Chamber and committees

Good morning, and welcome to the third meeting in 2024 of the Economy and Fair Work Committee. Our first item of business is a decision on whether to take item 3 in private. Are members content to do so?

Members indicated agreement.

Colin Wilkinson, I will come to you and your members next. The fact is that other businesses are feeling the pressures, too—not just tourism and hospitality. Everybody is dealing with increased energy and other costs. What is unique to the sector that is leading to the fragile picture that Leon Thompson has described? Are there unique factors that are making the environment tougher for hospitality?

What Mr Stewart means is that he is going to ask some questions about the subject of VAT later. I know that it is something that the sector has raised.

Just to finish the initial line of questioning, I will come to Marc Crothall on the financial status of the hospitality and tourism sectors. Last year, the committee, in its budget proposal, asked for protection of the VisitScotland budget and recognised its important role in helping attract visitors and supporting the sector. However, a cut to that budget has been proposed in this year’s budget. What concerns do you have in that respect? As I have said, we have seen an increase in international passengers to Scotland and in their spend. Actually, the number of visits is slightly lower, but the spend is higher. What concerns do you have around the VisitScotland budget?

Gordon, did you wish to ask a supplementary question?

There are three members left who wish to ask questions, so we will make some progress.

Maggie Chapman has a question about the workforce. Maybe some of the points that you want to make can be addressed to her.

Thank you. That brings us to the end of today’s evidence session. Thank you very much to the members of the panel for giving us their time this morning.

I will bring in Marc Crothall in a second, but members have supplementaries for Colin Wilkinson. Brian, do you want to come in?

Kevin Stewart, do you wish to ask a supplementary question?

Before I bring in Murdo Fraser, I have a question about VisitScotland and its budget. Marc, you talked about competition. When we last looked at that issue, we considered the example of Ireland and the investment that it had made. There is a relationship between Scotland and Ireland’s tourism offer. Do you know where the VisitScotland budget sits, compared with how much other countries are putting into their tourism markets?