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Final Report – Mid-Term Review of TS2020 February 2016
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TS2020 Mid-Term Review
Final Report
Final Report – Mid-Term Review of TS2020 February 2016
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Contents
Executive Summary …………………………………………………………………………………………………………………………….…….. 3
Introduction and Background ……………………………………………………………………………………………………………………… 8
Section 1 Interim Findings …………………………..………………….………………………………………………………………………….. 10
Section 2 Summary of Workshop 1….……………………………………………………………………………………………………….…… 40
Section 3 Summary of Workshop 2…………………………………………………………………………….………………………….…….... 52
Section 4 Key Messages ……………………………………………………………………………………….…………………………….…….. 57
Section 5 Action Plan ……………………………………………………………………………………….………………………………..…..... 63
Section 6 Conclusions and Recommendations ...……………………………………………………….…………………………………….. 66
Appendices……………………………………………….…………………………………………………………………………………………… 67
Appendix 1: Mid-Term Review Group and Strategy Group Members
Appendix 2: List of Organisations included in Mid-Term Review Consultation Process
Appendix 3: Suggested Agency Leads for Development of Priorities
Appendix 4: Project Initiation Document (PID) Pro-forma
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Executive Summary
Background
The Scottish tourism industry strategy, Tourism Scotland 2020 (TS2020), was launched in 2012. The process of developing the strategy united leading industry players and
public agencies behind the ambition to increase overnight visitor spend by at least £1billion by 2020. The Scottish Tourism Alliance (STA), the industry leadership group for
the tourism sector is responsible for engaging the industry in the delivery of the strategy and for overseeing its implementation. As part of the strategy launch, a commitment
was given to carry out a “mid-term review” in 2015/16. It was anticipated that there would, at this stage, be a need to:
review progress in the delivery of the ambitions of Tourism Scotland 2020;
consider changes in the wider market environment;
make evidence-based decisions on any changes required – either to the strategy itself, associated action plans or the approach to delivery and monitoring; and to
identify key priorities for the remainder of the strategy period.
Scottish Enterprise and Highlands and Islands Enterprise engaged VMG Management Consultants to support the process of reviewing progress in the delivery of TS2020 to
date and to facilitate the identification of prioritised actions to be taken forward from 2016-2020 following completion of the review. The Mid-Term Review Project comprised of
three workstreams:
Workstream 1 consisted of a data review which was undertaken ‘in-house’ by VisitScotland
VMG Management Consultants were appointed to deliver: o Workstream 2: a review of progress to date o Workstream 3: the identification of priorities to accelerate performance to 2020.
Purpose
This Executive Summary presents the findings, conclusions and recommendations emerging from the Review process. The summary is drawn from the main documents
produced throughout the process for the purpose of consultation and for reaching agreement on the emerging priorities for 2016-2020. The main Mid-Term Review
documents produced by VMG Management Consultants include: an Issues Paper; an Interim Paper; a Workshop Report; a Project Initiation Document Template and a
number of workshop presentations.
These documents demonstrate that a carefully designed process, systematic consultation, close liaison with other relevant workstreams and thorough research and analysis have underpinned the approach taken to identifying key priorities, messages and actions for the period 2016-2020.
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Emerging Priorities A shortlist of priorities emerged from the first workshop presentations, discussions, activities and analysis. The first priority recognises the need to adapt the TS2020 framework to take account of the Review findings to date, emphasising the importance of:
- aligning the framework with changes in conditions since 2012 - enhancing TS2020 project performance - embedding the remaining four priorities within the framework
The remaining four priorities have been identified as potential “Game Changers”:
- important to building market share in growth markets - critical to the delivery of the TS2020 visitor spend target
The following diagram summarises the five priorities and is intended for internal use. Section 4 of this report provides an illustrated summary of Priorities 2-5 which is intended for use in communications to the sector.
2. Strengthen Industry Leadership
Le
3. Strengthen Digital Capability
4. Enhance the Quality of the Visitor Experience
5. Influence Investment
1. Enhance Our Performance:priority led; market focused; aligned; and innovative
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Priority 1 Enhance Our Performance - adapting the TS2020 framework to take account of significant changes in conditions since 2012
The framework should clearly define a narrower set of principal priorities for 2016 – 2020 both in terms of current (asset block) activities and future larger scale initiatives – ‘game changers’.
The TS2020 strategic framework should be aligned with the new VisitScotland marketing strategy. This alignment will be key to achieving a strongly market-focused
approach. For example the original assumption that the majority of growth would come from domestic markets should be monitored. Annual figures showed that
domestic markets actually declined between 2011 and 2014, however they have returned to growth in 2015. By contrast, international markets grew strongly to 2014
and then declined in 2015. Emphasis should therefore be placed upon capitalising on areas of over–performance and a review of the underperforming markets. This
demands a detailed breakdown of target markets into segments, which should be mapped to appropriate assets and geographies.
The framework should demonstrate a longer term strategic marketing perspective – for example ‘the China effect’ is due to have a modest impact on the strategy to 2020 but will intensify towards 2030. Appropriate adjustments therefore will include:
- a stronger focus on researching, understanding and undertaking preparation for high growth potential markets such as China - ensuring that a continuous broad scanning approach becomes central to the TS2020 framework to futureproof the strategy and to establish the role of
innovation within the framework.
A standard approach to initiating and monitoring TS2020 projects, based on the Project Initiation Document method (PID, see appendix 4 of Workshop Write-up Paper) should be embedded in TS2020 practices. This would establish a flexible blueprint for:
o facilitation of the TS2020 project selection, design and set up process o facilitation of the process of identifying and securing resources essential to project delivery
o project monitoring and measurement.
The PID method will also facilitate a new way of working with the industry, involving:
o tailored approaches to target the specific needs of different segments of the industry o a more widely distributed approach to leadership – geographic, specialist and sectoral o raising awareness of ‘game changing’ opportunities, such as the pervasiveness of digital and the size of the digital opportunity.
The emphasis placed upon specific elements of the TS2020 framework should be rebalanced. In particular:
o the Quality of the Visitor Experience has been re-affirmed as paramount to the TS2020 ambition o Digital should be strongly emphasised as a pervasive element essential to all dimensions of the TS2020 framework o Sustainable Tourism should be positioned as a principle which supports all aspects of the framework.
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Priority 2 Strengthen Industry Leadership:
Strengthen leadership in the industry to enhance the quality of the visitor experience
Develop the quality of leadership across the sector to deliver the TS2020 growth ambition – locally, nationally, in urban and rural settings
Priority 3 Strengthen Digital Capability:
Accelerate progress in increasing the number of digitally connected businesses
Increase the number of digitally enabled businesses to enhance the visitor experience and improve competitiveness
Priority 4 Enhance the Quality Visitor Experience:
Enable businesses to develop people skills to enhance the quality of the visitor experience
Enable businesses to develop people skills to attract international visitors on the basis of changing demographic and geographic market trends
Priority 5 Influence Investment:
Influence investment in Built Infrastructure – via a prioritised 20-30 year Tourism Investment Development Plan (to include all forms of investment)
Influence investment in Digital Connectivity – united industry drive for continued investment in improved connectivity through Scottish and UK Governments
Influence investment in Flight Access and Transport Connectivity – united industry drive for continued investment and removal of barriers such as APD
Influence investment in Business Growth Finance – via interventions that strengthen relationships with lenders and build investment planning capabilities within tourism businesses, especially in business case development
The emerging strategic priorities were considered by the Mid-Term Review Group for further testing and development. The priorities were then confirmed by the Strategy
Group during the second workshop. In addition the workshop discussions generated:
a set of actions for taking each priority forward for implementation
a number of key messages for presentation during Scottish Tourism Week 2016.
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Mid-Term Review Conclusions
This report concludes that a thorough review process has been undertaken to assess the mid-term position, in relation to the objectives and targets set for TS2020. The
process has identified that - while significant progress has been made in relation to the aims and objectives of TS2020 - there is potential to adjust, align and re-focus the
approach to strategy delivery to improve and accelerate performance.
The following outcomes of the Mid-Term Review are intended to enable the sector to work in close collaboration to deliver performance improvements:
A set of five strategic priorities
The design of a Pre-Project Initiation Process to enable the TS2020 asset groups to re-focus activity around the strategic priorities
A Project Initiation Document Template
Key messages to unite the sector behind the priorities
Mid-Term Review Recommendations
This report recommends that:
the strategic priorities set out in this report are implemented through a structured programme of collaborative planning and activity
the key messages emerging from the Mid-Term Review are communicated via all channels to the sector
the actions relating to each priority are implemented by the designated lead partner within the specified time-scale.
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Introduction and Background to the Mid-Term Review
The Scottish tourism industry strategy, Tourism Scotland 2020 (TS2020), was launched in 2012. The process of developing the strategy united leading industry players and
public agencies behind the ambition to increase overnight visitor spend by at least £1billion by 2020. The Scottish Tourism Alliance (STA), the industry leadership group for
the tourism sector is responsible for engaging the industry in the delivery of the strategy and for overseeing its implementation.
As part of the strategy launch, a commitment was given to carry out a “mid-term review” in 2015/16. It was anticipated that there would, at this stage, be a need to:
review progress in the delivery of the ambitions of Tourism Scotland 2020;
consider changes in the wider market environment;
make evidence-based decisions on any changes required – either to the strategy itself, associated action plans or the approach to delivery and monitoring; and to
identify key priorities for the remainder of the strategy period.
The Mid-Term Review Process The Mid-Term Review Project comprised of three workstreams:
1. Data Review which was undertaken ‘in-house’ by VisitScotland (available as a separate document at www.scottishtourismalliance.co.uk) 2. Review of Progress to Date 3. Priorities to Close the Gap to 2020
VMG Management Consultants were appointed to deliver workstreams 2 and 3. The diagram below reflects the requirements in the original project brief and demonstrates the proposed method of work.
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Purpose and Structure of the Report
Scottish Enterprise and Highlands and Islands Enterprise engaged VMG Management Consultants to support the process of reviewing progress in the delivery of TS2020 to
date and to facilitate the identification of key priorities and actions to be taken forward from 2016-2020 following completion of the review.
The purpose of this report is to provide a summary of the findings of the Mid-Term Review process. The document is structured as follows:
Section 1: Interim Findings: Provides a summary of the findings of: the desk review; the implications arising from the initial broad scanning analysis and issues emerging
from the consultation process. It also outlines the potential themes that emerged in the early stages of the process for the formulation of priorities for the period 2016-2020.
This section is drawn from the Mid-Term Review Interim Paper which was intended to inform the discussions and analysis undertaken as part of the first Review Workshop
held on 3rd December 2015. The material set out in this section was developed in later stages of the Review Process.
Section 2: Summary of Workshop 1: Provides a summary of the workshop design; process: outcomes of the workshop exercises; analysis of the findings; conclusions and
recommendations emerging from the workshop
Section 3: Summary of Workshop 2: Provides a summary of the workshop process and outcomes of the workshop discussions
Section 4: Key Messages: Provides a summary of the key messages which were discussed at workshop 2 and developed following the event
Section 5: Actions: Provides a summary of the actions recommended for taking each priority forward for implementation
Section 6: Conclusions and Recommendations: Provides a summary of the conclusions and recommendations of the Mid-Term Review
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Section 1: Interim Findings of the Mid-Term Review Process
Overview
This section of the report provides a summary of the interim findings and outcomes of the Mid-Term Review process. The content is drawn from the Mid-Term Review Interim
Paper and was developed in later stages of the review process.
The outcomes from the initial stages of the Mid-Term Review gave rise to some potential themes for the formulation of priorities for the period 2016-2020. The emerging
themes were used to stimulate and inform discussion at the first Mid-Term Review workshop to enable participants to explore a range of options for their potential to
accelerate performance towards the growth ambitions of TS2020. The workshop also provided an opportunity for the Mid-Term Review Group and the Strategy Group to
discuss the main dimensions of the Interim Report as follows:
Desk-based review of TS2020 activities undertaken to date;
Consultation: Interviews with industry representatives and interviews with key influencers;
Wider scanning for significant changes since the original research was completed;
Review of progress in delivering support to address the key capabilities identified within the strategy;
Review of effectiveness of strategy delivery arrangements and leadership.
1.0 Desk-based review of the TS2020 activities undertaken to date
1.1 Approach
The objective of the Desk Review was to determine the progress made within each of the main blocks of the strategy since 2011 and to better understand how the various
components will deliver the overall TS2020 mission. The analysis was organised around the main dimensions of the TS2020 framework, which, along with three additional
categories, forms the basis of the TS2020 Strategy Group’s own reporting mechanism. The progress and contribution made to the following components was assessed:
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Providing Authentic Experiences - Asset Blocks
Improving the Customer Journey
Building our Capabilities
Nature and Activities
Heritage and Culture
Destinations, Towns and Cities
Events and Festivals
Business Tourism
Quality
Food and Drink
Transport
Accommodation
Digital Connectivity
Leadership and Collaboration
Skills
Marketing
Sustainable Tourism
Market Intelligence
Innovation
Other Projects
It should be noted that only activity of national or strategic importance is recorded and reported upon by the Strategy Leadership Group. There is obviously a raft of activity
taking place at the sub-sectoral, regional and local level that is not recorded and is beyond the scope of this project. The analysis should therefore be regarded as indicative,
rather than absolute. It provides an overview of the trends, progress and issues facing each category of activity.
Information provided by the STA was reviewed to determine:
Mission in relation to TS2020: how is the component expected to contribute to the overall TS2020 mission?
Industry group: who has responsibility for overseeing activity in this component and, specifically, aligning it with TS2020?
Number of projects: how many projects have been undertaken within this component during the period 2011-2015?
Contribution to other areas: how has activity in this component contributed to other elements of TS2020?
Assessment of delivery: how well, according to the TS2020 strategy group, have projects progressed?
Progress towards mission: what contribution has this component made to the headline target for TS2020?
A summary of our observations and key findings is provided in the section that follows.
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1.2 Observations and Key Findings
1.2.1 Leadership and Resources
The development and delivery of TS2020 has been heavily reliant upon motivated and visionary volunteers who are highly ambitious for the Scottish tourism sector. Despite
the exceptional leadership, drive and energy demonstrated by all those who have made contributions, the scale and speed of delivery of the strategy has been constrained by
the limited resources available. The wealth of industry capability, knowledge and experience within the Strategy Group has generated significant value in building resilient
networks of relationships, collaboration and influence.
1.2.2 Strategic Alignment
There is a high level of variability in the extent to which projects demonstrate alignment with the strategic aims of TS2020. For example:
Only two Asset Block components – Business Tourism and Heritage Tourism – have mission statements fully aligned to the TS2020 target.
There is evidence of partial alignment in the cases of Destinations, Towns and Cities.
With the notable exception of the marine tourism strategy (published in 2015) - which is both aligned and contains a growth mission statement - there appears to be
no published mission statement for Nature and Activities.
The Events and Festivals Asset Block has adopted Scotland: The Perfect Stage as its strategy; this document, whilst referencing TS2020, does not contain any
specific aspirations for growth in visitor spend.
There is no evidence of mission statements for the Customer Journey components, though we note that three are currently at draft stage. This has resulted in an
approach which appears to lack focus.
In a number of cases there is a lack of clarity in the relationship between the headline mission to grow visitor spend and the activity undertaken under the various component
headings. This creates difficulties in determining priority activities and, crucially, in monitoring progress.
Greater alignment between TS2020, the Scottish Government’s Economic Strategy and VisitScotland’s marketing strategy would help to provide a stronger basis for focusing
activity streams on growth in visitor spend, increased visitor satisfaction and on other important strategic objectives.
1.2.3 Leadership, Supporting Structures and Synergy
Eight industry groups direct and align activity in relation to TS2020: Outdoor Tourism: Marine Tourism; Heritage Tourism; Destinations (informal); Events and Festivals (in
development); Business Tourism; Leadership and Collaboration (STA Strategy Group); Skills.
