Tourism and Hospitality Industry Leadership Group minutes: June 2024

Attendees and apologies

Co-Chair

• Marc Crothall, Scottish Tourism Alliance

Attendees

• Aileen Crawdord*, Glasgow Life
• Andrea Nicholas*, Green Tourism
• Anna Miller, Highlands & Islands Enterprise
• Barbara Smith*, Industry Expert
• Benjamin Carey*, Carey Tourism
• Callum Ross*, Loch Melfort Hotel
• Carron Tobin*, Rural Dimentions
• Chris Greenwood*, Moffat Centre
• Debbie Johnson*, IHG Hotel and Resorts
• Derek Shaw, Scottish Enterprise
• Joss Croft*, UKInbound
• Bryan Simpson, Unite the Union
• James Fowlie, COSLA
• Karen Jackson, South of Scotland Enterprise
• Kat Brogan*, Mercat Tours
• Lawrence Durden, Skills Development Scotland
• Kelly Johnstone*, The Springboard Charity
• Leon Thompson*, UK Hospitality Dcotland
• Mark Rowley, South of Scotland Enterprise
• Rob Dickson, VisitScotland
• Stephen Duncan*, Historic Environment Scotland
• Tom Arthur MSP, Minister for Employment and Investment

Attending

• Beth Thoms, VisitScotland
• Caroline Caintin, Scottish Government
• Caroline MacFarlane, Scottish Government
• Jeremy Sampson, The Travel Foundation
• Tiomoid Foley, VisitScotland
• John Coghill, Scottish Government
• Raymond MacIntyre, VisitScotland
• Sarah Iversen, VisitScotland
• Rebecca Armstrong, The Travel Foundation

Apologies

• Carolyn Churchill, VisitScotland
• Ethan Hoof, Scottish Government
• Joshua Ryan-Saha*, Travel Tech Scotland
• Judy Rae*, OnFife Cultural Trust
• Chris brodie, Skills Development Scotland
• Kevin Fallon, Scottish Government
• Michael Golding*, ASVA
• Paul McCafferty, Scottish Enterprise
• Richard Lochhead MSP, Minister for Business
• Frances Pacitti, Scottiah Government

* ILG industry members attend in an individual capacity and do not represent a business or organisation

Items and actions

Welcome

•    Marc Crothall (MC) welcomed everyone to the first online THILG meeting. 
•    Apologies were noted (see above).
•    MC informed the group that Minister Tom Arthur is joining the meeting as Mr Lochhead is recovering. 
•    MC updated on recent meeting with Deputy First Minister and New Deal for Business meeting in previous week. Reassurance was provided by DFM tourism is still an important priority for SG.

Note of previous meeting

•    The note of the previous meeting (March 2024) was approved. Meeting notes will be published on Scottish Government website. 
•    Actions from previous meeting were summarised as follows:

• Transport mission paper – has now been reviewed and updated.
• Transport Scotland presentation can be found on SharePoint site.
• Joshua Ryan-Saha (JRS) has been linked up with Transport Scotland on data point.

Future membership 

•    Rob Dickson (RD) set out the situation regarding the future membership and noted that there are three areas for consideration by the group: co-option; rotation and the co-chair role. The recommendations for a future process are covered in the paper.
•    As three members have departed the group, it's important to look at co-option to ensure a balance of member skills and knowledge, while also considering current ILG members’ tenure, to build in both continuity and rotation. 
•    RD noted that the original principles of the ILG wouldn’t change with the co-option i.e. new members would still be appointed as an individual and appointments would be made by the Minister. VisitScotland will perform a coordination role.
•    Members will be asked to make suggestions by email by 1 July of individuals that would be beneficial to have join the ILG, as well as noting their own appetite for extension of term on group beyond autumn 2025.
•    As the group is down to only two owner/operators, MC stressed that it would be useful to have more business owners join the group.
•    Kelly Johnstone (KJ) noted that for the new member suggestions, it is important to think about regional spread.
•    Stephen Duncan (SD) asked if the current organisation members list would be reviewed in which RD said that the list has not been looked at yet, but this could be reviewed to ensure it remains appropriate. MC noted that they want the right representative at the table.
•    Points were raised in the chat box as follows:

• (Carron Tobin (CT) suggested an island representative should sit on the THILG.
• Calum Ross (CR) asked how many appointments we need to make in the co-option process; RD clarified that this would be between 3 and 5.
• Benjamin Carey (BC) asked whether expenses could be covered; MC clarified that currently the ToR states expenses aren’t covered, however this will be looked at

•    In relation to the co-chair role, RD outlined that The Terms of Reference of the group states that: 

• The STA CEO has been invited to co-chair the ILG along with the Minister for an interim period of two years i.e. to October 2024.
• Following this interim period, ILG members will appoint their own industry co-chair for up to three years. 
• A practical and fair mechanism for selecting a future co-chair or vice chair will be determined by ILG members.
• The total period as industry co-chair and vice-chair cannot exceed six years. Note the vice chair role is appointed until November 2025. 

