INVESTEDINBURGH

QUaRTERly INVESTmENT maGazINE fRom ScoTlaND’S capITal ocToBER To DEcEmBER 2011

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alSo INSIDE ISSUE 38 » poRTRaIT GallERy facES THE fUTURE » aValoQ ESTaBlISH Uk SUBSIDIaRy IN EDINBURGH » RETaIl RaISES a cHEER » kEy EcoNomIc INDIcaToRS

Room wITH a VIEwTHE oUTlook foR EDINBURGH’S HoTEl SEcToR

<capITalfocUS IN THIS ISSUE

for a free quarterly subscription to Invest Edinburgh, or to obtain additional copies, please contact editor@investedinburgh.com

Invest Edinburgh is created in a partnership between marketing Edinburgh ltd and the city of Edinburgh council. It is published by Resolve creative, Suite 104, 47 Timber Bush, Edinburgh EH6 6QHt. +44(0)131 555 7585 w. resolve-creative.co.uk

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SUBScRIBE To INVEST EDINBURGH

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the gallery will reopen after a £17.6 million, two-and-a-half year refit, which has been supported by the scottish government, Heritage lottery fund, uK trusts and foundations, corporate sponsors and individual donors from the uK and overseas.

“The most exciting aspect is that the architects, page and park, have increased our exhibition space dramatically enabling us to show far more of our collection,” explains catrin Tilley, Director of External affairs. Nine hundred paintings will be on display at any time, nearly 50% more than was possible previously.

It’s a fitting 21st century makeover to what was the first ever purpose-built portrait gallery in the world, when it originally opened in 1889.

“The new Gallery is designed to explore our nation and culture through the lives of the people of Scotland, revealing its story through five key areas covering The Reformation, Enlightenment, Empire, modernity and contemporary Scotland.

“we’re very excited to see the reaction. There will be everything from the visual culture of the Jacobite cause to our modern heroes of science and sport.”

The Gallery has been restored to its original design, with spaces that had long been closed to the public now reopened, and an enhanced sense of

space and light – offering a line of sight throughout the length of the building. The reconfiguration has created new learning and visitor facilities, such as an Education Suite, library and Visitor Hub and an expanded café. There is also a new photography Gallery, which will house the first permanent photography exhibition in a public gallery in Scotland.

a new seminar area will be available for corporate hire, hosting up to 40 people, with private dining available.

what were previously curatorial offices will form small galleries off each key area. These will add context to the five themes, such as looking at the meaning of tartan through the ages or the role of women in the 19th century.

It’s expected the new gallery will attract up to 300,000 visitors in its first year. “we have aimed to bring to life the people of Scotland through our collection,” adds catrin.

The five key areas will be organised around long-term exhibitions, acting as focal points for a programme of regularly changing displays from the collection, as well as temporary exhibitions.

“The portrait Gallery has more than 38,000 photographs by Edinburgh’s pioneers of photography, Hill and adamson, and this collection will change every four months,” adds catrin. “we’ll also feature contemporary photography expositions as well, so there will always be new things to explore.”

The processional frieze in the Great Hall (above) – displaying 155 men and women from Scotland’s history – has provided a focus for fundraising with sponsors adopting a figure, while individual supporters have been able to ‘put themselves in the picture’ – with a new digital gallery of sponsors.

“we’re aiming to express what has made Scotland the country it is today, and do this through the fascinating lives of Scots past and present,” says catrin.

• the national portrait gallery, Queen street, edinburgh reopens to the public on 30 november 2011.

THE fIRST woRD

welcome to Invest Edinburgh, the quarterly investment promotion magazine co-produced by the city of Edinburgh council and marketing Edinburgh ltd.

In may and June this year, Edinburgh’s hotel occupancy rates where the highest in Europe, according to STR Global, leading providers of market data to the world’s hotel industry.

This issue’s cover feature investigates investment opportunities in the hotel sector (p10-13), and our new Insight section (p14-15) presents expert comment from key representatives of the industry.

I am delighted to welcome avaloq, world leading financial services company to Edinburgh. avaloq aims to create 500 new jobs over the next few years, including a large number of graduate positions. In partnership with SDI, the city council went to great lengths to ensure that avaloq’s destination of choice was the capital of Scotland. This announcement reinforces the fact that Edinburgh remains a highly important financial services centre.

I hope you enjoy the issue and, as always, feedback on any aspect of the publication would be most welcome to: editor@investedinburgh.com

Tom BUcHaNaN,convenor of the Economic Development committee

poRTRaIT GallERy:facE To THE fUTURE

SNapSHoTS

New openings in comparative medicine and retail 10 QUESTIoNS foR...

John young, finance Director of Scottish leisure leader, G1, on the group’s expansion into Edinburgh

(cover story)

Room wITH a VIEw

Recent research reveals Edinburgh’s hotels are leading the recovery in Europe, with occupancy at record levels

INSIGHT

we ask stakeholders what they think are Edinburgh’s strengths and weaknesses in the hotel sector

makING IT HappEN

Edinburgh International: leveraging the nation’s economy

aDDED ExTRaS

Set your taste buds alight

THE STaTISTIcS

The latest key indicators for the Edinburgh economy

Cover image: Hotel Missoni, Edinburgh

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i NVEST IN EDINBURGHaRE yoU:• a retailer looking to expand into a dynamic new market?• a hotel developer or operator interested in opening a hotel

in a global tourism hotspot?• a business looking to establish an office or contact centre

in Scotland?• a property developer interested in development opportunities?

If So, THE cITy of EDINBURGH coUNcIl aND ITS paRTNERS caN pRoVIDE yoU wITH:• free, confidential, impartial advice on your commercial

property and land requirements;• Introductions to key business and civic leaders;• assistance with recruiting and training staff with the skills

you need;• advice on accessing grants and other funding;• Guidance on doing business in Scotland;• High-quality market intelligence.

To find out more about how we can help you, please contact the Investor Support team at invest@edinburgh-inspiringcapital.com or on +44 (0)131 529 6600.

furtHer information

www.nationalgalleries.org

a new seminar area will be available for corporate hire, hosting up to 40 people, with private dining available.

fact box:

There will be a lot of familiar faces – and a host of less familiar ones too – at the reopening

of the Scottish National portrait Gallery on 30 November. and that’s just on the walls.

THIS maGazINE IS pRINTED oN ENVIRoNmENTally RESpoNSIBlE papER maNUfacTURED USING 100% REcyclED waSTE.

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bite size

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wHaT DoES IT Do?The original business – wigwam cabins limited – initially focused on manufacturing low cost comfortable accommodation for walkers on long-distance trails such as The west Highland way. Developed by charles Gulland while with the countryside commission, he established it as an independent company in 2000.

wHy aRE THEy woRTH waTcHING?Since 2000, charles has also set up wigwam Holidays, which provides a licence to venues using the wigwam cabins. “our venues pay a subscription to join the marketing arm and sign up to maintain quality standards and follow our brand guidelines.”

