INVEST Quarterly investment magazine from Scotland’s capital
JULY to September 2011
EDINBURGH
linking with munich slotting in with the fastest growing economy in the european union
voted Europe’s top small city by fdi magazine
Also inside issue 37 » State street launch european centre of excellence » new medical research centre » immigration to city » key economic indicators
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In this issue
the first word
W 8
16
5 4 snapshots
Watch the fashion scene and enjoy all that Europe’s second friendliest city can offer
8 10 questions for...
elcome to Invest Edinburgh, the quarterly investment promotion magazine. Last year, the City of Edinburgh Council identified six cities offering the greatest potential for future inward investment flows for its international investment engagement strategy. After focusing on Tianjin in China last quarter, this issue considers the opportunities our partnership with Munich will bring. This issue’s Analysis feature examines why young and enterprising people are drawn to Edinburgh (p14); ten questions are answered by Stephen Hutt and Archie Glendinning, CEO and Director of the Royal Highland Centre (p8); Ben Reed, Director of Jones Lang LaSalle, offers his expert opinion on latest occupier activity in Edinburgh (p16); and the imminent opening of the new Scottish Centre for Regenerative Medicine at the Edinburgh BioQuarter campus is reported on in Capital Focus (p3). Our latest readers’ survey found that the pages on Edinburgh’s key economic indicators are most important to you. We have now expanded this section to three pages. Any feedback on the new section or on any other aspect of the publication would be most welcome to: editor@investedinburgh.com
Stephen Hutt, Chief Executive and Archie Glendinning, Director at the Royal Highland Centre (cover story)
10
LINKING with munich
We explore the already strong links with the second city in Edinburgh’s Six City Economic Strategy
Tom Buchanan, Convenor of the Economic Development Committee
14 ANALYSIS
Immigration to Edinburgh: what the city offers
16 making it happen
Demand returns to the city’s property sector
17 added extras
A new vantage from which to explore this UNESCO World Heritage city
18
the statistics
The latest key indicators for the Edinburgh economy
Subscribe to Invest Edinburgh For a free quarterly subscription to Invest Edinburgh, or to obtain additional copies, please contact editor@investedinburgh.com Follow Invest Edinburgh on Twitter. www.twitter.com/investedinburgh Follow Invest Edinburgh on LinkedIn. www.linkedin.com/companies/invest-edinburgh THIS MAGAZINE IS PRINTED ON ENVIRONMENTALLY RESPONSIBLE PAPER MANUFACTURED USING 100% RECYCLED WASTE.
Invest Edinburgh is published on behalf of The City of Edinburgh Council and Marketing Edinburgh Limited by Resolve Creative, Suite 104, 47 Timber Bush, Edinburgh EH6 6QH t. +44(0)131 555 7585 w. resolve-creative.co.uk
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i nvest in Edinburgh Are you: • A retailer looking to expand into a dynamic new market? • A hotel developer or operator interested in opening a hotel in a global tourism hotspot? • A business looking to establish an office or contact centre in Scotland? • A property developer interested in development opportunities? If so, the City of Edinburgh Council and its partners can provide you with: • Free, confidential, impartial advice on your commercial property and land requirements; • Introductions to key business and civic leaders; • Assistance with recruiting and training staff with the skills you need; • Advice on accessing grants and other funding; • Guidance on doing business in Scotland; • High-quality market intelligence. To find out more about how we can help you, please contact the Investor Support team at invest@edinburgh-inspiringcapital.com or on +44 (0)131 529 6600.
