Company registration number SC214303 (Scotland)
SCOTTISH TOURISM ALLIANCE
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
SCOTTISH TOURISM ALLIANCE
CONTENTS
Page
Directors' report
Chairman's report
1 - 4
Balance sheet
5
Notes to the financial statements
10 - 13
SCOTTISH TOURISM ALLIANCE
COMPANY INFORMATION
Directors
C Ross
R Brooks
J Withers
S Leckie
D Lonsdale
A Mcrae
J Henderson
M Dallas
S Inglis
A Boreland
(Appointed 25 October 2022)
M Golding
(Appointed 25 October 2022)
C Winskill
(Appointed 25 October 2022)
A McKie
(Appointed 25 October 2022)
Secretary
S Inglis
Company number
SC214303
Registered office
Suite 3D
Wallace House
17-21 Maxwell Place
Stirling
FK8 1JU
Accountants
French Duncan LLP trading as AAB
81 George St
Edinburgh
United Kingdom
EH2 3ES
SCOTTISH TOURISM ALLIANCE
CHAIRMAN'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The STA went into this budget year, steering our tourism industry through the end of the COVID-19 pandemic and gradual easing of restrictions, towards a horizon of new challenges.

 

The outbreak of war in Ukraine in February 2022 had an immediate impact on the global economy, triggering an increase in the cost of essential goods and services such as food, fuel and utilities in response to disruptions within supply chains and trade routes.

The UK subsequently entered a cost-of-living crisis as a reaction to these price increases, decreasing consumer spending power and creating a further squeeze on profits for businesses in the tourism sector.

 

Other factors such as geopolitical tensions, security concerns and the perception of instability in Europe created cautiousness around travel, resulting in an immediate decline of international tourism to the UK.

 

Business across all sectors within Scotland’s tourism industry were at this point already in a precarious financial situation after two challenging years, during which they depleted their reserves, accumulated debts and relied on emergency funding due to the prolonged closures and restrictions during the pandemic.

 

Many of these businesses had a limited financial cushion and resources to absorb the impact of these new price shocks and to weather the storm of the immediate decrease in consumer spending, which happened at the same time as the withdrawal of emergency support measures which had helped sustain businesses during the pandemic.

 

Staff shortages and the recruitment crisis continued to be one of the biggest challenges for the tourism and hospitality industry in Scotland. In Spring 2022, there were around 40,000 vacancies within the tourism and hospitality sector.

 

Discretionary spending was further reduced, in line with the rise in inflation, which by the end of May had reached 9.1% in the UK; the annual rate of inflation would go on to peak at 11.1% in October 2022, a 41-year high, before easing in subsequent months.

 

In May 2022, the STA launched its most comprehensive study to date into the economic conditions for Scotland’s industry.

The survey, which was completed by more than 700 businesses across all sectors of Scotland’s tourism industry revealed a high level of consumer uncertainty which was reflected in forecasts and future bookings, with summer and forward bookings down and 40% of businesses reporting a decrease in spending.

 

As we entered the main tourist season of the year, the level of recovery within the sector appeared to be almost static, with the majority of businesses unable to move out of ‘running to stand still’ mode.

 

Ferry disruption and a series of rail strikes made this challenge very much harder, with businesses finding it increasingly hard to trade their way into a place of sustainable recovery.

Scotland’s tourism industry found itself in a position of struggle during 2022 in terms of remaining globally competitive and in relation to its ability to compete on price and commercial viability.

The STA continued to call on the UK government for a lowering of VAT and a change to UK immigration rules, which were deemed by the majority of survey respondents as the most effective policies to support businesses.

The organisation also continued to push the Scottish Government to extend business rates relief and commit to much greater investment in the promotion of Scotland as a destination, to improve infrastructure and transport and remove policies which sought to impose further tax business and on tourists.

The STA worked hard throughout 2022/23 to address the many policy risks which were threatening our industry’s ability to deliver recovery and the ambition of Scotland’s Tourism Strategy, Outlook 2023, ‘to be the world leaders in 21st century tourism.’