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We observed that the components supported by industry groups appeared to be more structured, focused and undertake a higher level of activity than those without
supporting infrastructure. They also generally make a stronger contribution to specific dimensions of the strategy. It is also notable that four of the components with clearly
defined strategic missions have a dedicated leadership group.
When the Strategy Group reports on a project, it also records the areas of impact for that project in terms of the broader aims of the Strategy. For example, 45% of Asset Block projects have a positive impact on collaboration capabilities. Asset Block projects have, in many cases, generated synergy with Capability components, in particular: collaboration, leadership, investment and skills. In comparison, at this stage, there is very little synergy between the asset block projects and the customer journey components.
1.2.4 Activity
The Strategy Group has recorded and monitored a wide range of projects to date. Asset Block components generally report more projects than Customer Journey and
Capability components (with the exception of Skills). This is indicative of a greater level of focus and structure in the approach taken by the Asset Blocks.
There are some limitations in the reporting of activity in areas such as Marketing, Food and Drink, and Destinations, Towns and Cities. This may be due to a number of
factors, including fragmented sector structure, a lower level of strategic focus and multiple stakeholders.
1.2.5 Performance against Objectives
Some components have demonstrated higher levels of performance and outcomes in delivering projects than others. In particular Business Tourism, Heritage Tourism,
Leadership and Collaboration, Skills and Sustainable Tourism are all areas that report effective delivery against plan. These areas all have clear missions, a high level of
“ownership” within the STA and a dedicated project team or individual to manage activity.
The Strategy Group appear to have found it difficult to assess the effectiveness of delivery when either the appropriate monitoring or update information is not available or
when the original objectives set are particularly difficult to measure in relation to available information. This seems to have been the case particularly for marketing and many
of the customer journey elements, where there is no direct reporting structure into the Strategy Group.
The range of measures used could be broadened to include some that correspond with qualitative performance indicators of particular strategic importance to the delivery of the strategy.
1.2.6 Conclusions from the Desk Review
The desk review of TS2020 projects has revealed an impressive mobilisation of effort and resources and a powerful demonstration of leadership, commitment and collaboration. Many of the projects report positive outcomes and impacts and have generated synergy with other dimensions of the strategy. TS2020 activity has produced a wide range of benefits which have set firm foundations for the period 2016 - 2020.
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The following themes were identified for further consideration:
- Enablers and Constraints Recent performance data suggests that while progress has been steady, due to a wide range of external variables, the delivery of the headline mission of growth in visitor spend to £5.5-£6.5bn by 2020 represents a steep challenge (see “TS2020 Mid-Term Review 2015” – Analysis of Performance (VisitScotland)). In the light of this challenge it is important that enabling and constraining factors are taken into account in the remaining period of the strategy and that appropriate adjustments are made to optimise performance. These should include a more consistent approach to project implementation and design. One factor that may have constrained performance against the objective of growth is that many of the projects are relatively small scale and tactical in nature. While these continue to be important to the delivery of the wider aims of the strategy - such as collaboration and the quality of the visitor experience - attention should now be given to a range of opportunities which have the potential to accelerate growth. In addition, the perceived difficulties relating to the availability of adequate data and information for the monitoring and reporting of progress also represent a barrier to the identification of growth outcomes, potential projects and the evaluation of activity.
- Measuring Progress It is important to ensure that the objectives set for project activity may be measured against information and data that is accessible and gathered and analysed on a systematic basis. The range of measures used should be broader than visitor spend and correspond with appropriate qualitative performance indicators that are important to the delivery of the strategy. While some projects are focused mainly on delivering growth impacts others have been designed to contribute to and to energise other elements of the strategy. Individual projects have clearly demonstrated that they are capable of generating significant value in the form of synergy with other components of the strategy, in particular collaboration and engagement.
There are some outstanding successes which demonstrate strong strategic alignment, the potential to have significant impact on growth and scope to generate a range of other benefits. These projects are tightly focused on the core principles and messages of TS2020; market-led; growth focused; stimulating high engagement and of significant scale and opportunity. Examples of good practice could be leveraged to produce a toolkit or template for wider use in appropriate contexts.
- Leadership and Resources
Despite the exceptional leadership, drive and energy demonstrated by all those who have made contributions – largely on a voluntary basis - the scale and speed of delivery
of the strategy has been constrained by the limited resources available. The Review presented an opportunity to consider how available resources could be more effectively
deployed to optimise performance, taking into account the wealth of leadership, knowledge and experience within the Strategy Group and emerging external opportunities.
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1.3 Consultation: Interviews with Industry Representatives and Interviews with Key Influencers
Interviews were held with 33 stakeholders (see Appendix 2). The interviewees included industry representatives and key influencers - individuals who are prominent within or
who have important connections to the sector. The design of the interviews was agreed with the Mid-Term Review Group and interview questions were distributed in advance
of the interviews. Most interviews were undertaken by telephone and a small number involved individual meetings. Questions focused on three aspects of the TS2020
framework:
Progress to date
1. How well do you think the strategy is understood across the sector?
2. How well do you think Scotland is progressing towards the core aims of Tourism Scotland 2020?
3. What difference has the strategy made so far? Are there any particular areas where it has had a bigger impact than you expected? Or where it has fallen short?
4. How committed is the industry to the strategy?
The changing context
5. What are the external developments that are likely to have an impact on delivery of the strategy?
6. How should the strategy take account of these developments?
Reviewing the content
7. Are the Asset Blocks and Customer Journey themes set out in the strategy still relevant? Do you believe that any of the current priorities should be adjusted? If so how?
8. Are there other opportunities that would merit inclusion?
9. What should be done now to improve or update Tourism Scotland 2020?
10. How could these changes best be delivered – who should be responsible nationally and locally?
Some key strategic issues arose consistently throughout the interviews. These are reported in the section that follows and are drawn from the interview data and analysis.
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1.4 Progress to Date
1.4.1 Awareness, Understanding and Commitment
The interviews reflected a diversity of perspectives on the current levels of awareness, understanding and commitment associated with TS2020, illustrated by the following
comments:
“Businesses that are actively pursuing an ambitious growth strategy are generally the ones that engage with TS2020 and get it.”
“We have genuinely embodied the spirit of TS2020 and placed it at the core of our business”
“Beyond those who are actively engaged, commitment across the industry is quite low…this is because the visibility of the strategy is quite low.”
“One issue for businesses is gaining an understanding what the strategy means for them and how to adjust what they do as a consequence.”
“TS2020 is championed by a few but designed to be lived by many – it needs to be championed by many”
In-depth knowledge, understanding and commitment is clearly evident amongst those who are actively engaged with the strategy and in particular those who have a role in
influencing the delivery of the strategy. Generally, broad awareness and understanding of the strategy appears to be established among tourism associations and groups.
Within the agencies, at the level of leadership, there is generally a strong commitment to working with the strategy while at an operational level there appear to be gaps in
knowledge and awareness. Consequently there may be a need for more focused engagement with key stakeholders – particularly institutional partners - across the sector. It
is, however, important to make a clear distinction between partners and their differing roles.
In rural areas there is a clear need to ‘localise’ the strategy to make it easier for businesses to engage and align with the principles of TS2020. While awareness does not
guarantee understanding, there appears to be a strong connection between gaining an understanding of the strategy and developing a commitment to it. In the context of
increasingly limited resources it is felt that clear priorities should be established for activity related to stakeholder awareness, engagement, and communication.
Due to the diverse and fragmented nature of the sector, messages at heart of the strategy may need to be tailored to make them more pertinent to all parts of the industry.
Despite the considerable effort made to express the strategy clearly, for some there is still a language barrier. “The strategy is written in policy language that is familiar to
public sector organisations but which a lot of everyday businesses don’t understand.”
1.4.2 Making Progress
While progress is steady but slower than anticipated against the headline visitor spend target, there is evidence that TS2020 has generated a wider range of significant and
valuable benefits.
“It is evident that TS2020 has had a catalytic effect on the industry and that the existence of an industry strategy is essential to success.”
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Some of the qualitative outcomes are considered to be difficult to measure but important to the delivery of growth as well as to the realisation of other fundamental aspirations
within the industry strategy. These outcomes are likely to play a role in supporting the delivery of the strategy and therefore should correspond with a wider range of
performance indicators and measures capable of capturing the value of outputs additional to visitor spend.
“The biggest improvement to date is around collaboration - a more collegiate approach; better alignment locally and nationally”.
While many valuable outcomes have been delivered to date, the design of the implementation process shows some limitations in:
- the speed of progress from planning to action and delivery
- monitoring the effectiveness of diverse levels and categories of activity in relation to the growth objective
- measuring impact
- demonstrating growth outcomes.
There is some concern that any type of activity can be justified by the strategy and that consequently:
- there is limited strategic prioritisation
- resources and activities are spread too thinly and are allocated to some projects of limited strategic value
- there is limited understanding of how to maximise the impact of activity and to optimise synergies between activities
- it is sometimes difficult to see how some activities fit into the wider strategic plan.
1.4.3 Making a Difference
We observed differences in the extent to which respondents believe that TS2020 has made a significant difference to the performance of their business and to the sector as a
whole:
“TS2020 has opened out a huge opportunity to grow our business in line with the aspiration for Scotland and to showcase not only what larger organisations can
achieve but also to push for what can be achieved by small businesses”.
“Alignment with TS2020 is clear within the business strategies of those who have a role in driving the industry strategy – it is a pragmatic alignment – it’s about
making our businesses stronger”.
A recurrent perspective was that TS2020 has spawned high levels of activity - mostly of a relatively small scale – involving a significant level of process and dialogue, which is
not likely to close the growth gap. The strategy should therefore be focused on a small number of ‘game changers’ that demonstrate the potential to build on the smaller scale
achievements and deliver a step-change in growth in the medium to longer terms.
Communicating the key messages of the strategy has been identified as an area of significant opportunity. There is strong sense that the strategy could become part of
normal discourse if a core set of messages could be crafted as part of a practical toolkit.
“A toolkit would help us to take the strategy to the industry and say ‘here’s what you can do to make a difference to your business.”
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To improve the management of performance of the delivery of TS2020 there is a perceived urgent need to:
- improve the alignment between structure of TS2020 (Asset Blocks) and the VisitScotland marketing strategy
- gain systematic access to key market data that will enable improved prioritisation, performance management and measurement and decision making.
1.5 The Changing Context – External Developments
1.5.1 Uncertainties
A number of important uncertainties were highlighted consistently throughout the interviews as being of critical importance to the strategy over the period 2016–2020 and
beyond. These included:
- Economic conditions and uncertainties likely to continue to put businesses under pressure which point to the need to focus effort on driving up efficiencies,
productivity and yields;
- How the industry will respond to changes in employment policies ;
- Political uncertainties are coalescing and are likely to undermine confidence and stall investment;
- Uncertainties about national identity which may prove to be a barrier to growing our share of domestic and international markets.
1.5.2 Disruptors and Game Changers
An additional layer of uncertainty identified by many interviewees was the role that digital technologies are increasingly playing in disrupting conventional business models,
disintermediating whole supply chains and introducing new relationships between businesses and consumers. The disruptors are seen as introducing both opportunities and
threats and are capable of exposing strengths and weaknesses in the sector.
“There are some dynamic disruptors appearing – like Airbnb – and gaining traction. We need to understand how to engage with them and how they connect with
mainstream tourism. Disruptors introduce opportunities as well as threats - Airbnb and OTAs (online travel agents) - they are bringing inventory into the destinations.”
“There needs to be a sharper focus on digital – it is in our gift to influence this driver of change whereas others such as economic conditions lie beyond our control.”
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“The online travel agencies (OTAs) have made a huge difference. Everyone is using sites like Airbnb and these have become mainstream very quickly. It’s a huge
change that is driving change across the industry. Over 20% of our members now have to pay fees to OTAs. These are changes to the industry that have come from
outside it and that we’ve had no control over.”
In addition to uncertainties and disruptors a number of important opportunities, brought about by changes in external conditions, have been highlighted as potential ‘game
changers’.
Three external developments are seen as particularly important and could prove to be “game changers”:
the increase in direct flights to Scotland where there has been impressive growth in access but where more is needed;
advances in transport infrastructure and connectivity – air, road and rail
advances in digital infrastructure – connectivity: mobile; wifi; broadband
These were cited as examples of developments that the industry would be able to influence.
1.5.3 Markets and Trends
Many interviewees expressed a desire to see a greater focus on changing market trends. “Ultimately we need to understand that the disruptors – like Airbnb - are being driven
by consumers – the challenge comes from them and the industry needs to learn how to adapt faster – there needs to be more focus on the customer.” This sense of urgency
appears to be driven by:
a perception of intensifying competition from other destinations with a compelling lower price proposition
the threat of digital disruption or disintermediation
the growing expectations of customers to engage with businesses directly in the digital domain
the growing demand to consume the tourism experience – end to end - in both physical and digital modes simultaneously
“Visitor expectations are rising in line with the technologies they use. Competition is intensifying between new and emerging destinations. This is creating a greater
rural/city divide.”
“There are some good examples of how businesses are adapting towards emerging markets - but how (for example) China-enabled are we? We need a better
understanding of specific market segments and how they are changing. Which specific segments are buying into the different asset categories?”
“Alignment is a pragmatic response – the customer must be the focus of our alignment with other strategies to offset the threat of increased competition”
“The strategy should be more focused on competition. It should be based on: a deep understanding and focus on markets; how the Scottish tourism industry can leverage
distinctive competitive advantages to achieve growth (and at the same time) become more productive and efficient through the use and spread of digital.”
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“To justify the relatively high cost of Scotland as destination the Scotland visitor experience must be genuinely world class – both in terms of the quality of assets and
skills - we have the assets but Scotland still underperforms on skills.”
Running through the interviews was a strong line of argument to suggest that a greater focus on leadership is needed to address a perceived deficit in service skills (with a
strong emphasis on the customer) and digital skills as it is these attributes that will help Scottish tourism to stand out against the competition.
1.5.4 Taking Account of External Developments
The interviews revealed the need to build greater resilience into the strategy by driving a more adaptive approach to delivery. This would involve establishing a clear picture of
what should be achieved in the short, medium and long term:
“To remain resilient in the context of fast changing external conditions the strategy should highlight the importance of developing a forensic understanding of the
changing needs of the customer.”
There is a perceived need to increase the awareness of tourism providers of the changing needs of the ‘digital traveller’. The strategy should take account of what the future
traveller is likely to demand from the industry - this knowledge should be used to inform the development of priorities.
“An important part of ‘future proofing’ the strategy is to undertake the detailed preparation in the short and medium term which is critical to positioning Scotland as an
attractive destination in the long term for emerging, higher spend markets such as China and India.”
“Given the increasing intensity of competition with other destinations – how we engage with the industry is critical –– explaining to businesses this is how it (Scottish
tourism) looks and this is what the customer expects….”
1.6 Adjusting the Content
1.6.1 Relevance
Three important principles were evident throughout the interviews and lie at the heart of the strategy. The first is the significance of tourism to Scotland’s economy. The
second is the importance of having an industry strategy to mobilise and unite the industry behind shared goals. The third is that the strategy should be adaptive – capable of
responding to changes in the external environment.
“We shouldn’t underplay the importance of the role the tourism plays in the Scottish economy – it is of enormous importance and plays a particularly significant role in
strengthening fragile rural communities.”
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The prevailing sense of the intrinsic value of the strategy was balanced by a shared view that, in the light of changes in the external environment, a range of adjustments
would be essential to ensuring that the strategy is fit for purpose in its second term. The following excerpts provide examples of the suggestions made:
“The mission should be adjusted to reflect the importance of developing and enhancing the visitor economy. Visitor spend should not be the only strategic aim and
measure of success… When you think of the mercurial changes in customer expectation and behaviour since 2012, a reconfiguration of ‘the customer journey’ is
needed; move the pieces around and take apart some of the dimensions”
“The assets should be treated according to their relative level of strategic importance for example by emphasising the role that cities (and other destinations) play as
engines of growth.”
