Only in this week's Strathy
Strathspey and Badenoch Herald
26 July, 2008
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By Gavin Musgrove
Published:  05 December, 2007

Alan Rankin

MOST tourism businesses in Badenoch and Strathspey are in bullish mood over their prospects for the next one to two years, according to a survey which is the first of its kind to be carried out in Scotland.

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Of the 78 respondents, over the next 12 months 56.1% foresee an increase in turnover of up to 20%, and 7.6% predict their turnover will grow by more than 20%.

Only 9.1% of businesses expect a downturn, whilst 27. 3% believe there will be no change in their turn-over.

More than half of the businesses (56.1%) reported an increase in turn-over this year so far compared to the same point in 2006, with 21.2% faring less well.

The findings published today (Wednesday) within a 19-page "business barometer" report have resulted from an anonymous on-line survey open to all tourism operators in the area conducted by Aviemore and the Cairngorms Destination Management Ltd.

They cover the trading period from the start of July to the end of September spread across the entire area, with 51% of the responses coming from the accommodation sector, 21.8% from activity providers, 7.7% from attractions and the remainder tourism connected such as retail and food and beverage firms.

Commenting on the results, ACDM Ltd boss Alan Rankin said: "In general there is a positive theme running through the survey results, indicating tourism growth is achievable in Badenoch and Strathspey.

"Further investment in facilities, training and staff are highlights, along with the increasing likelihood of visitors returning to the area.

"However, responses indicate a possible reduction in marketing spend over the next two years, despite this being a critical component in the area to maintaining growth in an ever increasingly competitive market.

"This is a real concern. If we take our foot off the gas at any time then others will overtake us. It is essential that we do not allow complacency to creep in.

"The cost of conducting business is also a concern with further increases envisaged which, with rising staff costs and red tape, will put the squeeze on margins and could jeopardise further investment."

A total of 50% of those responding had a high to very high level of business confidence in the coming 12 months, with that figure increasing to 53% for the two-years. Only 6% of firms had a confidence level of low to very low for the coming 24 months, compared with 8% for the coming year.

Mr Rankin said that the survey findings reflected the anecdotal evidence they had picked up from tourism operators in the area.

Assessing the reasons for optimism which he believes was less apparent even just a few years ago, he commented: "Badenoch and Strathspey has a much higher profile now because of the major marketing and public relations work that has taken place, and there has been major investment within the strath itself.

"On top of this in the Scottish tourism market the trends are moving towards outdoor activities and healthy living, and this area is so well placed to deliver this."

Many accommodation providers expect their level of room occupancy to increase in the coming year, according to the survey.

Over the past year, 35.1% ran at an occupancy level of less than 40%; 32.4% between 40% and 60%, and 30.4% indicated an occupancy level over 60%. The figures, as expected, were much higher for the summer period covered by the report, with 27% of providers running at over 80% occupancy.

In comparison to the last 12 months, 46% of hotels, guest houses, B&B and self-catering units expect to record an occupancy of over 60% next year.

The number of repeat visits is also on the up, according to the respondents. Mr Rankin said customer profiles revealed that there were ever more regular and returning visitors – indicating that they were receiving a good holiday experience – and less first-time visitors to Badenoch and Strathspey.

"Businesses report more visitors from Scotland over the year past, with custom also strong from the North of England. Overseas visitors show a marked decrease, especially from North America, with 63% of those responding reporting less or far less.

"At a time when VisitScotland has reported disappointing figures from the home market, we can see that our product here is performing well against national trends, and this is a position we must consolidate."

Kevin Roach, chairman of Aviemore Business Association, concurred with the findings.

"Most local operators should have enjoyed their best year yet because of the destination management organisation," he said.

"They have pumped in so much money into advertising and bringing people to the area – and most local businesses have been able to feed off this.

"I am aware that the critical mass of this revolves around the Aviemore Highland Resort, but it is still bringing business into the wider community. As far as I am concerned I believe that there are a good couple of years ahead for those in tourism."

Danny Alexander, Lib Dem MP for Inverness, Nairn, Badenoch and Strathspey, said it was "fantastic news" that local businesses were so upbeat about their prospects.

But he added: "Some public bodies seem to have a reputation for getting in the way, and the situation now requires the likes of the Cairngorms National Park Authority, Highland Council, Scottish Natural Heritage and Highlands and Islands Enterprise to do everything they can to enable local tourism businesses to deliver the economic growth this survey suggests is possible in a sustainable way."

A spokeswoman for the Cairngorms Chamber of Commerce – nearly 75% of respondents are members of the organisation – said they were looking forward to studying the report's findings.

There are currently believed to be around 350 front line tourism businesses in Badenoch and Strathspey.

The ACDM business barometer for Badenoch and Strathspey, which is also being supported by the national park authority and the Scottish Tourism Forum, is to be published on a quarterly basis.

musgrove_g@spp-group.com


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