As a result of the particiption by my Association in the Scottish Tourism Forum a copy of the Press Notice reached me last week. In view of the short time available it has not been possible to prepare a comprehensive submission for the Scottish Affairs Committee at this time, however, I trust that the enclosed evidence will be of assistance in their deliberations. The Association recognises that it plays a key role in Scottish Tourism and we look forward to being involved in any further consultation.

  The Scottish Youth Hostels Association was founded in 1931. The principal object is: To help all, but especially young people of limited means living and working in industrial and other areas, to know, use and appreciate the Scottish countryside and places of historic and cultural interests, and to promote their health, recreation and education, particularly by providing them with simple hostel accommodation for them on their travels.

Key Statistics 1997
Members	38,834
Hostels	80
Beds	4,852
Overnight—Visitors from Scotland	196,205-31%
England/Wales/NI	130,186-21%
European Union	180,955-28%
Other International	126,261-20%
Total	633,607-100%
Overnight Charges (1998)	£3.85-£9.60 Average £6.95

1  What is the value of tourism to the Scottish economy in terms of money brought in and the amount (and quality) of employment generated.

  1.1  Total gross income generated by Scottish Youth Hostels Association (SYHA) is about £7 million per annum.

  1.2  Research by Scottish Tourist Board (STB) indicates that for every overnight spent in a SYHA Hostel a further £30+ is spent on other facilities in the local community. In particular there is a higher than average spend in rural shops and on public transport.

  1.3  On this basis the value of business from visitors to Scotland using a SYHA Hostel is £16 million with a further £7M flowing from Scottish residents.

  1.4  23 per cent of the 2.7 million Youth Hostel Overnights in the United Kingdom are recorded at SYHA Hostels.

  1.5  52 per cent of this business is generated from 330,000 overnights at 55 Hostels—within the Highlands & Islands Enterprise Network area.

  1.6  SYHA employs a core staff of about 200 with a further 300 recruited on a seasonal basis.

  1.7  In general the Tourism Industry suffers from seasonality, poor staffing, low wages, lack of prospects and training.

2.  What is the current structure of the industry and the bodies which control and encourage it and whether the structure is efficient

  2.1 The structure at present is very fragmented:

British Tourist Authority (BTA)

Scottish Tourist Board (STB)

Area Tourist Boards (ATBs)

Tourist Information Centres (TICs)

Scottish Enterprise (SE)

Highlands & Islands Enterprise (HIE)

Local Enterprise Companies (LECS)

Councils

  2.2  To the average tourist from overseas "Britain" "England" and "London" are one in the same place—they do not think of Scotland in the same context.

  2.3  At present much of the tourism marketing budget is direct at the high spending international tourist and attracting major conferences.

  2.4  Limited marketing is directed towards the "Youth Tourism" market which is the seed corn of future tourism. A satisfied budget traveller today will return in later years with their family to enjoy Scotland and stay in budget accommodation, bed and breakfast or even a 5* hotel.

3.  Whether public and private investment is sufficient and productively spent

  3.1  SYHA has invested £8.5 million—equivalent to 27 per cent of accommodation income—over the past10 years in the development and improvement of its Hostels. In the same period Grants of £900K were received from Scottish Tourist Board, Countryside Commission for Scotland (now part of Scottish Natural Heritage) Highlands & Islands Development Board and LECs in the new Highlands & Islands Enterprise Network.

  3.2  Notwithstanding the commitment on the part of SYHA to deliver a quality Hostel product it is disappointing to note that Development Grants are no longer available from Scottish Tourist Board. Similarly, LECs have limited funding available for Tourism projects as their main thrust has switched towards the development of jobs in the industrial and manufacturing sectors.

  3.3  Through its membership of the International Youth Hostel Federation (IYHF) the SYHA has strong marketing and centralised booking links with Youth Hostel Associations in other countries. In many European countries the level of Central & Local Government financial support for Hostel capital development projects is significant—in some cases up to 100 per cent.

  3.4  It should also be noted that in all Countries within the EU—with the exception of Denmark and the UK—Youth Hostel accommodation charges are Zero Rated for the purposes of VAT. In most of these countries VAT on other accommodation and tourist services is levied at a reduced rate. Consideration should be given to the harmonisation of taxation within the EU countries with a view to creating a more even marketplace.

  3.5  It is also of some concern to note that the 20 per cent discretionary relief for Charities in respect of Business Rates was recently withdrawn by the Highland Council at the 29 SYHA Hostels within their area.

  3.6  In the current competitive marketplace funding for marketing, booking systems and capital development is critical to an organisation which operates a network of Youth Hostels throughout Scotland. In many cases the smaller rural Hostels require an element of cross subsidy from the larger Hostels in the key tourist areas.

  3.7  SYHA is pleased to work with STB in Budget Accommodation Grading Scheme and the IYHF in its Hostel Assured Standards Scheme.

4.  Whether, and what changes could be made to encourage people from abroad, from the UK and indeed from Scotland itself to take their holidays in Scotland?

  Improved facilities

  Increased Marketing Budgets

  A clearer international identity for Scottish Tourist Board

  Improved direct Air, Ferry and Rail links with Europe

  Investment in motorways and other roads in the UK

  Reduction in the cost of petrol in remote areas of Scotland

  More facilities for cycles on trains

  More Seasonal Pricing

  More Seasonal Offers—such as Autumn Gold

5.  How the organisation of tourism in Scotland will be affected by the creation of the Scottish Parliament?

  5.1  In order that the Scottish Tourist Board achieves its key corporate objectives:

(a)  Increase Visitor Expenditure

(b)  Develop all year round tourism

(c)  Develop tourism outwith the main tourism areas

(d)  Promote high quality in all tourism facilities and services

  It is essential that the Scottish tourism functions currently undertaken by the BTA are devolved to the STB and adequate funding provided through the Scottish Parliament for this purpose.

  5.2  SYHA would not welcome the introduction of a Bed Tax/Tourist Tax unless the total proceeds were to be applied for tourist development purposes. Bearing in mind the low charges and the seasonal nature of many of the small Hostels a turnover based tax would be fairer than a per bed capitation charge.

6.  Quality of service and the level of training

  6.1  SYHA had expended considerable resource in recent years in training all its staff in customer service and the implementation of new technology. In these programmes it has worked with other Youth Hostel Associations in the EU. Limited funding has been made available from the EU to assist with this joint initiative. At present HIE and SE are unable to provide funding for this purpose as there is no recognised qualification which can be awarded to participants.

  6.2  In the general Scottish tourist market we have a lot to learn—levels of service and training fall a long way short of standards in many parts of Europe, USA and Australasia.

7.  Value for money

  7.1   SYHA is proud to offer good value for money, which has been borne out by surveys undertaken by the International Youth Hostel Federation over a number of years.

  7.2  In many sectors of the tourist market poor training, lack of investment, microwave food, excessive pricing and the short season lead to poor value for money for customers.

8.  Crafts and Souvenirs

  8.1  Quality end of the market, in particular, woollens, tweeds, whisky and specialist foods present a good but expensive image.

  8.2  Many of the souvenirs are poor quality imports which presents a bad impression.