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The Changing Structural Dynamics of the Scottish Tourism Industry Examined Using Stafford Beer’s VSM

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Abstract

The structure of the Scottish tourism industry underwent a significant change upon the demise of the Area Tourist Board (ATB) on the 1st April 2005. The membership based ATB provided a means for engagement between institutional policy makers and private sector businesses. This engagement appears to have dissolved with the replacement structure being ineffective in bridging between the two parties. The aim of this paper is to examine the structural dynamics of the Scottish tourism industry focusing upon events that rotate around the demise of the Area Tourist Board (ATB) and attempt to explain why there has been an apparent breakdown in engagement. The material is drawn from interviews with industry participants and also primary documentary sources, many of which are available online. The analysis is conducted using Stafford Beer’s Viable System Model (VSM). The findings highlight the current incoherent structure at the level of the ‘Area’. Upon the demise of the ATB, Area Tourism Partnerships (ATPs) were set up, not to replace ATBs, but to provide a mechanism to serve Area needs. However, the demise of the ATB created a vacuum for an effective mechanism to deal with individual practitioner issues. This has led to the formation of groups but at the level of the locality. These local tourism groups are autonomous and analytically viable. The ATP is inadequate to bridge the gap between VisitScotland and these local groups. Whilst direct engagement between VisitScotland and these local groups has been enabled with the Challenge Fund, the conditions attached to an award compromise the autonomy of the groups. However, two ATPs have proposed the need for membership based groups to operate at the Area level. This suggests the return to a pseudo-ATB style structure.

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Notes

  1. Scottish Parliament’s Economy, Energy and Tourism Committee (2008).

  2. Submission of the Federation of Small Businesses to the “Tourism Inquiry: Growing Pains - can we achieve a 50% growth in tourist revenue by 2015?”Economy, Energy and Tourism Committee [www.scottish.parliament.uk/s3/committees/eet/inquiries/tourism/TI23.pdf, accessed 29th December 2008].

  3. “Council Representation on the Shetland Tourism Association and the Geopark Shetland Liaison Group”, Shetland Islands Council, 5th June 2008 [www.shetland.gov.uk/coins/opendocument.asp?documentid=12900, accessed 21st June 2008].

  4. Weiner (1948).

  5. The progressive centralisation of institutional support for Scottish tourism is charted in Harwood (2008).

  6. Many sources cite 32 ATBs. However, this does not appear to be a static situation, but dynamic involving the formation, combination and dissolution of ATBs (communication, Brian Hay, 1st May 2008) as well as the presence of other local groups to suggest a changing landscape. The STB Annual Report (1984–1985) reveals that there were 32 ATBs and a further four local organisations, e.g. Kirkcaldy, giving rise to 36 local tourism bodies.

  7. Communication, Brian Hay, 11th November 2008, The Scottish Tourist Consultative Council (STCC) held its inaugural meeting on the 6th Feb. 1970 (STB, 1971, though Adam and Hay (1994) note that discussion about its formation took place as early as 1951. STB Annual Reports reveal that it comprised of representatives from tourism related associations and public sector bodies. However, the STB 1982–1983 Report reveals that the enactment of the 1982 Act raised questions about the STCC’s future role. The Scottish Confederation for Tourism (SCOT) was established on the 28th July 1983, and appears to have replaced the STCC (STB 1984). This provided a means whereby the chairmen of the STBs and their counterparts in the local authorities could co-ordinate their activities. For the first two years, it met three times a year thereafter meeting bi-annually. The STB 1991–1992 Annual Report announced that it met annually and there is no mention of SCOT in the 1992–1993 Report. It operated through various sub-committees, e.g. ‘sea-angling on the Clyde’ and ‘signposting and transport’.

  8. “Scottish Tourism—Going for Growth”, Tourism Minister Frank McAveety: Statement to the Scottish Parliament, 11th March 2004, [http://cci.scot.nhs.uk/News/News-Extras/193, accessed 29th December 2008].

  9. “VisitScotland (2004).

  10. The national product portfolio comprised five marketing themes: freedom/wildlife, active/outdoor, culture and heritage, cities, business tourism (Scottish Executive 2004).

  11. “VisitScotland Corporate Plan 2006/2009” 5th May 2006, Edinburgh: VisitScotland.

  12. VisitScotland Board meeting minutes, 26th June 2006 [www.visitscotland.org/board_minutes_june_2006.pdf, accessed 24th December 2008].

  13. [www.scotland.gov.uk/News/This-Week/Speeches/enterprise-networks/, accessed 24th December 2008].

  14. Interview: Eddie Byers, Director of Business Engagement, VisitScotland, 5th June 2008.

  15. “VisitScotland Corporate Plan 2006/2009” 5th May 2006.

  16. VisitScotland Board meeting minutes, 20th January 2006 [www.visitscotland.org/board_minutes_jan_2006.pdf, accessed 29th December 2008].

  17. “Argyll, Loch Lomond & Forth Valley Tourism Partnership, minutes of meeting held on 28th November, 2006, Callendar House, Falkirk” [www.visitscotland.org/allfv_06_11_28_atp_minutes__november_.pdf, accessed 24th December 2008].