The company now has 48 licensees offering more than 300 wigwam cabins that can each sleep up to five adults in heated, double-glazed comfort, all at a budget price. The company is also moving towards managing centralised on-line bookings, adding an additional revenue stream to the cabins and licence fees.

wHERE HaVE THEy comE fRom?The first four sites were all in Scotland and its manufacturing arm is in

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NEw facIlITy’S DESIGN wIllpRomoTE collaBoRaTIoN

wIGwam ScoTTISH HolIDay compaNy

the new £16 million arena for the royal edinburgh military tattoo provided a ‘completely different’ experience for visitors to the sell-out event this year. seats now provide a third more leg-room and the arena offers a better view and sound system.

The newly redeveloped National museum of Scotland attracted more than 450,000 visitors in the first month after it reopened to the public in July. museum officials had predicted they might achieve the 100,000 mark within two weeks of opening. They did so after just six days.

edinburgh’s ocean terminal has been put on the market by its owners, forth ports, together with about 10 acres of adjacent development land. the recently acquired group is seeking £100 million for the flagship shopping centre and wants to focus on investing tens of millions of pounds in the ‘re-industrialisation’ of its assets on the capital’s waterfront.

The latest Global financial Services Index, published in September, has placed Edinburgh ninth in Europe. The Index assesses city strengths based on people and skills, business environment, property factors, infrastructure and market access.

to combat the impact of the economic slowdown on job opportunities for school leavers, the city of edinburgh council has created a partnership with private enterprises to increase appropriate job opportunities: the edinburgh guarantee. the council will also provide support to other employers who join the edinburgh guarantee through a dedicated economic development business liaison officer.

The University of Edinburgh has been listed in the top 20 of the world’s universities in the 2011 study by Quacquerelli Symonds (QS), a leading global career and education network.

on the outskirts of edinburgh, a total of 500 scientists are tackling global challenges such as preventing the spread of infectious diseases and feeding a growing world population.

Brought together in a new purpose-built centre, partners from The Roslin Institute and Sac (Scottish agricultural college) combine expertise in areas such as

immunology and infectious diseases, as well as genetics and genomics.

The Roslin Institute’s new £60 million home forms part of a £100 million development at the University of Edinburgh’s Easter Bush campus, which also includes a new teaching building for the Royal (Dick) School of Veterinary Studies.

opened in June by Scotland’s first minister, alex Salmond, The Roslin Institute places a strong emphasis on comparative medicine where research can be applied to improve both animal and human health.

professor David Hume, Director of The Roslin Institute said: “our new home will help us tackle complex problems ranging from fertility and reproduction to animal welfare and greenhouse gas emissions.”

The three-storey building, which has received key funding from the Biotechnology and Biological Sciences Research council (BBSRc), covers 14,000m2. It has been designed to encourage collaboration between scientists from different disciplines.

The Roslin Institute, which is incorporated with the University of Edinburgh’s Royal (Dick) School of Veterinary Studies, currently has more than 100 phD students and plays a critical role in training researchers for many areas of the Uk’s livestock sector.

> further information: www.roslin.ed.ac.uk

wEalTH of HERITaGE…the restoration of panmure House, once the home of adam smith in edinburgh’s canongate, has been given the go-ahead following a public consultation.

The decision means Edinburgh Business School, a part of Heriot-watt University, can proceed with the restoration and development of the historic building as a centre for teaching and research in economics.

The School bought panmure House from The city of Edinburgh council in 2008 and Heriot-watt now plan to invest £3 million in the redevelopment project, which includes improved public access and links to its illustrious past.

panmure House is situated just a few steps from the Royal mile and close to the canongate kirk, where adam Smith is buried. It can claim to be the home of modern economics; here adam Smith – author of The Wealth of Nations – would regularly meet to debate with contemporaries, rivals and admirers during the Scottish Enlightenment.

“I am delighted we can now realise our vision for this historic building,” said professor lumsden, Director of the Edinburgh Business School.

> further information: www.ebsglobal.net

perthshire. But in the past three years it has more than doubled its locations, with sites now ranging from the Shetland Islands to cornwall. The brand is protected throughout the EU and the company is also in discussions with sites on the European mainland.

as the number of sites has expanded, so too has the size of some venues and several now offer wi-fi, TV and laundry rooms. Strathfillan, which has five lodges in addition to the cabins, recently hosted a wedding on site!

wHaT DoES IT mEaN foR THE aREa?The Edinburgh-based company employs 15 people directly and will host its 48 licensees at a conference in Edinburgh, in November, to look at the emerging opportunities from ‘glamping’, (glamorous camping), staycationing, the online booking system and its growing brand presence (they top Google for ‘wigwam’) as they plan expansion across England and into Europe.

> further information: www.wigwamholidays.com

The Roslin Institute attracted more than £24.2 million in research funding to Scotland

last year, supporting 1,179 jobs.

a clutch of high-profile retailers have recently moved on to george street, in the heart of edinburgh’s new town, reflecting its position as the capital’s most popular street with retailers.

Top-end women’s clothing brand anthropologie – which opened its first Uk store last year with a ‘boutique’ unit on london’s Regent Street – chose George Street for its first Scottish store, while upmarket fashion brand austin Reed has expanded into a prime site nearby.

James Godfrey, a partner at property firm culverwell, said: “There is no doubt there is now a lot of demand for the big spaces on George Street. most of these companies are new names for the city, which is great news.”

as a retail destination George Street has seen footfall remain steady, encouraging ‘urban chic’ retailer white Stuff to relocate into a larger unit following a £1 million refurbishment investment.

RETaIl RaISES a cHEERcharles Tyrwhitt is another retailer

moving into Scotland for the first time. The upmarket clothing retailer, based in Jermyn Street, london, adds Edinburgh to its shops in paris and madison avenue, New york.

> further information: www.edinburghgeorgestreet.co.uk

as well as top restaurants and bars, George Street hosts names such as pepperberry, Jack wills, Hobbs, Brook Brothers, as well as jewellers such as Hamilton & Inches and bespoke designers asimi. The east end of George Street is home to multrees walk where shoppers enjoy Harvey Nichol’s and luxury brands louis Vuitton, mulberry, armani and kurt Geiger.

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HoGmaNay SpEcTacUlaRthere’s nowhere better to start 2012than at the now world famous edinburgh’s Hogmanay. With spectacular events, incredible bands and amazing crowds from every corner of the globe, the city has earned a reputation for showing the rest of the world how to party.

whether it’s the opening Torchlight procession event, 80,000 plus revellers dancing in the New year at the Edinburgh’s Hogmanay Street party or the 1,000 hardy souls who throw themselves into the freezing waters of the forth at the loony Dook in South Queensferry, Edinburgh’s Hogmanay

aIRpoRT ExpaNSIoNedinburgh airport racked up a fifth consecutive month of record passenger traffic in July, falling just seven thousand short of a million passengers in a single month.

looking at Edinburgh’s 2011 performance so far, passenger numbers are continuing to grow and have reached just over 5.4 million, a rise of 12% on the same period last year.

Edinburgh airport points to the choice of direct flights available from the city as helping to drive recent growth. The airport now offers more than one hundred direct destinations, operated by more than 20 airlines.

