Hotels cut prices as Scots opt for a 'staycation'

Published on Saturday 12 July 2008 19:43

SCOTTISH tourism operators are being forced to offer cut-price deals or hold prices at last year's levels in a bid to attract customers wary of spending because of the credit crunch.

Some areas have reported slumps as large as 6% in visitor numbers as consumers have opted for a 'staycation', day-trips and weekend breaks instead of a conventional holiday.

And Scottish tourism chiefs are unleashing an unprecedented mid-summer marketing campaign to lure visitors to hotels and attractions.

Tourism is worth an estimated 4bn a year to the Scottish economy, and ministers have a target of increasing Scotland's earnings from the trade in real terms by 50% by 2015.

But consumers have seen their disposable incomes squeezed by rising prices for essentials such as food and fuel.

A previously unpublished report, written by VisitScotland analysts last November, warned that a "middle-class squeeze" would this year lead to a 7% drop in visitor numbers from the UK and cost the Scottish tourism industry 60m.

Despite July and August being peak season, operators have admitted that they still have vacancies and are needing to work to attract business.

In the Western Isles, visitor numbers for the year to the end of June have slumped 6.45%, with local tourism officials warning of a sharper decrease for July and August.

Maryann MacIver, from VisitScotland Outer Hebrides, said: "The return business and the better-off visitors are still strong.

"But we are seeing fewer visitors from the mid-section of the market.

"And for the first time, we are seeing consumers call us for a last-minute break. You never got that before for the Western Isles – we are usually a destination to which people plan their holidays well in advance."

A new study has shown that 13% of UK consumers are changing their holiday plans or cutting back on trips to the Continent because of current exchange rates and the weaker pound.

The study, by Edinburgh-based George Street Research, found that holiday-makers were worried by the recent slump in the value of the pound and how it would affect their spending power.

VisitScotland's marketing move will include 250,000 known consumers receiving travel offers in the post and by e-mail, including two-for-one offers and cut-price travel – the first time ever for such a move in summer.

In addition, a week-long television advertising series next month will be aimed at selling short breaks north of the border.

A VisitScotland spokeswoman said: "This is a matter of reacting to circumstances in a proactive manner and doing the best for the industry is a challenging situation. These are tactical changes."

Tourism writer Pete Irvine, the author of Scotland the Best, said of the move: "It's right that they are doing something to help the industry. My impression is that things are very variable across the industry.

"Places which are good and known to be good will do well, but others will suffer."