  18. Dumfries and Galloway ATP meeting minutes, 16th May 2006 [www.visitscotland.org/2006_05_16_atp_minutes.pdf, accessed 24th December 2008].

  19. Dumfries and Galloway ATP meeting minutes, 31st January 2007 [www.visitscotland.org/2007_01_31_d_g_atp_minutes.pdf, accessed 24th December 2008].

  20. Dumfries and Galloway ATP meeting minutes, 3rd October 2007 [www.visitscotland.org/dumfries___galloway_atp_notes_of_meeting_3_oct_2007.pdf, accessed 24th December 2008].

  21. Scottish Borders ATP meeting minutes, 10th October 2007 [www.visitscotland.org/borders_2007-10-10_atp_minutes.pdf, accessed 29th December 2008].

  22. VisitScotland Corporate Plan 2006/2009, 5th May 2006 (p. 11).

  23. Edinburgh & Lothians ATP meeting minutes, 5th September 2008 [www.visitscotland.org/atp_080905_minutes_.pdf, accessed 24th December 2008].

  24. Highland Area Tourism Partnership meeting minutes, 6th June 2008 [www.highland.gov.uk/NR/rdonlyres/732C6DDB-8E74-40E3-9235-86C4537958C4/0/HighlandATPminutesJun08.pdf, accessed 29th December 2008].

  25. Perthshire Tourism Partnership meeting minutes, 10th July 2008 [www.visitscotland.org/080710_atp_meeting_minutes.pdf, accessed 24th December 2008].

  26. Fife Tourism Alliance meeting minutes, 29th October 2008 [www.visitscotland.org/081029_fta_minutes_.pdf, accessed 24th December 2008].

  27. Dumfries and Galloway ATP meeting minutes, 30th April 2008 [www.visitscotland.org/dumfries_and_galloway_nom_30_apr_2008.pdf, accessed 24th December 2008].

  28. Ayrshire & Arran Area Tourism Partnership meeting minutes, 22nd April 2008 [www.visitscotland.org/08_04_22_ayrshire_arran_atp_minutes.pdf, accessed 29th December 2008].

  29. Minutes of the Fife Tourism Alliance Meeting, 29th October 2008, Rothes Halls, Glenrothes [www.visitscotland.org/081029_fta_minutes_.pdf, accessed 26th Feb. 2009]

    Minutes of Perthshire Tourism Partnership Meeting, 10th July 2008, Huntingtower Hotel, Perth [www.visitscotland.org/080710_atp_meeting_minutes.pdf, accessed 26th Feb. 2009].

  30. “VisitScotland Corporate Plan (2007–2010)”, Edinburgh: VisitScotland [www.visitscotland.org/visitscotland_corporate_plan_2007-10.pdf, accessed 29th December 2008].

  31. “VisitScotland Annual Report 2003–2004”, Edinburgh: VisitScotland [www.visitscotland.org/visitscotland_annual_report_2003-04.pdf, accessed 29th December 2008].

  32. VisitScotland Board meeting minutes, 8th May 2006, [www.visitscotland.org/board_minutes_may_2006.pdf, accessed 27th December 2008].

  33. VisitScotland Board meeting minutes, 23rd June 2006, [www.visitscotland.org/board_minutes_june_2006.pdf, accessed 27th December 2008].

  34. VisitScotland Board meeting minutes, 18th August 2006, [www.visitscotland.org/18_august_minutes.pdf, accessed 27th December 2008].

  35. www.borderstouristboard.com, accessed 27th March 2008.

  36. VisitScotland Board meeting minutes, 22nd September 2006 [www.visitscotland.org/22_sept_minutes__2_.pdf, accessed 26th December 2008].

  37. [www.visitscotland.org/visitscotland_management_statement.pdf, accessed 2nd May 2008].

  38. [www.visitscotland.org/visitscotland_management_statement.pdf, accessed 2nd May 2008].

  39. Scottish Executive (2006).

  40. Personal communication, Brian Hay, 11th November 2008.

  41. Tourism Intelligence Scotland was set up in September 2006 by “HIE, SE and VisitScotland working closely with the Scottish Executive and with the aim of collating and disseminating market intelligence in order to stimulate higher levels of innovation in Scottish Tourism” [www.hie.co.uk/HIE-Board-Meeting-25-June-07/item-12-i-HIE-network-general-update.pdf, accessed 28th December 2008].

  42. The Scottish Guest House and Bed & Breakfast Association (GHABBA) was formed in 2006, but has only a small membership base.

  43. Scottish Parliament’s Economy, Energy and Tourism Committee (2008).

  44. Glasgow City Marketing Bureau (GCMB) was established in April 2005 and Destination Edinburgh Marketing Alliance (DEMA) is to be launched in April 2009.

  45. VisitScotland Board meeting minutes, 18th August 2006 [www.visitscotland.org/18_august_minutes.pdf, accessed 29th December 2008].