NEwarrivals

wHo’S oN THE moVE?The avaloq Group has been successfully providing major banks with integrated and comprehensive banking software solutions for more than 25 years: 75 retail, wealth management and universal banks in 20 countries rely on the company as an innovation partner and advisor. They have now established a Uk subsidiary, avaloq Innovation ltd, as a precursor to opening a new development centre in Edinburgh.

wHy THE moVE? The company’s “ready for banking” solutions cover a broad range of fully integrated back, middle and front office functions, which operate successfully in the most demanding financial centres worldwide.

with headquarters in zurich, and two main existing software development centres in Switzerland and the Uk, avaloq currently employs more than 1,200 banking and IT specialists. In addition, the company maintains branch offices in strategically important financial centres like london, frankfurt, luxembourg, Vienna, Geneva, moscow, Singapore and Hong kong.

avaloq has decided to open its new development centre in Edinburgh, in Q4 2011. over the next five years, it aims to provide 500 additional jobs in the city and has already launched its recruitment programme.

wHy EDINBURGH? “Edinburgh is the United kingdom’s number two financial market and home base to many global players in the financial sector,” says avaloq’s cEo, francisco fernandez, who confirmed the company’s decision on 7 october.

“Scotland has a strong banking tradition and features 15 universities that train 2000 highly qualified computer graduates every year,” added Simon kauth, newly appointed mD of avaloq Innovation ltd. “moreover, the United kingdom is one of our most

continuing our regular feature about tHe latest companies investing in tHe capital

vital markets, where several important customers and prospects such as lloyds TSB, HSBc, Standard chartered and RBS are headquartered.

“In our line of business, financial and software development expertise must always work hand in hand – the value chain of innovation cannot be split. Employees developing software for avaloq need to be in an intense dialogue with bankers.

“Edinburgh itself can provide the same quality standards in software development as our development centre in Switzerland. In addition, the city offers a very high standard of living and has excellent infrastructure available.”

Tom Buchanan, convenor of the Economic Development committee on the city of Edinburgh council welcomed avaloq to the city and said: “avaloq is a world leading financial services company and we are delighted to welcome them to Edinburgh. Their decision to establish their development centre here

made in edinburgH

NGenTec – THE wIND of oppoRTUNITyngentec limited is an edinburgh company on the verge of a global whirlwind of interest.

The reason is a revolutionary generator solution that looks set to cut operating costs and bring important benefits to wind turbine generators for both onshore and offshore.

The company’s technology solution was originally developed by two lecturers at the University of Edinburgh’s School of Engineering – Dr alasdair mcDonald and Dr markus mueller. Both are still involved in the business, which only spun out from the University in 2009.

The University is now an investor in the company, which received £200,000 from its new direct investment vehicle old college capital (see box).

The original proof of concept generator is now going into industrial trials, with a 1mw section prototype

of a 6mw machine being built with the global engineering specialists David Brown Gear Systems in Huddersfield, for testing in the first quarter of 2012.

“The technology has huge potential,” says Dr makhlouf Benatmane, chief Executive officer. “The wind market is worldwide. we’ve already been in talks with wind turbine manufacturers in Europe, India, South korea, Taiwan and other organisations looking to create a base in Scotland.”

The business is now engaged in securing further funding.

“we also continue to work closely with the University of Edinburgh,” explains Dr Benatmane.

“Both customers and investors believe the potential of the technology and we hope to secure our first orders in 2012.”

> further information: www.ngentec.com

Direct Investment in spin-outs old college capital enables the University of Edinburgh to invest directly, alongside other professional second tier investors. In a unique venture in Scotland, it will inject investment funding into some of the University’s leading spin-out and start-up companies.

In the past five years, the University has formed 143 companies with a further 35 new start-ups already launched in the 2010-2011 academic year.

> further information: www.oldcollegecapital.com www.research-innovation.ed.ac.uk

offers a truly unique New year experience.This year, Scottish Indie band primal

Scream are confirmed as the headline act for the Hogmanay party. Demand for tickets, which went on sale for all events in September, has once again been high.

last year’s event had an economic impact of more than £27 million and images from the festival are broadcast across the world, promoting Edinburgh to a global audience.

> further information: www.edinburghshogmanay.org www.edinburghfestivals.co.uk

reinforces the fact that Edinburgh remains a highly important financial services and informatics centre.”

welcoming the announcement, Scotland’s first minister, alex Salmond, said: “private sector job creation is pivotal to Scotland’s economic growth and the most recent figures show employment increased in Scotland by 23,000 over the three months to July 2011, at a time when it fell by 69,000 across the Uk as a whole.

“This will be only the second such site for avaloq anywhere in the world and the first outside their home country of Switzerland. avaloq have chosen to locate their new software development centre in Edinburgh and to recruit 75 graduates from our universities, which is testament to the high quality of Scottish education and enhances the strength of the city’s international reputation for finance and IT services.”

> further information: www.avaloq.com

Simon kauth, mD of avaloq Innovation ltd, the newly-formed Uk subsidiary

of avaloq Group.

<10QUESTIoNS

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IE> why set up a separate subsidiary in Edinburgh now? what are your plans for EH1?Jy> EH1 has been created as a separate business with the aim of creating and maximising opportunities on the east coast. as the management structure will undoubtedly vary with that of the Glasgow-based G1 Group we felt it was important that a separate identity was created for this exciting new business.

Towards the tail end of the year we will review our experience of the initial period. In the medium to long term we aim to extend the existing opportunities of the Edinburgh sites.

IE> Edinburgh has a reputation for being vibrant and arty: the ideal place for a nightlife business. Is that what attracted you to the city?Jy > our business has grown from nightclubs and bars to cinemas, deli’s, restaurants and more. we’ve learnt a lot over the years on the west coast and hope to bring that experience to bear as we expand our operations on the east of the country.

IE> you’ve announced a £1 million investment programme for EH1. what will you focus on first?Jy> Redevelopment is our immediate focus, over the course of the next three to six months.

Training is also a key priority in what we plan to do in Edinburgh. we have been selected by Investors in people (IIp) as one of their industry champions.

IE> Expand on your vision behind the Group’s ethos for ‘distinct venue development’?Jy> Every one of our venues is unique and the way we approach the running of each of them is carefully thought out. our development team spends a great deal of time researching new market developments and constantly strive to bring innovative experiences to customers.

IE> G1 has grown throughout the recession, to what do you attribute your ongoing popularity with customers? Jy> customers see the investment that we put in to our venues and appreciate that considerable thought has gone in to ensuring they enjoy a quality, value for money product every time.

IE> Ionapub partnership (Ipp) is the tenanted arm of the group and has also expanded rapidly. what are your plans for Ipp in the capital?Jy > Ipp already has a strong presence in the capital and will continue to look at tenanted opportunities on their individual merits, as we do with managed properties.

