While nearly three quarters of Scots have been taking holidays in 2022, they are still taking fewer than pre-pandemic and the cost-of-living crisis is now hitting holiday intentions for 2023.
That's one of many conclusions from a study published during a tourism conference hosted by the Scottish Tourism Alliance (STA), Association of Scottish Visitor Attractions and the Hospitality Industry Trust.
The event at the EICC in Edinburgh has seen more than 500 delegates gather to discuss the current state of the industry and what the future may hold.
The Scottish Tourism Index analysis is based on a quarterly survey of more than 1,000 Scots undertaken by 56 Degree Insight online over a two-day period each quarter.
The latest results are based on research undertaken on 26 and 27 October, finding that three quarters said rising costs across the economy affected their holiday choices and decisions.
The issue of Scottish tourism taxes was much-discussed at the conference, with the survey showing that 48% of Scottish adults oppose its introduction, versus 44% who would support it. Support was highest among Edinburgh residents (57%).
Although 29% would be against paying anything at all, some 22% would be willing to pay up to £1 per night, 24% would pay up to £2 and 13% would pay more than £2. However, this is lower than the levels currently being considered.
If tourist taxes were in place throughout Scotland, 46% claim they would be more likely to consider other parts of the UK instead if such taxes were not in place there: only 9% would be more likely to consider Scotland.
Marc Crothall, chief executive of the STA, said: “Our industry is key to the recovery and growth of the Scottish economy as a major export earner, employer and contributor of revenue to every one of our communities.
“The latest survey demonstrates both resilience and fragility - people need a break and want to do that at home and abroad, however the cost-of-living crisis is biting hard on a sector which has not yet recovered from the impact of the pandemic.”
“From Covid to the cost-of-living, Scottish tourism faces unrelenting challenge with the new tourism tax adding yet more uncertainty and risk at the worst possible time,“ he continued, adding: “While opinion is broadly split on whether this tax is a good thing, appetite for anything over £1 per visitor a night is negligible.
“These findings assume the money raised goes to help the sector; it is simply vital that it does if the tax proceeds.”
The survey showed that 73% of Scots will take holidays somewhere this year - and 67% have already done so - with some 46% holidaying in Scotland - the main destinations being the Highlands (12%) and Edinburgh (10%).
A third are taking trips elsewhere in the UK - particularly the Lakes and the north west (11%) and London (9%) - while a further third are visiting Europe this year, with Spain and its islands the main destination (15% of Scots).
Self-catering accommodation remains the preferred choice on Scottish holidays amongst the home market - used by 29% of Scots who took holidays - with the data showing a drop in the numbers eating out, as well as those shopping for souvenirs.
The research revealed that 58% felt their holiday choices were still being impacted by the pandemic, but the biggest impact on the industry is now to do with rising costs.
Disruption at airports and on the railways also impacted holiday decisions and behaviours for 43% and 37% respectively - the former having a greater impact on foreign holidays, the latter impacting more on domestic breaks.
Almost half of Scots cut back on their spending when choosing their holiday and destination (47%), while a similar proportion cut back on their spending whilst they were on holiday (49%).
Almost four in ten booked their holidays much closer to when they actually took them (39%), reflecting continued uncertainties around costs, as well as the pandemic, while also resulting in 29% of foreign holidays being booked through a third-party operator.
Further increases in the cost of living would impact three quarters of Scots holiday plans, with inflation (74%) and rising fuel and energy costs (69%) being the primary economic levers which could negatively impact.
More positively however, there is a latent desire amongst Scots to increase their holiday taking in 2023, compared with 2022. Some 38% hope to take more holidays than this year, and while 20% expect to take fewer, this is a potential net increase of 18%.
Back to the potential for a tourist levy - currently being considered in several parts of Scotland - there were concerns about the potential threat that some would choose to avoid destinations with such a tax in place.
While a tourist tax would not impact on the decision to visit for the majority (58%), more than a third claim they would be less likely to visit that destination (37%).
The STA summarised that if tourist levies of the type proposed are to be introduced, clear communication of how the income would be reinvested in the local economy will be required, if it is not to act as a potential barrier to taking domestic holidays.
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