Scottish hospitality and leisure industry set for bumper year

A report produced by the bank’s corporate banking division entitled Destination UK: driving growth in the UK hospitality and leisure sector, reveals that over a quarter of Scottish holidaymakers (27 per cent) plan to spend more time on holidays within the UK this year with a quarter (26 per cent) also expecting to be spending more money on UK breaks.

The report, which assessed the 2017 holiday and leisure preferences of almost 10,000 guests from the UK, continental Europe, the US, Middle East, Asia and Australia, showed that across the UK nearly two fifths (36 per cent) of British holidaymakers are planning exclusively UK holidays this year, and a further 16 per cent expect to spend over three quarters of their total holiday time in the UK this year.

Two fifths (42 per cent) of Scottish holidaymakers say that they would now choose a ‘staycation’ over an international holiday, even if time and finances allowed. A figure that is higher than the national level (35 per cent).

Scottish guests are increasingly looking for holidays that are close to home. Two thirds (66 per cent) of Scots selected Scotland as their top destination for UK holidays, showing the importance of local links.

Nationally, half of respondents choosing a UK break described the familiarity of food, language and travel options as making the UK ‘hassle free’ with 31 per cent now more aware of UK holiday options.

Nearly four in ten UK respondents (38 per cent) of those citing cost as a factor behind a UK break said the weaker pound made holidays in the UK preferable to those abroad, and 39 per cent said a domestic holiday represents better value for money in 2017. The research reveals that the average British budget for UK breaks is £800 with over a fifth (22 per cent) of holidaymakers planning to spend more than £1000 on their UK getaways. During their staycations, Brits also plan to spend an average of £309 on accommodation, £152 on dining out and £121 on shopping.

The research also demonstrates the enduring appeal of Scotland to international holidaymakers, which was voted the second most popular choice (44 per cent) for a potential UK break, second only to London. Scotland is especially popular with potential guests from Germany (50 per cent), Australia (49 per cent) and Russia (60 per cent).

At a UK level, high profile advertising campaigns (29 per cent), the weaker pound (31 per cent), greater spending power (30 per cent), and TV programmes like The Crown which feature the UK (22 per cent) were all among the reasons cited for Britain’s appeal.

Holidaymakers in Scotland are foodies, with over half (52 per cent) of guests selecting the trend towards hotels emphasising their food offer as the most likely draw to pick one holiday over another, compared to a national average of 44 per cent. The trend towards experiential breaks such as ice hotels or glamping is also a major attraction, with 31 per cent of Scotland’s holidaymakers saying such an offer would make a leisure provider more attractive. Almost one third (29 per cent) also appreciated the personal touch, citing the trend for curated visits and experiences as more likely to make them choose one leisure providers over the other.

Younger UK consumers are more interested in a high-tech approach to the leisure sector than older consumers. Over a third (36 per cent) of 18-34s would be more likely to use a bar that invested in automated drinks dispensing, compared to just 6 per cent of the 55 and overs. Younger consumers are also more comfortable with automated ordering in restaurants, with 43 per cent of 18-34s saying they would be more likely to use such a restaurant compared to 14 per cent of the 55 and overs.

Jamie Grant, Head of Business and Corporate Banking at Barclays, said: “Scotland is well placed to benefit from a booming year for British staycations and with many holidaymakers now choosing to stay close to home, the importance of marketing local attractions and investing in new technologies and experiences to drive footfall is clear. Our food and drink industry is thriving so it’s no surprise that it is high on the agenda of Scottish holidaymakers. Food tourism is a huge opportunity for operators in Scotland who have a wealth of quality producers right on their doorstep.”

The majority of international holidaymakers (51 per cent) report that the vote to leave the EU has had no impact on their likelihood to visit the UK, and nearly a third (31 per cent) reported that they are more likely to visit the UK than before the Referendum.

However, the study also highlighted the role of the UK as a tourism hub with nearly a quarter (24 per cent) of those who said they would be less likely to visit the UK post-Brexit citing worries about onward travel to other European destinations. This was especially important for guests from Australia (44 per cent) who are potentially looking to combine their visit with multiple European destinations owing to the longer travel distance.

Visas are also a concern as of the 10 per cent of international tourists who said they are less interested in visiting the UK today than 12 months ago- nearly 1 in 5 (19 per cent) cite this as a worry.

Other international trends revealed by the research include the regions visitors are keenest to visit, with London (67 per cent) and Scotland (44 per cent) topping the list. Interest in Oxford and Cambridge is also notably higher for Chinese guests. Overall, tourists are eager to experience the UK’s landmarks (51 per cent), history and museums (44 per cent) and natural landscapes (41 per cent).

The average length of a UK visit is just over one week at 9 days and the average budget per family, including airfares is £3443. However, American and Chinese guests blow even larger budgets on their UK holidays with average spends of £5230 and £5424 respectively. Visitors from China and the US also have significantly larger shopping budgets, with visitors from these countries having an average of £800 and £713 to spend in British shops respectively, compared to the overall budget of £453 set aside by international visitors on average.

“Whilst many international visitors may default to London, Scotland follows closely behind. The international appetite for holidays that take in landmarks, our history and the natural landscape shows that the potential is there for the Scottish hospitality sector to take a greater slice of the UK travel market,” added Mr Grant.