Insight Department
Scottish Business Travel and
Tourism – Facts & Insights
2014
Overview
The following paper is a summary of the tourism performance of Scotland’s Business
Travel and Tourism sector. Through the use of data sources such as; the International
Passenger Survey (IPS), and the Great Britain Tourism Survey (GBTS), insights have been
drawn to gain an understanding of the sectors volume, value, and visitor profile. Please
note that this paper is only representative of Business Travel of all types including
individual non-discretionary business travellers as recorded by VisitScotland’s data
source. It is not a report on the state of the Meetings, Incentive, Conference & Exhibitions
(MICE) market or “Business Tourism” as targeted by VisitScotland’s Business Tourism Unit.
Key Insights
•
Over the first 3 Quarters of 2013, Business Tourism and Travel visitors have generated
1.7 million trips, 5.8 million nights, and £581 million in expenditure. The average
spend per trip during this period is estimated at £336, whilst spend per night is £100.
•
Domestic business travel and tourism visits has generated 1.4 million trips, 4.4
million nights, and £378 million in expenditure during Quarters 1-3 in 2013. The
average spend between Quarters 1-3 by domestic visitors in 2013 was £260 per trip,
and £86 per night.
•
International business travel and tourism visitors generated 278,000 trips, 1.4 million
nights, and £203 million in expenditure during the first 3 Quarters of 2013. The
average spend between Quarters 1-3 by overseas visitors in 2013 was £730 per trip,
and £143 per night.
•
An average of 2.5 million business trips are made each year to Scotland from both
overseas, and domestic visitors, generating an average of 7.6 million nights and £793
million between 2008 and 2012.
•
The average spend per trip by business travel and tourism visitors to Scotland
between 2008 and 2012 was £317, whilst the average spend per night was £104.
•
An average of 2.1 million business trips have been made each year by domestic
business visitors to Scotland between 2008 and 2012, spending an average of 5.6
million nights, and £571 million. Domestic business travel and tourism visitors spent
an average of £272 per trip, and £101 per night.
•
Between 2008 and 2012, Quarters 2 and 3 have been the most important quarter for
domestic business travel and tourism in Scotland, generating the most nights, and
expenditure.
•
An average of 391,000 business trips have been made each year to Scotland from
Overseas visitors between 2008 and 2012, spending an average of 1,9 million nights
and £221 million. Overseas Business visitors to Scotland spent an average of £565
per trip, and £113 a day.
1
Over the first 3 Quarters of 2013, Business Tourism and Travel visitors have generated 1.7
million trips, 5.8 million nights, and £581 million in expenditure. The average spend per
trip during this period is estimated at £336, whilst spend per night is £100.
2259
1969
Nights (000’s)
1589
Trips (000’s)
Spend (£m)
622
617
£183
£218
Quarter 2
Quarter 3
490
£180
Quarter 1
(Figures provided by Great Britain Tourism Survey, and International Passenger Survey)
Traditionally a stable Quarter, Quarter 1 generated 490,000 trips, 1.6 million nights, and
£180million in expenditure by both domestic and overseas business travel and tourism
visitors. Although the Quarter achieved a lower levels of trips, nights and spend in
comparison to Quarters 2 and 3, it achieved the highest level of average spend for both
trips and nights.
Per Trip
Per
Night
Q1
£367
£113
Q2
£294
£93
Q3
£353
£97
Domestic & Overseas Combined Average Spend 2013
(Figures provided by Great Britain Tourism Survey, and International Passenger Survey)
Quarter 2 achieved a 27% increase in trips, and a 24% increase in nights in comparison to
Quarter 1, as well as a 2% increase in expenditure, although the average spend per trip
and night was lower than the previous quarter.
Quarter 3 has performed well for the business travel and tourism visitor market, despite
a minor decrease in trips in comparison to Quarter 2. Nights increased by 15% in
comparison to the previous quarter, while expenditure increased by 19%. Business travel
and tourism visitors averaged £353 per trip, and £97 per night during this period.
2
Latest
Figures
2013
Domestic
Travel and
Tourism Data
(Quarters 1-3)
Domestic business travel and tourism visits has generated 1.4 million trips, 4.4 million
nights, and £378 million in expenditure during Quarters 1-3 in 2013. The average
spend between Quarters 1-3 by domestic visitors in 2013 was £260 per trip, and £86
per night.