 

The organisation continued to be the lead voice of industry within the Scottish Tourism Emergency Response Group (STERG) which met fortnightly to gather evidence and information, recommending priority actions to Scottish Government around recovery in an increasingly challenging marketplace. The STA remained at the core of the Business Organisations Group, a group of nine national organisations which met on a fortnightly basis to present evidence to the Director General of the Economy.

SCOTTISH TOURISM ALLIANCE
CHAIRMAN'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

STA CEO, Marc Crothall presented evidence at Holyrood’s Economy and Fair Work Committee in October, citing the potential economic damage to the sector from the introduction of a transient visitor levy, within the context of the current cost-of-living crisis and described the economic challenges facing the sector as being worse than those during the pandemic.

The Tourism & Hospitality Industry Leadership Group (THILG) was established in November 2022, with the remit of determining and recommending future strategic priority actions that would deliver the ambition of ‘Outlook 2030’. Marc Crothall was appointed Co-Chair of the group alongside the Tourism Minister; the majority of those on the new Industry Leadership Group are STA members.

 

Throughout 2022, the STA CEO and Board met often and were consulted with by Ministers, MSPs and MPs across all parties. A series of round table events were organised by the STA and attended by the Secretary of State for Scotland, Alister Jack and Parliamentary Under Secretary of State in the Scotland Office, Iain Stewart, Deputy First Minister, John Swinney and Tourism Minister, Ivan McKee.

 

Over the course of the year the STA CEO and Board members met with a range of senior political leaders at various events on a number of occasions, including Scotland’s First Minister Nicola Sturgeon, Leader of the Labour Party, Sir Keir Starmer, Leader of the Scottish Labour Party, Anas Sarwar, Shadow Chancellor of the Exchequer, Rachel Reeves and Leader of the Scottish Conservatives Douglas Ross. On each occasion, the STA highlighted the sector’s challenges and also the opportunities which could be created with supportive fiscal policy and investment.

 

In Autumn 2022, following the resignation of Boris Johnson and the appointment of Liz Truss as Prime Minister, the Bank of England Chief Economist, Huw Pill requested an in person meet with the STA Board. The STA facilitated a round table discussion with the Bank of England personnel inviting a variety of STA stakeholders and senior business leaders from different sectors of the industry.  

 

In November 2022, the STA partnered the Association of Scottish Visitor Attractions (ASVA) and HIT Scotland (Hospitality Industry Trust) for the second year running, to deliver Scotland’s Tourism Industry conference, the biggest conference of its kind in Scotland, running across two days.

The event brought together a range of global speakers who delivered insights, advice and inspiration to tourism business from all sectors across the industry to help them navigate the current challenges and realise future opportunities within an ever-changing landscape.

The co-hosted event was attended by delegates from tourism and hospitality businesses, trade associations, destination groups, public agencies, government and media. The event won the award of Best Association Conference at Scotland’s national event awards, The E-Awards.

December also saw the return of the STA’s Patrons and Business Leaders Dinner which was hosted at the newly opened Virgin Hotel Edinburgh. The event welcomed more than 100 guests from the tourism, business, political and media worlds, in addition to three young entrepreneurs who delivered inspirational speeches on their business endeavours to the audience. As with all STA events, our Patrons and Business Leaders Dinner successfully connected senior figures in Scotland's business world and politicians to ensure that tourism remains front of mind and as high on the agenda as possible in a hugely challenging year for the sector.

 

In January 2023, STA CEO Marc Crothall was invited to 10 Downing Street to celebrate Burns Night with Prime Minister, Rishi Sunak, offering the STA a valuable opportunity to highlight the importance of Scotland’s tourism to the UK economy.

In February 2022, several members of the STA Board and Council attended the Scottish Parliament’s Business in Parliament Dinner Conference, at which the STA CEO, together with Joshua Ryan-Saah of Travel Tech Scotland, delivered one of the five workshops.

Scottish Tourism Month returned in March with the STA partnering 365 Events to deliver an immensely successful and varied two-day ‘STA Spotlight Stage Programme’ at the 50th ScotHot event, which welcomed 12000 visitors.

Star guests on the Spotlight Stage were the Hairy Bikers; the STA also delivered a Financing Recovery and Business Transformation Seminar with key stakeholder partners, including the Royal Bank of Scotland, Cumberland Building Society, DWF and Grant Thornton.

