Why the North Coast 500 has left Highland residents losing out from Scotland's most popular tourist route

Celebrating ten years next year since it first launched, the North Coast 500 (NC500) is one of Scottish tourism’s biggest success stories when it comes to drawing in the numbers. But how much does it benefit Highland communities?

According to research for the Highlands and Islands Enterprise (HIE), the route, in just the first two years, boosted business by 15 to 20 per cent year on year and led to a 26 per cent rise in visitor numbers and a 10 per cent increase in traffic.

However, little research has been carried out to measure the true economic impact the explosion of tourism has had on the region.

Campervans and motorhomes at Loch Fleet, a popular spot for visitors to pull up and admire views on the NC500 | Katharine Hay

The North Coast 500 Ltd, a marketing company that first launched the route in 2015, and which is under the control of Wild Ventures Ltd, a firm owned by the billionaire Asos tycoon Anders Holch Povlsen, states the principal aim for establishing the route was “promoting business growth in the Northern Highlands”. 

Several local businesses contacted by The Scotsman were clear about trade having improved since the route’s establishment.

James Cameron, owner of Sands Caravan and Camping, said: “We’re massively supportive to the NC500, it put the North Highlands on the map.” The owners of Laidhay Tea Room near Dunbeath, said: “It’s brought more footfall through these local businesses, which gives you more income. Your employment goes up because people are employing more staff. So, the positives outweigh the negatives on the NC500 for sure.”  But, along with the financial boost for some businesses, local people report on the lack of infrastructure - road maintenance, parking issues, toilets and waste disposal.

Margaret Meet, co-founder of the online campaign group ‘NC500 The Land Weeps,’ and secretary for the Kinlochbervie Community Company, set up to develop community projects | Margaret Meek

Margaret Meek, a co-founder of the online campaign group ‘NC500 The Land Weeps’ and secretary for the Kinlochbervie Community Company, set up to develop community-focused projects, has been a firm critic of the branding. She acknowledged “there’s obviously been financial benefits, but no one has ever done a cost-benefit analysis, and no one has ever done an impact assessment”.  

Mrs Meek, who has lived in the Highlands for 30 years, said local residents had not been appropriately consulted on the changes. “I feel fairly confident in saying that the communities have never been asked or consulted on this route,” she said.

A spokesperson for the North Coast 500 Ltd told The Scotsman: “We are currently in the process of commissioning an impact assessment to determine economic benefit. The last assessment was carried out in 2019. The report’s analysis of the performance in 2018 noted that the NC500 had generated an additional £13.46m in sales for businesses on or near the route.”  Mrs Meek, however, questioned the methodology used for the 2019 report, which drew answers from 300 business in the region, of which there are estimated to be around 2,000. She said the study was set up to be repeated to monitor the impact, but this has not happened since.

“There needs to be a proper impact assessment because there doesn’t appear to be concern for people who actually live here,” she said. “The number of those who drive their income from tourism up here is actually quite small.”

This is a viewpoint on the road into Kinlochbervie which, according to locals, has turned into a campground and the garden immediately adjacent is often used as a toilet. | Margaret Meek

Anecdotal evidence suggests the types of visitors attracted to the NC500 are not high spenders, and bring little economic benefit to local business.

Locals say motorhomes stock up on supplies in big supermarkets on the outskirts of towns, including Tain and Wick. Motorhomes also bring the added issue of disposal of grey and black waste, which is often cited as a hot potato for locals and road users.

A 2023 report by the Highland Council Access Rangers, who patrolled the region encouraging responsible behaviour adhering to the Scottish Outdoor Access Code, noted increasing numbers of black waste dumping across the NC500 route, with recorded instances of it across the Highlands doubling since 2022.

Many of the issues associated with the NC500 were also identified further back, in 2017, by an economic baseline study commissioned by Highlands and Islands Enterprise (HIE). This document noted promising economic benefits offered by the branding, but also warned that stakeholders were concerned about several long-term impacts caused by it. These included how to finance maintenance of the route and supporting infrastructure, including toilets and waste facilities. Poor driving of visitors and increased travel times for locals were also mentioned. 

Members of the local community in Applecross put up signage themselves to discourage campfires | Robin Pettigrew

Seven years later, these problems are still regularly reported in the media and by local communities on social media. Two active Facebook groups, NC500 The dirty truth and NC500 The Land Weeps, which have 24,000 members between them, document problems faced by the region, with little sign of resolution.