1584
1532
Nights (000’s)
1284
Trips (000’s)
Spend (£m)
540
508
403
£111
Quarter 1
£142
£125
Quarter 2
Quarter 3
(Figures provided by Great Britain Tourism Survey)
Quarter 1 of 2013 generated 403,000 trips, 1.3 million nights, and £111 million in
expenditure by business travel and tourism visitors. £275 average spend per trip has so
far been the highest average spend per trip recorded in 2013, whilst the average spend
per head was a healthy £86 per night.
Per Trip
Per
Night
Q1
£275
£86
Q2
£263
£90
Q3
£246
£82
Domestic Visitor Average Spend Q1-3 2013
(Figures provided by Great Britain Tourism Survey)
Quarter 2 saw growth in trips, nights and spend in comparison to the previous Quarter,
with a 34% increase in trips, 23% in nights, and 28% in expenditure. So far, Quarter 2 has
achieved the highest spend per night figure with £90, whilst spend per trip averaged at
£263.
Quarter 3 saw a slight decrease overall in comparison to the previous Quarter. 3% less
trips were taken during this Quarter as well as 6% less nights. Expenditure by domestic
business travel and tourism visitors also decreased during this period, by 12%. This
decrease was also reflected through the average spend during this Quarter with both
the trip and spend average down on the previous Quarter, and the lowest of the year so
far.
3
International business travel and tourism visitors generated 278,000 trips, 1.4 million
nights, and £203 million in expenditure during the first 3 Quarters of 2013. The
average spend between Quarters 1-3 by overseas visitors in 2013 was £730 per trip,
and £143 per night.
727
Nights (000’s)
Trips (000’s)
Spend (£m)
472
385
305
87
109
82
93
£93
£69
£68
£41
Quarter 1
Quarter 2
Quarter 3
Average
(Figures provided by International Passenger Survey)
Quarter 1 of 2013 generated 87,000 trips, 305,000 nights, and £69 million in expenditure
by overseas business travel and tourism visitors. Overseas visitors during this time
generated an average spend per trip of £793, and £226 per night, which is the highest
average per night so far in 2013.
Per Trip
Per
Night
Q1
£793
£226
Q2
£500
£106
Q3
£853
£128
Overseas Visitor Average Spend Q1-3 2013
(Figures provided by International Passenger Survey)
Quarter 2 of 2013 saw a 26% increase in nights, but a decrease of 6% and 41% in trips and
spend respectively. This also brought down the average spend for both trips and nights to
£500 per trip, and £106 per night.
However, there was a significant recovery in overseas business travel and tourism visitor
figures during Quarter 3. Nights saw a large increase of 89% on the previous Quarter, whilst
trips achieved a 33% increase, and expenditure generated a 127% increase on Quarter 2.
These figures are also reflected in the average spend figures, with spend per trip increasing to
£853, while spend per night increased to £128.
The Euro fluctuated throughout Quarters 1 to 3 in 2013, averaging an inbound rate of €0.85.
The year began poorly with a price of €0.81 to the Pound. Despite this, overseas visits during
Q1 was strong. A short peak price of €0.86 was reached during mid-March and late July,
which may have offered encouragement for EU business travel and tourism visitors to travel.
The price of the Dollar against the Pound sat between $0.61 and $0.66 throughout the first
3 quarters of 2013, averaging at $0.64. From February to mid-March, the price increased by
$0.03, which may have supported travel during Quarter 1. Following another decline after
this price, the Dollar price rose again between June and July, which may support the influx of
International visitors during Quarter 31.
Oanda, Historical Exchange Rates www.oanda.com/currency/historical-rates/
1
4
2013
Overseas
Travel and
Tourism Data
(Quarters 1-3)
2013
Overseas
Business
Travel and
Tourism
Visitor Figures
(Quarters 1-3)
Business travel and tourism visitors from the USA generated the highest spend during
the first 3 quarters in 2013, with £31 million in expenditure. With the second highest
levels of trips and nights, visitors from the USA spent the highest amount per trip and
night with an average of £1068 and £250 respectively.
Top 5 Overseas
visitors by Trip
Trips
(000's)
Nights
(000's)
Spend
(£m)
Average
Spend Per
Trip
Average
Spend per
Night
USA
29
124
£31
£1068
£250
Norway
31
132
£17
£548
£129
Netherlands
29
79
£13
£448
£165
France
28
109
£11
£392
£101
Germany
27
93
£17
£629
£183
(Figures provided by International Passenger Survey)
Visitors from Norway generated the highest number of business travel and tourism
trips and nights in Scotland during the first 3 quarters of 2013. It could be suggested
this is largely due to the oil industry based in Aberdeenshire. Visitors from Norway, were
averaging a trip spend of £548, and £129 per night during their trip.