IE> against the trend of licensed premises struggling during the recession and following the smoking ban, Ipp seems to be bucking the trend for tenant houses. why is this?Jy> I believe we have become the pub company of choice in the east due to the way we operate and the fantastic venues our tenants have created. Iona operates differently to a lot of the larger pub companies. all of our teams are very hands

on within the business and ensure our tenants have the tools and skills to enable them to run a successful and profitable establishment. we have some exceptional operators in Edinburgh and are flexible enough to allow them the lease type they require to run their specific business in the way they want to. These operators are keen to look at other opportunities within the group and that also leads to referrals by them.

IE> How many people do G1 and EH1 now employ?Jy> we employ 1,600 people across the Group.

IE> what is the secret of G1’s success?Jy> our business model is prudent and we operate a predominantly freehold estate and ensure gearing levels are maintainable in the current environment. although we’re a large company we constantly encourage staff to be entrepreneurial and reward creative thinking.

IE> what advice would you give to someone entering the leisure industry now?Jy> If you’re up for the challenge, give us a call.

John young Group finance

Director, G1

cv

John young, finance director, g1John spent five years in Bank of Scotland corporate and ten years in senior finance positions with Scottish & Newcastle previously.

Ghillie Dhu in Edinburgh.

furtHer information

www.g1group.co.uk

embarking from southampton on 31 July, edinburgh’s clipper round the World race entry has already reached cape town, on its 40,000 mile circumnavigation. before arriving back in the uK next July, it will visit 14 ports – including new york, singapore and Qingdao.

The city’s inaugural entry to the race, in 2010, brought worldwide media coverage worth more than £10 million and promoted the city as a dynamic destination to a global audience.

The 52 strong crew, from all walks of life, includes a team of transplantees, nurses and surgeons who are aiming to raise awareness of the importance of

organ donation around the world. marketing Edinburgh, the city’s new

destination marketing organisation, is at the helm of efforts to promote the city as a place to visit, invest, live, work and study. planning for promotional activities in the various stopover ports is well advanced and companies wishing to take advantages of the opportunities available should get in touch with lesley williams.

cITy SayS BoN VoyaGE!

marriott international has chosen the prestigious £450 million Quartermile development in edinburgh’s city centre as the location for the uK’s first residence inn by marriott.

Residence Inns are designed to provide travellers with everything they need on longer stays. Each apartment features spacious suites with separate living and sleeping areas, fully equipped kitchens, a free grocery delivery service, wi-fi and in-room internet access and a complimentary hot breakfast.

Quartermile transferred the building to marriott in october and the 107-bed apartment hotel is due to open in 2011.

The marriott announcement is the latest success story for Quartermile, not only as a place to live, but also as a location for business and leisure,

cITy cENTRE lUxURy offER following closely on from the announcement that work has now started on the next phase of 300 new apartments at New meadows on the southern edge of the development.

“The fact that marriott has chosen Quartermile is a great testament to the quality of our product and our fantastic location,” said paul curran, Gladedale capital’s managing Director.

“The Edinburgh hotel market is the top performing in the Uk, outside london, with current rates of occupancy upwards of 80%, so it is the perfect platform for marriott to launch its Residence Inn brand in the Uk.”

> further information: www.marriott.co.uk/hotels/travel/ediri-residence-inn-edinburgh www.qmile.com

one of Scotland’s mostsuccessful leisure groups has announced the establishment of a new company in their portfolio. called EH1 this company will focus on developments in the city following the acquisition of a number of Edinburgh-based leisure businesses – restaurants, bars, clubs, cinemas and hotels – in the spring of this year.

furtHer information

e: lesley.williams@marketing edinburgh.org

EDINBURGH HIGHlIGHTS

www.investedinburgh.com

• EdinburghistheUK’smostimportant destination after london.

• Morethan3.5millionvisitorsper annum stay at least one night.

• Domestic(UK)demandaccountsformore than 60% of city arrivals.

• Thenumberofinternationalvisitorshas remained strong.

• EdinburghAirporthandledjustover8.6 million passengers in 2010 and, in July 2011, it handled a record 993,000 passengers in a single calendar month.

• Thecitybenefitsfromamixofleisure and business tourism.

• Investorsanddeveloperscontinueto have confidence in Edinburgh: five hotels have changed hands since January 2010 and an estimated 1,386 rooms could enter the market by 2013 (see Table 1 on p13).

• Thecity’shotelshaveemergedlargely unscathed from the economic downturn, with occupancy, average rate and RevpaR (Revenue per available Room) growing year-on-year in 2010 and 2011*.

• FullyearoccupancyinEdinburgh, in both 2009 and 2010, was the second highest in Europe, beaten only by london*.

• Corporatebookingswereimpactedby the economic crisis; however, rolling figures for the 12 months to april 2011 show signs of recovery, with increases in occupancy and average rate leading to a 6.1% increase in RevpaR *.

• HVS/STRGlobalpredictthatEdinburgh’s value per room for a four-star hotel will grow by more than 20% between 2011 and 2015*.

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Room wITH a VIEw

<fEaTURE

Recent trend reports, such as HVS/STR Global’s market Snapshot

(see panel left), show Edinburgh’s hotel sector bucking the

general economic trend and a number of high profile major

investments in the pipeline. we ask market watchers how strong

is the growth – and will it be sustainable?

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Hilton worldwide is to oversee a £24 million major refurbishment of its famous caledonian Hilton Edinburgh Hotel, which sits at the

west end of princes Street in the very heart of the city centre. when it re-opens in summer 2012, the 254 bedroom hotel will rebrand as The caledonian, a waldorf astoria Hotel, part of the group’s planned brand extension into markets that it believes will show significant growth in the luxury sector.

patrick fitzgibbon, Senior Vice president Development, Europe & africa, Hilton worldwide, said, “Edinburgh is a truly international and sophisticated city and we are delighted to have the opportunity to showcase our famous luxury brand in this major Uk market, at a property with over 100 years of history as an upscale hotel. we’ve also seen good momentum with both

Doubletree by Hilton and Hilton Garden Inn in Scotland and look forward to building on this success through our portfolio of brands.”

Hilton is not alone in sensing that Edinburgh is a good home for investment at the present time, even though loans for new hotels or major refurbishment can be difficult to negotiate. Jumeirah, Hyatt and Intercontinental are all reported to be investigating the options for luxury hotels in the city. But what foundation is there for this optimistic view?

lynn Jones of lynn Jones Research ltd, an Edinburgh-based market research firm, has been monitoring and reporting on the city’s hotel sector for many years: “In our lJ forecaster, we have seen an increase in bed occupancy over the past four years despite the downturn. It has risen from 48% in January–June 2008 to 56% in January–June 2011, reflecting a good mix of conference business and leisure business.

“as important, if not more so, is that average sales on the books in July 2011, looking forward through the next 12 months, was running at around 28%. That is very slightly above the level of take up of rooms at the start of July 2008 (27%) – at the start of the collapse in financial markets and wider economic ramifications. Increasing levels of forward sales compared to those recorded from July 2009 appear to show returning consumer optimism.”

one reason for Edinburgh’s continued strength is that the city enjoys a good mix of both leisure and business visitors and benefits when either, or both, sectors are more optimistic. It is a UNESco world Heritage Site and first UNESco city of literature, with the world-famous festivals

attracting international visitors; it is well connected by air with more than 100 direct destinations, offers a wide variety of visitor attractions, fine dining and events – all in a walkable and safe environment.

