visitscotland operating plan 2014/2015 Scotland Welcomes the World

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1 Scotland Welcomes the World

2 CONTENTS PAGE VISITSCOTLAND S PURPOSE AND OBJECTIVES 3 TEAM SCOTLAND 4 OUR ORGANISATION 5 ACHIEVING OUR PRIORITIES 6 INCOME AND EXPENDITURE 10 ORGANISATION DEVELOPMENT 11 RISK MANAGEMENT 11 HEALTH & SAFETY 12 CAPITAL EXPENDITURE 12 Front Cover Photo: Hams of Roe, Muckle Roe, Shetland Above: Urquhart Castle, Loch Ness, The Highlands ORGANISATIONAL CHART 13 APPENDIX 1 - OUR MEASURES 14 2

3 VISITSCOTLAND S PURPOSE AND OBJECTIVES This Operating Plan covers the operations of VisitScotland for It provides the detail of how we deliver the second year of our activities outlined in our Corporate Plan VisitScotland s Corporate Plan presents our purpose and objectives for VisitScotland has a crucial role to play in helping to deliver the Government s Purpose which is: To focus government and public services on creating a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth. VISITSCOTLAND PURPOSE To grow and develop the sustainable economic benefit of tourism to Scotland s visitor economy. The strategic context for this Operating Plan is set out in the VisitScotland Corporate Plan The Corporate Plan sets out our corporate objectives for VisitScotland, these in turn are the means by which the organisation will contribute to the strategic priorities and national outcomes of the Scottish Government. VisitScotland will do this by continuing to deliver its principal role of marketing Scotland to the world as a tourist destination, attracting as many visitors as possible, with as high a value as possible, and encouraging them to buy local goods and services during their visits. Our corporate objectives are outlined in the box below. We will maximise the opportunities through our delivery of the Ryder Cup and a year-long programme of Homecoming events including Bannockburn Live. As we welcome the world in 2014, these events along with hosting the Commonwealth Games, provide our visitors with countless opportunities to experience Brilliant Moments right on their doorstep, throughout the year. Lead by our Board, delivering the plan is the responsibility of the Senior Management team and their staff. This plan sets out the key activities required to realise our corporate objectives, along with clear responsibilities, timescales and respective budgets. Progress will be measured through our Key Performance Indicators and the Board will receive regular updates in year of our progress against them. 1. : We will market Scotland and its outstanding assets to visitors from all parts of the world, including the promotion of Scotland to people living in Scotland to visit different parts of the country. 2. Information Provision: We will provide information and inspiration to visitors both locally and globally via their preferred choice of medium. 3. Quality & Sustainability: We will provide support and advice to businesses, with the goal of improving the quality and sustainability of the tourism sector in Scotland. We will provide assurance to visitors through our Quality Schemes. 4. Working in Partnership: We will listen to and work with the industry, partners and stakeholders to shape our offering and support. 5. Events: We will implement the national events strategy, and sustain, develop and promote Scotland s international profile as one of the world s foremost events destinations. We will maximise the economic benefits from the Winning Years and their legacy. 3

4 TEAM SCOTLAND Working as part of Team Scotland (Scottish Government and partner agencies) we are continuing to build a more collaborative and targeted approach to activity. The diagram below shows some of these activities. Business Getaway Tourism Intelligence Scotland Scottish Business Portal Programme Taste our best Learning, Skills and Well-being Effective Government Route Development / Connectivity Joint Internationalisation, emerging Markets Supportive Business Environment Tourism Skills Group Mediation Partnership Team Accessible Tourism Infrastructure Development and Place Scottish Government Strategic Priorities Strategic Forum Partners Efficiency Programme Equity National Tourism Development Framework Funding Support for Destinations Simplification of Funding The Ryder Cup Homecoming Scotland Scotland Week 4