“As well as the main asset blocks, other important assets such as genealogy, ancestral, marine and agritourism should be represented. This could be achieved
through a clearer narrative rather than a change in focus.”
Given the shifts in the expectations of visitors since 2012, it was felt that the Customer Journey dimension of the framework should be reconfigured and closely aligned to
the VisitScotland markets and market segments. “The strategic markets and market segments should be reviewed and refreshed in line with external developments. TS2020
should be aligned with VisitScotland’s marketing strategy. A mapping exercise between markets, market segments and asset blocks would be a top priority.”
1.6.2 Improvements and Updates
It was thought that a number of immediate improvements and updates could be made. The following are examples of suggestions:
“Capabilities should be prioritised to provide clarity on which 2 or 3 are priorities for example: digital, people skills; service skills and the leadership to deliver them.”
“Destinations should become an overarching theme above the 4 asset groups.”
“Quality should run throughout the model – it should be at the centre of everything we do.”
In addition it was thought that the strategy should align with the aspirations of key stakeholders for example in areas such as: innovation; inclusion; tackling inequalities;
productivity; and collaboration. These were cited as important features of “the Scottish approach.”
1.6.3 Delivery
A wide range of views were directed towards the way in which the strategy is implemented. The general feeling was that there is a wide range of activity of a relatively small
scale that is largely tactical – rather than strategic - in nature. While diversity and range is important it is also essential to manage scarce resources more effectively. This will
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require a tighter approach to prioritisation in the full knowledge of existing initiatives and those already in the planning pipeline. Interviewees also called for a more consistent
approach to underpinning structures both in terms of project support and processes. In addition the importance of increasing the supply of strong leaders into the sector was
identified as key to successful delivery.
“There are some structural weaknesses – for instance there is no champion of the Cities element within the strategy – the underpinning structure must be aligned to
the emerging priorities.”
“The delivery structure and process should be developed in full knowledge of what other initiatives are already ‘work in progress’ or in the pipeline – additional activity
should only be undertaken once the picture is clear about what is in existence through the work of other agencies and partners.”
“STA could make more use of champions – an informal network of charismatic leaders who could support development and implementation of the strategy.”
“The people element is of real significance to the growth ambition - it calls for high profile leaders who are willing to commit some time to elevating and driving the
strategy at a new level.”
“STA needs to decide what kind of leadership role it has. If its purpose is to accelerate implementation of the strategy and get the number of visitors up, then it may
need more staff to make this happen… We need a much more strategic conversation between the industry and the public sector about implementation”
1.7 Emerging Opportunities
Interviewees identified a wide range of market-led opportunities which could be harnessed to accelerate growth and to deliver other important outcomes. The general feeling
was that resources and investment should be targeted on a limited number of ‘game changing’ projects that demonstrate the potential to close the growth gap.
“The strategy could be elevated to a new more strategic and mature level of debate and intent… focused on no more than 3 major themed pillars – such as
investment - and within these “game changing” projects that will deliver high levels of growth.”
Two categories of themes emerged.
1.7.1 A Leading Digital Destination
The first category is the opportunity for Scotland to gain competitive advantage by becoming a leading digital destination. This transformation would mean
increasing the number of digitally enabled businesses to enhance the visitor experience and increase productivity.
This potential priority would be dependent upon:
success in improving digital connectivity particularly in rural areas
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sufficient supply of skills
the willingness of businesses to invest
strong leadership
“The challenge is to enable businesses to understand the size of the opportunity represented by digital.”
“Digital needs to be featured as a high priority and should be featured throughout the model in relation to all of the components – both in terms of capability and capacity.
The refreshed strategy should include a more detailed section on the use and spread of digital.”
“Digital connectivity is the really urgent need and an opportunity – we are operating in a digital economy – digitally enabled businesses will not be a reality until we have
connectivity.”
1.7.2 Investing in the Quality of the Scottish Tourism Proposition
The second category relates to improving the quality of the tourism proposition ‘end to end’ - through investment in:
digital connectivity
large-scale accommodation stock in a range of destinations: (examples include city based and on the West Coast)
internationalisation with a strong emphasis on enhanced flight access and transport connectivity (supported by training in service skills, languages and product
development);
global scale attractions that to increase the volume of visitors and help to combat the effects of seasonality. Examples included live performance venue/visitor
attractions (examples provided were Centre Parks and MGM Studios).
“We need some big ticket items that will draw in higher volumes of visitors and help to overcome the effects of seasonality.”
The emerging opportunities were described in two ways:
those that could be delivered in whole or in part by the sector and
those that the sector could influence
The emerging opportunities would form the focus of discussion and analysis at the Strategy Group Workshop.
1.8 Progress in delivering support to address the key capabilities identified within the strategy
We continued to address this component of the review throughout the study – that is, to draw on both the interviews and the workshops – to identify and test any issues. In
the interview stage, our approach was to explore the extent to which interviewees believed:
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the strategy is owned by the industry
the industry is co-ordinated in its approach
the strategy is making a real difference to the commitment of individual organisations to tourism in Scotland and to working together
The emerging issues highlighted the importance of building on the positive developments and progress made to date in collaboration, commitment of participants and
alignment of partners to address some critical issues.
1.8.1 Issues of Rurality
Based on the consultation process to date it was evident that there is a widely held perception that issues of rurality constrain the extent to which tourism businesses and
organisations are aware of and understand the principles of TS2020. Awareness and understanding is thought to be significantly lower among individual businesses. It is
acknowledged that, while the model has been well received in a wide range of destinations and groups, there are still barriers to engagement especially among small
businesses in rural areas.
1.8.2 Strengthening the Leadership of the Tourism Economy
The importance of TS2020 to Scotland, as a potent instrument for the leadership and development of the wider tourism economy, was a recurrent theme throughout the
interviews. This purpose should be clarified and established within the refreshed model.
1.8.3 Aligning with Partners and Enhancing the Spirit of Collaboration
The need for improved alignment with the policies and strategic frameworks of partner organisations was repeatedly identified as being important to the success of TS2020 over the period 2016 to 2020. It is thought that closer alignment will provide the basis for more effective collaboration and more focused and efficient planning, allocation of resources and implementation. Successful alignment will only materialise if a genuine spirit of collaboration is demonstrated by all partners.
1.9 Effectiveness of Strategy Delivery Arrangements and Leadership
Drawing on the outcomes of consultation to date enabled the process of building a clear picture of perceptions and evidence of the effectiveness of the strategy delivery
arrangements and the leadership of TS2020. While we continued to develop our analysis, the issues that emerged are set out in the following section.
1.9.1 Leadership, Structures and Disciplines
In the second term of the strategy emphasis should be placed on building on the substantial progress made to date in strengthening collaboration, commitment of participants
and alignment of partners to address the following development issues:
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establishing clear priorities at national and local level based on a clearer and more detailed understanding of partners’ existing plans, initiatives, projects and
frameworks. A mapping exercise of planned and existing activity should be undertaken and regularly updated.
recognising the significant contributions made to the leadership of the industry and the need to continue to enhance leadership at both national and local levels.
developing an appropriate planning, implementation and reporting mechanism for each priority objective at national and local levels.
establishing clear disciplines and methods for implementation, measurement and reporting.
establishing how key initiatives will be delivered and monitored (including better recording of resources employed), recognising and responding to successes and
limitations.
enhancing current levels of alignment and collaboration and encouraging and nurturing a genuine spirit of collaboration.
constructing key messages to communicate the main principles of TS2020 in language that is appropriate to all stakeholders.
1.10 Conclusions to Consultations – An Evolutionary Process
Overall the consultation process generated a narrative that suggests an evolutionary transition towards the delivery of an ambitious sector-led growth strategy. Significant
progress has been made towards this aim. It is widely acknowledged that an exceptional level of leadership, effort and commitment has been mobilised to deliver a wide
range of valuable outcomes, in particular the successful launch of TS2020 and the development of strong collaborative relationships and structures. The journey itself has
produced a range of sustainable benefits which will continue to deliver value and to provide a resilient basis for growth.
The consultation process highlighted areas of strength and limitation. It also highlighted enabling and constraining factors. These issues are of importance to the governance
and future delivery of TS2020 in the period 2016 to 2020 and beyond. In particular the following are of significance to the realisation of the TS2020 aspiration:
- Tighter strategic alignment with the Scottish Government’s economic strategy and VisitScotland’s marketing strategy to demonstrate sector priorities for working in
collaboration to deliver growth
- A wider distribution of leadership roles and responsibilities for the implementation of TS2020 across the sector
- The production of a TS2020 strategy toolkit designed to raise the aspirations of individual businesses, placing particular emphasis on meeting the needs of small rural
businesses.
- Based on examples of successful projects and initiatives, a standardised approach to objective setting and the establishment of a broader range of performance
measures will help to improve the monitoring, measurement and reporting of outcomes on the basis of accessible performance information and data.
- The strategy should be re-focused around a small number of “game changer priorities” selected for their potential to accelerate progress against the growth target.
This approach should be balanced with ensuring that momentum is maintained in the delivery of work in progress throughout the current asset block workstreams.
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- Multi-channel communication of performance outcomes on a systematic and regular basis in ways that resonate with the sector is also important to maintaining
confidence and motivation.
- On-going environmental scanning should be undertaken to ensure that the strategy is ‘future-proofed’ and to maintain a strong focus on developments in consumer
expectations and knowledge of the competition.
- The strategy should place emphasis on the importance of developing stronger and more widely distributed leadership in the sector at both national and local levels to
drive forward the strategic priorities.
1.11 Wider Scanning for Significant Changes since the Original Research was Completed
1.11.1 Introduction
This section of the document sets out a number of developments that interviewees highlighted as having the potential to shape the industry in the future.
We examined current developments in these areas and set out our initial thoughts here. The section is not meant to provide a comprehensive, wide-ranging scan, but to
focus on issues identified by interviewees as important for the future.
There are 14 broad issues arranged in 4 categories: political, economic, social and technological. For each issue, we have identified:
What the specific issue is
Its potential implications for the tourism sector
Which time horizon we believe it relates most strongly to (Horizon 1 is current; Horizon 2 is 2017-2019; Horizon 3 is 2019-20; Horizon 3+ is 2020 onwards)
Whether the issue presents more of a threat or an opportunity for Scottish tourism (red light is a threat; green light an opportunity; amber light is either or both)
Whether the impact on TS2020 is likely to be high, medium or low
Of the 14 issues we have described:
6 are identified as threats; 3 are identified as opportunities; 5 are uncertain In terms of impact on TS2020:
6 are identified as high impact ; 8 are identified as medium impact
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1.11.2 Political Issues
Brexit could lead to the break-up of the United Kingdom There is no guarantee how the EU referendum will go. Two issues are strengthening the ‘Out’ case. The first is that, economically, Britain is generally acknowledged to be ahead of the rest of the EU and so the long drawn-out Euro crisis has strengthened the ‘Out’ campaign. The second is immigration which, according to opinion polls, is now the biggest concern of British voters, meaning that Europe’s crisis over migrants and refugees from Syria has made things harder for the ‘In’ campaign. If Britain chooses to withdraw from the EU, business, the economy and the government will face great uncertainty and the SNP will press for another referendum on independence.
Potential implications for the tourism sector
The immediate outcome from an ‘Out’ vote is likely to be more political turbulence in the UK, greater uncertainty and plans for a second referendum on Scottish independence. This may affect Scotland’s attractiveness as a destination for Near Neighbours and strengthen the observable (negative) shift in attitudes in England following the 2014 referendum. Further afield, it may be difficult for Scotland to distance itself from a perception that the UK is not welcoming to overseas visitors. The industry may need to consider a contingency plan for marketing and communication to be put into action quickly following an ‘Out’ result.
Horizon 1
Opportunity
or Threat?
Impact on
TS2020?
High
Scottish businesses want to be engaged in the discussion on Europe The Scottish Chambers of Commerce Network’s survey on business attitudes towards the EU referendum shows that, if an in-out referendum was held tomorrow, 73% of businesses would vote to remain in the EU. The figure rises to 90% for large companies. Over a third of businesses are concerned about the potential negative impact of any change to the UK’s status within the EU and the network has called on the UK Government to up its game in terms of listening to businesses on the issue.
Potential implications for the tourism sector
Departing CBI Director-General John Cridland says that the experience of the Scottish referendum has encouraged business leaders to speak out on British membership of the EU, despite the difficulty of getting businesses’ voices heard. Making sure the tourism industry’s voice (in particular) is heard and ensuring it informs debate in Scotland and across the wider UK will be important.
Horizon 1
Opportunity
or Threat?
Impact on
TS2020?
Medium
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Airbnb plans to lobby regulators
Voters in San Francisco have rejected proposals to limit and regulate home-sharing more highly. Airbnb spent over $8.5 million opposing the proposals and now plans to establish 100 independent home-sharing clubs in cities around the world to fight hotel lobbies or “NIMBYs” wherever legislators propose home-sharing rules that hosts and guests don’t like.
Potential implications for the tourism sector
Businesses like Airbnb are not only changing the structure of the industry, they are also bringing a new energy, focus and drive to make change happen – change that is essential for their business model to succeed. Whether they – or any other new entrant - will create the ‘new industry standard’ is less important than the fact that they are shaking up the industry and changing customer expectations. In a competitive world, regulators and governments who welcome Airbnb and others may secure an advantage.
Horizon 2
Opportunity
or Threat?
Impact on
TS2020?
High
1.11.3 Economic Issues
Emerging markets are raising concerns about another global recession The global economy may be facing an emerging market crisis. The Bank of England warns that, as central banks in Greece, China and elsewhere have tried to limit domestic economic crises, their interventions have inflated economic bubbles elsewhere. One consequence is the underlying imbalances in the global economy have not been fixed; another is that emerging markets now look increasingly likely to be heading towards a recession which may last for some time. The Bank warns that the next recession will centre on China and the emerging market economies (EMEs), which now account for over half of global GDP.
Potential implications for the tourism sector
The world’s financial institutions have been warning of ‘global recession part III’ for some time now, but their messages have not been at the forefront of public discourse (although it is often in the minds of businesses). There is now a shared view that the EME’s are heading into recession and that this will have a significant impact on the wider global economy. China’s banks are, effectively, bust and EMEs do not have an equivalent of the Federal Reserve or the European Central Bank to provide rescue packages. How long and how deep the recession will be is unclear, but the sector may wish to pay close attention to what is happening in EMEs and, if necessary, to strengthen its messages to retain its share of the market.
Horizon 1
Opportunity
or Threat?
Impact on
TS2020?
Medium
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Scotland is very successful at inward investment but needs a higher profile in Asia Scotland secured its third best year on record for Foreign Direct Investment in 2014, with scientific research, financial services and manufacturing flying the flag. 2014 was also Scotland’s most successful year attracting investment from the US, but it needs a higher profile in Asia. Scotland has been the second most successful location in the UK for inward investment in four of the last five years and investor perception data shows that Scotland’s brand has been boosted globally. In an uncertain and competitive market, Scotland continues to punch above its weight in securing global FDI. Its challenge now is to build further on achievements to date, and tackle areas where it can do better.
Potential implications for the tourism sector
Is Scotland’s tourism strategy sufficiently linked to Scotland’s inward investment activity? Can the tourism sector build on – or support - an increased focus on Asian markets for FDI?
Horizon 1
Opportunity
or Threat?
Impact on
TS2020?
