Why sustainable tourism is vital to Scotland's economy

Sarah Devine asks what is sustainable tourism, and why does the country’s hospitality industry need it?

Sustainable tourism is vital for our economy, having been identified in the Scottish Government’s Scotland’s Economic Strategy (2015) as a growth sector where the country can build on existing comparative advantage as well as increase productivity.

The sector is hugely diverse and includes not only obvious tourism-related industries, such as accommodation, but also those that benefit directly or indirectly from tourism, for example, food and drink, transport and retail.

In a monthly series of ten articles from today, The Scotsman will hear exclusively from experts across various departments at leading law firm CMS about the key opportunities and challenges relating to sustainable tourism and its impact on many sub sectors.

Darren Craig, managing partner in CMS Edinburgh, looks at what sustainable tourism actually is

CMS’ International Scotland report, compiled with the University of Strathclyde’s well-respected Fraser of Allander Institute, shows that from 2012 to 2018, the number of trips from international visitors to Scotland grew steadily to 3.7 million, with visitor spending estimated at£2.4 billion in 2018.

While visits dropped to 3.5 million in the following year, spending continued to grow, to £2.5bn. Scotland’s sustainable tourism sector is therefore undoubtedly a key part of its economy but, nevertheless, it faces challenges.

So what does sustainable tourism mean? The United Nations identifies it as: “Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment, and host communities.”

Darren Craig, managing partner in CMS Edinburgh, points to a recent discussion he had with peers that illustrates the varying views people have of what sustainable tourism actually is. He believes there is space for these different opinions. He explains: “Some focused on the environmental aspects of ESG (environmental, social and governance) only in terms of tourism and how we do it in an environmentally friendly way. That is about how we continue to attract overseas visitors, but looking at the issues with that from the point of view of international travel and carbon issues.

Roland Smyth, head of CMS’ Scottish hotels and leisure team, explains his belief that sustainability is imperative to attracting hospitality staff

“Others were instead coming at it from the social aspects – ie, how we can make tourism sustainable for vibrant communities in the long term.”

One key issue for ensuring the longevity of the sector is addressing how tourism enterprises impact the vibrancy of a community and local businesses.

In November, the City of Edinburgh Council became the first Scottish authority to approve a £2-per-night local visitor levy, which for some has created concern over where the estimated annual income of between £5m and £35m will be spent and the effect on tourism businesses in the Capital.

Another area to consider is employment. The International Scotland report shows that the headcount of people working in the sustainable tourism sector fell by 40,000 across Scotland in 2020 – a reduction of 17 per cent.

UK-wide, Brexit has reportedly led to the loss of about 120,000 EU hospitality workers and some 70,000 non-EU international employees.

Roland Smyth, head of CMS’ Scottish hotels and leisure team, explains his belief that sustainability is imperative to attracting hospitality staff: “We know from one hotel developer that the most visited webpage by potential employees is not the one about salaries and terms and conditions, but the page setting out the company’s sustainable credentials. It therefore matters to the potential workforce. You are more likely to recruit people if you are running a sustainable business.”

However, a rising tide of environmental regulations means there is a need to ensure that a hotel, for example, can meet energy efficiency requirements ten years down the line to remain operable.

Craig, who is also a partner in CMS’ Scottish property finance team, says this is a factor for historic attractions too, adding: “If you look at planning, you have an inherent conflict between making buildings more energy efficient to meet rising standards and destroying the integrity of the building.

“The whole point of having a listed building is that it represents part of Scotland’s history; whereas if you are going to, for example, change glazing or insulation to meet a minimum Energy Performance Certificate rating, what impact does that have from a tourism experience perspective?”

Regarding transport, Smyth notes that international travellers are increasingly conscious of their carbon footprint, with many incorporating train journeys as part of their holiday rather than a necessity to get to their destination.

This raises questions about how clean travel and infrastructure can better help the tourism industry, and how Scotland can better link into the European train network.

And, as a world-leading producer of Scotch whisky, how will Holyrood’s proposed restrictions on alcohol advertising impact the country’s five renowned whisky regions – and its subsequent reputation as a world-class visitor host in this field?

These are just some of the issues that will be discussed in the upcoming monthly article series, featuring CMS’ team of lawyers who work across a range of areas, including the public sector, food and drink, transport, employment, real estate, and finance.

The next article will hear from CMS’ employment experts on Brexit, zero-hour contracts, and improving hospitality’s reputation as an employer. See cms.law/scotland for more,