“Edinburgh is ranked second only to london in the Uk for International association meetings and inside Icca’s top 30 destinations in the global business tourism market,” says Hans Rissmann oBE, cEo of the Edinburgh International conference centre (EIcc).

with most International association events booked as much as five years in advance, Edinburgh’s business tourism has to some degree been shielded from the effects of the global economic downturn and the new business pipeline remains strong.

“Business Tourism is estimated to be worth more than £300 million a year to Edinburgh,” continues Hans. “conference delegates bring new money to the city and their spending power is almost twice that of leisure tourists. we play our part at the EIcc and expect to welcome our one millionth delegate to Edinburgh in the coming months.”

In its futurewatch 2011 study, meeting professionals International reports the number of meetings being planned by organisations is up 8% year-on-year. The professional membership organisation also predicts that the number of delegates per meeting is set to rise – by 2% on average – and forecasts a 5% increase in spend per meeting. The new lennox Suite expansion to the EIcc, scheduled to open in spring 2013, is designed to capitalise on this market segment growth.

* Source: HVS/STR Global Market Snapshot on Edinburgh, April 2011

“EDINBURGH IS RaNkED SEcoND oNly To loNDoN IN THE Uk foR INTERNaTIoNal aSSocIaTIoN mEETINGS aND INSIDE THE woRlD Top 30 DESTINaTIoNS IN THE GloBal BUSINESS ToURISm maRkET.”

another recent sector study has also shown edinburgh’s hotel sector setting the pace. ..

accountancy firm pkf found hotels in Edinburgh had the highest occupancy rates in Europe in both may and June 2011, at 86% and 92% respectively.

The average rate earned from hotel rooms in Edinburgh was also on the increase, with room rates increasing by 8.1% in the year to June 2011, according to pkf.

Sue Bruce, chief Executive of the city of Edinburgh council said: “Edinburgh’s hotel sector has been buoyant in recent years with strong occupancy rates and growing year round demand. as our festivals, attractions and retail sector go from strength to strength and direct air routes continue to develop, the prospects in Edinburgh for investors are excellent.”

future openings category rooms date location

premier Inn princes Street

Economy 97 mid-2011 princes Street

marriott Residence Inn midscale 107 oct 2011 Quartermile

Hotel Indigo Upscale 60 autumn 2011 Haymarket

Travelodge morrison Street

Economy 246 July 2012 morrison Street

Travelodge princes Street

Economy 96 Summer 2012 princes Street

motel one Economy 208 Summer 2012 castlehill

Staybridge Suites midscale 121 winter 2012 leith walk

premier Inn Edinburgh park

Economy 120 2012 Edinburgh park

park Inn by Radisson Edinburgh airport

midscale 160 2013Edinburgh

airport

park Inn by RadissonEdinburgh city centre

midscale 171 2013Haddington

place

total 1386

www.investedinburgh.com | ocToBER To DEcEmBER 2011 | invest edinburgH 1312 invest edinburgH | ocToBER To DEcEmBER 2011 |

<fEaTURE

“Edinburgh is pursuing a very proactive approach to attracting high value conferences to the city,” confirms Sue Stuart of marketing Edinburgh, convention Bureau. “Business tourism is the high quality, high yield end of the tourism spectrum and a vital element of the Edinburgh and lothians’ economy.”

The prospects for the corporate sector are also underlined with long-stay provision extending in the city, for example through the opening of the first marriot Residence Inn in the Uk, in 2012, at the Quartermile development.

The good news on both occupancy and room rates – which is consistent across the board in the HVS/STR Global study (see Highlights p10) – is all the more impressive when considered against the backdrop that the city has already seen an increase in room stock of 25% in the last decade. (The growth has come primarily through expansion at the budget end of the market – a single provider, Travelodge, now offers more than 1,000 beds in the city.)

BEST EVER pRoDUcT“This is testament to the power of the Edinburgh brand and the international attraction of the city,” points out Graham Birse, Deputy chief Executive of Edinburgh chamber of commerce. “The accommodation sector has matured and now offers its best ever product and service, access and value. This isn’t just down to new

investors, companies such as the Edinburgh-based apex Hotels, and other hoteliers who maintain investment, have helped the city withstand the global recession.”

making the case to those looking to invest in the city is marketing Edinburgh, a new partnership between public and private sector stakeholders. “In the last decade Edinburgh is the only capital in Europe not to have had its own marketing agency for tourism and investment,” explains Graham Birse. “That we can turn up the volume now is very significant to the chamber; we can attract consumers and investment compatible with the quality of destination Edinburgh offers.

“The message to developers is that Edinburgh is open and approachable. a priority is investment in our public spaces – it’s the core of what we offer – we’ve done faded grandeur too well for too long.”

Norman Springford, founder of apex Hotels, which began in Edinburgh in 1995, welcomes the prospect of more entrants at the top end of the market: “apex originally aimed at the business market and has gradually moved more into the four-star market as each new hotel has opened.

“The general rule is that when occupancy rates are greater than 70%, then more capacity is needed, so there is no argument that Edinburgh has room for the planned hotels. But the real need is not at the limited service end of the spectrum, where investment is largely

EDINBURGH’S cURRENT Room SplIT

furtHer information

EIcc: www.eicc.co.uk/development/expansion-animated-fly-throughe: invest@edinburgh-inspiringcapital.comt: +44(0)131 529 6600

“THE accommoDaTIoN SEcToR HaS maTURED aND Now offERS ITS BEST EVER pRoDUcT aND SERVIcE.”

GRaHam BIRSE, DEpUTy cHIEf ExEcUTIVE, EDINBURGH cHamBER of commERcE

going; what Edinburgh does need is more four-star accommodation.”

John Bury, Head of the city planning Department, agrees: “we are preparing a new local plan for the city centre. at present it’s not apparent that there is a need for a big change in our approach for hotels, but we will see what consultation brings. we already work via events like mIpIm, to encourage developers and operators to consider the potential in the city, particularly for new 4 and 5-star hotels.

REaDy foR coNSUlTaTIoN “Edinburgh has made huge strides in improving public realm in the city centre, such as the High Street and the Grassmarket, but there is more to be done to improve standards. we have to adopt a phased approach and commissioned Gehl architects, a city development consultancy firm, to do a preliminary survey on our public realm. we’ll be consulting later in 2011 on proposals to enhance the streetscape to an appropriate world class standard. we’re also investing in new festive lighting in George Street and a wider lighting strategy for the city centre.

colin paton, chairman of the Edinburgh Hoteliers association and chair and cEo of

SEcoND opINIoN

The new lennox Suite expansion to the EIcc (right), scheduled to open in spring 2013, is designed to capitalise on the projected market growth in conferences and events. In its futurewatch 2011 study, meeting professionals International reports the number of meetings being planned by organisations is up 8% year-on-year.