Medium
China is seeking help from the UK to shift from a high-carbon economy to a low-carbon economy The European Marine Energy Centre (EMEC) based in Orkney, has been conducting trials on wave and tidal energy devices for over 10 years and has just signed a Memorandum of Understanding with organisations based in Qingdao in China’s eastern Shandong province, to support the development of their own marine energy test site in the area. The agreement is to share knowledge and carry out fundamental research to establish a wave energy test site in Qingdao. Professor Hongda Shi, from Ocean University of China (OUC), said: “Marine renewable energy in China has the potential for a brilliant future, but we have a long way to go. The short-cut for development is to cooperate with the countries which have advanced technology and abundant experience. Scotland is no doubt such a country, and EMEC is the leader of the domain. More broadly, China is establishing a green investment bank to transform the way economic growth and environmental conservation work together. The UK’s Green Investment Bank - set up by the UK Government and based in Edinburgh has funding of 3.8 billion pounds from the government, which it uses to co-invest with private sector investor – is the model for China’s approach.
Potential implications for the tourism sector
Apart from the fact that any project which strengthens links between Scotland and China has a longer term benefit, the growing importance of sustainable energy – and Scotland’s position in the global sector – may prove to be a growth area for business tourism. Looking to the longer term, taking a proactive approach to business tourism that maps Scotland’s tourism potential against its areas of business excellence to ensure that strategies are joined up may grow the market.
Horizon 2
Opportunity
or Threat?
Impact on
TS2020?
Medium
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1.11.4 Social Issues
International students believe the UK has become less welcoming More international students are turning their backs on Britain in favour of more "migrant friendly" countries with better post-study work options. The International Student Survey 2015 - which questioned more than 45,000 international students - found that nearly a third of perspective students decided to study in another country rather than come to the UK. While UK institutions are still perceived as being of high quality and good value, the UK is "threatened by an unhelpful policy context and negative impressions". Overseas students value employability highly as a factor when making a decision about where to study, and the government's visa restrictions for international graduates have not been received well. Potential implications for the tourism sector
The attitudes highlighted in the 2015 Student Survey mark a significant shift in attitudes towards the UK. Falling student numbers are disappointing enough; but the growing reputational damage to the UK as a destination is concerning. Scotland’s universities are working hard to recruit overseas students and spend a lot of time selling directly to them and the industry may wish to explore ways to work more closely with universities to help persuade students that Scotland will welcome them.
Horizon 2
Opportunity
or Threat?
Impact on
TS2020?
Medium
1.11.5 Technological Issues
Using the sharing economy to improve business trips Business travellers are increasingly willing to buy on-demand services to save time. Apps such as Uber and Airbnb have led the way, but other peer-to-peer services are coming along behind. The US is leading, but the sharing economy is spreading rapidly. Travellers who want to travel light can use Washio to arrange for their laundry to be picked up and returned to them later or can rent business clothes from Rent the Runway or The Black Tux (men). Car2Go lets travellers find a nearby car, drive it to their destination, and then leave it. On-demand valet parking services like Luxe will send a valet to meet drivers at their destination, take the car, and then bring it back at the end of the meeting to save looking for a parking space. Local co-working spaces offer drop-in access, including facilities like printers and meeting rooms; Breather or DesksNearMe provide more private workspaces. And it doesn’t need to be app driven. Magic is a text-based service that lets travellers text what they need to a single number; they’ll coordinate with all the different on-demand services to get the traveller whatever (s)he’s looking for. Potential implications for the tourism sector
Some services will succeed, others won’t, but the approach is changing the nature of travel fundamentally. Many of these services rely on urban density and one challenge for services in less dense areas is how to move into this space. Scotland, however, is now being left behind because of its poor digital technology infrastructure.
Horizon 1
Opportunity
or Threat?
Impact on
TS2020?
High
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NYC is raising the standard
NYC & Company is a destination marketing organisation responsible for promoting five different destinations. The bureau has aggressively emphasised New York’s boroughs beyond Manhattan in recent years to tap into consumer interest in local neighborhood experiences and is encouraging locals to explore their city like a tourist and then share their experiences on social media. In effect, the bureau is attempting to enlist New Yorkers as co-marketers to promote their city. NY & Company CEO Fred Dixon, presented the approach at the Skift Global Forum in October and highlighted a number of key learnings.
Tourism bodies promote themselves as the “official” experts of their destination. But what does that even mean anymore, and who really respects it? Millennials certainly don’t. Instead, Dixon says, bureaus should call themselves “authenticity experts.”
Destination marketers need to let go of their brand image and their brand voice. In today’s connected world, you can’t control your brand messaging anymore, and trying to do so is a disservice to the community.
NYC & Co created the #ThisIsNewYorkCity hashtag for visitors to share cool local experiences on social media.
NYC & Co. expanded on that for locals specifically with the #SeeYourCity hashtag. The latest iteration of that campaign is the #SeeYourCity Eats Edition focusing on food and beverage experiences.
The bureau is actively partnering with iconic personalities such as Taylor Swift, who moved to New York and wrote a song about her first impressions of the city. Swift then gave the song to NYC & Co. for free to use for promotional purposes. Dixon said the bureau will probably never be able to duplicate as successful a branding partnership as with Swift, but it is moving forward with new celebrities based on how well Swift engaged new audiences.
New York City is replacing all phone booths with new 11-foot LinkNYC high speed Wi-Fi stations, delivering bandwidth
20 times faster than household Wi-Fi. By the end of 2015, there should be about 100 LinkNYC stations in place. Dixon
said the goal is to have 7,000 LinkNYC stations running within three years, so people no longer have to huddle in
Starbucks or museums to access free Wi-Fi. The new LinkNYC will provide a lot of new opportunities for self-guided
tours in the city using more varied media. NYC & Co. is also developing new apps to leverage that rise in available free
Wi-Fi.
Potential implications for the tourism sector
New York is raising the bar spectacularly. It is also moving fast, keeping up with – and exploiting – new technology
developments.
Horizon 1
Opportunity
or Threat?
Impact on
TS2020?
High
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Using Data Analytics to improve services
Analytics is the process of examining big data to uncover hidden patterns, unknown correlations and other useful information that can be used to make better decisions. The increased use of mobile technology and apps by tourism consumers means that the sector is able to gather and process data about consumer behaviours and choices. For example,
Travel apps are emerging across Europe as the favourite way to search for holiday destinations
6% of travel searches are now made through apps on mobile devices rather than through desktop computers. Favourite destinations vary depending on the device
There is an emerging difference between iphone users and android users with the former more likely to travel business class and spend more money on hotels
50% of searches on mobiles are for last minute holiday deals. UK travellers are less price sensitive when searching on mobile, spending 5% more than when searching on desktops.
This is an emerging area but one which can yield important strategic insights. Businesses in all sectors are at an early stage of
understanding how to use analytics to improve services.
Potential implications for the tourism sector
Analytics is a growing industry. The examples shown here highlight the kind of data that can be gathered and used to respond to and shape consumer preferences. Technology is moving the industry rapidly closer to co-creation; but the ability to gather data – particularly in the world where people are moving towards mobile devices – depends on consumers’ ability to access web services.
Horizon 2
Opportunity
or Threat?
Impact on
TS2020?
High
Digital consumption of events and festivals is a growth opportunity
The way in which audiences want to consume festival content may change dramatically with a shift of festival audiences both in location and time with attendees experiencing the festival remotely in their own homes, on their own devices or in remote venues such as cinemas. Scotland’s events and festivals are behind the curve on digital innovation. In order to remain competitive, they need to be digital experiences as well as physical ones. Infrastructure needs to be developed to increase the digital capacity of the public realm and in key venues. Scotland’s digital ambitions should include the creation of new and innovative forms of content.
Potential implications for the tourism sector
Digital consumption may feel peripheral in some parts of the Scottish market, but consumers want it.
Horizon 2
Opportunity
or Threat?
Impact on
TS2020?
High
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On-Demand Co-working Hotel Is the Future of Hospitality When travelers book a room online at the new Hotel Schani in Vienna, they book the actual room they’ll be staying in. They can choose high or low floors, close proximity to the elevators, their preferred bed configuration and room category depending on size and view. Because they know their room number on arrival, guests can bypass registration and walk directly to their room to open the keyless door with the Hotel Schani app. The Hotel’s goal has been to create the most personalised hotel user experience possible - all of which can be accessed by mobile phone. Hotel Schani plans to differentiate its value proposition by evolving into a digital connectivity platform to help guests meet other like-minded individuals, business professionals, thought leaders, cultural influencers and various companies in the destination aligned with their personal preferences. By developing a platform for customers to create opt-in personal profiles, Schani can build a sophisticated inventory of consumer data to better deliver customized travel experiences.
Potential implications for the tourism sector
This development – along with others in our review – goes to the heart of the tension between technology and people. Schani may be taking the role of technology too far – or they may not – but their innovative approach will test what consumers want. Might hotels of the future choose to provide both types of service, ‘direct to room’ and ‘concierge guided’? If so, which will prove more popular? Certainly, the ability to gather data about customer preference will be a powerful driver of new offerings. How might the B&B sector respond? By differentiating itself as technology free? Or by being technology enable and differentiating itself in some other way?
Horizon 3
Opportunity
or Threat?
Impact on
TS2020?
Medium
Soon, travellers will be able to simply ask Siri to make all their travel arrangements
A new travel app promises to marry the roles of travel agent, concierge, and personal assistant, all through a Siri-style, voice-enabled interface. HelloGbye‘s founder says the company will allow you to “literally just ask for whatever you want when it comes to planning and booking your trip.” Press reports suggest that HelloGbye is highly intelligent in the analysis of conversational trip-planning requests. If HelloGbye is able to follow through on its initial plans, it could truly be a travel game changer. If it doesn’t, one that works will be along shortly.
Potential implications for the tourism sector
Once consumers start to rely on intelligent agents to make all their travel plans, businesses will need to be accessible.
Horizon 3
Opportunity
or Threat?
Impact on
TS2020?
Medium
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The fourth industrial revolution
Bank of America Merrill Lynch has produced a report outlining the impact of what they regard as a fourth industrial revolution, after steam, mass production and electronics: robotics. The report suggests that the global economy is facing a paradigm shift as robots and artificial intelligence become an integral part of our daily lives. The revolution could leave up to 35% of all workers in the UK, and 47% of those in the US, at risk of being displaced by technology over the next 20 years, with job losses likely to be concentrated at the bottom of the income scale. Low-paying, manual or services jobs are considered to be at high risk of replacement.
Potential implications for the tourism sector
Whether robots will replace people in customer facing jobs (hotels are currently trialing robotic waiters, porters and receptionists) may still be up for debate, but robotic auxiliaries already fulfill maintenance tasks such as cleaning, cutting grass and smart devices can communicate with each other to (for example) secure deliveries of supplies when something has run out. More startling, perhaps, is UK-based Moley Robotics autonomous chef that uses two robot arms and hands to reproduce the movements of a human chef from a 3D-recording of a cooking process that maps every individual motion.
Horizon 3+
Opportunity
or Threat?
Impact on
TS2020?
Medium
1.11.6 Implications for TS2020
One key lesson from this limited horizon scan is that a lot of potential and actual game changers are already in play. How the industry responds to these game changers will
have an impact on Scotland’s competitiveness as a destination and, consequently, its ability to achieve the strategic objective of growing visitor spend through quality.
Identifying what is in the industry’s control and what is not is critical. Some issues we have highlighted here – the EU referendum, the next wave of the global recession,
Scotland’s reputation for welcoming foreign students, for example – cannot be controlled by the industry directly but may form part of an on-going broad scanning and impact
analysis effort.
A number of issues, however, are in the industry’s control. Here, ensuring that all businesses are online and using properly designed, up-to-date websites and online booking
systems is now a basic entry level requirement. So too is moving beyond this: fostering new ways of thinking about digital marketing and using technology to build new kinds
of relationships online with customers, other suppliers and even competitors. This appears to be an area where Scotland is already threatened by developments that are
moving at lightning speed – many coming from new players moving into the industry and bringing new business models into play. Existing players who can respond and raise
the standard – as demonstrated by NYC and Company - have real scope to become stronger as we move towards 2020.
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There is a third category of issue: those which are not directly in the industry’s control but which it can seek to influence through lobbying and discussion between industry
members, the public agencies and the Scottish Government. Scotland’s digital infrastructure is a particular example of this and needs to be addressed to maintain Scotland’s
attractiveness to tourists who are increasingly living, choosing and accessing local services through their mobile phones. Moreover, these activities are not restricted to
tourism. Scotland’s reputation as a destination may suffer significantly if it cannot provide the online connectivity and services that 21st century citizens are used to.
In conducting this scan, we were struck by two things – how much information and analysis is available around the web on the future of the industry and how informed the
interviewees (and therefore the top levels of the industry) are about future developments. There are also high levels of awareness that the industry is in danger of being left
behind if it fails to adapt quickly. Identifying both what might be holding the industry back and how progress may be accelerated were important to the next phase of the Mid-
Term Review.
1.12 Emerging Priorities, Tensions and Dilemmas
1.12.1 Potential ‘Game Changers’
Throughout the interview process to date there was a consistent call for the strategy to be refocused around influencing the delivery of a small number of ‘game changing’
priorities that would be capable of closing the gap in performance on visitor spend. These would become the focus of private and public sector commitment and investment.
The emerging priorities were divided into two categories: those that can be delivered by the industry and those that the industry is capable of influencing:
What we can do to close the gap on growth.
What we can influence to close the gap on growth:
Collaborate with our partners to:
• Increase the number of digitally-enabled businesses
• Increase the number of businesses able to meet the expectations of international
visitors
• Increase the number of businesses able to use digital technologies to increase
productivity and innovation
• Enable businesses to develop skills to enhance the visitor experience
• Develop the quality of leadership across the sector - at local and national levels
Collaborate with our partners to:
• Influence investment in digital connectivity
• Influence investment in built infrastructure
• Influence investment in transport connectivity
• Influence easier access to business growth finance
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1.12.2 Alignment of Emerging Priorities with Scottish Government’s Economic Strategy
The emerging priorities were tested for their potential to align with the Scottish Government’s economic strategy as set out below:
Emerging Priorities – showing potential to align with Scottish Government’s economic priorities:
Influence Investment
1. Influence investment in Digital Connectivity
2. Influence investment in Built Infrastructure
3. Influence investment in Flight Access and Transport
Connectivity
4. Influence easier access to Business Growth
Finance
Improve the Quality of the Visitor Experience
(Innovation)
1. Strengthen leadership in the industry to enhance the
Quality of the Visitor Experience
2. Increase the number of Businesses able to use Digital
technologies to enhance the visitor experience and
increase competitiveness
3. Enable businesses to develop people and skills to
enhance the quality of the Visitor Experience
International Appeal
1. Enable businesses to develop skills to attract
international visitors
2. Increase the number of Businesses able and ready to
exceed the expectations of international visitors
Inclusive Approach to Growth
1. Develop the quality of Tourism Leadership across the
sector - at local and national levels, in urban and rural
settings
2. Ensure that small rural businesses are able to: contribute
to the strategy (through local structures), build resilience and
long term sustainability.
The analysis of emerging priorities was presented in more detail, considered and tested at the first Mid-Term Review workshop in the light of a number of important sources of
evidence. The priorities were also considered in the light of some important tensions and dilemmas, which are set out in the following section:
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1.13 Tensions and Dilemmas
A number of tensions and dilemmas arose throughout the interview process. We raised these as issues for the Strategy Group to consider in reviewing the issues presented
in this paper and in exploring the emerging priorities.
Game Changers Small incremental adjustments
The dilemma centres on the extent to which the strategy should focus on a small number of ‘game changing’ initiatives to acce lerate growth or should be based
on small adjustments to the current framework.
Within our gift to influence Beyond our influence
The dilemma centres on the extent to which the strategy focuses attention on those external issues that are susceptible to influence or takes account of all issues
regardless of their susceptibility to influence.
Direct delivery Influence
The dilemma centres on the extent to which the strategy assumes direct delivery by the industry or delivery through partner decisions and actions.
City assets Rural assets
The tension centres on the balance to be struck between the emphasis placed upon the role of Scotland’s cities and upon Scotland’s rural assets.
Local leadership National leadership
The dilemma centres on the extent to which the strategy should emphasise the importance of national or local leadership.