SCOTTISH TOURISM ALLIANCE
CHAIRMAN'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The STA has continued to operate on the front foot in creating media headlines around all the challenges faced by Scotland’s tourism industry, to increase pressure on governments to address the range of policy issues in what has been an exceptionally challenging year for businesses within the sector. The STA CEO and Board members were regular contributors to the media and at many industry conferences and events over course of the year.

 

Weekly quotes are visible in Scotland’s daily newspapers, broadcasts and trade industry press. The STA remained a strong, visible anchor for the industry throughout 2022/23 and receives regular praise from members and other business organisations for its strong and regular media presence.

 

In response to the challenges faced by tourism businesses throughout 2022/23, the STA upweighted its support for businesses by launching a new, dedicated Advice Hub page on its website, with links to a variety of support services and insights and advice for business, many businesses listed being Associate Members of the STA.

 

The organisation also introduced a new monthly Members Newsletter, summarising the core activities of the organisation that have taken place in relation to representation and responses to policy in addition to its general twice monthly newsletter.

 

The STA has displayed enormous character, resilience and leadership throughout the continuing tenure of CEO, Marc Crothall and I was personally delighted to see Marc’s stellar work and efforts recognised with an MBE in the Queen’s Platinum Jubilee Birthday Honours for services to the tourism industry in Scotland.

 

Very well-deserved recognition was also given to STA Board member, Calum Ross who received the prestigious Silver Thistle award for his outstanding contribution to tourism over many years.

 

2023/2023 has undoubtedly been an immensely challenging year for Scotland’s tourism industry; however, we must recognise and pay tribute to the strength, grit and determination that exists with our sector; this has enabled our community to rise to huge, unprecedented and seemingly unsurmountable challenges over the last years.

We should be proud of our sector in continuing to navigate the challenges we face and trust the STA to act as our voice during these difficult times. We must remain focussed and determined to deliver the very best possible experiences to all who visit and enjoy Scotland.

 

Tourism is and can continue to be a force for good.

 

Membership

Membership of the STA has remained strong and continues to grow. The organisation’s high profile and activity has continued to attract a number of new Patrons and Supporters including Transatlantic Translations Group, Whitbread PLC , Cumberland Building Society, Anderson Strathern and the St James Quarter.

 

Importantly, we have retained all our key stakeholders over the course of the financial year and we remain especially grateful for the continued support of our Patrons and supporters; Arnold Clark Car and Van Rental, Bruce Stevenson Insurance Brokers, Diageo, Johnston Fuels, Tennent Caledonian Breweries, Scotrail, Fishers Laundry, DWF Law, TLT Solicitors, Logan Air, Airbnb, DAM, Eyebright Utilities, Sodexo Live! Skills Development Scotland, Yourtex, and The Union.

 

Team

Marc Crothall has continued to steer the organisation as CEO, strengthening the core team and Board structure throughout 2022/23.

 

Mhairi Smith remained in her role as Business Support, Finance and Membership Manager and Karen Christie continued to be part of the core team structure in her role as National Tourism Strategy Project Manager (STERG Coordinator) – a Scottish Government funded post.

 

As a result of the internal strategic review carried out in the previous financial year, the team identified the need to create a new Digital Communications and Member Engagement and Retention role and explore what additional support tourism businesses could benefit from. A graduate support and a dedicated policy role were created.

SCOTTISH TOURISM ALLIANCE
CHAIRMAN'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

Shonagh Davidson was appointed as Communications and Engagement Manager in April 2022 and Iona Gracie, a recent graduate also joined the company in April as Digital Communications and Business Admin Support, splitting her role to support the Association of Scotland’s Visitor Attractions. Elaine Wilson, a respected and experienced policy professional was appointed in the August and former STA Communications Director, Mhairi Clarke continued to deliver PR support to the organisation through Shine PR.

 

Board

In October 2022, the STA further strengthened its Board with the appointment of a Vice Chair and four new directors. Existing board member, Rebecca Brooks, Managing Director of Abbey Ireland & UK took up the position of Vice-Chair. The Board welcomed Alex Borland – Climate & Environment Manager, NatWest Groups Climate Centre of Excellence, Michael Golding – CEO, Visit Inverness Loch Ness, Alex McKie – Group Managing Director, The Fusion Group and Clare Winskill – Owner, Coruisk House.