The Netherlands generated 29,000 business travel and tourism related trips during
the first 3 quarters of 2013 to Scotland, generating 79,000 nights and £13 million in
expenditure. Overall business travel and tourism visitors from The Netherlands spent an
average of £448 per trip, and £165 per night.
Visitors from France took 28,000 business travel and tourism related trips during the first
3 quarters of 2013 to Scotland, generating 109,000 nights and £13 million in expenditure.
Overall business travel and tourism visitors from France spent the least on average for
trip and night expenditure, accumulating £392, and £101 respectively.
Finally, business travel and tourism visitors from Germany generated 27,000 trips, 93,000
nights and £17 million in expenditure. German visitors have been particularly important
during 2013, generating the highest average spend per trip and night from the
European market to Scotland, with £629 and £183 respectively.
5
An average of 2.5 million business trips are made each year to Scotland from both
overseas, and domestic visitors, generating an average of 7.6 million nights and £793
million between 2008 and 2012. The average spend per trip by business travel and
tourism visitors to Scotland between 2008 and 2012 was £317, whilst the average spend
per night was £104.
8519
7829
7780
7239
6831
7640
Nights (000’s)
Trips (000’s)
Spend (£m)
2652
2608
2528
2496
£806
£795
£878
£782
£793
2009
2010
2011
2012
2262
2432
£703
2008
Average
(Figures provided by Great Britain Tourism Survey, and International Passenger Survey)
Figures indicate the business travel and tourism trips in Scotland by both domestic
and overseas visitors have steadily increased between 2008 and 2012, generating a
12% between the 5 year period. 2010 generated an increase in trips in against 2009
figures, with a 9% increase. Although trips have decreased by 5% from 2010 to 2012,
the overall performance has remained healthy and stable. Business tourism nights have
also increased between 2008 and 2012, generating an increase of 6%. 2010 again was
a landmark year for business tourism visits and nights, generating 8.5 million nights,
an increase of 9% on 2009’s figure and 10% the 5 year average. Expenditure generated
by business tourism visitors has increased by 11% between 2008 and 2012, with 2011
generating £878 million from both domestic and overseas visitors. Overall, business
tourism expenditure by both domestic and overseas visitors has remained stable and
healthy.
Average Spend
Spend Per Trip
Spend Per Night
2008
£311
£103
2009
£331
£103
2010
£299
£93
2011
£337
£113
2012
£309
£108
AVG
£317
£104
(Figures provided by Great Britain Tourism Survey, and International Passenger Survey)
Overall, the average spend by business travel and tourism visitors to Scotland has
remained stable between 2008 and 2012. Spend per trip has increased by 2%, whilst
spend per night increased by 1% over the five year period. 2011 achieved the highest
expenditure all round with £337 per trip, and £113 per night, whilst 2008 achieved the
lowest overall spend, indicating a growth in overall expenditure in the sector.
6
Historical
Market
Overview
Domestic
Business Trips
to Scotland
An average of 2.1 million business trips have been made each year by domestic business
visitors to Scotland between 2008 and 2012, spending an average of 5.6 million nights,
and £571 million. Domestic business travel and tourism visitors spent an average of £272
per trip, and £101 per night.
6450
5791
5733
5404
5052
5686
Nights (000’s)
Trips (000’s)
Spend (£m)
1880
2007
£538
£581
2008
2009
2311
2186
2146
2106
£561
£640
£537
£571
2010
2011
2012
Average
(Figures provided by Great Britain Tourism Survey)
Figures indicate that domestic business travel and tourism trips have increased over the
five year period between 2008 and 2012, increasing by 14%. Domestic business trips
peaked in 2010 with a 15% increase on the previous year. Business travel and tourism
nights have also increased over the 5 year period between 2008 and 2012, achieving
a 13% increase. 2010 was again a peak year, with bed nights increasing 13% on the
previous year’s total. Domestic business travel and tourism visitor expenditure has
remained stable during this period, increasing 19% between 2008 and 2011. The average
amount of nights spent in Scotland by domestic business travel and tourism visitors
is 2.7 nights. This has remained largely similar over the five year period, peaking at 2.9
nights in 2009.