Fact box:
Centre secures global prominance The opening, later this year, of the new Scottish Centre for Regenerative Medicine (SCRM) at the Edinburgh BioQuarter campus, marks a significant step in securing Scotland’s reputation as a biotech hub of global significance. The £54 million investment will house 250 researchers working specifically on the application of research in stem cell sciences to conditions such as diabetes, heart disease and cancer. Professor Sir Ian Wilmut – the leader of the team that developed Dolly the sheep – is Chairman of the SCRM at the University of Edinburgh. Describing his vision for the future of research on the new site, he said: ‘‘In this building we will bring together three different groups of scientists of the MRC Centre for Regenerative Medicine to develop a one-stop shop that brings therapies from the bench to the clinic. “The basic stem cell biologists are trying to understand how to maintain and use stem cells, the translational scientists are working on issues like scale up and protocol optimisation and the clinicians are going to deliver these cells or therapies to patients. We will also have a GMP (good manufacturing practice) facility in the new building that will be run jointly by a not-forprofit company called Roslin Cells and the Scottish National Blood Transfusion Service. They will provide us with the key ability to make sure that protocols developed in the
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research laboratory can actually be optimised and scaled up for use in the clinic. “The SCRM’s location at Edinburgh’s BioQuarter is ideal as we’ll be next to a research hospital with a clinical trials unit, the University of Edinburgh’s teaching and research facilities, basic research scientists and biotechnology companies. I think that’s a unique combination with huge potential for translational research, but also for the use of stem cells in drug discovery and development work. It will be a unique resource in the UK.’’ The building brings together research teams of the Medical Research Council’s Centre for Regenerative Medicine (MRCCRM) that were previously split between the Chancellor’s Building, the Queen’s Medical Research Centre and the Roger Land building on a science campus some two miles away. Research at MRC-CRM involves basic stem cell biology as well as tissue regeneration. Over the past years researchers have made key discoveries that, for example, could help reduce the need for liver transplants and provide an alternative source of red blood cells for clinical transfusions. SCRM is designed to enhance the collaborative potential of the research,
The £54 million Scottish Centre for Regenerative Medicine at the University of Edinburgh, on Edinburgh’s BioQuarter, combines unrivalled basic research expertise with established clinical excellence to deliver world class translational medicine.
as MRC-CRM’s Centre Manager Dr Gordon McLean outlines:“The new building promotes interaction and collaboration. There will be a centralised tissue culture facility surrounded by lab space separated from the write-up desk space by a floor-to-ceiling glass wall. In addition we will have a break-out area, a seminar room and several small meeting rooms, so there will be lots of opportunities to share ideas.’’ Other research at the MRC-CRM is focused on understanding the properties of stem cells, how to control stem cell self-renewal and differentiation in vitro and in vivo, and how to harness this knowledge to develop new therapies. With the facilities and collaborative opportunities on offer, all the scientists working under the umbrella of the SRCM are well placed to lead the field of regenerative medicine and create future therapies for patients. “Given the huge strides being made in regenerative medicine at the moment, I can’t think of a more significant development anywhere in the UK’s bio-pharmaceutical industry,” adds Dr Mike Capaldi, Commercialisiation Director at the Edinburgh BioQuarter.
further information www.crm.ed.ac.uk
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New academic powerhouse underway Scotland is to have a new super-college following a proposed merger of Edinburgh’s Stevenson and Jewel and Esk colleges. The new organisation will become Scotland’s second biggest college in terms of turnover, with about 20,000 students. Officials say that if approved – it is subject to a consultation period which began in June – then the merged organisation could contribute more than £100 million a year to Edinburgh’s economy. In a joint statement, Brian Lister, Stevenson College’s Principal, and Mandy Exley, Principal of Jewel and Esk, said: “The new college would be a real powerhouse for Edinburgh and deliver substantial benefits in terms of education, skills and economic development.
“The two colleges are strong and provide superb educational and training opportunities, together, they would be stronger and better.” The new enlarged college could be ideally suited to meeting the needs of regional business, particularly the provision of a trained workforce with vocational skills. The complementary course strengths of the two institutions will combine to deliver strengths and competitive advantage in energy, tourism and hospitality, creative industries and across financial and business services.
A warm welcome awaits… Edinburgh has been named the second most family-friendly city in Europe in a survey conducted by TripAdvisor. With its rich cultural history, strong traditions and scores of free amusements for children – from castles to museums – the city scored very highly with thousands of travellers. In the survey, one traveller said: “Edinburgh is a wonderful place to travel with children.” Only the Tuscan city of Florence beat Edinburgh in TripAdvisor’s Travellers’ Choice Family awards. Via its user reviews, TripAdvisor – in partnership with UNESCO – also collected more than 34,000 responses
scottish fashion graduate
NewArrivals Continuing our regular feature about the latest companies investing in the capital
Why the move? The new European hub will handle cash servicing for the pension funds, life assurance companies and asset managers for which State Street provides investment administration and custody functions.
