went on to say that
"The organisation is out of touch with actual and potential consumers of Scottish tourism".
The Conservative approach is a 14p per gallon cut in fuel tax; a minister for tourism within the Scottish economy team; and another root-and-branch review of the STB. This time, the review would be thorough enough to ensure that the STB would meet the needs of the tourist industry. Further, we support direct funding of ATBs and action to ensure that they are driven by local needs, as Duncan Hamilton, Fergus Ewing and David Davidson pointed out.
Tourism in Scotland needs a clear track on which to run. I have a vision of Alasdair Morrison on the footplate of the engine, shovelling fivers into the firebox of the tourist industry train. I am afraid he has missed the red danger signal; his tourist gravy train has hit the buffers. What is needed is a new engine and, with respect, a new engine driver.
On a point of information.
No. The debate has ended.