A new independent analysis from respected Scottish consultancy, BiGGAR Economics, reveals the substantial positive economic impact of Scotland’s self-catering industry which was also shown to have a negligible effect on housing.
Key Findings
- Economic Contributions
- Short-term lets (STLs) contribute £864 million in Gross Value Added (GVA) annually to the Scottish economy and support 29,324 jobs.
- Each STL generates an average £32,400 additional GVA per property compared to residential use.
- Comparison of Impact: STLs vs Residential Use
- An average 2-bedroom STL generates £50,159 GVA and supports 1.1 jobs annually, compared to £14,451 GVA and 0.1 jobs for residential use.
- Visitors staying in STLs spend more than average tourists, enhancing their economic impact and benefiting tourism and hospitality businesses.
- Dispersion of Benefits
- Edinburgh and Highland regions account for 44% of the sector’s economic impact, but benefits are dispersed across Scotland, including rural areas such as Na h-Eileanan Siar, Orkney, and Dumfries and Galloway.
- Minimal Impact on Housing Market
- STLs represent only 0.8% of Scotland’s housing stock, far below the 3.6% share of economically inactive empty homes.
- The proportion of STLs is too small to significantly affect housing availability or affordability.
- Policy and Regulatory Considerations
- Heavy-handed STL regulations risk harming Scotland’s tourism economy without addressing housing challenges. Policymakers must balance supporting tourism and addressing housing issues.
- Reducing STL supply could harm local economies, particularly in areas heavily reliant on tourism.
- Expert Opinions
- Graeme Blackett, Director of BiGGAR Economics: “Secondary lets are vital to Scottish tourism and the economy, supporting 30,000 jobs without driving the housing market crisis.”
- Fiona Campbell, CEO of the ASSC: “STLs boost local economies by nearly £1 billion annually and are not the primary contributor to Scotland’s housing crisis. The focus should be on real housing challenges, not decimating tourism.”
- Call to Action for Policymakers
- Policies must reflect the positive economic contributions of STLs while addressing root causes of housing challenges.
- Local councils are urged to consider the report’s findings when implementing planning and regulatory policies to protect valuable short-term lets