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Barry Muir, Chief Operating Officer at State Street, said:“State Street has recently won a number of large mandates with large UK clients and Edinburgh will play a key role in servicing these.” Why Edinburgh? Barry Muir added:“State Street has for many years recognised Edinburgh as a key financial centre and for the highcalibre talent pool that exists within the financial services industry across Scotland. “We are pleased to make this firm
> Further information: www.tripadvisor.co.uk/travellerschoice
1 to watch jett sweeney
> Further information: www.jec.ac.uk www.stevenson.ac.uk
What does she do? A graduate of Edinburgh College of Art, Jett launched her fashion career in notable style, picking up the title ‘Scottish Fashion Graduate 2010’.
Who’s on the move? US financial services giant State Street has underlined its commitment to Edinburgh with the launch of a European Centre of Excellence for cash servicing, which will boost its workforce in the city from 750 to 840.
from travellers who have visited the UK’s UNESCO World Heritage sites. The results, announced in April, show Edinburgh as the most recommended site, above other well-known attractions such as the Tower of London. (See page 19.) This latest survey result underlines Edinburgh’s internationally recognised tourism credentials. Last September, the city was voted ‘Favourite UK city”, in the prestigious Conde Nast Readers’ Travel Awards and ranks 9 in TripAdvisor’s Top Destinations in Europe overall.
commitment to create a European Centre of Excellence here and we look forward to building on the strong business growth we continue to experience.” State Street operates in 26 countries and more than 100 markets and has had a presence in Scotland since 1998. It has £14.1 trillion in assets under custody and administration and £1.3 trillion in assets under management. > Further information: http://www.statestreet.com/uk/en
Why is she worth watching? The design brief for the awards, set by Marks & Spencer (M&S), was to create a cocktail dress for the retailer’s Limited Collection brand, which would be fit to turn heads on the Scottish Fashion Awards red carpet. As winner of the Graduate title – judged among others by Amanda Wakeley, designer, Dolly Jones, editor of Vogue.com and the renowned fashion writer Hilary Alexander – Jett learned on the night that her design was to go into production. In March 2011, her dress went on sale through M&S stores in Edinburgh, Glasgow and the principal store at Marble Arch in London. Part of Jett’s prize involved a month long placement at M&S, where she learnt about everything from the manufacturing process to marketing. Where has she come from? Jett is a graduate of fashion courses from both Edinburgh’s Telford College and Edinburgh College of Art. Her designs have been showcased at the UK Graduate Fashion Week, in London, and her collaboration
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with M&S was widely reported. She now hopes to join a leading fashion house to expand her experience. What does it mean for the area? Edinburgh College of Art has recently merged with the University of Edinburgh and the close links enjoyed by ECA with the Scottish Fashion Council enable students to work on commercially-inspired projects for Scottish companies such as MacIntosh and Lochcarron. Following on from the huge success of the 2010 Awards, Marks & Spencer is again sponsoring the Graduate category at the Scottish Fashion Awards 2011. “Jett took full advantage of the work placement with our design team; a once-in-a-lifetime chance to see how a brand such as M&S puts its collections together,” said Dominic Fry, Communications Director, Marks & Spencer.“The challenge for our 2011 entrants will be to show themselves as a designer who, like Jett, can harness their natural flair and creativity to create a commercially viable garment.” > Further information: www.scottishfashionawards.com
Bite size Edinburgh Airport enjoyed its busiest ever April in 2011, handling more than 776,000 passengers. In the 12 months to April 2011, the airport has had 8.9 million passengers pass through its terminal. Cray has signed a contract to upgrade the University of Edinburgh’s High-End Computing Terascale Resource (HECToR) project. Once upgraded later this year, HECToR, the UK’s national supercomputing service, will deliver 827-teraflops of supercomputing power for researchers wishing to explore complex problems with global impacts. Edinburgh-based games developer, Rockstar North, has announced plans to expand its computer game development team. The plans were revealed ahead of the launch of LA Noire, Rockstar North’s latest game, launched in May 2011. Scottish firms took on staff at the fastest rate in more than three years last month as the economy enjoyed a fifth consecutive month of growth, according to research by Bank of Scotland. This meant that, for the first time since September, workforce growth in Scotland outpaced the UK average. Maven Capital Partners has opened an office in Edinburgh and appointed four investment and portfolio executives. The firm has been recently selected as the sole fund manager for the £94 million Scottish Loan Fund. Edinburgh’s streets are to feature more than 120 life-sized sculptures of some of the planet’s most endangered species in August. Companies can sponsor exhibits, which will each be commissioned from well known and local artists. The 120 sculptures will then be auctioned on 29 September in aid of Elephant Family, the UK’s biggest supporter of Asian elephants. The charity hopes to raise more than £1 million.
