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New study reveals impact of ScotRail on the tourist industry

02 Jul 2014

Train operator helps inject £1.22 billion per year into tourism industry in Scotland

FIRST ScotRail, part of the Aberdeen based FirstGroup plc., adds an annual £1.22billion in GDP to the Scottish tourism industry, a new study has found.

The Fraser of Allander Institute study shows ScotRail’s passenger rail system is of significant importance to Scotland’s economic development nationally and locally.

ScotRail directly supports 37,721 jobs throughout Scotland. Almost a third of the jobs are concentrated in Edinburgh and the Lothians, but the study also highlighted that significant numbers are spread across Scotland – with scenic routes operated by ScotRail in particular boosting visitor figures from home and abroad.

Key findings:

  • ScotRail directly enables a total of 37,721 jobs and £1.22 billion worth of GDP in the tourist industry in Scotland
  • A significant number of these jobs are located across different areas of Scotland
  • ScotRail carried a total of 42 million passengers on leisure journeys throughout Scotland in 2012 – some 54% of all journeys on its trains
  • The tourist industry in Scotland directly supports an estimated 167,0001 jobs and £5.4 billion worth of GDP

Keith Brown MSP, Minister for Transport and Veterans, Scottish Government, said:

“Scotland’s railways are enjoying a massive resurgence in popularity, with more than 85million journeys taken here by train in the last year.

“I welcome this report which confirms the value of tourism to our economy and recognises the role of our railway in facilitating access to tourist experiences.

“Scotland’s railway also provides unparalleled scenic opportunities, with the spectacular West Highland Line frequently voted the best railway journey in the world.

“We want to capitalise on the undoubted potential for tourism across the many routes across Scotland and encourage operators to come forward with proposals to promote and facilitate the development of tourism using the rail network, as well as enhancing the scenic opportunities for passengers to make our rail journeys as good as our marvellous destinations.”

Tim O’Toole, chief executive of FirstGroup plc., said:

“This report provides further evidence of First ScotRail’s importance to the Scottish economy and the country. Tourism matters and people should recognise that in the Scottsh rail franchise we have a very high performing economic asset. We should not relent in making it better but also recognise the job our people are doing every day.

“We are anticipating a busy summer ahead with the Commonwealth Games in Glasgow and the Ryder Cup at Gleneagles; however it’s on occasions such as these that ScotRail can showcase its value.”

Steve Montgomery, managing director of ScotRail, said:

“ScotRail is an essential part of the fabric of this country and a key driver of our economy.

“The report outlines the scale of the contribution the company makes, not just in economic terms but also via the major advances we’ve made since taking over the franchise. That includes major investment in enhancing services and facilities across the country and the great strides we’ve made in areas such as our environmental performance and our community activities.

“Clearly, our primary role is to deliver the best possible train service for our customers, connecting the communities we serve, and it’s pleasing to note that the extensive investment in people and technology we’ve made since 2004 is reflected in the significant performance improvements outlined in the report.”

Jobs & Major Events Impact

Edinburgh & the Lothians have 11,521 of the jobs and Glasgow and Clyde Valley 5,203, with the train operator also creating employment in other areas, including 4,808 jobs in the Highlands and 3,624 in Argyll and the Isles, Loch Lomond and Forth Valley.

The study also reveals train travel directly enables 8,432 jobs in the two tourist areas covered by the award-winning West Highland Line which runs from Glasgow to Mallaig via Oban and Fort William. The line has three times been voted the world’s top rail journey by subscribers to Wanderlust travel magazine.

The Fraser of Allander Institute, part of the University of Strathclyde, also examined in detail ScotRail’s substantial role in forthcoming events such as the Commonwealth Games and Ryder Cup, and confirmed these will further boost its economic impact on tourism.

ScotRail is Official Supporter at Glasgow 2014, providing passenger rail services.

The report found that substantial new rail investment has taken place due to Glasgow 2014 - and that ScotRail expects to provide 1.1 million rail trips to people attending the Commonwealth Games events in July and August.

It expects to transport around 40,000 spectators to and from another major tourist event this year, the Ryder Cup at Gleneagles in September. It also typically carries around 28,000 people to Six Nations games at Murrayfield and around 12,000 to Scotland matches at Hampden.

ENDS

Issued by Charlotte Street Partners on behalf of FirstGroup and ScotRail

For further information please contact: Sharon Nimmo, Partner, Charlotte Street Partners

Sharon Nimmo: [email protected], +447920269530

A photocall will take place with Tim O’Toole at Orocco Pier, South Queensferry, Edinburgh at 10:15

Pictures can be received from Jon Davey at: [email protected]

NOTES TO EDITORS

1Tourism: Jobs and Growth – the economic contribution of the tourism economy in the UK, undertaken by Deloitte/Oxford Economics for VisitBritain, 2013. Available at http://www.visitbritain.org/Images/Final%20proof%2015%20Nov_tcm29-39296.pdf

Enabled employment is based on a measure employed by the New Economics Foundation and is defined as the value of the spending generated by ScotRail leisure travellers.

First Bus and First ScotRail, part of Aberdeen-based FirstGroup plc, are official supporters of the Glasgow 2014 Commonwealth Games, providing passenger rail and bus services. FirstGroup is the leading transport operator in the UK -and North America, with 117,000 employees and transporting around 2.5 billion passengers a year.