One size fits all Customised approach
The dilemma centres on the extent to which the strategy should emphasise differences in the requirements of small and large businesses.
Collaboration Competition
There is an underlying collaborative tension between the need to work together to achieve strategic objectives and the need to compete on the basis of efficient
allocation of capital and other resources. Seen in a positive light this could drive the incentive to formulate persuasive and strongly evidenced business cases to
support investment propositions. The downside is a reduction in cohesion and synergy.
Language of private sector Language of public sector
The dilemma centres on the desire to demonstrate a pragmatic alignment of the strategy with Government policy and the need for the language of the
strategy to be inclusive, engaging and inspirational to all stakeholders.
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1.14 Interim Report Conclusions – An Evolutionary Process
Our findings reflect the evolutionary nature and spirit of the TS2020 strategy framework; planning and implementation processes. The findings point to sources of significant
realised and potential value generated by the strategy. They also identify areas of limitation which highlight opportunities for improvement.
The development and delivery of TS2020 has been heavily reliant upon motivated and visionary volunteers who are highly ambitious for the Scottish tourism industry. Despite
the exceptional leadership, drive and energy demonstrated by all those who have made contributions, the scale and speed of delivery of the strategy has been constrained by
the limited resources available.
The approach to the implementation has been based upon an exploratory and iterative process. For this reason, inconsistencies in structure, processes and outcomes are
evident. It is important to consider these implications against a wide range of evidenced positive outcomes, generated as a direct result of TS2020.
Undoubtedly the most powerful of these is the successful mobilisation of a diverse and resilient network of relationships and activity behind shared goals. This collaborative
infrastructure is heavily reliant upon the work of volunteers. It has arisen through strength of personality, leadership, experience, knowledge, commitment and deeply held
belief of the aims of TS2020. Many of the gains relate to softer outcomes that have been demonstrated throughout the planning dialogue, engagement and implementation
process to date. They will position the refreshed strategy on firm foundations of strong partnerships; leadership and influence. They include:
successful development and launch of an industry strategy for tourism in Scotland - developed by the industry for the industry
an impressive mobilisation of effort and resources and a powerful demonstration of leadership, commitment and collaboration
significant progress made towards the engagement and mobilisation of a disparate industry behind shared aims
the delivery of a wide range of projects, many of which report positive impacts
substantial advances in collaboration and alignment
demonstrable differences in the maturity of the dialogue, relationships and openness to change
stronger networks, reach and relationships at national and local levels
activities that have strengthened the reach and influence of the tourism industry into the wider tourism economy
Notwithstanding these achievements, recent performance data suggests that while progress has been steady, due to a wide range of external variables the delivery of the
headline mission of growth in visitor spend to £5.5-£6.5bn by 2020 represents a steep challenge (see “TS2020 Mid-Term Review 2015” – Analysis of Performance
(VisitScotland)).
Conversely, set against the backdrop of a complex array of uncertainties, a number of significant opportunities – highlighted in the horizon-scanning and in the consultation
sections of this report - demonstrate potential to accelerate growth in the medium to long term.
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1.15 Interim Report Recommendations
A number of recommendations emerged from the development of the Interim Paper as follows:
The remainder of the Review process should be dedicated to building on and refining the analysis set out in this paper to formulate a clear set of
recommendations based on agreed priorities for the short, medium and long term stages of TS2020.
The first review workshop should be dedicated to:
o exploring the emerging priorities outlined in the Interim Report
o placing strong emphasis on looking forward to 2020 and beyond and on identifying desired outcomes for the short, medium and long term
o identifying opportunities to improve the existing framework and build on best practice and learning from existing projects.
Following the workshop a structured approach should be undertaken to:
o working with the Mid-Term Review Group and the Strategy Group to strengthen, develop and test emerging priorities
o ensure that the planning framework is fit for purpose for the period 2016-2020 and beyond
o ensure that the implementation process draws on best practice and learning from existing projects.
The focus of effort in the short term should therefore be to establish the right priorities for growth to put into place the appropriate foundations for the period 2016 - 2020.
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Section 2: Outcomes of Workshop 1 of the Mid-Term Review Process
The purpose of the workshop was to enable the TS2020 Mid-Term Review Group and the Strategy Group to explore the emerging findings and recommendations of the
Review to date and to refine the list of emerging priorities.
The workshop took the form of an interactive series of presentations, conversations and group activities designed to:
consider the emerging Review findings: Data Review (workstream 1); Desk Review; Broad Scanning; Consultations; Potential Priorities (workstreams 2 & 3)
provide a presentation of the findings of the Data Review carried out by VisitScotland
provide a presentation of the new VisitScotland marketing strategy followed by a discussion on the implications for the tourism industry
consider the implications of the emerging issues for TS2020
highlight successes and limitations, enablers and constraints associated with TS2020 performance to date
consider ways in which the existing TS2020 framework could be adjusted to reflect changing conditions and to optimise outcomes
assess a longlist of emerging options for re-focusing activity and investment around “game changer” priorities that demonstrate potential to improve performance in relation to visitor spend and other key measures of success.
The options assessment process was structured around an analytical framework designed to enable groups of stakeholders to reach decisions on the relative attractiveness
of competing investment options.
The output of the workshop was a set of agreed high level priorities.
2.0 Presentations and Discussions
Two presentations were provided by VisitScotland.
Presentation 1: Workstream 1: “Data Review TS2020 Mid-Term Review” - VisitScotland (Susan Dickie and Chris Greenwood)
Presentation 2: VisitScotland Marketing strategy “The Spirit of Scotland” (Charlie Smith)
The presentations and corresponding discussion are available on the National Strategy section of Scottish Tourism Alliance website (www.scottishtourismalliance.co.uk).
The sections that follow provide an overview of the individual workshop activities and outcomes.
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2.1 Workshop Exercise 1 – Reviewing the Direction
The purpose of the first exercise was to provide participants with the opportunity to reflect on the TS2020 Mission and Growth Markets in the light of the preceding
presentations and to consider whether any adjustments are necessary.
Process
Participants were split into 3 groups and, on the basis of the Review findings to date, asked to assess the continued relevance and importance of the following two elements
of the TS2020 framework: Mission and Growth Markets. Discussion focused on how these elements of the ‘rocket’ could be adjusted to reflect key changes in external
conditions and other aspects of the emerging findings.
The groups were invited to present their output in the form of a set of ‘challenger themes’ rather than to re-write the current statements contained in the TS2020 ‘rocket’
framework.
Output
The output of Workshop Exercise 1 is recorded in a series of tables reflecting the main points emerging from the group discussions a summary of which is provided in the
following section.
Exercise 1: Conclusions
There was no formal plenary session following this exercise however a number of the ‘challenger themes’ highlighted were referred to throughout the workshop:
- The quality of the visitor experience should be a principle that underpins the achievement of the visitor spend target
- The growth market section of the ‘rocket’ should be revisited, particularly in the light of recent trends in domestic and international tourism
- Based on the scaling opportunity it was suggested that the industry is on course for delivering the £5.2bn – £6.0bn visitor spend target
- The mission statement should reflect the opportunity to grow visitor spend through ‘a digital marketing focus’ - to achieve target visitor spend of £5.2bn to £6.0bn (in
real terms) - The importance of continually reviewing and refreshing the strategic context for tourism was highlighted as an aspect of good governance.
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2.2 Workshop Exercise 2A
The purpose of this two part exercise was to provide participants with the opportunity to appraise the emerging priorities.
Process
Three working groups were each assigned one of three emerging priorities as follows:
Priority 2: Improve the Quality of the Visitor Experience (Innovation)
1. Strengthen leadership in the industry to enhance the quality of the visitor experience
2. Increase the number of businesses able to use digital technologies to enhance the visitor experience and increase competitiveness
3. Enable businesses to develop people and skills to enhance the quality of the visitor experience
Priority 3: International Appeal
1. Enable businesses to develop skills to attract international visitors
2. Increase the number of businesses able and ready to exceed the expectations of international visitors
Priority 4: Inclusive Approach to Growth
1. Develop the quality of tourism leadership across the sector - at local and national levels, in urban and rural settings
2. Ensure that small rural businesses are able to contribute to the strategy (through local structures), build resilience and long term sustainability.
The groups were invited to appraise their allocated priority and its constituent elements in relation to a series of tests:
• Market relevance to delivering growth in each of the principal markets set out in the TS2020 framework: i.e. Near Neighbours; Home Turf; Distant Cousins; Emerging
Markets - on a scale of Critical to Low
• Importance to the delivery of TS2020 growth target - on a scale of Critical to Low
• Scotland’s competitive position on a scale of Strong to Weak
• Existing interventions/initiatives to build on
• Gaps to fill
• Barriers and constraints to address
• Desired outcomes
The output of Workshop Exercise 2A is documented in a series of tables (see Appendices). The tables show the results of the tests applied by the working groups to each
emerging priority in relation to each of the 4 TS2020 Growth Markets:
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Exercise 2A Summary of Outcomes
Priority 2: Improve the Quality of the Visitor
Experience (Innovation)
Relevance of the Priority
to Growth Markets
Importance of the Priority to the Delivery
of TS2020
Scotland’s Competitive Position
Strong -------------------------Weak
2.1 Strengthen leadership in the industry to enhance
the quality of the visitor experience
critical or highly relevant (Home
Turf) to all growth markets
critical to the delivery of TS2020 in Home Turf
high in Near Neighbours and Distant Cousins
low in Emerging Markets
relatively strong except in the case of
Emerging Markets weak
2.2 Increase the number of businesses able to use
digital technologies to enhance the visitor experience
and increase competitiveness
critical to all growth markets
critical to the delivery of TS2020 in all growth
markets
relatively strong except in the case of
Emerging Markets weak
2.3. Enable businesses to develop people and skills
to enhance the quality of the visitor experience
critical to all growth markets
critical to the delivery of TS2020 in all growth
markets.
strong in all markets except in Emerging
Markets weak
Priority 3: International Appeal
Relevance of the Priority
to Growth Markets
Importance of the Priority to the Delivery
of TS2020
Scotland’s Competitive Position
Strong -------------------------Weak
3.1 Enable businesses to develop skills to attract
international visitors
critical or highly relevant to all growth
markets except Home Turf
critical or high to the delivery of TS2020 in all
growth markets except Home Turf
medium except in Emerging Markets weak
3.2 Increase the number of businesses able and
ready to exceed the expectations of international
visitors
highly relevant for Distant Cousins
medium for Near Neighbours
low in Emerging Markets
high for Distant Cousins
medium for Near Neighbours
low in Emerging Markets
medium except in Emerging Markets weak
Priority 4: Inclusive Approach to Growth
Relevance of the Priority
to Growth Markets
Importance of the Priority to the Delivery
of TS2020
Scotland’s Competitive Position
Strong -------------------------Weak
4.1 Develop the quality of tourism leadership across
the sector - at local and national levels, in urban and
rural settings
critical to all growth markets critical to the delivery of TS2020 in all markets
medium to weak in all markets
4.2 Ensure that small rural businesses are able to
contribute to the strategy (through local structures),
build resilience and long term sustainability
highly relevant in the case of Home
Turf
low relevance Distant Cousins
No results
It was felt that more debate was required on the
nature and definition of this priority.
medium in Home Turf and Distant
Cousins.
No results for other markets
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Exercise 2A Conclusions
Shortlisted Priorities
All the priorities were considered as critical to growth markets and critical to the delivery of TS2020 with the exception of 4.2 above which was felt to require further
development and clarification.
Strengthen Industry Leadership:
Strengthen leadership in the industry to enhance the quality of the visitor experience
Develop the quality of leadership across the sector to deliver TS2020 – locally, nationally, in urban and rural settings Strengthen Digital Capability:
Develop digital capabilities throughout the industry to accelerate performance
Increase the number of digitally enabled businesses to enhance the visitor experience and improve competitiveness
Enhance the Quality Visitor Experience:
Enable businesses to develop people skills to enhance the quality of the visitor experience
Enable businesses to develop people skills to attract international visitors
2.3 Workshop Exercise 2B
The purpose of this exercise was to provide participants with the opportunity to appraise each of the four dimensions of the final emerging priority, Priority 1: Influence
Investment.
Process
4 working groups were each assigned one of four elements of the final emerging priority (for industry influence)
1.1 Influence Investment in Digital Connectivity
1.2 Influence Investment in Built Infrastructure
1.3 Influence Investment in Flight Access and Transport Connectivity
1.4 Influence easier access to Business Growth Finance
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The working groups were invited to appraise the allocated priorities in relation to the following key tests:
• Market relevance
• Importance to the delivery of TS2020 Growth Target
• Strategic positioning
• Existing interventions/initiatives
• Gaps in delivery
• Barriers and constraints to address
• Desired outcomes
Exercise 2B Summary of Outcomes
Priority 1: Influence Investment Relevance of the Priority
to Growth Markets
Importance of the Priority to the
Delivery of TS2020
Scotland’s Competitive Position
Strong -------------------------Weak
Priority 1.1 Influence Investment in Digital
Connectivity
critical to all growth markets
critical to the delivery of TS2020
medium
Priority 1.2 Influence Investment in Built
Infrastructure
critical to all growth markets (beyond
2020)
low importance to the delivery of
TS2020
medium or medium to weak
Priority 1.3 Influence Investment in Flight
Access and Transport Connectivity
highly relevant or critical to all growth
markets
critical to the delivery of TS2020
strong to medium except Emerging
Market weak
Priority 1.4 Influence Investment in
Business Growth Finance
critical to all growth markets except
Emerging Markets
critical or highly important in all but
Emerging Markets
medium or weak
Exercise 2B Conclusions
All four dimensions of the final priority were considered to be critical to growth markets and - with the exception of 1.2 - critical to the delivery of TS2020:
Influence Investment: (Priority 1)
Influence Investment in Built Infrastructure – via a prioritised 20-30 year Tourism Investment Development Plan (to include all forms of investment)
Influence Investment in Digital Connectivity – united industry drive for continued investment in improved connectivity through Scottish and UK Governments
Influence Investment in Flight Access and Transport Connectivity – united industry drive for continued investment and removal of barriers such as APD
Influence Investment in Business Growth Finance – via interventions that strengthen relationships with lenders and build investment planning capabilities within tourism businesses especially in business case development
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2.4 Workshop Exercise 3
The purpose of this exercise was to provide participants with an opportunity to consider - on a group basis - the long term potential of each of the components of the TS2020
framework and to suggest how the TS2020 framework (Rocket) could be adjusted to reflect the outcomes of the group discussion and the Review findings to date.
Working in 3 groups and using the assessment grid provided on the flipchart paper, participants were invited to place the printed post-it notes on the appropriate quadrants to
assess the long term potential of each of the elements of the main components of the TS2020 framework in relation to two criteria:
- strategic importance
- impact
The groups were then asked to suggest how the TS2020 framework (Rocket) could be adjusted to reflect the:
- outcomes of the group discussion
- review findings to date
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Outcomes of Exercise 3
Group Crown Jewels: Sustained Strategic Importance/
Strong Impact (strong delivery)
Priority Developments: Sustained Strategic Importance/
Limited Impact (weak delivery)
Strategic Reviews: Reduced Strategic Importance/ Strong Impact (strong delivery)
Problem Child: Reduced Strategic Importance/ Limited Impact (weak delivery)
1 Food & drink Heritage & culture Business tourism Events & festivals Leadership & collaboration
Destinations, towns & cities Digital connectivity Transport (to Scotland / APD etc.) Marketing Quality Skills Nature & activities
Sustainable tourism
Accommodation
2 Leadership & collaboration Heritage & culture Events & festivals Food & drink
Digital connectivity Transport Marketing Destinations, towns and cities Skills Nature & activities Business tourism Quality Accommodation
Vision : And beyond i.e. 10 years (should be revisited beyond 2020) Mission : growing visitor spend through a digital marketing focus to achieve target £5.3bn – £6.0bn “Exploit world class asset to world class experience”
Sustainable tourism
3 Heritage & culture Events & festivals Business tourism
Transport Skills Food & drink Quality Digital connectivity Marketing Accommodation Destinations, towns & cities Leadership & collaboration
Sustainable tourism Nature & activities
None recorded
Exercise 3 Conclusions: Assessment of the relative long-term potential of the main elements of the TS2020 framework The outcomes of the exercise highlighted that the following elements of the framework were associated with Sustained Strategic Importance and higher levels of Impact/Delivery. The number is brackets indicates the number of groups who associated the elements.