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Further growth in finance sector Global financial services leader BNY Mellon is the latest financial services company to announce an expansion of its Edinburgh operations, creating more than 60 new jobs in June. The US firm, which provides investment management expertise, investment servicing solutions and other financial services to institutions, corporations and high-net-worth individuals globally, is expanding its Blenheim Place offices to approximately 650 employees. Operating in 36 countries and serving
more than 100 markets, BNY Mellon has had a presence in Scotland for more than 20 years and today operates from three locations in Edinburgh. The company has over £15.5 trillion in assets under custody and administration and £733 billion in assets under management. Scottish Enterprise, Scottish Development International and Skills Development Scotland have worked closely with the company to support its Scottish growth plans. BNY Mellon Chairman of Europe Tim
Keaney said: “Edinburgh is one of our key centres, and the investment we have made to build upon our existing presence here underlines our continued commitment to the city and to Scotland.” In 2011, State Street and BlackRock, both US investment firms, have also announced expansions to their Edinburgh operations and more than 600 additional jobs have been created. (See page 4 and IE36.) > Further information: www.bnymellon.com
MADE in EDINBURGH
RunRev
The easy way to create software It’s been an incredibly busy year for Edinburgh-based software developer RunRev! Their first invention – LiveCode – allows anyone to create software through simple, easy to learn expressive statements, rather than cumbrous markup languages like html. However, their launch – in March – of a version of LiveCode to enable mobile phone app-building has seen “interest go through the roof,” as founder and CEO Kevin Miller confirms. Uniquely, LiveCode allows app designers to create their app once and then export it either for iOS devices, (iPhones and iPad), or to Android for mobiles. “LiveCode gives users an array of features that apply across a wide range of devices and platforms,” explains Kevin.“Our users can apply powerful visual effects, drop shadows and blend mode effects to any object; process text, crunch data or build a web application.” Further mobile developments are planned in the second half of the year, which will almost certainly ensure another milestone:“We’re expecting to exceed annual sales of £1 million for the first time”. Backed by Apple co-founder Mike
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“Edinburgh is a perfect city in which to be based. The calibre of graduates from Edinburgh’s Universities is outstanding and so many of them want to remain in the city it has been easy to recruit and retain top talent.”