5 OUR ORGANISATION EVENTSCOTLAND Works to influence, lead, co-ordinate, support and bring together people and organisations in order to deliver the national events strategy, maximising the economic benefits from major events including Glasgow 2014 Commonwealth Games, Ryder Cup 2014, Edinburgh Festivals and Year of Homecoming Scotland 2014 to develop and sustain Scotland s international profile as the perfect stage for events. It also houses the following teams: Events and Exhibitions who manage major projects such as VisitScotland Expo, Thistle awards and Scotland House. Business Tourism Unit works to maximise the benefit to Scotland from Meetings, Incentives, Conferences and Exhibitions. Growth Fund provides support to groups of businesses for marketing activity. Looks after the needs of our visitors at every stage of their journey and works towards connecting the visitor with memorable and unique experiences provided by industry. We create and deliver content across multiple channels that inspires, informs and converts. We conduct research to find out what attracts visitors to Scotland which then shapes how we promote what we have to offer through our marketing. When they arrive, we provide information and inspiration that matches the experience they are seeking. Finally, we find ways to keep in touch once they go home so we can tempt them back again. PARTNERSHIP Has the key role of developing and delivering strong strategic and partnerships with a range of external partners and stakeholders (local authorities, DOs, industry groups and individual tourism businesses) at national, regional and local level. It does this by influencing their activity to appreciate the value of tourism, VisitScotland s role in supporting sustainable economic growth, and by the direct provision of quality assurance and advice. Through the Visitor Services department it is responsible for managing the Information Centre network whose aim is to provide excellent customer service and inspired information to visitors. Delivery CORPORATE SERVICES Meets the needs of our internal customers through the provision of its Facilities and Procurement, Information Technology, Digital Development, Finance and Corporate Planning departments. These are essential services that help make the organisation work effectively and efficiently. A critical function within Corporate Services is the drive for continuous improvement of processes and systems, both to keep costs down but also to avoid duplication of effort. CHIEF EXECUTIVE S OFFICE A strategic support function for the organisation. Our HR department ensures we have the skills and knowledge to manage our people and develop as an organisation. Corporate Communications provides strategic communications support and guidance on a range of internal and external issues, working closely with all Directorates to ensure that VisitScotland s reputation is enhanced. Service Provision For more information on these directorates please visit 5

6 ACHIEVING OUR PRIORITIES The following section sets out the key marketing activity for VisitScotland in line with the corporate objectives identified within the Corporate Plan Please note that the activities detailed are not an exhaustive list of the activities of VisitScotland. The table presents the timeline, budget required and key measures that will be used to track performance. The plan is a dynamic document and some targets may need to be re-calibrated in year based on available investment. Full details of measures are in Appendix 1. Planned projects/campaigns for Estimated Economic Impact Ryder Cup 2014 VisitScotland is the lead body for the country s preparations to host The Ryder Cup 2014 and responsible for coordinating Scotland s presence at all Ryder Cup s leading up to 2014 and maximising the benefits of the event and all the rights associated with it. Golf Programme The programme brings together the following elements: event activation, digital and web based activity, trade development opportunities, PR activity, regional/industry support programme, global golf promotions, Scottish Open, Team Scotland contribution to The Open Championship and Scotland s delivery of the marketing and communication messages around The 2014 Ryder Cup. Homecoming Scotland 2014 Position Scotland on the international stage as a dynamic and creative nation. It will extend the benefits and opportunities offered by the Commonwealth Games and Ryder Cup by presenting a year-long, co-ordinated programme of events designed to generate pride in the people of Scotland and welcome visitors around the world in a celebration of Scotland s greatest assets. International and National Events Programme Developing a portfolio of events that delivers impact and international profile for Scotland. Scottish Open EventScotland is leading the delivery of Scotland s 2014 Ryder Cup as well as developing the portfolio of golf tournaments held in Scotland on an annual basis. Corporate objective supported Lead Responsibility Forecast Investment 14/15 - exc staff ( m) 1,4,5 EventScotland 6.3 1, 2, 4, 5 EventScotland 1.7 Key Measure Economic Impact 1,4,5 EventScotland 2.2 Economic Impact 5 EventScotland 3.1 Net Additional Spend in Scotland Key Target ( m) (Total investment 35.5m) 44.0 (Total investment 5.5m) 5 EventScotland 1.0 Economic Impact