More opinion over leaf

luxury3%

Upper Upscale

27%

Upper24%

Upper midscale

15%

midscale9%

Economy22%

> source: Hvs/str global market snapshot

Table 1: Hotel openings in Edinburgh 2011-2013 (selection). Source HVS/STR Global Market Snapshot

portland Hotels, has a cautious view. “The city’s performance has been excellent and its resilience outstanding, but Edinburgh isn’t london and there is a need for continued caution. portland invested around half a million pounds last year in refurbishing our room stock in both of our Edinburgh hotels, but senior debt facilities for most hotels don’t currently permit major investment. while occupancy has risen, profitability for many operators is down – a reflection on the inflation in energy costs and ingredients over the past 18-24 months, which seems likely to stay high or move higher.”

one investor that hasn’t looked back following their decision to invest in the city is Hotel missoni Edinburgh. “we opened

in 2009, in one of the most challenging years for Scottish businesses,” says carina Svensen, General manager. “we expected it to be tough and kept going with the belief in what we were doing. while the return on investment has been slower to come through, the hotel has gone from strength to strength and we anticipate that business will continue to grow across different areas of the hotel.”

Since its opening, Hotel missoni has expanded – launching the first Spa missoni in November 2010 – and subsequently won ‘Europe’s leading New Hotel of the year 2010’. “Edinburgh is a stunning city, focused on culture and fashion, which fits well with the missoni brand,” continues carina. “we were unique in the city at the time we opened and in a prime location right next to the castle. we welcome additional investors in Edinburgh’s luxury hotel market, as it will attract even more visitors to the city and help to meet the demand for high quality accommodation. It’s good news that the sector is growing and people are investing in Edinburgh. you just have to believe in your product and what it is you set out to do.”

<INSIGHTS

RoUND TaBlE:

www.investedinburgh.com14 invest edinburgH | ocToBER To DEcEmBER 2011 | | ocToBER To DEcEmBER 2011 | invest edinburgH 15

To reflect our main feature in this issue, we asked a wide range of stakeholders what they think

are Edinburgh’s strengths or weaknesses in the hotel sector:

“EDINBURGH lookS SET To maINTaIN pRESENT pERfoRmaNcE, oR EVEN BETTER IT. “

carina svensen, general manager, Hotel missoniEdinburgh is strong on cooperation. we work very closely with VisitScotland,

marketing Edinburgh, and the city council to promote Edinburgh as a destination. There’s always room for improvement, but in my experience the city communicates better than most.

I also think the city is a huge draw for ambitious people looking to work in the hospitality industry, and there seems to be a high standard of people out there with the right skills and the right attitude. as a thriving city, it has a real buzz and is a place that people come to work and want to stay.

ross birnie, owner 23 mayfield b&bTravelodge is taking over from the one, two and three star B&Bs, especially in winter. we took the decision a

few years ago to move up market, creating a boutique five star B&B. we’ve invested in upgrading facilities and it’s paid off, but we still need to reinvest.

The city has done the right thing in growing its events calendar and markets these well – the winter festival is excellent, but needs more financial support to drive awareness higher. The improvements in George Street are good, but we need to invest in princes Street and attract the christmas shoppers.

dawn ann costan, amaragua b&bwe’ve upgraded from a three star B&B to a five star as we needed to

attract a different clientele. we’ve always been busy in the

summer, but the growth in budget hotels has really hit the winter guests. we promote the winter festival and christmas shopping, and that does bring good weekend trade, they’ve made a huge impact. we’re listed in a couple of US guides that you can’t buy into, which has meant we get a good level of regular bookings, sometimes months in advance. However, I feel the city is close to saturation during peak periods. we can’t have people disappointed by their experience.

graham birse, deputy chief executive, edinburgh chamber of commerceThe way Edinburgh has coped

since the downturn is remarkable. In 2008 there were those who wanted to write Edinburgh’s obituary for finance, but it’s not come to pass. while the big banks have cut jobs, this has largely been offset by new arrivals such as Tesco finance, BNy mellon, State Street, Blackrock and Virgin money.

The development of the airport continues. The route development

“THERE’S alwayS Room foR ImpRoVEmENT, BUT IN my ExpERIENcE THE cITy commUNIcaTES BETTER THaN moST.”

network and the budget airlines are helping us reach more cities, which can only increase Edinburgh’s appeal as a conference destination and year round draw.

all this is leveraging the city as a place to live, work, study and invest.

Hans rissmann obe, ceo, edinburgh international conference centre (eicc)Being a seat of government, featuring on the world

heritage map and being home to several world ranked academic institutions are all major plus points when selling Edinburgh internationally.

Increasingly, our customers want to know that when they come to our city they leave behind the lightest possible environmental footprint. at EIcc we have an internationally recognised sustainable events programme, we call plan-it green™ , which we know wins us business. positioning Edinburgh internationally as a green city must be on the agenda.

ronald little, point HotelEdinburgh has created the necessary infrastructure and a support network to compete against all major cities

in the Uk. The continued work will ensure the vision to make Edinburgh the most successful and sustainable city in Northern Europe by 2015 is an achievable one.

as I see it, however, the city is reliant on both the financial sector and the leisure sector and as the financial turmoil continues to make the headlines and cause uncertainty, the city could be impacted. The key is to ensure the city remains safe, clean and competitive for business in terms of investment and conferences at the EIcc.

John bury, Head of planning, the city of edinburgh councilIn 2006, our accommodation survey identified a need for 4,000

extra rooms by 2015 with 1,000 of these near the airport. If we look at consents, we now have 1,100 completed and just under 500 in construction, with consent granted for a further 5,500. But the market is at different levels – the reality is a focus on three star developments coming through due to current funding mechanisms. as a city, we promote Edinburgh as a location for new hotel space, particularly of 4 and 5-star quality, but once a hotel consent is issued it’s for a hotel and not a specific grade, so this comes down to who’s prepared to invest.

robert seabrook, Head of Hotel agency, savillsThere is a high degree of international interest from investors in Edinburgh. This is because

of the city’s unique business mix, which delivers strong demand throughout the year. The high occupancy rates achieved allow operators to maintain strong control over rates and that’s a very attractive dynamic for investors. In the near term, the investment market remains difficult, but there are some iconic locations available, such as the former Royal High School on calton Hill and Donaldson’s School. There aren’t many cities that can support a five star operation, but Edinburgh is undoubtedly one and there are many investors keen to look at the opportunities when the time is right.

norman springford, chairman, apex HotelsEdinburgh’s strength has always been its heavy demand from business and the year-

round leisure markets.we work closely with Queen margaret

University and Edinburgh Napier University and there is no difficulty in recruiting and retaining the right number of good staff.

we need to think more in terms of hospitality and not just hotels – to include attractions and extend our approach to include universities and retailers to help fund efforts. That’s essential, as tourism benefits everyone in the city – hotels represent just 7% of the city’s tourism revenue.

sue stuart, marketing edinburgh, convention bureau The ongoing development of new fields of science and medicine highlighted

by the creation of the Scottish life Science association, and the planned state-of-the-art centre at the Institute of Genetics and molecular medicine at the western General Hospital is assisting in the city’s ability to attract an even greater number of specialist conferences.

lynn Jones, edinburgh-based market research expertThere is considerable interest on the part of developers

to open more hotels in the city; it will be interesting to see to what degree increased bed stock will impact on this current sustained high level of performance, but Edinburgh looks set to maintain present performance or even better it.