Markkula, Miller acquired REV – the multiplatform development engine developed by MetaCard Corporation – and established RunRev in 2001. His Edinburgh-based team of 20, including seven developers, now operate a global software business with almost half of all sales in the US and a new distributor in place for Japan. “Edinburgh is a perfect city in which to be based. The calibre of graduates from Edinburgh’s universities is outstanding and so many of them want to remain in the city it has been easy to recruit and retain top talent.” RunRev’s software is advancing enormously, but retains Kevin’s vision of providing a powerful yet simple programming tool that is suitable for anyone to use. Instead of having to learn traditional programming languages, users of LiveCode can write simple expressive statements and immediately start to see – and test – the results, as everything is live. The revolutionary approach has won the company a global and rapidly expanding list of commercial clients.“It’s already being used for a multitude of purposes, by individuals and businesses, and is being taught at university level.“ > Further information: www.runrev.com
Festival study reveals more than ‘fringe’ benefits Attracting more than four million visitors each year, Edinburgh’s 12 principal festivals are generating more than £245 million for the city’s economy, according to the Edinburgh Festivals’ Impact Study, published in May. Lady Susan Rice, chair of the Festivals Forum, said: “Edinburgh’s Festivals are a cultural phenomenon, celebrated globally and treasured locally. They are one of Scotland’s most visible assets and, thanks to this study we now have a clearer understanding of the breadth of their benefits across Edinburgh and Scotland.” The study is the largest programme of research into the economic importance
of the 12 leading international events, which also sustain 5,200 jobs in various contributing industries. Besides the economic impact of the festivals, the study stressed the non-monetary, cultural impacts of the events: for example, the study found that the festivals are boosting local pride – according to 89% of the study’s respondents – as well as enhancing the profile of the capital to incoming festivalgoers; 93% of whom state the festivals are part of what make Edinburgh special as a city. The festivals were also found to be an important means of widening access to the arts. They welcomed more than 32,000
people to workshops and educational events in 2010, encouraging nearly two thirds of their audiences to take greater risks and attend less well-known performances. The economic impact of the festivals is driven by audience expenditure, but performers and delegates and attending journalists also make significant contributions in absolute terms. The report highlights: “it is the diversity and quality of experiences offered throughout the year-round Festival season that makes Edinburgh truly distinctive.” > Further information: www.festivalsedinburgh.com
“In a competitive tourism market and shifting economic climate, this study will be essential in helping us identify the best ways to ensure the Festivals flourish for generations to come.”
FESTIVAL EXTENSION The second Edinburgh International Marketing Festival will take place in Edinburgh on 25th August 2011. It follows the considerable industry participation and media impact of the inaugural event, last year. The vision of the Festival remains the celebration of the marketing industry, creativity and commercial value in all forms and remains a world first. It adds an entirely new focus to both the Edinburgh Festival calendar and to the development of the creative industry and cultural economy within and beyond the city. The one-day Summit will see key marketing and creative services trade and industry organisations join together to define a vision for the industry.
further information e: charlotte.a@creativebrief.com
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The Highland Hall: Scotland’s largest single span building.
or combined in various ways. We cater for everything from a Doll’s House exhibition to the JLS concert, from the Scottish Beauty Show to Gardening Scotland, which hosted live broadcasts by the BBC. And of course the Royal Highland Show itself attracted more than 187,000 people over four days in June last year. Our ability to manage events on a grand scale is tried and tested. IE> What type of corporate event uses the Centre? AG> The quality and flexibility of the space we can now offer makes us an ideal venue for all types of corporate and public events. For example, we’re delighted to welcome back the VisitScotland Expo for 2012. VisitScotland will host around 800 travel trade buyers from around the world at the event, which will also be attended by over 200 Scottish suppliers.
Stephen Hutt & Archie Glendinning The Royal Highland Centre is Scotland’s venue of choice for trade lifestyle, corporate, sport and leisure events. With a £1 million investment to its existing facilities just completed – and a 15 year Master Plan to develop its offering approved – this is a key moment for a unique venue; as Stephen Hutt, CEO, and Archie Glendinning, Director, explain. that’s only four days in our annual calendar. For the other 361 days we host more than 240 events and generate in excess of £254 million for the local economy. That’s only a fraction less than the value of all Edinburgh’s festivals combined.