7 Planned projects/campaigns for Growth Fund The fund is designed to support industry groups with marketing projects aimed at increasing visitor numbers and reaching new target markets. The match funding means resources are pooled and focused to deliver the project objectives. VisitScotland Information Centre (VIC) network The VICs role within VisitScotland is to put consumers and businesses together, thereby influencing customer spend and increasing the economic impact of the consumer. Commonwealth Games 2014 Activity to encourage people to extend their stay and expand the reach of visits throughout Scotland. Corporate objective supported Lead Responsibility Forecast Investment 14/15 - exc staff ( m) Key Measure Key Target ( m) 1 EventScotland 0.3 Economic Impact Visitor Services 3.7 Economic Impact , 4 UK & Ireland 0.2 Contributes to Economic impact of Glasgow 2014 Games Legacy evaluation TBC Consumer Additional Revenue Brilliant Moments Represents the consumer side of our Scotland Welcomes the World message. At the heart of the campaign is a new TV advert, themed around the big showcase events which comprise Scotland s Brilliant Moments of 2014; Homecoming, the Commonwealth Games, and the Ryder Cup, as well as the personal brilliant moments of the people of Scotland. 1, 4 UK & Ireland 3.9 Additional revenue Explore Scotland Communicating the range of experiences and opportunities in Scotland s regions to drive consideration and action. Activity will maximise strategic themes of Commonwealth Games and Homecoming. Activity for each region is aligned to the Strategy as agreed with local partners who help fund the activity. 1, 2, 4, 5 UK & Ireland 0.9 Additional visitor spend 15.0 Long Haul Programme This consumer programme is critical to the generation of new consumer traveller prospects and to conversion from our primary long haul markets. It ensures the tailoring of the optimum retention programme towards future and repeat conversion. The programme furthermore provides a critical platform on behalf of VS and wider government/stakeholder agencies to exploit Focus Year projects in key export and Diaspora markets and is integral to the delivery of Team Scotland route development activity in the long haul markets. 1,2,4 International 0.5 Additional visitor spend 3.8 Pan-Euro Touring+ campaign The campaign targets the growth markets of European tourers. It includes a seasonal calendar to encourage seasonal and geographic spread. Also includes the Meet the Scots campaign. 1 International 1.2 Additional visitor spend TBC Insight 7

8 Planned projects/campaigns for Corporate objective supported Lead Responsibility Forecast Investment 14/15 - exc staff ( m) Key Measure Key Target ( m) Content Activity that will develop each core information channel (online & offline) aligned to visitor needs and to maximise conversion and spend in Scotland. 1,2 Content 0.9 Additional visitor spend 25.0 Brave A global tie-in with Disney/Pixar to maximise the benefits from their blockbuster movie Brave. The returns will be over 5 years. 1, 4, 5 Investment made 12/13 Additional visitor spend 40.0 Trade Business Tourism Unit (BTU) Core Events Incorporates all exhibitions, trade shows, sales missions and workshops in the key business tourism markets. 1,2,3,4 Business Tourism Unit 1.5 Value of potential leads National Bid Fund Will provide match-funding to support conferences and conventions which align to Scotland s priority industries and sectors. Fund supports economic growth, year round sustainability and links tourism to Scottish Government s growth agenda for Cities, Renewables and Internationalisation. 1, 2, 3 Business Tourism Unit 0.3 Value of conferences won (Conferences not necessarily held in ) 24.3 Emerging Markets VisitScotland delivers important platforms for Scottish tourism businesses wishing to break into emerging market. VisitScotland s primary focus is on Business to Business (B2B) activity designed to build product in the marketplace as well as the capacity of the travel trade to sell it. 1 International 0.2 Value of new Scotland product 9.0 Intermediary In certain key sectors growth is most effectively generated via the influencing of intermediaries including wholesalers, operators and retail travel agents. The platform intermediary marketing delivers is critical in supporting the internationalisation of the Scottish tourism offering vis a vis these sectors. 1 International 0.2 Value of new Scotland product 25.0 Expo VisitScotland expo is Scotland s premier business to business travel trade event. Expo offers the perfect opportunity for all companies with a Scottish tourism product to showcase their products and services to potential buyers. Expo is open to buyers from all sectors of the industry and all corners of the globe. 1, 4, 5 Events & Exhibitions 0.6 Value of potential business 6.5 8

9 Planned projects/campaigns for World Travel Market Market Scotland to the travel trade, especially to demonstrate new products and services. Scotland exhibit in order to create a branded platform for VS and partners. The stand provides information and products to a wide variety of leisure buyers. Route Working with network development colleagues and direct with airlines, VisitScotland maintains ongoing discussion in support of route development, sharing data and proposing support for target routes. Corporate objective supported 1,2,4 Lead Responsibility Events & Exhibitions Remaining expenditure includes Partnership & Quality Assurance which incorporates the direct delivery of key services - quality grading schemes, advice provision and incorporation of sustainability criteria. It also includes expenditure of the support departments including Finance, Insight, IT, Facilities and Procurement who provide vital services that are necessary to sustain the internal operations of the organisation, ensure engagement with stakeholders, and help to maintain and enhance the organisation s reputation. See table below for breakdown. Forecast Investment 14/15 - exc staff ( m) 0.1 Key Measure Value of potential business Key Target ( m) 1, 4 CEO Office 0.9 Additional revenue m Partnership & Quality Assurance 0.8 Finance, HR 0.5 Insight 0.6 IT/Development & Web Infrastructure 1.0 Facilities 2.6 Corporate & Industry Communications 0.4 Scotland House, Team Canada, Games For Scotland, Scottish Thistle Awards

