Scotland’s Overseas Tourism Now Soars to Record More than Four Million Visitors, Domestic Market Faces Frustrating Challenges

Scotland’s tourism industry hit new records for the year 2024, attracting a record number of overseas tourists topping 4.4 million. The overseas visits have injected a total of £3.9 billion into the Scottish economy, new statistics released by VisitScotland reveal, based on the most recent International Passenger Survey (IPS). The overseas visits have upped the year-on-year increase for the sector by a total of 7%, stimulated principally by robust growth across core markets like Europe and North America. The report, however, also reveals alarming trends within the domestic tourism marketplace, which appears to be under pressure, as the number of domestic overnight visits, as well as the number of total nights spent within the country, havefallen.

International Tourism: A Record-Breaking Year

The 4.4 million overseas visitors to Scotland in 2024 marks a historic high for international tourism in the country. This surge in international visitors has had a significant positive impact on Scotland’s economy, contributing £3.9 billion in tourism spend. While the overall number of international visitors increased, the data reveals that total nights spent in the country fell by 10%. This suggests that international tourists are opting for shorter, high-value trips, which reflects a broader trend of more compact and efficient travel planning in the post-pandemic world.

European and North American visitors led the charge in this growth, with both regions demonstrating strong demand for Scottish experiences. This could be attributed to Scotland’s strong appeal as a cultural destination, offering a unique blend of history, natural beauty, and modern attractions that continue to attract visitors from around the globe.

Marc Crothall, CEO of the Scottish Tourism Alliance, commented, “Today’s statistics underline Scotland’s strong global appeal and the significant contribution international visitors make to our economy. A record year for overseas travel is a welcome boost for many tourism businesses that have worked tirelessly to rebuild after the pandemic.”

Domestic Tourism: A More Fragile Outlook

While Scotland’s international tourism figures are impressive, the domestic tourism market paints a less optimistic picture. According to the Great Britain Tourism Survey 2024, the number of overnight trips taken by UK residents to Scotland fell by 2%, with total nights spent down 8% year-on-year. While spending by domestic visitors increased by 1%, this is largely offset by inflation, resulting in a real-term decline in spending. This, coupled with a shortening of the average trip length, indicates that domestic travelers are scaling back on their vacations within the country.

The reasons for this decline in domestic tourism are multifaceted. Rising operating costs, particularly in accommodation and hospitality, have made it increasingly difficult for many UK residents to afford to holiday in Scotland. The cost of hotel rooms and other services has surged, creating a barrier for domestic travelers. A recent study revealed that accommodation costs in major Scottish cities, particularly Edinburgh, have increased by more than 75% since 2019, making it more challenging for residents to plan longer stays.

Another factor contributing to this decline is economic uncertainty. Rising living costs and inflation have put pressure on households, forcing many to reduce discretionary spending, including holidays. In addition, the ongoing challenges faced by the wider hospitality industry, such as staffing shortages, further exacerbate the situation, leading to less attractive offerings for domestic tourists.

Visitor Levy: Additional Pressure on Domestic Tourism

One of the most contentious issues in Scotland’s tourism sector is the proposed Visitor Levy, which aims to impose a tax on tourists staying in accommodation within certain cities, including Edinburgh. While the levy is seen by some as a way to generate revenue for local infrastructure improvements, it has sparked significant opposition from businesses that rely heavily on domestic tourism. The Scottish Tourism Alliance has warned that introducing the levy in a fragile economic climate could further discourage domestic tourism and increase the financial pressure on local hospitality businesses.

Marc Crothall from the Scottish Tourism Alliance has expressed concerns about the levy, stating, “The Visitor Levy is being introduced in a fragile economic climate, placing additional pressure on businesses already fighting to stay afloat. It is vital that it is implemented in full partnership with the industry, in a way that is fair, simple, and economically sound.” The Scottish Tourism Alliance has led the call for a revised approach to the levy, urging the Scottish Government to ensure that it does not undermine the sustainability of the tourism sector, especially for domestic visitors.

Looking to the Future: Strengthening Scotland’s Tourism Sector

As Scotland continues to attract record numbers of international visitors, it is crucial to address the challenges within the domestic tourism market. Ensuring that tourism remains accessible and affordable for residents will be key to maintaining a balanced and sustainable tourism economy. There is a growing need for policy stability, fairer taxation, and long-term investment in Scotland’s tourism infrastructure, particularly in areas that support domestic tourism.

Crothall emphasized the importance of long-term investment and fair policies, saying, “Tourism is one of Scotland’s largest private-sector employers and a critical lever for economic growth. To unlock the full potential of the sector and ensure commercial viability for many hundreds of businesses, we need policy stability, fairer taxation, and long-term investment in infrastructure, skills, and destination development.”

Conclusion

Scotland’s tourism sector is undoubtedly thriving on the international front, with a record number of overseas visitors contributing significantly to the economy. However, the decline in domestic tourism highlights a critical need for policies that support both international and local visitors. By addressing the rising costs of accommodation and implementing fair and effective taxation policies, Scotland can continue to strengthen its position as a top global tourist destination while ensuring that its tourism businesses remain sustainable for years to come.

(Source: VisitScotland, Scottish Tourism Alliance, Great Britain Tourism Survey, The Times)