IE> Stephen, how long have you been in post? SH> I joined as Chief Executive of the Royal Highland and Agricultural Society of Scotland (RHASS) on 11 April this year. For me, a real motivation was the ethos that lies behind the Society and its various activities. It was set up as a charity in 1784 and has 14,500 members, including some very high profile people in the business community. Our membership is a huge asset. IE> So what is shaping RHC’s business development strategy? SH > The Master Plan sets out our course for the next 15-20 years and was approved by the city planners and passed
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by our members earlier this year. I relish the challenge of pulling all the strands together to deliver the project. Like most people from Edinburgh I was aware of the Royal Highland Show, but
IE> What does The Royal Highland Centre offer as an exhibition venue that is unique? AG> Scale. We are Edinburgh’s ‘big event’ venue. The site covers more than 280 acres, provides parking for up to 20,000 vehicles and includes indoor and outdoor event space. The Highland Hall is Scotland’s largest single span building and our flexible halls can be hired singly
“Our ability to manage events on a grand scale is tried and tested.” IE> Is RHC an Edinburgh venue then, or a Scottish venue? AG> We have 60% of Scotland’s population living within a 60-minute drive of the Centre, so we’re definitely a venue that can provide a Scottish audience to any event organiser. IE> But you’re located just minutes from Edinburgh Airport, which is expected to grow significantly. How is that impacting? SH > Edinburgh Airport is already the fifth busiest airport in the UK. Being situated next to it is an advantage, particularly for business-to-business events, but their plans for expansion were potentially impacting on our own operations. That was why the Master Plan was commissioned by RHASS. We have been working closely with the Airport, the City and all stakeholders in the International Business Gateway – the development zone lying to the east of the airport – to create a common goal to develop the west side of Edinburgh. IE> How else does your location impact on business? SH> Part of the benefit that has come from our Master Plan is that we have been able to target what we offer to different
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markets. With development work already underway on one new hotel on the site, and planning permission approved or underway for two others, around 600 beds will be added within five minutes of the site by the start of 2013. That’s a great resource in terms of business-to-business events and we also offer a hub for the agri-business sector. But we’re also talking with the Edinburgh Festival and others in the city to be more of a resource for Edinburgh itself and to find new ways of doing business. IE> How does the way you position RHC change for these different markets? AG> We have a unique resource here: we are a single organisation with different facets to offer and part of our work with the Master Plan was to identify how we can get better at using the value of our brand across all that we do. We want each audience we target to recognise our strengths and we can take that ambition forward using the Master Plan. IE> Tell us a little more about how the venue has been evolving? SH> Connectivity is a key thing we offer, with the site lying next to the junction of the M8 to Glasgow, the M9 to Stirling and the M90 – the UK’s quietest motorway – to Perth. We are working with all the bus companies to improve public transport access to the site and on-going investment will see us adding a new road and additional access points; new wi-fi on site and further reconfiguration of our space in the next 12 months. With additional car parking, the hotel – which will be operated by Holiday Inn Express – and other buildings to the east we’re pushing ahead to develop our infrastructure. IE> What does the future hold for RHC? AG> While there was uncertainty over how the plans to develop the Airport would impact on us there was a period when investment decisions were deferred. Now that we have our Master Plan approved, improvements have already been made that will help us be more people’s first choice. We’re not here to over promise, but we have a fantastic team who will deliver what we promise. It’s a very exciting future.
further information www.royalhighlandcentre.co.uk
CV
Stephen Hutt, Chief Executive RHASS In a career that has embraced energy, brewing, paper-making and the food ingredients industry, Stephen combines his training in accountancy with a drive to achieve tangible outputs. He has worked with British Gas Scotland, Scottish & Newcastle and World Markets Company, as well as Smith Anderson Group and, most recently, with Kerry Group as Finance Director for the EMEA Culinary Ingredients and Flavours Division.
Archie Glendinning, Director RHC Archie joined the Royal Highland Centre in 2010. Prior to that he worked in the food and drink industry for 20 years, based both in the UK and overseas, and was previously employed for 13 years by AG Barr plc holding a variety of roles. As director of the Royal Highland Centre, his role spans strategic and operational responsibilities.
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Bayern Munich’s Stadium: Allianz Arena.