  46. Eddie Byers, Director of Business Engagement, VisitScotland, 5th June 2008.

  47. Scottish Parliament, Tourism Inquiry, Economy, Energy and Tourism Official Report 7th May 2008 Economy, Energy and Tourism Committee 9th Meeting 2008, Session 3 [www.scottish.parliament.uk/s3/committees/eet/or-08/ee08-0902.htm#Col699, accessed 29th December 2008].

  48. VisitScotland Board meeting minutes, 22nd September 2006 [www.visitscotland.org/22_sept_minutes__2_.pdf, accessed 27th December 2008].

  49. VisitScotland Board meeting minutes, 24th November 2006 [www.visitscotland.org/november_2006_board_minutes.pdf, accessed 29th December 2008].

  50. Scottish Parliament, Tourism Inquiry, Economy, Energy and Tourism Official Report 7th May 2008 Economy, Energy and Tourism Committee 9th Meeting 2008, Session 3 [www.scottish.parliament.uk/s3/committees/eet/or-08/ee08-0902.htm#Col699, accessed 29th December 2008].

  51. Though an online search reveals no trace of this.

  52. Tourism Intelligence Scotland (2007).

  53. Communication, Jennifer Medcalf, 20th June 2008, on behalf of Tourism Intelligence Scotland.

  54. Scottish Parliament, Official Report, 29th June 2006 [www.scottish.parliament.uk/business/officialReports/meetingsParliament/or-06/sor0629-02.htm, accessed 8th July 2008].

  55. This may or not be the event recorded in the minutes of a meeting of the D&G ATP on the 16th May 2006. The minutes reports on the issue of “ADGAP requesting a seat on the ATP” and that it “was unanimously agreed: The Partnership did not wish to duplicate the sector representation from the tourism industry already in place following elections held in 2005” [www.visitscotland.org/2006_05_16_atp_minutes.pdf, accessed 29th December 2008].

  56. Scottish Parliament, Written Answers, 10th November 2006 [www.scottish.parliament.uk/business/pqa/wa-06/wa1110.htm, accessed 8th July 2008].

  57. VisitScotland Board meeting minutes, 23rd March 2007 [www.visitscotland.org/board_minutes_march_2007.pdf, accessed 29th December 2008].

  58. Scottish Parliament, Tourism Inquiry, Economy, Energy and Tourism Official Report 7th May 2008 Economy, Energy and Tourism Committee 9th Meeting 2008, Session 3 [www.scottish.parliament.uk/s3/committees/eet/or-08/ee08-0902.htm#Col699, accessed 29th December 2008].

  59. Scottish Parliament, Tourism Inquiry, Economy, Energy and Tourism Official Report 28th May 2008 Economy, Energy and Tourism Committee 12th Meeting 2008, Session 3 [www.scottish.parliament.uk/s3/committees/eet/or-08/ee08-1202.htm, accessed 29th December 2008].

  60. “Council Representation on the Shetland Tourism Association and the Geopark Shetland Liaison Group”, Shetland Islands Council, 5th June 2008 [www.shetland.gov.uk/coins/opendocument.asp?documentid=12900, accessed 21st June 2008].

  61. VisitScotland Board meeting minutes, 22nd September 2006 [www.visitscotland.org/22_sept_minutes__2_.pdf, accessed 27th December 2008].

  62. www.scotexchange.net/businessdevelopment/challenge_fund/what_can_be_supported.htm, (accessed 26th November 2006).

  63. “VisitScotland Challenge Fund: VisitScotland and EU Branding Requirements”, VisitScotland [Updated Branding Guidelines V3 - 05-12-09.doc].

  64. Scottish Parliament, Tourism Inquiry, Economy, Energy and Tourism Official Report 7th May 2008 Economy, Energy and Tourism Committee 9th Meeting 2008, Session 3 [www.scottish.parliament.uk/s3/committees/eet/or-08/ee08-0902.htm#Col699, accessed 29th December 2008].

  65. This requirement was finally voted out and abandoned at the AGM in March 2008. It was decided that membership should be opened up to include businesses not registered to VisitScotland. HolidayMull should speak for the whole island.

  66. www.visitscotland.org/marketing_opportunities_main/growthfund.htm [accessed 2nd August 2008].

Abbreviations

ATB:

Area Tourist Board

ATP:

Area Tourism Partnership

D&G:

Dumfries and Galloway

DMgO:

Destination Management Organisation

DMkO:

Destination Marketing Organisation

FSB:

Federation of Small Business

HIE:

Highlands & Islands Enterprise

LA:

Local Authority

SE:

Scottish Enterprise

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Acknowledgments

I would like to thank those who have read and commented on drafts of this paper. In particular, I must thank Brian Hay (Visiting Professor, Department of Hospitality & Tourism Management, Strathclyde University) for sharing his expertise about the industry with me and reviewing this paper. I also thank Ian Graham (Senior Lecturer, University of Edinburgh Business School) for his comments.

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Harwood, S.A. The Changing Structural Dynamics of the Scottish Tourism Industry Examined Using Stafford Beer’s VSM. Syst Pract Action Res 22, 313–343 (2009). https://doi.org/10.1007/s11213-009-9129-9

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