Tourism chief demands state cash for B&Bs

SCOTLAND'S tourism leader has launched an attack on government funding priorities by claiming support should be switched from technology firms to more of the country's struggling bed and breakfast operators and other visitor attractions.

Philip Riddle, chief executive of the national tourism marketing agency VisitScotland, said smaller operators of guest houses and B&Bs should be able to draw on cash from Scottish Enterprise's co-investment fund and from European sources.

He highlighted the need for tourism businesses to refurbish and renovate in order to meet visitors' expectations and keep Scotland's 4 billion industry competitive.

Riddle has now put the idea forward to the tourism industry's strategy group – made up of businesses operating in the sector – and has asked the group to indicate the level of funding that is required. He is expecting a response within the next three months.

Riddle told Scotland on Sunday: "Mostly the government emphasis is on technology companies and newer industries – which is fine – but it isn't focused on areas like tourism.

"I think there's an opportunity here for the Scottish Co-investment Fund (SCF) and even European Union funds to be attracted to tourism – but it would need private funding as well."

Last year, Riddle revealed that he favoured the setting-up of a tourism investment bank for Scotland, which would leverage public and private funds to help small businesses, modelled on a similar lender set up in the aftermath of the Second World War in Austria.

But Riddle said: "When we looked at the particulars, we recognised that the Austrian development bank had taken quite a long time to get to where it is and perhaps it was rather ambitious, especially in the current financial climate, to go straight in with forming a new bank."

Instead, Riddle suggests existing Scottish Government funds could be used to help businesses, with funding also coming from the private sector.

He said VisitScotland could help to remove some of the risk for private sector investors by using its substantial market research data to advise applicants on what tourists wanted and what improvements could boost business success.

Scottish Enterprise said private investors would also have to be risking their money in order for cash to be made available from the SCF.