six cities strategy: munich
cities enter into new partnership In 2010, the City of Edinburgh Council’s Economic Development Service announced a new investor engagement strategy, focusing on a number of the world’s fastest developing city regions. One such city is Munich, with which Edinburgh has had a twinning relationship for more than 50 years. Both Edinburgh and Munich are keen to step up their economic engagement. * German Stock Exchange * University of Edinburgh 22, Technische Universität München (TUM) 58, Ludwig-Maximilians-Universität München (LMU) 66. Source: QS 2010
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T
hat both cities wish to exploit their economic synergies is not surprising: Munich is home to the largest concentration of Dax-listed* companies in Germany; among them financial giants Allianz and Munich Re, as well as the industrial muscle of Siemens and BMW – two powerhouses helping Germany maintain its position as the world’s second largest export economy. Edinburgh’s own financial sector is the fourth biggest in Europe by asset value and both cities also boast universities that are among the top 100 in the world*. The cities also share other characteristics: as capital of Bavaria, Munich is an important political centre and the seat of the Bavarian Landtag or state parliament, just as Edinburgh is home to Scotland’s parliament. As the largest economy in the European Union, Germany recorded its fastest quarter-on-quarter economic growth since reunification in the second quarter of 2010
– growing by 2.2%. Business confidence also reached a three-year high in 2010, with consumer confidence hitting a threeyear high in October. It’s a vibrant market. Wolfgang Mössinger, General Consul in Scotland, believes there are many ways in which the two cities – which first confirmed their civic twinning agreement in 1954 – can benefit from each other’s economic experience.“Relations with Edinburgh have always worked well at civic level, focused around youth and culture – both areas where each city has great strength. We welcome the drive to build on that and foster closer economic links.” Both cities are also cultural hothouses; offering rich, vibrant festivals, a home to countless arts organisations and world class museums that ensure they both feature regularly among cities scored highest for quality of life in indexes such as Cushman & Wakefield’s European Cities Monitor 2010. Such synergies perhaps help explain why German property investors have been
and remain keen to invest in Edinburgh. David Davidson is Managing Director of Cushman & Wakefield in Scotland and has worked with several German property funds. “The Germans take a long-term view to their investments and they recognise that current prices offer a real opportunity for long-term growth. German investors are keen on high quality projects, such as the acquisition of The Quay at Fountainbridge by Deutsche Bank Real Estate (RREEF) and The Cube, a speculative commercial development in Edinburgh by Kilmartin, which was forwardpurchased by IVG – one of Europe’s largest listed property companies. “German investors are comfortable because they often know the city personally and know that the quality of workforce, population of students and the festivals combine to make Edinburgh a great business base where it is easier to retain and recruit good employees.” David has advised German property funds on the Scottish market for some years: “German investors feel Edinburgh has gone
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through a dip and are optimistic for the longer term. They have reserves and know they can buy today and see a return within two-three years.” Like Edinburgh, Munich is also a thriving centre of the new knowledge economy with strengths in biotechnology, software and service industries, including finance, and a clutch of key corporate headquarters including BMW, Siemens and Infineon Technologies. “In these areas, the civic authorities have many lessons to share,” adds Wolfgang Mössinger.“Edinburgh can compete globally as an attractive city, one which appeals to high fliers in academia or business, and to students, so both cities have a lot to share in their experience of marketing that globally, to retain and attract people.” One German national who was attracted to Edinburgh and has stayed is Max Scharbert, chairman of the German British Chamber of Industry and Commerce (Scotland). Max has lived and worked in Scotland for eight years.
• G ermany is Scotland’s fourth largest trading partner, accounting for 6% of all exports (13% of Scottish exports to EU countries excluding UK.) Global Connections Survey 2009 • T he UK remains one of Germany’s top 10 export markets. • R ecent figures suggest that there are approximately 100 German companies with Scottish subsidiaries. SDI • L atest research on visitors to Scotland, from Q1 2011, revealed that Germany represents Scotland’s most important overseas tourism market, overtaking the USA. (See also ‘Tourism Insights’ on page 19.)
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Investing life into Lifesciences
Snap shot Munich is the capital of the Federal State of Bavaria, Germany’s third largest city, and one of Europe’s most prosperous cities. The city has a population of about 1.4 million and the metropolitan area is home to around 2.7 million people. As capital of Bavaria, Munich is an important political centre and the seat of the Bavarian Landtag (the state parliament) and all state departments; the Bundesfinanzhof (the highest German tax court) and the European Patent Office. Munich is a centre for the German new economy in terms of biotechnology, software and other service industries. It is the home of key corporate headquarters e.g. BMW, Siemens and Infineon Technologies. In addition, the city has a strong financial sector and is Europe’s largest publishing centre. Munich hosts eleven universities, including the ‘Ludwig-Maximilians University of Munich’. With about 47,000 students, it is the second largest university in Germany and considered one of its best. Munich has 87,000 students, 16% of whom are foreign. Munich is a popular tourist destination and has been described as Germany’s ‘secret capital’. Annual festivals include Oktoberfest, the Tollwood Festival (music) and the Opera and the Film Festivals. Edinburgh and Munich have enjoyed a twin city relationship since 1954. It is Edinburgh’s oldest link and has brought together many people and organisations not just from Edinburgh and Munich but also from Scotland, Bavaria and beyond. The partnership has supported exchange of good practice in areas such as city development, school pupil and teacher exchanges, the environment and equalities. Munich has successfully applied to the EU’s Leonardo Programme for funding to allow colleagues to spend short placements in Edinburgh in order to explore and deepen our understanding of both cities and the opportunities arising. A direct flight operates daily from Edinburgh Airport to Munich.