10 INCOME AND EXPENDITURE The table below provides details of the income and expenditure forecast for each of the organisation s main areas of activity. INCOME ( m) 2013/14 Plan 2014/15 Plan 2015/16 Plan Corporate Plan /14 Plan 2014/15 Live 2015/16 Plan Corporate Plan (2014 Revision) m m m Total SG Funding Commercial Income Retail Income Local Authority Funding ERDF Income Other Income Total Resource m m m Expenditure by Activity ( m) Activities Partnership Engagement Support Services Total Operating Cost Capital Grant Total Cash Expenditure Non Cash Total Allocation of Resource ( m) Internal Delivery - Salaries (Note 1) External Delivery - Property External Delivery - Services Total Operating Cost Note 1 - VisitScotland will seek to manage any upward pressures on salary as events are delivered through the Winning Years. Note 2 - Project funding for Ryder Cup and other Winning Years projects has been allocated to VisitScotland for the last 2 years of the Spending Review. No project funding has, as yet, been allocated to VisitScotland in 2015/16. Note 3 - Projects (PIDs) including Cost of Sales = 36.6m, less Cost of Sales 1.87m plus Irrecoverable VAT 3.4m = Total spend

11 ORGANISATION DEVELOPMENT We focus on recruiting, motivating and developing a highly diverse and talented group of people, offering them an environment in which their talent can flourish. The better our people, the better the organisation will do. Our training programmes are linked to our organisational effectiveness plans to produce higher quality management behaviour and ownership to achieve goals with fewer and more efficient use of people; about 20% of our activity is course based learning with the remainder project and development based, linked to our talent management system which in turn is driven off our strategy/structure plans. We are creating a formal certified management development programme to enhance core knowledge. We have programmes for talent management and leadership development. Our Human Resources team works with managers to identify training needs and to develop appropriate solutions. They also evaluate training effectiveness for both the individual and the organisation. Development opportunities include on-the-job mentoring, secondments and work shadowing. We also encourage staff to study for professional qualifications and to utilise online and distance learning. Equality Act 2010 VisitScotland as a Public Body is bound by the Equality Act 2010 (Specific Duties) (Scotland) Regulations Formerly we had a Single Equality Scheme which outlined our policy proposals, however it is no longer possible just to have an ongoing commitment to equality of opportunity, we have to mainstream quality objectives through the core business and report in a different way. The first set of Equality Outcomes, explaining how we will make this happen have to be written and published by April 2013 and each subsequent set should be published at intervals of no more than four years. VisitScotland is consulting by way of an internal Equality Steering group, made up of staff and managers, in order that the equality objectives and outcomes will be achievable, measurable and most of all accountable. Where appropriate we will also consult outside groups. In practice, the Equality Duty requires that the consideration of equality issues puts an influence on the decisions made by VisitScotland including how it develops, evaluates and reviews all its policies, both internal and external, how it designs, delivers and evaluates services, and how it commissions and procures from others. RISK MANAGEMENT Through its Audit Committee, the Board fulfils its role of Corporate Risk Governance. The corporate risk register not only identifies all high-level risks which impact on the whole organisation and are likely to affect the achievement of objectives contained in the annual operating plan, but also it identifies lower-level risks which affect specific areas of operation within VisitScotland. Risk management has been fully incorporated into the corporate planning and decision making processes of the organisation. Preparation of annual departmental operating plans includes a review of existing risks and discussion of any potential new risks. Economic and environmental scanning are key components in this process. They assist in identifying global factors which may affect the business and aid planning to mitigate them. Risks are also identified, managed and reported at project level through project managers. 11

