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Weak pound tempts tourists from across Atlantic

Events such as Hogmanay in Edinburgh boosted visitor numbers to Scotland by 4 per cent, the strongest year since 2007
Events such as Hogmanay in Edinburgh boosted visitor numbers to Scotland by 4 per cent, the strongest year since 2007
TIMES PHOTOGRAPHER JAMES GLOSSP

Scotland’s government may have rejected the incoming US president, but the country’s hoteliers are welcoming more of Donald Trump’s fellow Americans than ever before.

The latest statistics from the Office for National Statistics reveal an “unparallelled” rush of tourists from the United States and Canada in the months following Brexit, as the pound plunged in value against the dollar.

In the third quarter of 2016, the numbers of North American visitors increased by a startling 36 per cent on a year-on-year comparison, and their total expenditure by 57 per cent, encouraged by sterling’s weakness.

Over the same period, visits from “core” European markets — Germany and France — fell by 9 per cent, said to reflect safety and security concerns, though numbers from eastern Europe surged by almost 50 per cent.

While the SNP administration stressed the warmth of the Scottish welcome as the prime cause of a tourism boom, VisitScotland conceded: “This may be attributable to more affordable rates against the pound.”

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By October last year, sterling had lost almost a fifth of its value against the dollar since the June referendum, and was trading at about $1.23.

After a brief rally this Tuesday, following the prime minister’s speech on Brexit, it continues to trade at $1.23 and is worth about €1.16, compared with €1.30 in May 2016.

An increase in airline capacity, with an additional 90,000 transatlantic seats last year, also helped to boost visitor numbers from the States.

Malcolm Roughead, the chief executive of VisitScotland, said: “It is remarkable to see such unparalleled growth in the North American market in both visits and spend.

“It is interesting to see a significant rise of 48 per cent from our eastern European markets.”

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Mr Trump, whose name is on two golf resorts in Scotland, was fired from the GlobalScot business organisation by Nicola Sturgeon in December 2015, after he said Muslims should be banned from the United States.

Undeterred, American golf enthusiasts continued to make up a large percentage of visitors to his golf courses in Ayrshire and Aberdeenshire. Across the country, tourism operators hope to continue reaping the benefits if, as analysts predict, the pound continues to trade at relatively low rates of exchange.

“Last year was a bumper year, absolutely brilliant, but this year will I think be even better,” said Alexander White, owner of the Claremont Hotel in Edinburgh.

Mr White, with 30 years in the trade, said businesses all over the country were benefiting, with holiday lets in the Highlands selling out in January and February, normally the off-season. His own hotel is full.

The fundamental reason, he said, was the fall in the value of the pound, combined with warm weather.

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“I voted Remain, this is not something I anticipated,” Mr White said. “But it is hugely different for this time of year, absolutely crazy.

“We’ve had a group of women from Ireland who couldn’t believe how cheap the drinks are, and some Italians who say it’s warmer than at home.”

Yesterday’s figures showed that overseas visitors spent £1.6 million in Scotland during the first nine months of last year, up 12 per cent on 2015 and a record for a January to September period.

Visits grew 4 per cent to 2.2 million, the strongest year to date since 2007.

It was also a record-breaking summer for inbound visits to the English regions, with 4.9 million visits from July to September 2016, up 3 per cent on the year before. Spend by overseas visitors during the third quarter reached a record £2.9 billion, up 11 per cent on 2015.

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Welcoming the latest figures, Fiona Hyslop, secretary for culture, tourism and external affairs, said: “Visitors can be assured that when they come to Scotland they will receive a warm welcome and experience spectacular scenery and top-class attractions.”

The latest boost was “great news for our hotels, shops and restaurants that depend on tourism revenue”, Ms Hyslop added.

Tourism supports 217,000 jobs in Scotland and generated £8.9 billion in visitor expenditure in 2015, a figure likely to be smashed when the 2016 annual return is calculated.

VisitScotland estimates that spending by tourists generates about £12 billion of economic activity in the wider Scottish supply chain and contributes about £6 billion to GDP (in basic prices), or 5 per cent of total Scottish GDP.

• A tourist tax could be in place in Edinburgh from next spring if a deal for the region is given the go-ahead, according to the council leader.

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Councils in Fife, the Lothians and the Borders have joined together to bid for up to £2 billion from a scheme aimed at stimulating investment that involves both the UK and Scottish governments.

The deal would grant councils the power to introduce a levy on visitors, said Andrew Burns, leader of the city’s Labour-SNP coalition. It is likely the money would be ring-fenced for culture and leisure use.

A final decision on the City Deal, similar to those signed in Glasgow and Aberdeen, is expected in March.

About four million people visit Edinburgh each year and inject £1.3 billion into the economy.