NC500 boosts north Highland economy by £22m
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A NEW report has found that the North Coast 500 road trip has boosted the north Highland economy by more than £22 million over 12 months.
The study, conducted by the Moffat Centre for Travel and Tourism Business Development at Glasgow Caledonian University, found that the NC500 generated more than £22.89m in gross value added (GVA) throughout 2018.
The Moffat centre’s North Coast 500 evaluation report, which was commissioned by the North Highland Initiative and Highlands and Islands Enterprise, also found that the route had created 180 full-time equivalent jobs in the north Highlands within the same period.
The North Coast 500 has been Scotland’s most successful route development since its launch in 2015.
Written by Professor John Lennon, the report also highlights an additional £13.46m in sales for accommodation, attraction, activity and retail businesses on or near the route in 2018, generated by the NC500 brand.
Tourism businesses throughout the north Highlands, including activity providers, tour operators, retailers, car and campervan rental firms and hospitality venues, reported a year-on-year growth of 16 per cent over the four-year period from 2014-2018.
The report also found an increase in footfall to the north Highlands had resulted in a significant boost for the visitor attraction sector over the same period.
A 19.9 per cent increase in visitors to free admission attractions was found, while paid-admission attractions benefited from a 41.7 per cent rise in visitor numbers.
Room occupancy throughout the north Highlands was also found to have increased from 52 per cent in 2014 to 78 per cent in 2018.
Similar growth was evident in average room rates, increasing from £46 (2014) to £82 (2018). The quality of accommodation has also increased, which suggests greater investment in hospitality and accommodation provision over the period 2014-2018.
David Whiteford, chairman of the North Highland Initiative, said: “From the very beginning, the North Highland Initiative’s aim in creating the North Coast 500 was to market the north Highland area’s wonderful tourism offerings in a way that would stimulate economic growth.
“The North Coast 500 is now one of the top reasons for people to travel to Scotland, and with the stunning scenery, unique experiences, exceptional food and drink, the famous Highland hospitality, a wide range of activities and the fascinating history and heritage the north Highlands of Scotland has to offer, this is no surprise.
“The North Coast 500 has been the subject of a number of studies and surveys over the years, but none as comprehensive as the Moffat centre’s official North Coast 500 evaluation report.
“The Moffat centre at Glasgow Caledonian University has many years of experience and a proven track record of effective and practical industry research. The findings within this report are so encouraging to see, with businesses throughout the North Highlands succeeding, developing and growing with the NC500 brand.
The North Coast 500 is now one of the top reasons for people to travel to Scotland.
“Moving forward, we are very aware that the significant growth reflected here must be managed and not be at the expense of any community. Instead we want to see people and businesses across the north Highlands benefiting from the investment in the area and the increased attention brought by the North Coast 500.
“It is a once-in-a-generation chance to boost the area if we all work together and make the most of this opportunity.
“It is the North Highland Initiative’s ambition to continue working with the Scottish Government, Highlands and Islands Enterprise and other external agencies in order to support communities throughout the north Highlands, and to ensure the ongoing growth of the NC500 route is sustainable.”
Professor John Lennon, director of the Moffat centre, said: “It is clear from all of the measures utilised that the impact of the North Coast 500 route has been highly significant for the economy and employment generated in the north Highlands.
“The innovative operating model for the route and the commitment of the North Coast 500 team has made a major contribution to this success.”
Tom Campbell, managing director of the North Coast 500, said: “This report is another important milestone for the NC500 and we are delighted to see the tangible evidence of the positive impact on the north Highland economy. This has been transformational and has created jobs, new investment and opportunities for Highland communities.”
Scott Morrison, managing director at Dunrobin Castle, said: “Since the launch of the NC500 route, Dunrobin Castle has seen an increase in visitor numbers which we could never have imagined. This has allowed us to create another 15 seasonal jobs and extend our opening times and open season.
“In the last two years we have invested heavily in our own infrastructure just to be able to cope with the visitors now coming to the area.”
Quintin Stevens, co-owner of The Storehouse at Foulis Ferry, said: “The North Coast 500 has undoubtedly had a very positive impact on business here at The Storehouse – primarily in terms of increasing profitability within the shoulder months of the year.
“The NC500 route has been enormously successful in signposting tourism throughout the north Highlands. Tourism north of Inverness is really thriving now, and this has given business owners throughout the region the confidence to invest in their enterprises.
“This extra investment has allowed for an increase in permanent positions, rather than temporary or seasonal roles. In turn, this results in increased training and investment, benefiting job prospects throughout the whole region for years to come.”