•    RD updated, per the paper, that the ILG secretariat have put together a recommended process that allows individual nominations for the co-chair role, and a system for voting if it is required. 
•    MC informed the group that he is happy to continue or step down. STA has a role at the table as an organisation member of the group.
•    MC added that the role of Co-Chair also includes the attendance at the ILG Chairs forum which meets 4-5 times a year. Meetings are split between online and Edinburgh.

All members supported and agreed the recommendations set out in the paper.

Action: Beth Thoms (BT) to send out email to members with more information regarding nominations for co-chair and co-option. 

Action: BT/VS to look at expenses query.

Miscellaneous/AOB

•    MC updated the group on the August ILG meeting. This will take place at the Social Hub in Glasgow. It will be an in-person meeting from 11:00-15:00 (with dial in option). The agenda for the day will include tech deep dive and net zero paper.
•    MC followed on to remind members of the Symposium taking place on 25 September at EICC. He outlined the agenda in brief and asked that members to let him know if they wish to attend. 
•    MC informed members the Programme for Government will be coming post Parliamentary recess and hopes this may include some supportive measures for the tourism and hospitality industry.

Ministerial remarks

•    MC welcomed Tom Arthur (TA) to his first ILG meeting. 
•    TA addressed the group and was delighted to join even in a temporary capacity. He sends best wishes to Mr Lochhead as he recovers. 
•    TA expressed his gratitude to those who engaged in the visitor levy bill and particularly those who were opposed to its principles, but nonetheless engaged proactively.
•    TA outlined his responsibilities as Minster for Employment and Investment and added that he wants to engage across portfolio responsibilities, despite tourism and hospitality not being part of his usual direct remit.
•    TA reiterated the new First Minister has set out stimulating economic growth as one of the Government’s key priorities.
•    TA noted the hope and optimism with the inflation rate the lowest in three years.
•    MC thanked the Minister and followed up by noting that the ILG and the industry have huge ambition but there is increasing concern around the sector’s competitiveness.
•    MC noted that inbound continues to stay strong but domestic is precarious; hope summer delivers an upturn.
•    Bryan Simpson (BS) asked the Minister if SG is dedicated to Fair Work and investing in people, noting that if businesses invest in Fair Work and pay their staff properly, it pays back through improved skills and fewer absences.
•    TA agreed, saying not only is this the right thing to do, it makes economic sense. He explained his responsibility to lead on this and the SG commitment to fair work is steadfast. He stressed he is committed to working with industry and sector to drive up fair work. 

Indicator set update 

•    Raymond MacIntyre (RM) recapped the ILG indicator set plan agreed at previous ILG meeting. 
•    RM summarised that on the SO2030 tracker, progress has been made, however there is a large volume of indicators so part of the role for analysts has been identifying the best indicator for each of the points in the SO2030 strategy. 
•    RM noted one gap is community sentiment and feedback in relation to responsible tourism – Household Survey could be one route to resolving this.
•    caroline Macfarlane (CM) highlighted that net zero is another challenging area to find indicators for; if the net zero mission opt to go down the route of measuring Scottish tourism’s carbon footprint, this could be a possible avenue.
•    CM noted the challenges in relation to the logic modelling element i.e. creating more specific indicators for the mission actions: 

• Update that the Proud & Valued People mission has been looked at through the logic modelling lens. This brought out the challenges of delivery especially linked to budget.
• CM proposed completing logic models for missions, measuring outputs as far as is possible recognising limits of this model given the remit of the leadership group (not a delivery group).

•    RM & CM outlined questions they’d like ILG members to feedback on:

• Are there any significant omissions in the indicators?
• Are there any more appropriate indicators or sources for any of the strategic priorities/commitments?
• Are there any potential sources to fill the gaps identified (primarily in ‘thriving places’)?
• How often, when and where do we publish the SO2030 Tracker?

•    Feedback from members provided as below:

• MC suggested every 6 months possibly for report. E.g. For October and March as these are key moments in the industry calendar. 
• BC indicated he is most concerned by the drivers for the targets, rather than creating an action plan. Logic modelling will display this and be useful. He would like to understand what are the policy implications if these don’t progress, and is happy to feed in Community/Net Zero suggestions.

