Summary of Conclusions and Recommendations

1. This chapter lists the main conclusions and recommendations of this Prior Options Review. Proposals for implementing the Review's recommendations are then set out in the form of a tabular Action Plan.

2. The Report's main conclusions and recommendations are as follows:

STB's Statutory and Policy Framework

1. The rationalised structure introduced by the 1992-93 review of support arrangements for Scottish tourism has been of positive benefit. It has proved considerably more effective than its predecessor and it continues to be more relevant to the industry's needs. (Chapter 2, paragraph 16)

2. None of the other National Tourist Organisations (NTOs) currently operational in the UK and Ireland offers a model that can be easily applied to the Scottish situation. (Chapter 2, paragraph 19)

3. As far as international comparisons are concerned, it is not possible to reach detailed conclusions. Some general observations were, however, made by the Steering Group. These are that:

­ in terms of arrangements for support, it is clear that the approaches adopted can vary radically from country to country and this appears to bear out the conclusion already reached in relation to UK and Irish NTOs;

­ in terms of functional responsibilities, international comparisons suggest that the approach adopted by STB is broadly similar to that of other NTOs;

­ no sensible view can be taken as to the relative impact of NTOs and, as a consequence of this and also of their organisational differences, it is very difficult to make meaningful comparisons of their performance; and

­ there is no comparative evidence to suggest that tourism in Scotland is over-subsidised in terms of public sector support. (Chapter 2, paragraph 21)

4. In overall terms, the comparative exercise demonstrated that there are no grounds for believing that the arrangements for national support of the Scottish tourist industry are generally inferior to, or likely to be less effective than, the practice elsewhere. (Chapter 2, paragraph 22)

STB's Performance

5. The data provided by the Board's performance and evaluation measures taken with other judgements (including the results of the consultation exercise) suggest that the Board's performance is generally effective and that its activities are of positive benefit to the Scottish tourist industry. It is acknowledged however that it is not possible to quantify with any accuracy the Board's ultimate impact on the industry and that any assessment must involve a considerable subjective element. (Chapter 3, paragraph 27)

The Need for State Intervention in Scottish Tourism

6. The tourism sector in Scotland is characterised by mismatches between the information sought by tourists and the incentives to business to provide that information. (Chapter 5, paragraph 31)

7. Collaboration between the many small firms of the Scottish tourist industry is difficult to achieve. With little possibility of fully effective trade associations, optimal industry activity appears achievable only through public intervention and some form of tourism support appears essential if the economic potential of tourism is to be fully achieved. Consequently, there remains a requirement for STB's current main functions to continue to be undertaken. The prior options of privatisation or complete abolition are therefore rejected as viable alternatives. As no single category of activity currently undertaken by the Board appears unnecessary, the option of partial abolition is also rejected. (Chapter 5, paragraphs 33and 34)

Delivery of STB Functions ­ Abolition of STB and Transfer of Functions

8. In view of the outcome of the 1992-93 review of tourism support arrangements, its positive impact, the absence of any developments likely to undermine the continued relevance of its recommendations, and the lack of any strong pressure for change, there is no case for complete or partial abolition of STB and transfer of some or all of its major functions to another provider. (Chapter 6, paragraph 3)

9. Arising from concerns expressed by consultees, action is called for on a number of issues but such changes as are necessary centre on the refinement and improvement of the functional responsibilities and relationships introduced by the 1992-93 review. (Chapter 6, paragraph 3)

10. The possibility of STB functions being exercised by a body with pan-British responsibilities is also rejected. (Chapter 6, paragraph 4)

Delivery of STB Functions ­ Contracting Out en Bloc

11. There is no clear evidence that contractorisation of STB's functions is desirable or would improve the quality or cost effectiveness of the current arrangements for delivery. This option is therefore rejected. (Chapter 6, paragraph 11)

Delivery of STB Functions ­ Agency Status

12. There is no particular advantage to be had in conferring agency status on STB. This option is therefore rejected. (Chapter 6, paragraph 14)

Delivery of STB Functions ­ Continuation of STB as a NDPB

13 As none of the preceding options are judged appropriate, STB should continue to function as a corporate body established by Act of Parliament. (Chapter 6, paragraph 15)

Delivery of STB Functions ­ Market Testing of Individual Board Functions

14. In most cases, there is no further scope for market testing. (Chapter 6, paragraph 20)

15. Further consideration should be given to the Board's arrangements for business tourism as part of the second stage of the Review with further analysis, conclusions and recommendations contained in the report on that stage. (Chapter 6, paragraph 20)

16. The Board's decision to retain the Exhibitions and Event unit as an in-house activity but to reduce its staff complement is endorsed. (Chapter 6, paragraph 20)

17. The future operational delivery of the Board's information services function need not necessarily be undertaken by STB itself. The Board should therefore bear this particular option in mind in considering the outcome of the recent study and formally notify the Department of its final decision in this matter. (Chapter 6, paragraph 20)

18. The Board's plan to consider contracting out the operational delivery of Project Ossian once this initiative is in place is endorsed. STB should formally notify the Department of its final decision in this matter. (Chapter 6, paragraph 20)

19. Steps should be taken to market test or contract out the operational delivery of the Board's quality assurance programme. Such action should be completed by 31 March 1999. (Chapter 6, paragraph 20)

20. The Board's plan to consider contracting out its Visitor Attractions Survey is endorsed. STB should formally notify the Department of its final decision in this matter. (Chapter 6, paragraph 20)