Average Spend
Spend Per Trip
Spend Per Night
2008
£286
£106
2009
£289
£101
2010
£243
£87
2011
£293
£111
2012
£250
£99
AVG
£272
£101
(Figures provided by Great Britain Tourism Survey)
The average spend by domestic business travel and tourism visitors has remained stable
over the five year period. Spend per trip has averaged at £272 between 2008 and 2012,
peaking in 2011 at £293. Spend per night averaged at £101 over the five year period,
also peaking in 2011 at £111. The figures indicate that despite the economic hardship,
through the recession, domestic business travel and tourism visitor spend has remained
stable during a difficult period. This may suggest that delegates chose to invest in
visiting domestic events rather than going overseas, therefore reducing expenditure.
7
Between 2008 and 2012, Quarters 2 and 3 have been the most important quarter for
domestic business travel and tourism in Scotland, generating the most nights, and
expenditure. Figures indicate historically that Quarter 4 has had the highest number
of trips between 2008 and 2012 with an average of 572,000 for domestic business
tourism visitors. This figure is greatly boosted by Quarter 4 in both 2010 and 2011, which
generated 650,000 and 756,000 trips respectively.
2008-2012 Average
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Trips (000's)
480
532
522
572
Nights (000's)
1097
1601
1503
1484
Spend (£m)
£128
£152
£144
£147
Average Spend Per
Trip
£267
£286
£276
£257
Average Spend Per
Night
£117
£95
£96
£99
(Figures provided by Great Britain Tourism Survey)
Although Quarter 1 has generated on average the lowest trips, nights and spend over
the five year period, the average spend per night equates to £117, the highest of any
Quarter. Quarter 1 also generated an average of £267 per trip. This may be attributed
to domestic tourism visitors spending fewer nights during this period, thus maximising
spend over a shorter period. Quarters 2 and 3 generated the highest average of spend
per trip during the 5 year period with £286, and £276 respectively, whilst spend per night
equated to £95 and £96 respectively. It could be suggested that spend per night during
this period is lower due to the increased amount of nights visitors are likely spend at
business tourism events during this time. Despite Quarter 4 having the highest amount
of trips, and healthy overall expenditure, on average it generated the least of expenditure
per trip at £257
8
Domestic
Visitors Time
of Trip
Overseas
Business Trips
to Scotland
An average of 391,000 business trips have been made each year to Scotland from
Overseas visitors between 2008 and 2012, spending an average of 1,9 million nights and
£221 million. Overseas Business visitors to Scotland spent an average of £565 per trip,
and £113 a day.
2096
2069
1989
1954
1835
1779
Nights (000’s)
Trips (000’s)
Spend (£m)
425
382
£165
2008
422
341
382
391
£225
£234
£238
£245
£221
2009
2010
2011
2012
Average
(Figures provided by International Passenger Survey)
Figures indicate that trips spent in Scotland by business travel & tourism visitors have
remained stable throughout the 5 year period, peaking in 2009 at 425,000 trips. Nights
have increased since 2008, reaching its peak in 2009, with 2,1 million business nights to
Scotland, which was an 18% increase on the previous year. Since 2009, there has been a
slight decrease in the number of business nights taken to Scotland by Overseas visitors,
a reduction of 12% since 2009, but overall visits in 2012 are up 3% on 2008’s figure.
Business tourism expenditure has steadily increased since 2008, increasing by 48% to
£245 per annum in 2012. The figures would therefore indicate that after a peak year of
2009, the number of trips taken by business tourism visitors has decreased, possibly due
to economic restraints with flight costs, which in turn has affected the number of nights
spent in Scotland. The average amount of nights spent in Scotland by Overseas business
tourism visitors is 5 nights. The average amount of nights spent in Scotland has slowly
increased since 2008, peaking in 2010 at 6 nights. The figures decreased in 2011 to a 4.7
average, but have steadily increased to 4.8 in 2012. Overseas business tourism visitors
have taken fewer trips but are staying for the same amount of time to consolidate flight
costs. This has allowed for more disposable income during the period.
Average Spend
Spend Per Trip
Spend Per Night
2008
£432
£93
2009
£529
£107
2010
£686
£113
2011
£564
£120
2012
£641
£134
AVG
£272
£101
(Figures provided by International Passenger Survey)
The average spend by business tourism visitors to Scotland has steadily increased over a
five year period. Spend per night has increased by 44% from 2008 to 2012, whilst Spend
per trip has increased 48% over the same period. This indicates that although there
has been a decrease in the overall amount of trips taken by overseas business tourism
visitors, they are still spending whilst on their trip. This would further support the claim
that trips may have been consolidated to maximise costs whilst in Scotland, and attend
as many events within their time frame.
