Brexit gives boost to Scotch whisky tourism

Brexit and the weak pound has been credited with giving the Scotch whisky tourism industry a boost in 2016, with a record 1.7 million tourists paying a visit to a distillery in the region in 2016 – an increase of 8% on the previous year.

Karen Betts, Scotch Whisky Association chief executive

According to the Scotch Whisky Association’s (SWA) latest annual survey, the number of visitors to distilleries has increased by around a quarter since 2010, with more than half of Scotland’s 123 Scotch whisky distilleries now open to the public.

Furthermore, the average spend per visitor has increased. Almost £53 million worth of revenue was generated by visitors to Scotch distilleries in 2016, with the average spend per person rising by 13% from £27 to £31 compared with the previous year.

The increase in the number of tourism has in part been credited to Brexit, with the weakness of the pound said to have encouraged more visitors to travel to the country.

“Brexit and the weakness of sterling have given a short term boost to distilleries, and, despite some uncertainty about the long-term, they are continuing to invest to improve visitor facilities,” said Karen Betts, SWA chief executive.

“A welcome further boost to the whisky industry during this time of change would be to see a cut in excise duty in the UK autumn budget. The high 80% tax burden on an average priced bottle of whisky means that foreign visitors often pay more tax for Scotch in Scotland than in their own countries. That can’t be the right way to encourage more visitors and to support an industry that plays such an important role in the economy, tourism and local communities.”

Diageo has credited the boom in tourism to the increasing interest in Scotch by Chinese and Russian consumers, reporting that the number of visitors from these countries to its distilleries had increased by 154% and 146% respectively in the past year.

China is currently the single largest alcohol market in the world, with the middle class market rapidly growing. By 2022, Diageo expects 75% of the nation’s urban population to be classified as middle class – a trend that is helping to grow the demand for more premium products.

“Scotch is not only Scotland’s most valuable export industry, it is the world’s most popular spirit, attracting thousands of international visitors to Scotland every year,” said Diageo Scotland director, Ewan Andrew. “The latest Scotch Whisky Association tourism figures indicate that a record 1.7 million tourists visited scotch distilleries last year, up almost 8% on 2015.

“As demand for premium products and interest in Scotch grows in China and Russia, tourists from these countries are visiting distilleries not only to purchase whisky straight from the distillery, but to discover the expertise and craft that goes into making every bottle.”