Scotland Must Turn Strong Tourism Demand Into Economic Growth As Tourism Body Sets Out Government Asks

The Scottish Tourism Alliance (STA) is calling on the Scottish Government to create the conditions for tourism and hospitality to grow, as strong international demand underlines the sector’s potential to contribute more to Scotland’s economy.

Ahead of the announcement of the Scottish Government’s Programme for Government, the STA has set out three key asks to support growth in a sector that has seen a generally positive summer, despite continued cost pressures and a softer domestic market.

Recent VisitBritain figures show flight bookings to Scotland up 15%, compared with falls of 5% to London airports and 4% to the rest of England.

Visa card spending was also up 19% year-on-year in Scotland in the first quarter of 2026, compared with 3% in England.

The international picture contrasts with a softer domestic market. Feedback from tourism businesses suggests spending is down, particularly among families, with bookings also being made later.

That picture is reinforced by recent research from The Knowledge Bank, Scotland Food & Drink’s insight hub, which found that 58% of Scots are cutting back on meals and drinks in hospitality venues as cost-of-living pressures continue to affect household spending.

The STA says that while Scotland’s strong international performance is extremely encouraging, continued cost-of-doing-business pressures mean many tourism and hospitality businesses remain vulnerable.

Marc Crothall MBE, Chief Executive of the Scottish Tourism Alliance, said: “It’s been a good summer for the majority of tourism businesses, and the strength of our international market is extremely encouraging. These latest figures show Scotland continuing to perform strongly, and there is no indication that our appeal as a destination has dipped.

“But that doesn’t mean everything is rosy. The domestic market is softer, particularly when it comes to family spending; bookings are coming later, and the cost of doing business continues to bite hard.

“We have a huge opportunity for tourism to contribute even more to Scotland’s economic growth, but we need to give businesses the conditions to do that. We need Government to nurture that growth and avoid further regulatory and tax burdens which negatively impact Scotland’s competitiveness.”

The STA’s first Programme for Government ask is to nurture the tourism and hospitality sector rather than stifle growth, with a commitment not to place further regulatory or tax burdens on businesses, or introduce policies which negatively impact Scotland’s competitiveness. It is also asking the Scottish Government to work proactively with the sector to identify, shape and deliver ambitious policies which support sustainable and responsible growth.

Its second ask is to begin developing a Scottish Tourism and Hospitality Growth Plan, building on the industry’s strengths and positioning tourism and hospitality as a key export and future industry for Scotland. The plan would also help inform the next five-year Scottish National Tourism Strategy from 2031 onwards.

The third is to urgently invest in people. As net migration continues to decline and businesses struggle to recruit and retain workers, the STA is calling for more targeted skills development, apprenticeship places at all levels, clear career pathways and more multilingual learning opportunities.

Marc added: “We already know that people want to come to Scotland. The opportunity now is to capitalise on that demand and make sure we deliver the quality of experience people expect when they get here.

“Our tourism and hospitality sector has considerable untapped potential as a growth industry and a key export for Scotland, and it’s important that we work in partnership with Government to unlock that potential and ensure the sector can continue to grow in a sustainable and responsible way.”