Scottish islands call for 'fairness' as tourism budgets cut amid visitor boom

Orkney and Shetland hit hard by loss of funding

They are relentlessly marketed among Scotland’s dream tourist destinations given their heritage, culture and natural beauty.

From the torchlit Vikings of Up Helly Aa to the prehistoric wonders of landmarks such as the Ring of Brodgar and Skara Brae, the unique draws of Orkney and Shetland pull hundreds of thousands of visitors every year in search of the the unique and the unknown. Numbers are expected to increase this year, not least given the spiralling cruise ship market.

But while tourism booms, tourism leaders on the island fight for their survival after a series of funding cuts left services designed through local knowledge hanging by a thread.

Members of the Up Helly Aa 'Jarl Squad' parade through the streets of in Lerwick, Shetland Islands in January. The event is widely used to promote Shetland as a tourist destination. Meanwhile, budgets to manage visitors on the ground have been cut. (Photo by ANDY BUCHANAN/AFP via Getty Images)

Last month, the entire board of Destination Orkney, partly funded by Highlands and Islands Enterprise through the Scottish Government, resigned given the impact of loss of funding on operations. Until recently, three staff worked there, but now just a part-time role continues as long as the body’s reserves will allow. Three ‘custodian’ board members have been appointed to keep the organisation afloat for the time being. Meanwhile, tourism on the islands generates an estimated £95m for the local economy.

The loss of financial support comes as VisitScotland prepares to shut its Kirkwall and Lerwick tourist information centres as part of its national closure programme as it focuses on digital marketing and planning tools for holidaymakers.

Amanda Hawick, chair of Shetland Tourism Association (STA), said “dismay" continued over the decision to remove local voices and knowledge from the tourist experience.

Ring of Brodgar, Orkney, one of the most visited landmarks on the islands. Tourism continues to boom in Orkney but funding cuts led to the board of Destination Orkney, which develops tourism through local knowledge, to resign. PIC: Contributed

"The feeling is that we just cannot close this facility. it is just far too valuable,” she said. “VisitScotland was asked if there was any likelihood the decision would be changed. It was a bombshell for us – but it was an absolute flat no. “

The decision has left Shetland tourism businesses feeling distanced from decision making on a critical driver of their own fortunes and the Shetland economy at large, with tourism generating around £35m a year.

Ms Hawick said: "My belief is this was a very short-sighted move by VisitScotland. My belief is they feel as long as the pound comes into the Central Belt, they are OK. That is not a Scotland-wide attitude to have.

“People want to come up here, to the islands, they want to come to Up Helly Aa. It is a unique experience for people to come and see this tradition, but we’re so much more than that. We have our artefacts, our wildlife, our archaeology.

Amanda Hawick, chair of Shetland Tourism Association. PIC: Contributed.

“We just want what is fair up here here and we have been treated so dreadfully unfair. This Central Belt dominance of the way of thinking, it has to stop.”

Ms Hawick said the STA, which shares a building with the VisitScotland centre, was now looking to run its own tourist office. Meanwhile, it is fast recruiting new members in a bid to amplify the voice of tourism businesses given the challenging climate they face.

Ms Hawick said: “It is fundamentally important that the voices of our members are heard. There is no point doing a Shetland tourism strategy from an office desk in Inverness as they have absolutely no idea about what is going on here.”

She said funding losses and introduction of policies such as the proposed tourist tax, which would give local councils the ability to set a tax to overnight accommodation, meant groups such as STA were critical.

Ms Hawick added: “It is fundamentally important that the industry here is consulted on really important matters. We have the tourism tax levy, we have the cruise ship levy going ahead and unless people I term the shop floor – the self-employed people that this is going to affect – have their voice heard, the council will implement these levies in whatever way they want, rather than what the industry needs.”

STA lost funding of £9,000 from Highlands and Islands Enterprise and £6,500 from Shetland Isles Council for its development officer.

“They have withdrawn money for a really, really fundamental market just now – this is about the future of Shetland,” Ms Hawick said.

Destination Orkney said it had contributed to the “growth of a quality tourism industry” on the islands through leadership, representation and support of tourism operators.

Funded by Highlands and Islands Enterprise and Orkney Isles Council, it said loss of finance meant it “could see no way to sustain the organisation’s current remit” as it comes to the end of a three-year, £300,000 funding package designed to support tourism post-pandemic.

A meeting will be held at the end of the month to determine what happens next. Without such a group, “there will be no industry voice” in Orkney, it said.

A statement said: “The lack of funding for a Destination Management Organisation simply means that those businesses in the tourism sector won’t be supported or represented in the same way, and will lack a local voice, which reflects Orkney’s unique context.”

A VisitScotland spokesperson said: “We recognise the challenges facing the tourism industry in Shetland and Orkney and have considered carefully the impact of our decision, taking into account changing consumer behaviour and the role of face-to-face information provision.

“VisitScotland remains committed to supporting and promoting the visitor economy on the islands. We have development managers and other staff based on Shetland and Orkney who work closely with local stakeholders to ensure our activities continue to reflect and respond to the specific needs of the islands. This includes not only our marketing, but also our work supporting events, travel trade and business advice.

“We believe the changes we are making are the right thing to do to help us best support the growth of the visitor economy, investing our expertise and resources in the channels we know visitors use at the planning stage of their trip.”