Heritage & culture (3/3)
Events & festivals (3/3)
Food & drink (2/3)
Business tourism (2/3)
Leadership & collaboration (2/3 )
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In addition the following elements were associated with both Sustained Strategic Importance and Limited Impact/Delivery.
Digital Connectivity (3/3)
Transport (3/3)
Destinations, towns and cities (3/3)
Skills (3/3)
Quality (3/3)
Marketing (3/3)
Nature & activities (2/3)
Accommodation (2/3) It is worth noting that:
- one group perceived Accommodation as a ‘problem child’ i.e. Reduced Strategic Importance and Limited Impact - one group perceived Sustainable Tourism as a ‘problem child’ i.e. Reduced Strategic Importance and Limited Impact
2.5 Adjusting the Framework The plenary discussion emphasised the importance of making appropriate adjustments to the framework to reflect external developments since 2012. For example:
Digital should be placed at the centre of the framework
Digital should be featured as a force throughout
The market segments should be defined in greater detail
The language used should be adjusted to reflect the particular challenges of the next stage of the strategy, for example to highlight the new levels of importance placed on key dimensions such as digital
In the same way that quality was repositioned as a cross cutting attribute some elements may merit greater weighting than others.
The framework should include a set of underlying principles to represent attributes that are inherent within all of the assets e.g. sustainable tourism, quality, leadership, digital, innovation
Destinations, Towns and Cities should be represented across all asset groups
Since Sustainable Tourism is generally accepted as a baseline requirement it should be repositioned as an underpinning principle rather than a capability
The relative prioritisation of the elements remains the substantial leadership task. The key to this is not in just moving the boxes; rather it is identifying the strategy enablers.
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2.6 Workshop Plenary
The plenary discussion suggested that there is a tension between:
the appetite for adjusting the model to reflect significant changes in conditions
the desire to maintain the integrity of the current framework structure, given the wide acceptance and popularity of the model throughout the industry. The following suggestions for change were made:
Re-balancing the portfolio of projects from tactical to strategic: - finding the right balance between a portfolio of many - predominantly small scale and tactical - projects and fewer larger scale, strategic projects - highlighting the role that strategic projects would play in accelerating growth - ensuring that all projects are aligned - managing the transition while keeping the rest of the industry onboard - managing the transition with limited resources
Emphasising the importance of the international agenda
Emphasising the importance of focusing effort on key growth markets
Ensuring a focus on innovation – recognising that from a tourism perspective innovation means finding ways of ‘doing things better’, including solutions that enhance productivity and efficiency
Challenging ourselves as leaders
Acknowledging that while a great deal has been achieved there remains a lot more to accomplish
2.7 Workshop 1 Conclusions A potential shortlist of five priorities emerged from the workshop presentations, discussions, activities and analysis. The first priority recognised the need to adapt the TS2020 framework to take account of the Review findings to date, emphasising the importance of aligning the framework with changes in conditions since 2012, enhancing TS2020 project performance and embedding the remaining four priorities within the framework. The remaining four priorities were identified as potential “Game Changers”, namely important to growth markets and important to the delivery of TS2020.
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Priority 1: Adapting the TS2020 Framework to take account of significant changes in conditions since 2012
The framework should define a narrower set of principal future priorities, in terms of current (asset block) activities and future larger initiatives – ‘game changers’.
The TS2020 strategic framework should be aligned with the new VisitScotland marketing strategy. This alignment will be key to achieving a strongly market-focused
approach. For example: the original assumption that the majority of growth would come from domestic markets should be monitored. Annual figures showed that
domestic markets actually declined between 2011 and 2014, however they have returned to growth in 2015. By contrast, international markets grew strongly to 2014
and then declined in 2015. Emphasis should therefore be placed upon capitalising on areas of over–performance and a review of the underperforming markets. This
demands a detailed breakdown of target markets into segments, which should be mapped to appropriate assets and geographies.
The framework should demonstrate a longer term strategic marketing perspective – for example ‘the China effect’ is due to have a modest impact on the strategy to 2020 but will intensify towards 2030. Appropriate adjustments therefore will include:
o a stronger focus on researching, understanding and undertaking preparation for high growth potential markets such as China o ensuring that a continuous broad scanning approach becomes central to the TS2020 framework to futureproof the strategy and to establish the role of
innovation within the framework
A standard approach to initiating and monitoring TS2020 projects, based on the Project Initiation Document method (PID, see appendix 4 of Workshop Write Up Paper) should be embedded in TS2020 practices. This would establish a flexible blueprint for:
o facilitation of the TS2020 project selection, design and set-up process o facilitation of the process of identifying and securing resources essential to project delivery
o project monitoring and measurement
The PID method will also facilitate a new way of working with the industry, involving: o tailored approaches to target the specific needs of different segments of the industry o a more widely distributed approach to leadership – geographic, specialist and sectoral o raising awareness of ‘game changing’ opportunities, such as the pervasiveness of digital and the size of the digital opportunity
The emphasis placed upon specific elements of the TS2020 framework should be rebalanced. In particular: o the Quality of the Visitor Experience has been re-affirmed as paramount to the TS2020 ambition o Digital should be strongly emphasised as a pervasive element essential to all dimensions of the TS2020 framework o Sustainable Tourism should be positioned as a principle which supports all aspects of the framework.
Priority 2: Strengthen Industry Leadership
Strengthen leadership in the industry to enhance the quality of the visitor experience
Develop the quality of leadership across the sector to deliver the TS2020 growth ambition – locally, nationally, in urban and rural settings
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Priority 3: Strengthen Digital Capability:
Accelerate progress in increasing the number of digitally connected businesses
Increase the number of digitally enabled businesses to enhance the visitor experience and improve competitiveness Priority 4: Enhance the Quality Visitor Experience:
Enable businesses to develop people skills to enhance the quality of the visitor experience
Enable businesses to develop people skills to attract international visitors Priority 5: Influence Investment:
Built infrastructure – via a prioritised 20-30 year Tourism Investment Development Plan (to include all forms of investment)
Digital connectivity – united industry drive for continued investment in improved connectivity through Scottish and UK Governments
Flight access and transport connectivity – united industry drive for continued investment and removal of barriers such as APD
Business growth finance – via interventions that strengthen relationships with lenders and build investment planning capabilities within tourism businesses especially in business case development
2.8 Workshop 1 Recommendations
The following recommendations emerged from Workshop 1 and from the TS2020 Mid-Term Review process to date.
The priorities set out in this paper should be considered by the Mid-Term Review Group for further testing and development.
The priorities confirmed by the Mid-Term Review Group should be progressed through the Project Initiation Document (PID) process (see appendix) and presented to
the Strategy Group for final adjustment and approval.
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Section 3: Summary of Workshop 2
This section of the report documents the outcomes of the second workshop of the Mid-Term Review attended by members of the Mid-Term Review and Strategy Groups.
3.0 Workshop Purpose
The purpose of the workshop was to:
- Revisit the Mid-Term Review process
- Discuss the key findings from Mid-Term Review
- Explore the implications of the emerging priorities for the sector
- Explore the implications of the Review findings for the TS2020 framework (Rocket)
- Agree key messages for Scottish Tourism Week
3.1 Workshop Session 1: Presentation and Discussion – Mid-Term Review Findings to Date
The first activity of the workshop was to confirm the agreements reached at this stage of the process in relation to the key dimensions of the strategy:
Vision: “Scotland is a destination of first choice for a high quality, value for money and memorable customer experience, delivered by skilled and passionate
people”.
It was agreed that at this stage of the strategy, the vision should remain unchanged.
Mission: Grow visitor spend through quality by £1bn to £5.5bn - £6.5bn (in real terms) by 2020.
- The visitor spend measure was considered to be a transparent way of reporting growth. - Although the 2020 visitor spend forecasts predict a shortfall of £0.3bn to £5.5bn, this figure was still considered to be deliverable with focused effort. - Consistency in reporting was felt to be important, therefore both the targets (£5.5bn - £6.5bn) and reporting in real terms should be retained. To avoid confusion, the
shortened wording on ‘the rocket’ (growing visitor spend through quality to £5.5 - £6.5billion) should amended to “grow visitor spend through quality to at least £5.5billion”.
Growth Markets:
The likelihood of each growth market reaching the potential stated in the original strategy was assessed, based on 2014 performance figures: - Home Turf: it is unlikely that 2020 spend potential will be reached. - Near Neighbours: it is unlikely that 2020 spend potential will be reached. - Distant Cousins: maximum target already exceeded. - Emerging Cousins: maximum target already exceeded.
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It was agreed that: - the market groups would be maintained - the potential growth figures reflecting current growth and future forecasts would be updated. - there is a need for intelligence and analysis regarding the changing balance of Scotland’s markets, market share and what could be done to maintain (or grow)
our position.
Asset Groups
To build on the progress made in bringing industry together to establish common priorities, the focus now needs to be on delivery to drive growth. Support to facilitate this will be required.
Other Issues
Emerging findings from the Tourism Skills Investment Plan Refresh include a shift from focus on ‘training’ towards ‘learning and development’ within the industry.
3.2 Workshop Session 2: Exploring the Implications of the Emerging Priorities 2016 - 2020
The four main priorities - that were identified as critical to delivering the TS2020 target - were presented and explained to workshop participants as follows:
Priority 1: Strengthen Industry Leadership:
To enhance the quality of the visitor experience
To deliver TS2020 growth ambition – locally, nationally, in urban and rural settings.
Priority 2: Strengthen Digital Capability:
To accelerate industry’s use of digital technologies to increase sales (grow top line) and reduce costs (reduce bottom line) to improve competitiveness.
Priority 3: Enhance the Quality of the Visitor Experience:
To enable businesses to develop their people (quality & international)
To enable people to develop the right skills (quality & international)
Priority 4: Influence Investment:
Built infrastructure; digital connectivity; flight access and transport connectivity; and business growth finance.
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Activity 2: The group split into four subgroups to discuss the following points in relation to each priority:
1. What specifically needs to be changed, developed or delivered differently in order to make a difference in this priority area? 2. How will a greater focus on this priority enable industry - specifically asset / industry groups - deliver their vision and growth targets? 3. What needs to be in place to support them to do this (e.g. expertise, knowledge, access to data)? 4. What key messages will help mobilise the industry behind this priority?
Summary of Outcomes of Group Work
Priority 1 Strengthen Industry Leadership:
The recruitment and
development of the TS2020 2nd
XV (recruiting and developing
emerging industry leaders)
Much work has been done by Strategy Leadership Group and STA so far but it is vulnerable; i.e. there is little evidence of a second XV and without long term leadership we will fall back. It is well within our current resources to address this mostly through deliberate use of current forums, events and activities i.e. use all opportunities to invite a deputy, run a deputies event, run events within our current programme targeting future leaders etc. .
Work to target this group needs to appeal to them and their bosses so frame it round a professional development opportunity. This could include offering up some of our current members as buddies or mentors or get them to run something targeted at these emerging leaders.
Nurturing the Talent on the
margins (recruiting talented
leaders from the wider tourism
economy)
There are a lot of leaders [many of them good leaders] who don’t entirely realise they are in tourism. We should target these leaders on our fringes and draw them in. They will bring their sector and their leadership talent to our table. The groups could include: Food & Drink sector, IOD/FSB, sports governing bodies, national parks, business community relevant to business tourism (e.g. BT, Life Sciences etc.).
Priority 2 Strengthen Digital Capability:
To accelerate industry’s use of digital technologies to increase sales (grow top line) and reduce costs (reduce bottom line) to improve competitiveness.
Infrastructure
1. Accelerate infrastructure development (recognise that some businesses can’t connect) 2. Research good practice – infrastructure availability and digital skills elsewhere (e.g. Finland, S Korea, Lithuania) 3. Increase the number and quantity of businesses using transactional websites (90%?)
Fundamentals
1. Make businesses digital ready and enhance digital skills 2. Work with VS to build a searchable database of people who enquire about Scotland. Open channels to communicate with those groups.
Asset Groups
1. Assess how each can use digital to improve what they offer. 2. Do not expect that one size fits all; identify what is relevant to each, develop an implementation plan and deliver. (What is relevant to them, what they
specifically need and the KPIs, targets & milestones)
Innovation
1. Develop Scotland’s digital experience- how visitors use technology to travel, share and communicate while in Scotland 2. Digitise Scotland’s asset and experience; create for example Virtual reality marketing tools. Use digital technology – VR, apps, digital services – to
enhance the experience.
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Priority 3: Enhance the Quality Visitor Experience:
People and Skills
Leadership
Experiential (on the job)
Vocational
Emotional intelligence (“hire for attitude; train for aptitude”)
Industry showcasing itself more effectively (comms/PR): what’s great about a career in tourism?
Where should I start looking for information/inspiration about tourism?
Need good HR Management and people development – focus on the HR managers?
Productivity: efficiency balanced with customer experience (one does not necessarily equally the other, however done well, can deliver. Value for
money on staff – return on investment
Quality of the “Public Realm”
(This analysis could be included
under Priority 4 – Influence
Investment.)
Those parts of the customer experience beyond the direct control of tourism sector, such as public spaces, local environment etc
Due to restraints on public finances, investment in this dropping and is considered to be having an impact on quality already.
Need for industry to ensure impact of quality public realm to tourism (and local economy) is clear and highlighted (local influencing role)
But how?
Support for BIDs and the role they have in improving the local environment for residents, businesses & visitors.
Work with Scottish Towns Partnership, BIDs Scotland, COSLA, Local Authorities, SLAED to highlight importance of quality of public realm and tourism.
Amplify good examples – e.g. Biggar
Transport: Calmac / Scotrail – customer services programme – continue to influence.
Priority 4: Influence Investment
A Pre-PID Process to identify
specific investment gaps in all
four categories that will enable
growth in asset blocks and
destinations. The Pre-PID
Process would consist of the
following elements:
Planning and Design:
Design of Tool kit
Plan and Design Programme of – ‘Rapid Delivery and Reflection’ Workshops Deliver Programme of 1 Workshop per Group - Industry Groups/ Asset Groups/Destination Groups
Brainstorm gaps in all four categories:
Identify gaps in Investment
Identify gaps in: knowledge; information; existing programmes; existing research/relevant projects Review Output and Identify:
Intelligence/Data/ Information needs
Current Pipeline of Activity – what is already happening that is relevant to the need
Confirm gaps
Produce long list
Consult with specialists Confirm the Listing and Identify Overlaps – i.e. where more than one group has identified the same unmet need / where there is consensus forming around a specific proposal Shortlist for PID Process
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In addition the fifth priority - with a strong focus on updating the TS2020 framework and improving the delivery of the strategy - was outlined to participants.
Priority 5: Updating the TS2020 Framework and Improving Strategy Delivery
To ensure consistent monitoring of the strategy and other key factors influencing its delivery;
To continue to develop an effective visitor satisfaction measure for strategy;
To improve quality and availability of market intelligence and volume and value data to industry;
To ensure focus on innovation, productivity (efficiency) and competitiveness.
To ensure the availability of future resources to enable the industry to lead the strategy. Planning over resources will begin once there is clarity over what is required in order to support delivery.
3.3 Workshop Session 3: Key Messages from the Mid-Term Review and the Development of the TS2020 Framework (‘The Rocket’)
The outcomes of these discussions are documented in section 4 of this report.