“EDINBURGH HaS a faNTaSTIc cUlTURal ENVIRoNmENT.”

<makING IT HappEN <aDDEDExTRaS

www.investedinburgh.com | ocToBER To DEcEmBER 2011 | invest edinburgH 1716 invest edinburgH | ocToBER To DEcEmBER 2011 |

Top cHEfS DEVElop a TaSTE foR capITal’S cUISINE

ScoTlaND’S INTERNaTIoNal BUSINESS paRk

an international business park to be developed on a reserve of land around edinburgh airport is intended to create a global centre for transport and international business. a detailed implementation plan for the zone – branded edinburgh international – was published in July.

Developed through the Edinburgh International Development partnership, the plan provides a vision and consensus on the expansion of Edinburgh airport, (top right, yellow) development of an International Business Gateway (red) and the £30 million redevelopment of the Royal Highland centre (RHc) (green).

The RHc investment will create a world-class event space and centre of excellence for rural enterprise, agriculture and primary industries. The proposed enhancements have already been approved and will build on the venue’s considerable economic impact. It currently attracts in the region of one million visitors each year, with an economic impact of approximately £250 million, and the enhancements will boost its potential to compete

celebrity chef Jamie oliver is to open a top restaurant as part of the refurbishment of the grade a-listed assembly rooms (pictured right) in george street, one of scotland’s most historic arts venues.

The Uk TV cook – recently ranked as the second most successful chef in the USa, following his Food Revolution TV series – is bringing a branch of Jamie’s Italian to Edinburgh. The popular chain promotes affordable Italian food and the Edinburgh restaurant will open in summer 2012.

one relatively new restaurant to have made its mark immediately, both within and beyond the city, is castle Terrace, which opened in July 2010. It earned a michelin ‘Rising Star’ in January, offering a menu that combines the culinary expertise and flair of the team behind another Edinburgh restaurant – the michelin starred The kitchin, on Edinburgh’s waterfront.

Dominic Jack and fellow chef proprietor Tom kitchin met as young chefs in Gleneagles and the duo have since taken similar career paths, influencing and encouraging one another over the years. Their philosophy at castle Restaurant – from Nature to plate – informs a menu based on Dominic Jack’s innovative creations and presents

modern British cuisine influenced by french cooking techniques.

The imminent expansion of another Edinburgh-based restaurant, café fish, heralds an opportunity for a wider audience to come to appreciate the best ingredients from Scotland’s outstanding natural larder.

café fish is poised to expand into England as its owner, Richard muir, prepares to take on three new sites that will more than treble his turnover and maintain the Edinburgh restaurant’s emphasis on 100% fresh produce.

Since opening the original café fish in Edinburgh, in 2009, Richard has quickly established the brand as one of Edinburgh’ best seafood restaurants, gaining recommendations in the michelin Guide and Scotland the Best. The new

restaurants are all scheduled to open by march of next year.

another Edinburgh culinary legend is martin wishart, who opened his eponymous restaurant in Edinburgh’s historic port of leith in 1999. Since then it has become one of the Uk’s most acclaimed dining venues, currently holding one michelin star, four aa rosettes and a score of 8/10 in the Good food Guide.

martin – who was voted Uk chef’s chef of the year in September 2010 by the aa guide – has opened a new city centre brasserie. Edinburgh’s taste buds were immediately captivated and The Brasserie, in North castle Street, attracted more than 800 bookings in the first few weeks after it opened, in July 2011.

with more michelin starred restaurants than any other Uk city outside london, it seems Edinburgh is as good at nourishing new culinary talent as it has proven to be for other arts on the worldwide stage.

internationally for a wide range of events. Edinburgh International’s

implementation plan supplements this work with an ambitious £33 million joint scheme of transport, water, power and landscape infrastructure works, which will pave the way for a world-class business and transport hub.

with the physical capacity to accommodate up to 500,000m2 of high quality business accommodation, Edinburgh International is expected to include hotel and conference facilities and potentially a multi-use venue/arena.

“The Implementation plan is the first step towards realising our vision for Edinburgh International, which, once delivered, will contribute a huge amount to both the local and national economies for decades to come,” said councillor Tom Buchanan, convener of Economic Development at the city of Edinburgh council.

Sustained investment at Edinburgh airport, running up to 2020, will deliver additional improvements that will allow it to accommodate up to 13 million passengers per annum. “This is a significant

step for the whole of Scotland, not just the capital,” said kevin Brown, managing Director of Edinburgh airport in July. “we work hard at growing and developing our airport; its routes and providing the gateway Scotland can be proud of. By fulfilling this role as part of a wider collaboration in Edinburgh International, we can be part of delivering some very real economic benefits for the country.”

“Edinburgh International is one of Scotland’s most important economic development zones,” believes lena wilson, chief Executive, Scottish Enterprise. “ambitious proposals such as this demand rigorous planning and we have been working with our partners to facilitate an implementation plan that will help pave the way for the transformation of the west of Edinburgh into one of Scotland’s key centres of commerce and connectivity.”

furtHer information

www.jamieoliver.comwww.castleterracerestaurant.comwww.cafefish.netwww.martin-wishart.co.uk

fRom HomE-GRowN TalENT To INwaRD INVESToRS, IT SEEmS THE Uk’S Top cHEfS HaVE aN appETITE foR all THaT EDINBURGH caN offER IN TERmS of clIENTElE, NaTURal INGREDIENTS aND yEaR-RoUND DEmaND.

fionna kell, zone manager (west)e: fionna.kell@edinburgh.gov.ukwww.scotlandsglobalhub.com

furtHer information

Edinburgh airport’s growth potential is

recognised as being key to maximising

the competitiveness not only of Edinburgh,

but also of Scotland on the world stage.

© 7N architects.

<THE STaTISTIcS

18 invest edinburgH | ocToBER To DEcEmBER 2011 | | ocToBER To DEcEmBER 2011 | invest edinburgH 19

1 Office of National Statistics2 General Register Office for Scotland3 Annual Survey of Hours and Earnings (ASHE)4 Scottish Corporate Sector Statistics (2010)5 Valuation Office Agency6 Edinburgh Solicitors Property Centre

SourcES 7 Edinburgh Airport8 Office of Rail Regulation9 STR Global10 Scottish Tourism Economic

Activity Monitor (STEAM) 11 International Congress and

Convention Association

12 Scottish Government13 The City of Edinburgh Council14 Scottish Retail Consortium15 British Retail Consortium16 Lynn Jones Research17 Scotland’s Global

Connections Survey 2009

18 Register of Scotland (Scottish Cities)19 Land Registry (English & Welsh Cities)20 Department of Work and Pensions21 Jobcentre Plus22 Business Gateway23 FAME24 FDI Markets

[i] Comparator cites are London and Norwich[ii] Comparator cities are Birmingham, Bristol, Cardiff, Glasgow,

Leeds, Liverpool, Manchester, Newcastle and Nottingham.