9
Between 2008 and 2012, Quarter 2 has been the most popular times for overseas business
travel and tourism visitors. On average, Quarter 2 generates 116,000 trips, 598,000 nights, and
£62 million in expenditure. Quarter 3 followed closely with 105,000 trips, 527 nights, and £63
million in expenditure. Less trips and nights are spent during Quarter 4 by Overseas Inbound
business tourism visitors, but expenditure is still particularly high. Historically, Quarter 1 is the
quietest month for overseas inbound business tourism to Scotland, generating an average of
83,000 trips, 361,000 nights, and £38 million in expenditure.
2008-2012 Average
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Trips (000's)
83
116
105
86
Nights (000's)
361
598
527
468
Spend (£m)
£38
£62
£63
£58
Average Spend Per Trip
£457
£534
£600
£674
Average Spend Per Night
£105
£104
£120
£124
(Figures provided by International Passenger Survey)
Although Quarter 2 has generated the highest amount of trips, nights and a high level of
expenditure, overseas inbound business travel and tourism visitors in Quarter 4 have the
highest level of average spend per trip and night. The average spend per trip during Quarter
4 by overseas inbound business tourism visitors is £674, whilst the average spend per night is
£124. This may be attributed to the opportunity of festive shopping whilst on business travel
and tourism trips, or increased pricing for facilities during this time. Although Quarter 2 has
on average the highest amount of trips and nights per Quarter, it generates and average of
£534 per trip and £104 per night, the lowest average spend per night in all Quarters. Quarter
3 generates an average spend per trip of £600, and £120 per night. Quarter 1 generates the
lowest average spend per trip with £457, and £105 per night.
Trips by Country
Top 10 (5yr AVG)
(000’s)
Nights by Country
Top 10 (5yr AVG)
(000’s)
Spend by
Country Top 10
(5yr AVG)
(£m)
USA
47
USA
254
USA
£39
GERMANY
38
GERMANY
161
GERMANY
£15
NETHERLANDS
34
FRANCE
160
FRANCE
£14
FRANCE
33
NETHERLANDS
108
NETHERLANDS
£14
NORWAY
26
DENMARK
107
IRELAND
£13
POLAND
23
ITALY
103
DENMARK
£12
IRELAND
21
IRELAND
97
NORWAY
£11
DENMARK
16
INDIA
90
ITALY
£10
SPAIN
16
NORWAY
72
CANADA
£8
ITALY
15
POLAND
71
SPAIN
£7
(Figures provided by International Passenger Survey)
Over the last five years, the top 10 country which generate the highest number of trips,
nights, and spend from visitors has remained largely unchanged. Overseas inbound
business travel and tourism visitors from the USA have accumulated on average the
highest amount of trips, nights, and spend between 2008 and 2012. Visitors from the USA
are the highest spenders per tip and spend an average £829 per trip, and £153 per night,
whilst visitors from Germany spend an average of £395 per trip, and £93 per night. Visitors
from the Netherlands spend an average of £412 per trip, and £129 per night. Visitors from
France spend an average of £424 per trip, and £88 per night, whilst visitors from Norway
spend an average of £423 per trip, and £152 per night.
10
International
Visitors Time
of Trip
Appendices
Sources
Oanda
ONS International Passenger Survey
VisitBritain
International Passenger Survey - Sample Sizes
Information is taken from the Office for National Statistics, International Passenger
Survey data. Figures for a number of regions are based on small sample sizes. It is not
recommended to use data where the sample size is less than 30 - these small sample
sizes have been highlighted in the above summary. For further information on these
sample sizes, please refer to the Pivot Tables which are made available via the VisitBritain
website www.visitbritain.org (Insights & Statistics section).
Contact us
Insight Department
VisitScotland
Ocean Point One
94 Ocean Drive
Edinburgh EH6 6JH
T: 0131 472 2222
[email protected]
www.visitscotland.org
2014
Disclaimer: VisitScotland has published this report in good faith to update stakeholders on its
activity. VisitScotland has taken all reasonable steps to confirm the information contained in the
publication is correct. However, VisitScotland does not warrant or assume any legal liability for
the accuracy of any information disclosed and accepts no responsibility for any error or omissions.
Images: © VisitScotland/Scottish Viewpoint and © Thinkstock
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