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Section 4: TS2020 Key Messages Document
This section documents the key messages that were drawn from the Mid-Term Review for the specific purpose of communication to the industry.
4.1 Looking Back and Looking Forward
Four years ago, we launched Tourism Scotland 2020 (TS2020), the tourism industry’s strategy for growth. During this time, we’ve welcomed millions of visitors to Scotland and delivered millions of experiences the length and breadth of the country from international cultural, sporting and business events to unique individual experiences where people can make Scotland their own through our world famous history, heritage and natural assets. Global political, economic, technological and environmental uncertainties continue to remind us that the pace of change continues to quicken and, as is best practice in any business, we continue to monitor and review the sector’s performance in line with the strategy. With 2016 marking the midway point, we have undertaken a more thorough review to check we are on track.
4.2 Key Messages and Questions from the Mid-Term Review The strength and diversity of the Tourism Leadership Group has enabled us to draw on considerable insight and opinion from across industry. A clear message we received was the need to focus on activities, projects and investments that will deliver growth. This is not necessarily about creating new initiatives but simplifying key messages, driving innovation and building those activities and capabilities which will be sustainable in the long-term. As a result of the review, the Tourism Leadership Group, together with public sector partners and Scottish Government, is confident that with firm foundations now in place and continued support, alignment and collaboration, the sector is in a strong position to collectively deliver the 2020 vision. In 2012, we asked every tourism business, organisation and professional to consider their answers to five key questions. We’ve updated the questions to reflect the new priorities. How are you contributing to Scottish tourism’s 2020 vision?
Are you embracing digital? Are you online bookable? By 2020, every business needs to have embraced digital. We need to be connected, mobile enabled and online bookable. We need to be smarter at doing business online, both front and back-of-house, making the most of efficiency savings through the use of new technologies and innovative business solutions.
Are you confident that you understand your customers from different national, international and demographic markets? Do you know who your customers are and what they think? Are you thinking ahead to how customers are changing and the services and facilities which they will expect in 5 to 10 years’ time?
As the costs of running a tourism business continues to increase, are you maximising the efficiency of your business? Are you aware of the many tools available to help you increase your profitability?
Do you invest in your staff and partners? Valued, motivated and happy staff can make a significant difference to your customers’ experiences and to your bottom line.
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Your opinion counts. Are you adding your voice to your local destination, sectoral and business networks? These groups enable the industry to speak with one voice, led by the Scottish Tourism Alliance, which influences investment, promotion and development of Scotland as a visitor destination.
The Scottish Tourism Alliance continues in its role as guardian of the strategy on behalf of the industry, where our role is to facilitate, co-ordinate and provide the support you
need to meet the challenges set out in the strategy. We have the ongoing support and commitment of the public sector agencies, and will work with them to drive
improvements, in areas such as infrastructure, transport, broadband and skills.
4.3 Key Priorities for Growth The key priorities that emerged from the Mid-Term Review are set out in the diagram below:
4.3.1 Digital Can you believe that digital was only mentioned three times in the original strategy? In 2016, digital has become the focus. Did you know that:
68% of visitors now start their holiday journey online.
57% of all travel reservations are made online.
Over 60% of mobile phone users will access online content through their devices by 2017.
Like it or not, many people check an online review before booking. 44% of visitors to Scotland use travel review sites before booking their holiday.
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Visitors now expect to be able to book and pay online as well as having access to free wifi at your property. They want to look at reviews from previous guests and they can also help promote your business and are a valuable source of feedback for you. As we head towards 2020, every tourism business needs to offer a digital experience which is simple, quick and easy so that we convert many more of our enquiries into bookings. There are so many solutions available that don’t have to cost the earth.
Every business needs to offer an excellent online experience. This should include online booking, mobile-optimised website and well-managed online reviews.
Join the #scotspirit movement and help promote Scotland, your region and your business through the collective campaign launched by VisitScotland in February 2016.
Get help. Digital Tourism Scotland was launched in December 2015 and aims to help over 5000 tourism businesses with their digital skills. There’s a huge number of different workshops at a low cost and it could make a real difference to your business.
Digital is not just about sales and marketing, it is about reducing your costs too. Watch this space for further support to help businesses use digital technology to be more efficient, reducing their costs and increasing their profits. Good news for everyone!
Get connected. We need to continue to improve broadband and mobile connectivity across the country. It has become a basic requirement for both businesses and visitors alike.
4.3.2 Leadership Effective leadership at business, region, sector and national levels is fundamental. Put simply, without it, we will not deliver our 2020 vision and the progress to date will be lost. The review has shown that over the last three years, the industry has come together. Through the collective voice of the Scottish Tourism Alliance, asset groups and many other destination and sectoral groups, the sector has articulated the ambition, opportunities and issues that will drive growth. There is much more to be done. We need to ensure that we are supporting and encouraging all leaders – both current and our leaders of tomorrow. We need to look beyond our own businesses and regions to our international competitors and forward into the future to better understand what our next generation of travellers will be buying.
Secure and build on the considerable progress made by existing leadership forums to ensure an effective voice for the tourism industry. We need to continue to improve alignment of the sector and maintain focus on ensuring sustainable leadership and business models.
Champion leadership development. There are lots of excellent training opportunities already available; we will encourage more of our industry to grab these opportunities themselves and to encourage and release their teams to take part too.
Looking to the future. We need to develop a more international mindset to sharpen our focus on our markets and our competitors, both now and in the future. We need to establish ways to ensure future horizon scanning activities are undertaken to enable destinations, sectors and businesses to plan for the future.
Leading competitive businesses. Working with leaders at all levels, we will address our sustainability objectives and drive business profitability and competitiveness.
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Tomorrow’s talent. We must take the time now to invest in our leaders of the future. If we fail to do so our success will be fleeting. We will integrate a mixture of training, mentoring and development opportunities targeted at these emerging leaders across all of our activity and encourage our key partners to do the same.
Tourism is every leader’s business. There are a lot of great leaders who don’t realise they are in tourism. We will approach leaders on the fringes to draw in that talent and to help to make sure that tourism in every Scottish leaders’ business.
4.3.3 Influencing Investment Our visitors’ journey to and around Scotland is dependent on many components, many of which are beyond the immediate influence of the tourism industry and are long-term in the planning and delivery. As the industry works better together and strategies are aligned, the role which the tourism sector can play in influencing and shaping investment decisions has become evident. Of particular relevance to the tourism industry are:
Digital connectivity: improving both broadband and mobile coverage to maximise the digital opportunities across Scotland.
Direct flight access into Scotland: increase the number of flights from key growth market to meet international demand and increase international visitor spend.
Surface transport network: support for the introduction of integrated ticketing to make travel across Scotland simpler for visitors.
Built infrastructure and public realm: ensure that the tourism voice is considered as part of discussions on new facilities and infrastructure projects, and forge closer working with organisations involved with maintaining the quality of public spaces.
Business Growth Finance: to compete and grow tourism businesses need to invest therefore access to finance is essential. In order to make progress on these issues:
There is an increasing impetus to maximise the use of real-time data to inform strategic and operational decisions. We need to improve access to effective analytical tools and support industry to use data in new and innovative ways in order understand future trends.
Working with key agencies and partners, using the National Tourism Development Framework (see below), City Plans and Accommodation Prospectuses, the STA will lead a process to identify specific investment gaps in the areas above. This process will consist of working with industry to identify potential projects and establish an agreed prioritised 20-30 year transformational Tourism Development Plan.
VisitScotland is currently leading a process with local planning authorities and national stakeholders to refresh the National Tourism Development Framework and associated action plans. A revised document is expected in June 2016. A mapping and gapping exercise to overlay predicted demand for transport, accommodation and attractions with current supply is also underway which will assist future targeting of development planning and interventions by both the public sector and commercial developers.
Engage industry groups with key organisations delivering the Scottish Government's Public Wireless Programme to develop initiatives required to exceed visitors' digital expectations.
The Scottish Tourism Alliance, in conjunction with the industry, will continue to use its Policy Agenda for Competitiveness and Growth to influence Government and strategic developments.
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4.3.4 Quality & The Visitor Experience The visitor remains at the heart of TS2020. If we are to drive growth then we need to outperform the competition through delivering quality visitor experiences. We must grow and adapt with our customers’ changing expectations, through a combination of understanding our customers, reducing costs, creating fair and sustainable jobs, investing in staff and other aspects of our businesses and embracing digital.
Strategic review of ‘quality and what it will mean for Scottish tourism in 5 and 10 years’ time’ has been initiated by VisitScotland with a new strategy expected in the autumn of 2016. In addition, a review to simplify and streamline the current approach to common standards relating to the star rating quality assurance schemes is underway, led by VisitScotland in partnership with VisitEngland, VisitWales, Tourism Northern Ireland and the AA.
Greater focus on understanding our international markets through better access to market intelligence and visitor feedback at national and regional levels. We need to be smarter with our use of data.
Businesses, destinations and sectors to make better use of visitor reviews and quality measures to inform areas of strength and improvement. VisitScotland is to launch a new partnership with user generated content aggregator TrustYou in which score will appear alongside star ratings in accommodation on visitscotland.com.
Delivery of refreshed Tourism Skills Investment Plan to 2020 to support a skilled and passionate tourism workforce.
Continued focus on the importance of customer experience programmes, following success of WorldHost, Glasgow Welcomes and development of other regional programmes
4.4 Tourism Skills: Learning & Development Our people will always be at the heart of our industry, and as a result there will always be a need to support and develop those working and aspiring to work in tourism. The strategic skills priorities which support the ambitions set out in TS2020 are published in the Tourism Skills Investment Plan and overseen by the Tourism Skills Group. These priorities have recently been refreshed, and together with a refreshed action plan will be published in summer 2016. The refreshed priorities are:
Improving management, leadership and enterprise skills across the sector
Supporting the development of professional and digital skills for all in the sector
Ensuring staff at all levels understand and are able to respond to visitor needs and expectations
Raising the attractiveness of the sector
4.5 The TS20202 Framework – ‘The Rocket’
The final discussion was focused on considering the suggestions that had been made throughout the review process for adjustments to The TS2020 Framework. In particular it was felt that specific elements of the TS2020 framework should be emphasised and the framework should be rebalanced to reflect the emerging priorities. For example:
o the Quality of the Visitor Experience had been re-affirmed as paramount to the TS2020 ambition o Digital had been strongly emphasised as a pervasive element essential to all dimensions of the TS2020 framework
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Some alternatives were presented for consideration. The outcome of this discussion and further consideration - following the workshop - by members of the Strategy Group
resulted in the following representation of the Rocket and the Priorities:
Refreshed Rocket and Summary Diagram of Priorities for 2016 - 2020
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Section 5: Actions recommended for taking each priority forward for implementation:
Actions relating to all
Priorities:
Cross Cutting Actions Lead Timescale
Gap Analysis Meeting of the Tourism Sector agencies to identify in relation to each Priority:
- Existing initiatives/projects relevant to the priority
- Relevant plans and projects in the pipeline, or in the process of implementation
- Gaps in planning and provision
- What is needed to meet the gaps
- Actions for the implementation of a Pre-PID process
Horizon Scanning and
Intelligence Gathering Develop an approach to systematically gathering intelligence on changing demographic and geographic market trends Adopt a longer term strategic marketing perspective:
- a stronger focus on researching, understanding and undertaking preparation for high growth potential markets such as China
- ensuring that a continuous broad scanning approach becomes central to the TS2020 framework to future proof the strategy and to establish the role of innovation within the framework
Data Requirements and
Data Analysis
Work with Visit Scotland to produce a paper on data requirements Work with strategic partners to:
- Identify gaps in data on strategic markets - Secure access to data - Establish a systematic approach to data analysis and sharing to inform activity
Alignment, Segmentation
and Mapping of Core
Markets
Work with Visit Scotland to align the TS2020 strategic framework with the new VisitScotland marketing strategy to
maximise the impact of the campaign
- Establish working group and terms of reference
- Establish programme of work, workstreams and responsibilities
Work with other partners to increase market focus and to secure the most effective routes to key growth markets
- Conduct a review of over – performing and underperforming markets. - Conduct a detailed breakdown of target markets into segments - Map segments to appropriate assets and geographies.
Asset Groups Work with the Asset Groups to ensure that TS2020 priorities are embedded in:
Asset Group Leadership
Asset Group plans and activities
Asset Group resources
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PID Process Establish a standard approach to initiating and monitoring TS2020 projects, based on the Project Initiation Document method (See Appendix 1 PID Pro-forma) Embed the PID method in all TS2020 practices. This would establish a flexible blueprint for:
- facilitation of the TS2020 project selection, design and set up process - facilitation of the process of identifying and securing resources essential to project delivery
- project monitoring and measurement The PID method will also facilitate a new way of working with the industry, involving:
- tailored approaches to target the specific needs of different segments of the industry - a more widely distributed approach to leadership – geographic, specialist and sectoral
- raising awareness of ‘game changing’ opportunities, such as the pervasiveness of digital and the size of the digital opportunity
Performance
Management Plan and undertake a programme of work to establish a range of measures for Project monitoring and measurement
Risk Register Develop a Risk Register for the delivery of TS2020 Establish the review of the Risk Register as a standing item on the Agenda for Strategy Group Meetings
Actions for the
Implementation of each
Priority:
Individual Action Plans for Priorities 1 - 4
Priority 1 Leadership Develop PIDs for the following projects:
The recruitment and development of the TS2020 2nd XV (recruiting and developing emerging industry leaders)
Nurturing the Talent on the margins (recruiting talented leaders from the wider tourism economy)
Priority 2 Digital Use the outcomes of the Sector Gap Analysis to identify potential projects to close gaps
Develop individual action plans for closing gaps in:
- Infrastructure
- Fundamentals (digital skills; digitally enabled businesses; establish a searchable database of prospects)
- Asset Group implementation Plans
- Innovation
(See Workshop 2 Priority Plan for details)
Use PID process for taking projects to next stage of development (see Appendix 1)
Priority 3: Quality of the
Visitor Experience:
People Skills
Use the PID process to work with Tourism Skills and Asset Groups to identify potential projects that would enhance the Quality of the Visitor Experience through people skills in the following areas:
Leadership
Experiential (on the job)
Vocational
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Emotional intelligence (“hire for attitude; train for aptitude”)
Industry showcasing itself more effectively to attract new recruits
HR Management and people development
Productivity: efficiency balanced with customer experience
Priority 4: Investment Pre- PID Process: STA will lead a process to identify specific investment gaps in: Built Infrastructure including Public
Realm; Digital Connectivity; Flight Access and Transport Connectivity and Business Growth Finance
The process will consist of the following main elements:
- Identifying potential projects through industry wide ‘Rapid Delivery and Reflection’ Workshops - Cross referencing with National Tourism Development Framework refresh
- Establishing an agreed prioritised 20-30 year transformational Tourism Development Plan
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Section 6: Mid-Term Review Conclusions and Recommendations:
6.1 Conclusions
The Mid-Term Review process was designed to:
review progress in the delivery of the ambitions of Tourism Scotland 2020;
consider changes in the wider market environment;
make evidence-based decisions on any changes required – either to the strategy itself, associated action plans or the approach to delivery and monitoring; and to
identify key priorities for the remainder of the strategy period. The review process included: a desk review of past and current performance against target; a horizon scanning exercise; a programme of consultations involving both the public and private sectors; five progress review meetings, two workshops and close liaison with the Strategy Co-ordinator.
This report concludes that a thorough review process has been undertaken to assess the mid-term position in relation to the objectives and targets set for TS2020. The
process has identified that while significant progress has been made in relation to the aims and objectives of TS2020, there is potential to adjust, align and re-focus the
approach to strategy delivery to improve and accelerate performance.