•    RD thanked CM and RM for their work. He said quarterly or every 6 month reporting would be useful and noted this is just a first step. Further development of the logic model will allow THILG to see the direction of travel and the link to the mission groups. 
•    Points were raised in the chat box as follows:

• CT suggestions in relation to communities such as volunteer numbers, growth in social enterprises and extent of geographic communities involved in tourism.
• BC offered to have a further conversation in relation to net zero and community indicators.
• Chris Greenwood (CG) commented that most indicators are National and Official Statistics therefore commitment to their publication and validity of production are generally assured. There are some indicators coming from sources that are organisational funded (visitor survey) and commercial (Nation Brand Index) so asked whether there was commitment to continue to generate indicators outside of the statutory.
• Anna Miller (AM) commented that alignment with the UNWTO Statistical Framework could be useful.

Actions - RM/BT/CM to:

• Set up separate calls with BC and CT to further discuss indicators.
• Consider how to address AM and CG comments as the indicator set develops. 

Introduction to net zero session

RD outlined the paper shared with the group in advance. 
Following last meeting, the aim is to focus the direction of travel for the net zero mission. This session is to help the mission group and the ILG to give fresh ideas. There are two parts – one setting out what VisitScotland is doing now and another looking to the future with an inspirational perspective from Jeremy Sampson of the Travel Foundation. 

Net Zero –Tiomoid Foley, VisitScotland and Anna Miller, HIE  

Tiomoid Foley (TF) presented on net zero in the VisitScotland context and activities now, and in future three years and covered the following points:

•    Context: Destination Net Zero

•  Destination Net Zero was a key strand of the Covid 19 Tourism Recovery Programme and was delivered on behalf of STERG through funding from Scottish Government. 
• The partnership between VisitScotland and Enterprise agencies delivered £4million funding on projects that supported the industry with their transition to a low carbon economy 
• To continue the momentum, the DNZ steering group commissioned consultants to develop a Destination Net Zero Action Plan. The Action Plan set out what partners could do to continue supporting the Scottish tourism industry with their net zero journey. 
• Collectively, VisitScotland and the agencies developed the areas of focus into measurable actions and outputs.  
• The actions were prioritised, with each partner committing to embedding agreed actions into their organisational delivery plans. There was no additional funding secured to deliver the plan, so we are all delivery key actions are part of our BAU. 
• VisitScotland created its own action plan following this and the projects are part of core activities to support the industry journey.

•    VisitScotland set up a new and revised climate impact guide, to help businesses to calculate aspects of their direct and indirect emissions combined to gain an estimated snapshot to be able to deliver climate action. 
•    VisitScotland’s main message is that of reduction and helping a business understand how creating a plan can benefit them, their communities, and the world around them.
•    The other key theme is to demonstrate to businesses and explain to them the importance of including climate action within their supply chains. Doing so to build supply chain resilience. Influencing is probably something they already do, but we want it to have positive impacts on climate too. 
•    Climate change is not just some far off risk, it’s here and the effects of which we are seeing today. We want to support businesses who need it the most and that is why we understand that resilience comes from adaptation. 
•    Nature based resilience means human resilience, as resilient natural ecosystems support this and benefits us to support nature as part of our adaptation strategy.
•    One of the most powerful tools in a business arsenal is a business voice to both influence and develop their supply chain. Communicating the message of their net zero transition and that journey is key to inspire others. 
•    Two key VisitScotland projects are underway that both help to influence and impact responsible behaviour and low-carbon travel:

• Meaningful Travel Map - Promoting meaningful travel experiences - News | VisitScotland.org
• Decarbonising the supply chain – Supporting tourism’s transition to a low carbon economy - News | VisitScotland.org

•    The launch of the Visitor Holiday carbon calculator allows visitors to get an estimate – through this we are trying to plant seeds of change in the mind of a visitor. This acts as an influencing tool. 
•    VisitScotland is constantly developing their net zero offering; that is why we reflect and then look ahead, looking at how we work with all destinations and sectors whilst evolving our climate action resources. 

• New project with Historic Environment Scotland – looking at heritage tourism adaptation and impacted heritage sites because of climate change.
• Case studies – we hope to tie these examples and messages of good practice in further with the climate action guide and inspire others to follow the key themes and messages there. 

AM presented on HIE’s Green Grants Fund and made the following points:
•    Update on Green Grants Fund role in supporting the sector’s journey to net zero. 