 

More than 30 high calibre applications were received for the four positions, demonstrating the strength, stature and attractiveness of the STA as a leading business organisation.

 

Gordon Dewar, CEO Edinburgh Airport and Freda Newton, Owner of Loch Ness by Jacobite stepped down from their Board positions in March 2023. The Board and CEO would like to thank Gordon and Freda for their superb and invaluable contribution and support over many years.

 

Business Planning and Accounts

The STA has continued to provide the fiscal management and membership administration support for both Scottish Agritourism and The Scottish Wedding Industry Alliance whose annual income and expenditure are reflected in these year-end accounts. The STA’s core income was generated from member subscription fees with additional income coming from our event activity and a small fee for administering the membership and finances for both Scottish Agritourism and The Scottish Wedding Industry Alliance. As in previous years expenditure has been very tightly controlled and managed well by the CEO and Business Support Manager in a year where the costs to business have increased sharply and their profitability reduced as a result of the current economic challenges.

 

Despite this, the STA has continued to improve its value to its members. The year end result delivered a small profit of £2697.00.

 

Closing Remarks

In what was a challenging year for Scotland’s tourism industry and the businesses that support the sector, and in a year that we have witnessed a huge amount of political change both in Holyrood and Westminster, the breakout of war and the passing of Her Majesty Queen Elizabeth II, a loyal supporter of our industry and Scottish tourism, the STA has stayed strong and continued to grow in stature and presence.

 

We remain focussed on the immediate challenges we face within a difficult policy environment and withing the context of the cost of living and cost of doing business crises, doing our level best to support the industry and all connected to the STA.

 

I would like to personally thank the STA Board, all whom sit as representatives on our Sector Council and Destination Forum for the great support they have given to the executive team and to me over the course of the last year.

 

I would also like to say a huge thanks to Marc and his core team who continue to work tirelessly and with great passion throughout the year to ensure that the STA delivers on behalf of the industry in all aspects of our operations, from political representation to industry connection, communication and membership relations.

S Leckie
Chairman, STA Board
SCOTTISH TOURISM ALLIANCE
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 5 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
361
1,456
Current assets
Debtors
5
67,096
88,912
Cash at bank and in hand
207,163
289,219
274,259
378,131
Creditors: amounts falling due within one year
6
(217,979)
(325,643)
Net current assets
56,280
52,488
Net assets
56,641
53,944
Reserves
Called up share capital
-
0
-
0
Income and expenditure account
56,641
53,944
Members' funds
56,641
53,944

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 27 September 2023 and are signed on its behalf by:
R Brooks
S Leckie
Director
Director
Company Registration No. SC214303
SCOTTISH TOURISM ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
1
Accounting policies
Company information

Scottish Tourism Alliance is a private company limited by guarantee incorporated in Scotland. The registered office is Suite 3D, Wallace House, 17-21 Maxwell Place, Stirling, FK8 1JU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

1.2
Income and expenditure

Income and expenses are included in the financial statements as they become receivable or due.

 

Expenses include VAT where applicable as the company cannot reclaim it.

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Equipment
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

1.4
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. Any impairment loss is recognised immediately in profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SCOTTISH TOURISM ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

1.7
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.8
Retirement benefits

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

1.9
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SCOTTISH TOURISM ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
6
6
4
Tangible fixed assets
Equipment
£
Cost
At 1 April 2022 and 31 March 2023
6,774
Depreciation and impairment
At 1 April 2022
5,318
Depreciation charged in the year
1,095
At 31 March 2023
6,413
Carrying amount
At 31 March 2023
361
At 31 March 2022
1,456
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
66,681
88,537
Prepayments and accrued income
415
375
67,096
88,912
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
971
37,304
Taxation and social security
4,006
565
Other creditors
851
3,302
Accruals and deferred income
212,151
284,472
217,979
325,643
SCOTTISH TOURISM ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
7
Parent company

There is no ultimate controlling party.

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