follow the council’s Strategy & Research linkedIn Group to keep informed about latest findings/surveys

annual statistical overvieW

population & HouseHolds latest

Population [1] 486,120Households [2] 220,195Population density (persons/km2) [2] 1,853Natural change (births less deaths) [2] 1,257Net in-migration [2] 7,728% of population aged 16-65 [2] 70.90%

labour supply latest

Economically active [1] 258,300In employment [1] 243,200Employees [1] 213,500Self-employed [1] 28,900Full time [1] 211,000Part time [1] 93,700

employee Jobs by industry latest

Construction [1] 11,100Services [1] 281,400 – Distribution, hotels & restaurants [1] 60,800 – Finance, IT, other business activities [1] 96,800 – Public admin, education & health [1] 92,800Tourism related [1] 30,900

property marKet latest

Prime city centre office rentals (sqm/year) [5] £290Industrial starter unit (sqm/year) [5] £85Zone A shop unit (sqm/year) [5] £1,800Average house price in Edinburgh Q1/2011 [6] £207,497Year on year % change [6] 0%Average house price in East Lothian in Q1/2011 £191,539

tourism latest

Annual airport passenger volume (million) [7] 8.6Annual rail station passenger volume (million) [8] 17.57Average hotel room occupancy 2010 [9] 76.90%Average revenue per available room [9] £61.40Annual tourist expenditure (million) [10] £1,137.50World ranking for conferences [11] 29

scottisH total int’l exports (£m) latest

EU Exports [17] 9,590 – Agriculture, Forestry & Fishing [17] 155 – Production & Construction [17] 6,955 – of which manufacturing [17] 6,695 – Services [17] 2,480Rest of World Exports [17] 10,655

Gross weekly pay, median [3]

latest trends

tourism Q2/2011

Airport Passengers (million) [7] 2,521,699% Annual Change 18.9%Hotel Occupancy [9] 85.7%% Annual Change 5.5%Revenue per available room [9] £67.60% Annual Change 6.3%

retail Q2/2011

Footfall (number of pedestrians in city centre) [13] 7,373,726% Annual change 13.90%Sales (Edinburgh) % change on Q2 2010 [13] 2.5%Sales (Scotland) % change on Q2 2010 [14] 0.2%Sales (UK) % change on Q2 2010 [15] 2.0%Visitors spend on shopping, % change on Q2 2010 [16] 0.5%

labour marKet Q2/2011

Jobseeker’s Allowance claimant count [20] 10,994% Annual Change [20] 1.1%Jobseeker’s Allowance claimant rate [20] 3.3%% Annual Change [20] 0.1%Vacancies advertised by Jobcentre Plus [21] 9,103% Annual Change [21] 6.2%

Housing Q1/2011

House Prices [18] £204,101% Annual Change [18] -4.4%House Sales [18] 1,283% Annual Change [18] -10.8%Average house sales comparator cities [19] [ii] 970% Annual Change [19] -6.1%

business Q2/2011

Business Start Ups [22] 340% Annual Change [22] -22.2%New Incorporations [23] 1,222% Annual Change [23] 22.7%Foreign Direct Investment Projects [24] 10% Annual Change [24] 17%

scottisH/uK gdp Q1/2011

Total Gross Value Added, Scotland [12] 0.1%Total Gross Value Added, UK [12] 0.5%Services Sector, Scotland [12] 0.3%Services Sector, UK [12] 0.9%Construction Sector, Scotland [12] -3.6%Construction Sector, UK [12] -3.4%

the edinburgh lJ forecaster reports on confirmed and tentative hotel bookings for the year ahead.

looking forward as far as July 2012, it found average sales on the books in Edinburgh’s hotels for the 12 months beginning July 2011, was running at 28% of capacity.

This is very slightly above the level of take up of rooms recorded in July 2008 (27%) – a time before the impact of the collapse in financial markets and the wider economic ramifications. Increasing levels of forward sales, compared with those recorded from July 2009, appear to show returning consumer optimism.

tourism foresigHt

Population aged 16-64 (2010) [1]

Average Room Occupancy 2010 Edinburgh v Comparator Cities [9]

Q2/2011 v Q2/2010 % change

In most oEcD countries, immigrants l fare worse than native-born workers l in job markets. This also applies to Edinburgh, where the unemployment rate among immigrants stands at 8.7% compared to the native-born workers’ unemployment rate at 4.9%. The figures from the annual population Survey 2010 also reveal, however, that Edinburgh’s immigrants are still more likely to work than native-born workers from most other cities in the Uk (see also Invest Edinburgh 37: Immigration to Edinburgh).

labour marKets and immigration

For more annual statistical information see www.edinburgh.gov.uk/edinburghbynumbers

For monthly updates on Edinburgh’s Economy see ‘Essential Trends’ and ‘Edinburgh Economy Watch’

* (Figures were taken from www.londonstockexchange.com)

Academic Degree

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rt Pa

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Hotel

Oc

cupa

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Reve

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per a

vaila

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room

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all

Number of House Sales

68.00%70.00%72.00%74.00%76.00%78.00%80.00%82.00%84.00%

ViennaGreater London Edinburgh Paris Amsterdam

Q2/2011 Claimant Rates

edinburgH company index - pre-tax profits comparison (£m)*ftse 100 31/12/10 31/12/09 Royal Bank of Scotland Group -399 -2647Standard life plc 471 410cairn Energy -303.6 -26.9

ftse fledgling indexJohnston press plc 16.53 -113.78

ftse 250murray International Trust 43.39 32.93

Source: Edinburgh LJ Forecaster – hotel benchmarking system wholly owned and operated by Lynn Jones Research Ltd.

400420440460480500520540560

61.0%62.0%63.0%64.0%65.0%66.0%67.0%68.0%69.0%70.0%71.0%72.0%

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0100200300400500600700

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ftse aim all sHareHavelock Europa plc -4.55 -5.90Bowleven plc 19.48 -10.18craneware 8.65 7.26 cupid ltd 4.16 -Dawson International plc 2.51 1.58IndigoVision Group plc 3.07 3.26omega Diagnostics Groups plc 0.11 0.21

ftse small capJohn menzies plc 37.5 22.0 melrose Resources 29.82 30.94 optos plc 12.7 3.80 wolfson microelectronics plc -11.7 -14.81

maJor investment trust companiesaberforth Smaller companies Trust 17.52 16.81 caledonian Trust -0.29 1.35Edinburgh Dragon Trust 6.18 5.97Edinburgh Investment Trust 46.18 39.48Edinburgh US Tracker Trust 3.66 3.68Scottish american Investment Trust 12.78 14.68The Scottish Investment Trust plc 13.80 15.96Scottish mortgage Investment Trust plc 38.81 35.44

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forWard booKings for tHe next 12 montHs from 1 July

Forward bookings for the next 12 months as at the 1st July

27% 25% 26% 28%

2008200920102011

relative percentage cHange in forWard booKings for tHe next

12 montHs from July 2011

-8.68%

4.58% 6.52%

200920102011

Relative % change in Forward Bookings for the next 12 months as at the 1st July

http://www.marketingedinburgh.org