Economics Department wins funding for project on Covid’s impact on tourism

 

The Economics Department has won funding for an 18 month project with the overall aim of providing an evidence base on the impact of COVID-19 on the Scottish tourism Industry that informs decision making and explores paths to recovery.   

The project, led by Gioele Figus, will develop interaction between academics, policymakers and stakeholders from across the industry, and deliver outputs which can help to fill the current quantitative knowledge gap and identify appropriate policy responses to be effective in supporting economic recovery. The Department is working closely on the project with staff from VisitScotland and the project is valued at £211,000 (Full Economic Cost) running from March 2021.

The broad patterns of changes in tourism induced by Covid-19 and the resulting containment measures – a sharp and sudden fall in international arrivals and lower international travel to the UK, plus reduced intra-UK domestic tourism flows and changed tourism behaviours – has been felt in all UK regions. Tourism is characterised by relatively low pay (its average gross wage was two-thirds of the Scottish average), high labour intensity (with its 218,000 jobs equivalent to 8% of all jobs in Scotland) and with one quarter of those jobs in rural areas.

Tourism is also a key employer in many rural parts of the country, where economic resilience has tended to be more fragile than in other parts of the country. Understanding the potential economic implications of different scenarios will have important policy implications, not just on the economy but for the wider policy support landscape for different communities across Scotland.

Crucially, changes in the scale and type of tourism does not impact only on tourist-facing activities, such as travel, accommodation, cultural and recreational activities, but also all those industries that are highly interconnected to tourism activities via supply chains such as such as agriculture, farming and fishing, and retail.

In this project the Economics team is partnering with Visit Scotland to analyse the economic impact of COVID-19 on the tourism industry and aggregate Scottish economy and to provide urgently required economic analysis to the key stakeholders in the Scottish tourism industry at national and sub-national levels. There is now a pressing requirement for specialised modelling work and quantitative development of this evidence base, to inform decision-making for Scotland’s crucial tourism industry in the process of recovering from the COVID-19 pandemic.

There are two parts to the work which will occur through the project’s duration. Firstly, it will bring together researchers and stakeholders from the tourism industry in the development of quantitative scenarios – building on already-developed qualitative scenarios by the Scottish Tourism Economic Recovery Group (STERG). These will set out agreed projections for the path of tourism under alternative scenarios, including policies.

Secondly, the work will take these projections as inputs to an economic modelling framework for Scotland which will set out impacts of these scenarios. The results will capture impacts on the economy as a whole as well as on individual industries, including those directly exposed to tourism spending and the knock-on effects on linked industries across the whole economy and sub-regions of Scotland.

This project will help STERG and policy makers at national and sub-national level in Scotland to fully understand the implications and magnitude of the various scenarios for Scottish tourism, in particular a worst-case ‘three winters scenario’. This will ensure the current quantitative knowledge gap is filled and appropriate policy responses are effective in supporting economic recovery.

Published: 1 April 2021



Contact details

 Undergraduate admissions
 +44 (0)141 548 4114
 sbs-ug-admissions@strath.ac.uk 

 Postgraduate admissions
 +44(0)141 553 6118 / 6119
 sbs.admissions@strath.ac.uk

Address

Strathclyde Business School
University of Strathclyde
199 Cathedral Street
Glasgow
G4 0QU

Triple accredited

AACSB, AMBA and Equis logos
PRME logo