Letter to the Cabinet Secretary for Finance and Economy, 3 February 2022
The Economy and Fair Work Committee heard evidence on Wednesday 2 February from representatives of Scotland’s tourism and hospitality sectors and from VisitScotland.
At the evidence session some specific policy asks were made and I will write to you separately on these early next week. Two main points however were clearly made with regards to the Budget. The Committee would be grateful if you could consider these important issues ahead of the final stage of the Budget next week.
It was noted the rise of the Omicron variant in late 2021 delayed the progress of many tourism projects funded via Phase 1 of the Tourism Recovery Plan and other VisitScotland grants. This has resulted in pressures to complete spend, particularly capital expenditure, before the end of the financial year.
Given the importance of the tourism and hospitality sectors to Scotland’s economy, and the reality that phase 2 of the Tourism Recovery Plan remains unfunded, the Committee asks the Scottish Government to consider whether there are mechanisms that could be introduced to allow some flexibility around spend completion to enable the most effective and efficient use of public monies.
During your evidence session with the Committee on 19 January, you stated that the Scottish Government had not withdrawn support for the Phase 2 STERG recommendations and that you are working with VisitScotland and others on how these could be progressed, noting that “door is not closed on trying to progress them with financial support”.
The evidence we heard this week, further emphasised the importance of securing funding to progress Phase 2. This is particularly pertinent given international marketing campaign lead-in times and the competitive international landscape with destinations across the world vying for visitors. Given the importance of tourism to Scotland’s economy, the Committee reiterates its pre-budget report recommendation for funding to be made available in next year’s Budget for Phase 2 of the Tourism Recovery Plan. If it remains the case that funding for Phase 2 will not be on the face of the Budget Bill, we would urge you to deliver additional in-year spend, being mindful of the importance of lead-in times for international promotion.
I hope you will consider these two important issues prior to the final stage of the Budget next week.
Kind regards