The following outcomes of the Mid-Term Review are intended to enable the sector to work in close collaboration to deliver performance improvements:
A set of five strategic priorities
The design of a Pre-Project Initiation Process to enable the TS2020 Asset Groups to re-focus activity around the strategic priorities
A Project Initiation Document Template
Key messages to unite the sector behind the priorities
6.2 Recommendations
This report recommends that:
the strategic priorities set out in this report are implemented through a structured programme of collaborative planning and activity
the key messages emerging from the Mid-Term Review are communicated via all channels to the sector
the actions relating to each priority are implemented by the designated lead partner within in the specified time-scale.
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Appendices:
Appendix 1: Mid-Term Review Group and Strategy Group Members
Appendix 2: List of Organisations included in Mid-Term Review Consultation Process
Appendix 3: Suggested Agency Leads for Development of Priorities
Appendix 4: Project Initiation Document (PID) Pro-forma
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Appendix 1: Mid-Term Review Group and Strategy Group Members
TS2020 Mid-Term Review Group
CHAIR: Marc Crothall – STA CEO
Willie Macleod (BHA) - STA Council Gordon Dewar (Edin Airport) – STA Strategy Group
Barry McCulloch (FSB) – STA Council Rebecca Brookes (Abbey Tours) – STA Strategy Group
Danny Cusick – Scottish Enterprise Chris Taylor – Highlands & Islands Enterprise
Charlie Smith - VisitScotland Fiona Cook – Scottish Government Tourism Team
OFFICER: Caroline Warburton – National Tourism Strategy Delivery Coordinator, STA
Tourism Scotland 2020 Strategy Group
CHAIR: Stephen Leckie (Chair) – Leader, Crieff Hydro
David Allfrey – CEO & Producer, Royal Edinburgh Military Tattoo
Marina Huggett – Director, Tourism Excellence Consultancy
Judy Rae – Head of Events, Glasgow Science Centre Rebecca Brookes - Managing Director, Abbey Scotland
Robert Allan – HR Director, Apex Hotels Gordon Dewar – CEO, Edinburgh Airport
Russell Imrie – MD, Queensferry Hotels Calum Ross – Chair, British Hospitality Association
Paul Easto – MD, Wilderness Scotland Stephen Balfour - Chair, SLAED Tourism Group
James Stuart – MD, Edinburgh Pharmaceutical Processes Chris Taylor – Head of Tourism, Highlands & Islands Enterprise
Stephen Duncan – Commercial & Tourism Director, Historic Environment Scotland
Fiona Cook – Team Leader, Tourism Team, Scottish Government
Susan Deighan – COO, Glasgow Life Danny Cusick – Senior Director, Food & Drink, Tourism and Textiles, Scottish Enterprise
OFFICER: Caroline Warburton – National Tourism Strategy
Delivery Coordinator, STA Charlie Smith – Director of Marketing, VisitScotland
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Appendix 2: List of Organisations Consulted as part of Mid-Term Review Process
Abbey Tours Macdonald Hotels
Abellio Scotrail Outer Hebrides Tourism
Apex Hotels Royal Bank of Scotland
ASSC / Perthshire Tourism Partnership /Self-caterer Royal Yacht Britannia
Barclays Sail Scotland
British Holiday & Home Parks Association SCDI
British Hospitality Association Scottish Enterprise
Dumfries & Galloway Council Scottish Funding Council
Edinburgh Airport Scottish Government
Federation of Small Businesses Scottish Tourism Alliance
Glasgow City Marketing Bureau The Royal Edinburgh Military Tattoo
Glasgow Science Centre VisitAberdeen
Highlands & Islands Enterprise VisitScotland
Historic Environment Scotland Wilderness Scotland
Jacobite Cruises
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Appendix 3: Suggested Agency Leads for Development of Priorities
1. Adapting the TS2020 Framework to take account of significant changes in conditions since 2012: STA / VS (for b & c below)
a. Refinement of framework: any changes to vision / mission / rocket / underlying principles: STA (plus others from group who wish to contribute)
b. Alignment with VS marketing strategy: VS
c. Market priorities / Continuous scanning/ Monitoring: VS/SE
2. Strengthen Industry Leadership: SE or HIE
a. Strengthen Leadership in the industry to enhance the quality of the visitor experience
b. Develop the quality of leadership across the sector to deliver the TS2020 growth ambition – locally, nationally, in urban and rural settings
3. Strengthen Digital Capability: SE as leading Digital Tourism Scotland programme (which also include HIE, VS, SDS, STA)
a. Accelerate progress in increasing the number of digitally connected businesses
b. Increase the number of digitally enabled businesses to enhance the visitor experience and improve competitiveness (Scottish Futures Trust)
4. Enhance the Quality of Visitor Experience: HIE/SE/VS and Skills Development Scotland?
a. Enable businesses to develop people skills to enhance the quality of the visitor experience
b. Enable businesses to develop people skills to attract international visitors (SDI)
5. Influence Investment: VisitScotland on behalf of the other partners
a. Influence investment in built infrastructure (SE) / digital connectivity (HIE) / flight access and transport connectivity (VS) / business growth finance (SE/HIE)
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Appendix 4: Project Initiation Document (PID) Pro-forma
Strategic Priority Level PID Pro-forma – An example
* As an example of how the document could be used and purely for the purposes of illustration this Pro-forma has been developed for: Priority 3: Strengthen Digital Capability
Setting the Context for the Priority
Which TS2020 Strategic Priority does the PID address?
Priority 3: Strengthen Digital Capability
How will a greater focus on this priority enable asset groups to contribute to the
delivery of the vision and mission?
Increase the number of digitally enabled tourism businesses to improve marketing and
sales, build direct relationships with consumers and enhance productivity
How will a greater focus on this priority enable TS2020 assets/ asset groups to tackle specific challenges?
Improve the offer to existing and emerging markets
Increase visitor spend
Increase competitiveness
Increase productivity
What broader issues on the horizon beyond 2020 will this priority enable specific asset groups to address?
Harness emerging and future opportunities
Build resilience against emerging and future threats
Assumptions
What are the starting assumptions of the priority?
Existing National and Industry level strategies are in place.
Because there is limited requirement for additional direct interventions new initiatives
should mostly be focused on influencing and lobbying
How will these assumptions affect delivery?
Relatively low levels of delivery will be required but high levels of: awareness raising;
collaboration; influence; lobbying and stakeholder management.
Strategic Gap
What is the strategic gap that this priority addresses? Increasing the number of connected businesses
Increasing the number of digitally enabled businesses
What is currently being done to address the challenge?
Digital Scotland
Digital Tourism Scotland
TSIP
What should we be doing to ensure that the priority may be delivered? Enable businesses to collaborate more effectively to spread best practice
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Secure funding for awareness raising campaigns
Ensure that all stakeholders recognise the importance of the priority through influence
campaigns and multi-channel communications
What is the desired outcome? 99% (?) of businesses digitally connected and enabled
Contribution
How will a stronger focus on this priority enable specific assets to
contribute growth in Visitor Spend in specific markets?
Specific Growth Markets: Tick Relevant Boxes:
Near Neighbours
Home Turf
Distant Cousins
Emerging Markets
Contribution: Tick Relevant Boxes
Increase sales revenue
Build direct relationships with consumers
Increase exposure to future markets
Increased attractiveness to current and future
markets
How will a greater focus on this priority enable individual
businesses to contribute growth in Visitor Spend in specific markets?
Specific Growth Markets: Tick Relevant Boxes:
Near Neighbours
Home Turf
Distant Cousins
Emerging Markets
Contribution: Tick Relevant Boxes
Increase sales revenue
Build direct relationships with consumers
Increase exposure to future markets
Increased attractiveness to current and future
markets
Business Benefits
What specific business benefits will the priority enable specific asset groups to
deliver?
Increase competitiveness
Increase productivity
How will a greater focus on this priority enable specific asset groups to contribute
towards growth in visitor spend in specific markets?
Build the volume of on line bookings in Scottish Tourism Businesses
Increase the attractiveness of the visitor experience
Increase repeat visitation
Attract future markets
How will a focus on this priority enable specific asset groups to deliver the TS2020
growth target?
Digital is now recognised as a capability that is central to the success of all
dimensions of the strategy and to the delivery of growth targets.
How will a focus on this priority enable specific asset groups to deliver specific
business benefits
Consumer Benefits
How will a greater focus on this priority enable specific asset groups to contribute
towards a higher quality visitor experience?
Wider choice/availability of on line options
Accessibility of user generated content to inform decision making
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On line booking facilities
Improved connectivity for sharing and searching
How will a focus on this priority enable specific asset groups to deliver specific
consumer benefits e.g Higher quality business events; enhanced digital experience from end to end
Reporting/Measurement
What specific measures will be used to track progress? (see measurement framework)
How will progress be measured? Appropriate performance measures to be specified as part of PID (project level)
process
How will the priority be assessed for sustained impact?
Builds long term relationships with consumers in all growth markets and increases
competitive advantage
How will progress be reported and by whom?
Suggested Priority Leads:
SE as leading Digital Tourism Scotland programme (which also includes HIE, VS,
SDS, STA)
Responsibility for Implementation
Programme Lead:
Programme Co-ordinator:
Who will take responsibility for leading this priority on behalf of the sector (private and
public sector leads)?
Suggested Priority Leads:
SE as leading Digital Tourism Scotland programme (which also includes HIE, VS,
SDS, STA)
Who else needs to be involved? Scottish Futures Trust
See Stakeholder Analysis
Is there anything which needs to be changed or adapted in order to maximise the
priority’s impact on TS2020? Higher level of priority to be attributed to the Priority in Partner/Stakeholder strategies
Risks
What are the key risks associated with the implementation of the priority?
Risk of delay to the delivery of theTS2020 visitor spend target
Reputational risk to STA
Risk of losing market share
What impact would these risks present to TS2020? See high level Risk Analysis (Risk Register to be developed for TS2020)
How could the risks be managed? See high level Risk Analysis (Risk Register to be developed for TS2020)
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Interdependencies
Which stakeholders are likely to enable/constrain progress? See Stakeholder Analysis
What do we need to ask for from other stakeholders? See Stakeholder Analysis
What can we share with other organisations? Examples of Best Practice
What other external developments is the delivery of this priority dependent upon?
DTS
DS
TSIP
What other plans or activities within TS2020 is this priority dependent upon? STA Communications Strategy
STA Consultation Plans
How should the approach to delivering the priority be communicated beyond STA? STA Ltd Communications Strategy
Timeframe
Estimated Initial Resource Requirement
Estimated Costs
Estimated Revenues
Funding Proposals
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Priority and Project Initiation Process Map (to be updated as part of the on-going Review Process) PROJECT SELECTION AND DELIVERY FLOW DIAGRAM
Yes
Yes
No No Yes Yes
No No
No
Yes
Yes
No
No
No
Yes Yes
Will this drive TS2020
Growth?
Define Project and outline Benefits and Business Case
(forecsats of additional business, costs of delivery,
who benefits etc.)
Reject Project
Is STA Best Lead Delivery
agent?
Does STA have all required resources to
deliver?
Complete PID
Perform initial project apparaisal to allow
ranking
Does Project justify inclusion
within active
project programme?
STA Monitor Progress against programme (STA
Ltd or ILG?)
Park project for annual review of programme
Identify potential sources of additional
resources to allow delivery and consult on willingness to provide
Does STA + partners have
reqd resources
to support delivery?
Identify best lead agent
Complete PID with lead agent focus
Perform initial project apparaisal to allow
ranking
Does Project get adopted by proposed lead
agent?
Does Project justify inclusion
within active
project programme?
Allocate STA resources and programme for
delivery
Does STA have all required resources to
support delivery?
Park project for annual review of programme
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Strategic Project Level PID Pro - Forma For the purposes of illustration this Project Level Pro-forma has been developed for a potential project under:
Strengthen leadership in the industry to enhance the quality of the visitor experience.
Enable businesses to develop people skills to attract international visitors
Summary of the Project
Name of the project Improving the Emerging Market Visitor Experience
What is the strategic gap that the project will address?
Cultural understanding
Limited language solutions
Product/service fit
Description of the project
The project aims to develop understanding in the industry of the specific cultural and
behavioural issues relating to visitors from Emerging Markets
Key objectives and outcomes of the project
Better knowledge in the industry of the cultural and behavioural issues relating to
visitors from Emerging Markets
A better prepared workforce that understands these cultural and behavioural issues
and can respond to visitors’ needs accordingly
A world class welcome for visitors from Emerging Markets and an outstanding visitor
experience
Improved language skills across the industry
Who is responsible for delivering the project
Level of risk Low
Business benefits the project will deliver
Improved offer to Emerging Markets
Higher volume of sales
Growth in visitor spend
Increased competitiveness
Setting the Context for the Project
How will the project directly contribute to the delivery of the vision and mission? Increased visitor spend from Emerging Markets
Which growth markets will this project primarily impact on? Emerging Markets
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Which asset groups and parts of the wider industry will this project primarily focus
on?
Heritage and Culture
Destinations, Towns and Cities
Business Tourism
Skills
Accommodation
How will the project equip the sector to tackle specific challenges within TS2020?
Improve the quality of the visitor experience
Increase visitor spend
Increase competitiveness
Improved reputation
What broader issues on the horizon beyond 2020 will this priority address?
High growth potential of Emerging Markets
Increased competition in global markets for visitors from Emerging Markets
Changing expectations of visitors from Emerging Markets
Strategic Gap
What is the strategic gap that the project will address? Cultural understanding
Limited language solutions
Product/service fit
What is currently being done to address the challenge? Recognition that this is a specific objective (ETAG)
China Ready Initiative
What is the desired outcome?
Over 50% of businesses in the relevant asset groups will:
have a better knowledge of cultural and behavioural expectations and needs
provide a world class welcome for visitors from Emerging Markets
demonstrate improved language skills
Project Milestones
How long will the project run for? 3 years
What are key project milestones in Year 1, Year 2, Year 3?
(Adjust timescale as required)
Year 1:
Pilot cultural awareness raising programmes across the industry
Raise awareness of the need for better language skills
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Year 2
Introduce industry schemes to develop language skills
Introduce cultural awareness programmes
Secure 10% improvement in visitor satisfaction
Year 3
Extend industry schemes to increase language skills
Extend cultural awareness programmes
Secure 20% improvement in visitor satisfaction
Contribution
In which growth markets will the project make a significant contribution?
Emerging Markets: For example China: Specific segments of the China market e.g.
visitors from Beijing, Shanghai
How will the project contribute to individual business growth?
Building direct relationships with consumers
Strengthen the reputation of Scotland’s destinations in Emerging Markets
Business Benefits
What specific business benefits will the project deliver?
Enhance Scotland’s appeal to new markets
Increase sales
Increase competitiveness
How will the benefits delivered by the project contribute towards growth in Visitor Spend?
Increase market share
Higher level of spend per visitor
Increase repeat visitation
Attract new markets
Reporting/Measurement
How will progress be measured? Increased satisfaction measured in visitors from Emerging Markets
User generated content
Increased language skills across the industry
Increased knowledge in the industry of the cultural and behavioural expectations of
visitors from Emerging Markets
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How will the project be assessed for sustained impact?
Measuring the percentage rise in key measures year on year
Testing visitors’ willingness to return or recommend that others visit Scotland
User generated feedback
How will progress be reported and by whom?
Risks
What are the key risks associated with the implementation of the project? Failure of the sector to respond to the challenge
High cost : return ratio in the short term
What impact would these risks present to TS2020? Failure to gain competitive advantage post 2020
How could the risks be managed? Effective communication to the industry of the benefits
Increasing the attractiveness of the industry to employees/potential recruits with
cultural awareness and language skills
Dependencies
Which stakeholders are likely to enable/constrain progress? See Stakeholder Analysis
What do we need to ask for from other stakeholders? See high level Risk Analysis
What other external developments is the delivery of this priority dependent upon?
TSIP
What other plans or activities within TS2020 is this priority dependent upon? STA Communications Strategy;
STA Consultation Plans
Estimated Initial Resource Requirement
Year 1
Year 2
Year 3