UK tourists will continue to flock to Scotland this year, boosting the economy by £13.1billion by 2017, new figures show.
The 26% increase in spending by so-called “staycationers” – good news for Highland and Moray tourism businesses – is highlighted in a report by banking giant Barclays.
It also reveals a welcome boost to Scotland’s hospitality, leisure and retail sectors, which are expected to see significant growth over the next few years.
This year is a landmark one for Scottish tourism as the country plays host to a flurry of major sporting and cultural events.
But Scotland’s contribution to the proportion of total domestic tourist spend in the UK is predicted to dip slightly to 11.84% in 2014, from from 11.95% last year, suggesting that some UK “staycationers” may be opting for other destinations during such a packed year.
The Scottish contribution is expected to return to growth in future years.
Research, independently commissioned for Barclays’ retail, hospitality and leisure sector teams reveals that growth in domestic tourism will largely be driven by continuing pressures on the cost of living, with many cash-strapped consumers choosing UK locations over travel abroad.
Ally Scott, managing director, Barclays Corporate Banking Scotland, said: “The economy is improving and confidence is certainly growing.
“This will lead to a gradual rise in the number of consumers looking to holiday abroad again, but it is unlikely to precipitate a return to the holidaying habits we were seeing prior to the downturn.”
“While 2014 is going to be an unprecedented draw to overseas visitors, the report suggests that some domestic tourists may opt for other UK destinations.”
Scotland’s retail sector is expected to benefit from increasing sales to domestic visitors, with their spending rising by 27% to £1.7billion between now and 2017.
Hospitality and leisure businesses are also forecast to enjoy strong growth, thanks to “staycationers”, with domestic tourism spend growing to £8.4billion over the same period.
Hotels and B&Bs are expected to see a boost in bookings of 27% over the four years, benefiting the most from the increase in expenditure.
Spend in pubs and restaurants is forecast to rise by 26% to £4.2billion as more people dine out, meaning good news for Scotland’s licensed trade, while leisure attractions are predicted to increase income by 27% to £1.4billion.