• Provided up to £150k capital investment grants for tourism, food and drink and creative industries to reduce their carbon impact and increase sustainable delivery models.
• Over £1.5m approved for tourism: 15 businesses / 13 social enterprises
• Successful applicants produced a carbon baseline measurement which quantified their carbon footprint (Scope 1 and Scope 2) 

•    AM highlighted two examples of businesses that have benefitted from the fund:
•    Wick River Campsite 

• A replacement energy efficient building structure
• Transitioned to renewable heat technologies solar power and ASHP
• Minimized water wastage
• 9 tonnes of CO2e savings per annum
• £12k operating costs saved per annum

•    Black Isle Brewing Company 

• Project installed a CO2 capture unit, natural by product of the fermentation process
• Previously had to buy 26 tonnes of CO2 per annum with a financial cost 
• 16 tonnes of CO2e savings per annum
• £26k operating costs saved per annum
• Job creation - 1 new member of production staff
• Increased output and production - 38% increase in productivity

•    From 1 June 2024 HIE introduced Net Zero conditionality at two of the eight Area Teams Moray and Caithness & Sutherland. This requires any recipient of HIE funding to have undertaken a Carbon Baseline Measurement and an associated Carbon Reduction Action Plan. This is not a barrier to support, rather a tool to incentivise HIE’s clients to adopt climate action. Approach will be rolled out to all area teams in 2024.
•    Summary of HIE tourism support 2023-4

• In 2023-24, HIE approved £5.4m towards tourism development with total project costs of £13.6m
• 43% of approvals were towards delivery of net zero priorities 
• 26% of approvals were to Social Enterprises
• 23% of approvals were in fragile areas

Net Zero: The Travel Foundation

•    Jeremy Sampson, CEO, The Travel Foundation, presented the research from the Envisaging Tourism in 2030 and Beyond report. 
•    He noted the purpose of the report was due to having worked with VisitScotland on the Glasgow declaration which includes an aim to halve emissions by 2030 and reach Net Zero as soon as possible before 2050.
•    JS explained the background to the research, noting they wanted to see what the industry would have to do to reach these goals but continue to grow. They wanted to do a study to find if there were scenarios where both were happening.
•    Their research approach used a simulator which allowed them to dial up and down different interventions based on different categories. 
•    They found the single decarbonisation scenario by decarbonising and reducing volume of aviation, through which net zero was reached by 2036. They couldn’t reach the 2030 target which demonstrates the urgency. In the decarbonisation scenario – trips, overnight rates and revenue increases. This means growing the areas of tourism that can decarbonise if we want to reach net zero.
•    There are alternatives being explored in sustainable aviation fuel but the challenge is with supply. We need to buy time to try and catch up.
•    Opportunities include continuing to travel without polluting heavily, spending more time and money deep diving into destinations. Looking at how multi modal and alternatives to aviation become easier, cheaper and more appealing. 
•    This scenario is only possible if we get political backing, industry commitment and huge investment.
•    JS noted how Germany, Norway, the Netherlands and France have imposed caps. In Scotland, polices are emerging already.
•    JS said the key was moving from volume to value(s) based approach – thinking about value is important, but if the value formula is a narrow idea, it can be problematic. High spending visitors don’t necessarily mean they will bring in the most value for communities or be sustainable.
•    Scotland – studies how international visitors spend 3 times more than domestic visitors, but important to understand beyond the numbers.
•    A key element is optimising the marketing mix for low emission groups and setting a growth threshold.
•    VisitScotland and the Travel corporation have demonstrated the power of working together to carve a path forward and highlighted the importance of breaking traditional formats and silos.
•     JS ended the presentation with outlining the five potential milestones to support a path to decarbonisation:

• Global emissions accounting levels the playing field
• Net zero experiences and itineraries become the norm
• Unprecedented collaborations deliver on-the-ground action at scale.
• Tourism unites to bolster the most vulnerable destinations
• Reducing absolute emissions is an integral part of every business

Net Zero: group discussion

•    MC outlined that a concerted effort is needed to work together. Need to balance spend with impacts while appreciating we are an island and air connectivity is needed to bring people here.
•    BC asked if any country is yet doing exactly what is being advocated by TTF?
•    JS outlined that Norway is doing good things – by including emissions as an indicator in overall performance and integrating a climate lens into marketing conversations. However, a lot of what happens globally is performative. Collaboration is key and not competing with others but working together. Finland has taken serious steps to bring the industry with them, with more than 60 businesses signed up to the Glasgow declaration. 
•    BC comments in chat box related to need for reporting and measurement.
•    JC looking at argument value versus volume – diminishing return. Dramatic changes are needed but there are implications on business models.
•    JS emphasised that regulation is coming; a good question to ask is what you as a business would have done to be prepared for the pandemic hitting in 2020. We don’t have to look at de-growth in travel and tourism, if there is appetite and will to drive and support industry through change, however society as a whole has to change.