21. STB should keep the organisation and management of visits to Scotland by UK and overseas journalists under regular review with a view to market testing some aspects of this activity. STB should formally notify the Department of its conclusions. (Chapter 6, paragraph 20)

22. The Board's decision to contract out the organisation and management of its main corporate events is endorsed. STB should formally notify the Department of its final decision in this matter. (Chapter 6, paragraph 20)

23. The Board's decision to benchmark finance functions is endorsed. STB should expedite action on this exercise so as to ensure that, at the latest, results become available during the second stage of the Review. Consideration should also be given during the second stage to the wider and more regular use of benchmarking by the Board. (Chapter 6, paragraph 20)

24. The Board's policy on charging for its services, its range of charges and the scope for improvement should be examined during the second stage of the Review. (Chapter 6, paragraph 21)

The Future of STB

25. STB should maintain an interest in product development matters. (Chapter 7, paragraph 7)

26. STB should concentrate exclusively on product development policy, identifying those areas of activity which will require to be developed by the industry with support from STCG members, local authorities and ATBs. (Chapter 7, paragraph 8)

27. STB should continue to develop and refine the means by which it communicates information about its corporate strategy and operational policies and programmes to its private and public sector partners, the tourist industry in general and the wider public. (Chapter 7, paragraph 9)

28. Consideration of the Board's relationship to central Government, including the role and obligations of its appointed board and the ways in which the Board is held accountable for its stewardship of public funds, falls more properly within the second stage of the Review and should therefore be taken as part of that exercise. (Chapter 7, paragraph 10)

29. Given that the Department's approach to appointments to STB's board is wholly in line with central guidance, it would be inappropriate to allot places on the board to specific tourist industry interests. No action is therefore recommended on this issue. (Chapter 7, paragraph 11)

30. The Board's organisational structure continues to pose problems as regards effective inter-divisional liaision and the Board's ability to devise, take and present action at the corporate level. Further remedial action remains necessary. STB should therefore give early consideration to this issue with a view to implementing appropriate measures and should formally notify the Department of its proposals. (Chapter 7, paragraph 15)

31. STB should adopt and develop a more strategic and forward looking role, centring on the identification and provision of relevant market information and more generally on the facilitation of industry action either at the Board's own hand or through the action of other public bodies. (Chapter 7, paragraph 18)

32. In view of its statutory role and by virtue of its having the only research function in the Scottish public sector wholly dedicated to tourism, STB should be formally recognised as the lead agency on all matters relating to research into Scottish tourism. (Chapter 7, paragraph 22)

33. STB should establish a consultative committee representing private and public sector interests to advise on key priorities for, and the targeting of, the Board's research programme. (Chapter 7, paragraph 22)

34. The Scottish Tourism Co-ordinating Group should consider whether current arrangements for co-operation and co-ordination are effective and, if so, whether the action taken to establish and maintain successful working arrangements is sufficiently publicised. (Chapter 7, paragraph 25)

35. STB should review its current organisational arrangements for ATB sponsorship in consultation with ATBs and make such changes as are necessary to ensure that this function is more effectively discharged. (Chapter 7, paragraph 28)

36. The current arrangements for the funding of ATBs are not considered central to the Review. Detailed comment and recommendations on this issue have not therefore been offered. (Chapter 7, paragraph 29)

37. STB should, in full consultation and agreement with ATBs and the industry, devise and publish at annual intervals a national marketing plan or plans covering both the UK and international markets. (Chapter 7, paragraph 31)

38. The Department should amend the Board's Management Statement to take account of the revised aim set out in the Report and STB should also review and amend its current corporate and subordinate objectives in response to this change. (Chapter 7, paragraph 34)

39. Following on from the review of its corporate objectives and bearing in mind the action envisaged in relation to the new marketing plan(s), STB should consider whether its current policy on encouraging better visitor distribution is sufficient and, if not, what further measures are required. The Board should formally notify the Department of its conclusions. (Chapter 7, paragraph 35)

40. STB should continue to review and refine its current measurement and evaluation system on a regular basis. (Chapter 7, paragraph 36)

41. During the second stage of the Review, the Department and the Board should consider whether the Board's performance evaluation programme is sufficiently comprehensive in terms of depth and breadth of coverage and whether improvements can be made in the Board's current series of performance indicators through the introduction of a small number of high level measures which reflect its key objectives. (Chapter 7, paragraph 37)

42. STB, in consultation with the Department, should draw up and implement a programme of research in order to remedy the lack of detailed information on the Scottish tourist industry's structure and main characteristics. (Chapter 7, paragraph 38)

43. STB should continue with its research project aimed at the production of statistics on the qualitative performance of the accommodation sector during the 1990s. The Board should also aim to produce a suite of qualitative measures to be used to gauge accurately the industry's long-term performance on this issue. As part of this exercise, consideration should also be given by STB to the introduction of more regular visitor attitude surveys. (Chapter 7, paragraph 39)

44. In terms of the Board's structure, STB should now proceed to implement such changes as it considers necessary in the light of the Review's conclusions and recommendations, subject to such consultation with the Department as is required by the Management Statement and subject to the Department being satisfied that, taking account of any transitional costs, the new structure will over time deliver savings in running cost provision. (Chapter 7, paragraph 40)

45. The operational effectiveness of the Board's dual location in Edinburgh and Inverness should be considered as part of the second stage of the Review. (Chapter 7, paragraph 41)

Table 8.1: Implementation of Review Recommendations ­ Action Plan