Mrs Meek said: “They [North Coast 500 Ltd] don’t contribute to infrastructure and they say very publicly they’re bringing a lot of business to the Highlands and it’s not up to them to address the problems – that’s up to government.”

However, government resources provided for services and infrastructure to help cope with the numbers of visitors along the route have been insecure. Funding for the popular Highland Council Access Rangers service, which had employed 18 rangers across the Highlands, ran out in March.

Mrs Meek described the rangers as “the number one best thing that’s been done”. “They had been building a really good programme,” she said. “They were collecting all these statistics, it was consistent from year to year, they engaged with thousands of people.” 

The Sutherland Area Committee later allocated funding to keep four seasonal rangers on to patrol the area until the end of October, but beyond that, funding is uncertain.

‘Democratic deficit’

The problems generated by the NC500, and the inadequate solutions in response, add to a general sense among many locals that decisions are imposed upon communities without due consideration.     

A 2021 report on visitor pressures by the John Muir Trust found many rural communities feel a “democratic deficit” regarding the implementation of tourist developments.  

The report said: “A key example cited in the interviews was the marketing of the NC500 route, which many locals feel was undertaken with little forethought or community consultation.” 

Last month, Highland Tourism, a community interest company (CIC) set up to promote the region as a “sustainable tourist destination”, said it surveyed residents in the Highlands over three years, and asked them to take part in a consultation on how the Scottish Highlands should be “branded to the world”.

The CIC’s ambassadors include business leaders including George Baxter, of renewable energy company GreenPower International, and Martin Hall, from Tomatin Distillery. Robin Pettigrew, who lives on the NC500 route and who has been vocal on the topic of ‘over-tourism’, said he and those in his community had not been made aware of the consultation. Several businesses along the route interviewed by The Scotsman said they had not been consulted either.

There were also concerns raised about further “overpromotion” of the Highlands.

Earlier this month, Highlands and Islands MSP Edward Mountain called a meeting in Wick due to the rising upset among local businesses and communities who said they continue to feel unheard when it comes to tourist-related decisions from the council.

Edward Mountain MSP held a meeting last month in Wick to hear views on the NC500 from local communities | supplied

A recent bone of contention was the recently-introduced voluntary £40 charge for vehicles to park overnight in council-owned carparks. Some 30 caravan sites signed an open letter to Highland Council claiming that the new seven-day permit, which will allow motorhome users to stay in one of 12 designated carparks and use washing and toilet facilities at public leisure centres, will put their businesses at risk.

Council car parks with designated spaces for motorhomes. It sits a few hundred yards from the boundary of Sango Sands Oasis Campsite. | Supplied

Lynn and Darren Redfern, of Dornoch Caravan and Camping Park, which sits on the NC500, said the pass further undermined established caravan parks, which have to fork out costs to be licensed and regulated through planning and health and safety.

Demographic Decline 

The NC500 branding also appears to have had little impact on preventing the working-age population from shrinking. A 2020 HIE area profile of Caithness and Sutherland found population decline continues and is projected to fall by 21 per cent in Caithness and 12 per cent in Sutherland by 2041. The report said: “Caithness and Sutherland has experienced high levels of population and working age population decline. It has one of the oldest age structures in Scotland.” 

Lybster, one of the villages in Caithness, is one area of the region that faces ongoing challenges relating to depopulation | Katharine Hay

A further report commissioned in 2022 the HIE on life in Caithness and Sutherland found 69 per cent of survey respondents said they think people are leaving the region as they are unable to find work, and 66 per cent feel most people moving there are retirees.   

Magnus Davidson, a Thurso-based socioeconomics manager with an academic background in rural economics, told The Atlantic in 2022 the often low paid, seasonal work offered by tourism is not a great incentive for young people to remain in the area.

David Richardson, of NC500 Ltd | Supplied

David Richardson, the new engagement and development manager at NC500 Ltd, has often been quoted as saying the NC500 is “the saviour” of the Highlands. He said the tourist trail has been a huge success, and has reached more than 11.3 billion people worldwide.

However, it has been widely reported the increase in holiday homes in popular tourist destinations has led to a housing crisis for locals, both in terms of cost and shortages of houses.

Mrs Meek said: “If you look at any of these community, the housing stock lost to holiday homes is huge. It’s [NC500] not the saviour of the Highlands. If David Richardson came over and held a series of town hall meetings with the communities, that would at least be a start.”