12 HEALTH & SAFETY The Board of VisitScotland has responsibility for the health and safety of staff, visitors and others affected by VisitScotland activity. To carry out this responsibility the Board will provide governance and leadership. The Board will receive regular reports from the Health and Safety Committee on all trends, issues and recommendations. The Health and Safety Committee, a cross-functional team, works to maintain a safe working environmental and continuity of access to our business premises, in accordance with our legal and reputational obligations to Scottish tourism. CAPITAL EXPENDITURE VisitScotland is provided each year by the Scottish Government with an allocation which is used to buy capital assets which are used to support the purpose and objectives of the organisation. In this year the organisation has been given a base Operational Capital Budget to operate of 700k which has been increased by 350k to accommodate and allocation for shovel ready projects. Therefore the total budget allocation for 2014/15 has been set at 1.055m. VisitScotland intend to use the grant in the following manner: Rothesay Winter Gardens VisitScotland owns this property comprising a VIC, cinema and bistro. It is the organisations intent to refurbish this visitor and community asset during the year which will involve the purchase of a new digital projector as a result of distributors withdrawing 35mm format for new films. A sum of 150k has been set aside for this project. IC Improvement Program - VisitScotland will continue to undertake a rolling program of improving the visitor experience when visiting one of our VICs. This work will be across Scotland and we will endeavour to use Supported Companies in elements of delivery of this activity. The works will look to include improvements in areas such a lighting and branding to the use of technology within both manned and unmanned locations. A sum of 400k has been set aside for this activity. Technology improvements - The organisation also needs to ensure that it retains the ability to operate efficiently and effectively. To do this we shall look to ensure our systems, PCs and Tills operate at a level which will permit us to deliver the services to our customer which they expect. Additionally we will look to improve our operations by making new use of technology in areas such as Quality Assurance and shared corporate systems. A sum of 480k has been set aside for this activity. 12

13 ORGANISATIONAL CHART VisitScotland Board Chief Executive 1. Chief Executive Office (HR, Corporate Communications) EventScotland 4. Partnerships 5. Corporate Services Business Area Payroll Costs ( m) FTE (1-3) Partnerships (4) Corporate Services (5) Total Voluntary Redundancy At the end of 2013 the European Commission and the UK Government reached an agreement that affected all UK tourism authorities. This agreement meant that, as one of those tourism authorities receiving government funding, we were forced to review our commercial activities. Last year we removed the booking facility on VisitScotland.com and since then we have been gradually reducing other commercial activities with industry. Linked to this is another important operational change as we see the declining use of print among our customers. This has prompted us to cease to produce some print and to look at managing other print projects with an external third party. Going forward we will be putting greater emphasis on digital and multi-media content and formats. All staff who are in roles which are directly impacted by these changes will be eligible to apply to the voluntary redundancy scheme. 13

14 APPENDIX 1 - OUR MEASURES ESTIMated ECONOMIC IMPACT Ryder Cup 2014, Scottish Open and Homecoming Scotland Independent agencies will assess total economic impact (direct & indirect) of the event. International and National Events Programme - Economic outcomes are assessed using a consistent, industry standard methodology. Major / international events require a full, independent evaluation. VisitScotland Information Centre (VIC) network - Refers to new income generated in Scotland as visitors change their expenditure patterns following a visit to VIC. Target is based on estimates from independent research (by DTZ / Progressive ( ) reflecting current footfall figures and estate. Growth Fund - Based on Economic Impact Assessment by Frontline (2013) CONSUMER MARKETING ADDITIONAL visitor SPEND The additional amount contributed to the Scottish economy by a particular marketing campaign is based on rigorous assessment of the campaign response and is calculated using conversion rates and additionality. The conversion rate of any activity is measured by asking recipients or responders to a campaign whether they actually have visited within the campaign period. This determined through follow up evaluation research. The additionality is determined by factoring out those who were planning to visit Scotland anyway. All major marketing campaign evaluations are carried out by independent agencies. OTHER MEASURES Value of potential leads: Business Tourism Unit (BTU) Core Events - Enquiries are received by the BTU as a result of activities. Those which have specific details (i.e. not speculative) are registered and their value calculated using nationally adopted (UK-wide) multipliers for Delegate Expenditure and the size, nature and duration of the conference. The value stated is that for conferences won. Due to the long lead time for conference organisation, this includes conferences which will be held in future years. We are currently developing a new model for evaluating the economic impact of this activity. Value of conferences won: National Bid Fund - The Destination Management Organisation (DMO)/city convention bureau estimates the value of the conferences using a provided model. This again uses nationally adopted (UK-wide) multipliers for Delegate Expenditure and the size, nature and duration of the conference. Value of potential business: EXPO - Buyers are asked for an indication of the potential value of business identified during expo. This information is gathered using a consistent survey methodology. Route additional revenue - Estimated value calculated using a model which considers factors including capacity, load, proportion of inbound visitors and average visitor spend (derived from the International Passenger Survey). 14

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