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Edinburgh sits as the beating heart of Scotland’s life sciences sector, with more than half of all Scotland’s lifescience jobs located in the Edinburgh City Region. It is another key sector where both cities can benefit from closer links. Edinburgh’s leading position in life sciences has been reinforced this year, with a series of openings at the Easter Bush Estate, to the south of the city. These include the Scottish Centre for Regenerative Medicine (SCRM) and the new campus for the University of Edinburgh’s Royal (Dick) School of Veterinary Studies (R(D)SVS). Easter Bush Research Consortium, part of the Edinburgh Science Triangle, is a partnership between the Roslin Institute, the Moredun Research Institute, R(D)SVS and Scottish Agricultural College and represents a cornerstone in the Scottish Government’s Life Sciences Strategy. The Edinburgh Science Triangle is the
BMW Head Office, Munich.
“More than 17,000 visitors attend Munich Real Expo, from around 65 countries, to present their commercial real estate products, so it is a key platform for us. We’ll also use our cultural and diplomatic connections to boost the economic connections between the two cities.”
“GBCIC organise events to bring the Anglo-German communities together and we attracted between 80 and 100 people to our spring 2011 event. We’ve been speaking with Elaine Ballantyne, Head of Investor Support at City of Edinburgh Council, to discuss more possible events to tie in to Edinburgh’s strategy. “We also offer support to Scottish companies looking to export to Germany and would be happy to talk to German companies considering a move into Scotland. In fact, three German renewables companies have opened offices in Edinburgh in the last year, including PNE Wind.” Renewables are high on the political agenda for both city authorities.“Germany plans to close all nuclear reactors by 2020 and replace them with renewables, especially wind,” explains Max.“This should see heightened interest in Scottish opportunities from German companies, given the Scottish Government’s own commitment to generate 50% of Scotland’s electricity from renewable sources by 2020.” The German Consulate in Edinburgh is considering an event, to be run in Edinburgh later in the year, which will bring together the key stakeholders for renewables. “Most wind companies are based in the north of Germany,” explains Wolfgang
Mössinger, “but Munich’s utility company is owned by the city. Munich has installed and built biomass devices and has taken measures to enhance the energy efficiency of many public buildings. Their utilities company offers 100% electricity from hydropower sources. Using this experience to advise public authorities in Scotland is one area in which the cities could cooperate.” The UK has more offshore megawatt (MW) capacity installed than the rest of the world combined and Scotland’s potential renewable energy resource alone is estimated at a staggering 60 gigawatts. With Leith Docks capable of supporting vessels working on these offshore developments, the city has huge potential from renewables generally. It is home to companies developing leading new technologies, such as Pelamis Wave Power – which became the world’s first business to connect a commercial scale deepwater wave energy device to a national grid, in 2004 – and Aquamarine Power, which is on record citing the city’s ‘fantastic number of higher education institutions’ as incredibly important in deciding to locate in Edinburgh. As an initial step in cementing closer economic links with Munich, the Consulate is hosting a networking event during the
www.investedinburgh.com
“German investors feel Edinburgh has gone through a dip and are optimistic for the longer term. They have reserves and know they can buy today and see a return within 2-3 years.” Edinburgh-based Pelamis became the world’s first business to connect a commercial scale deepwater wave energy device to a national grid.
collective name for seven research parks – including Edinburgh Bio-park – clustered in Edinburgh and the surrounding Lothians. These, cumulatively, provide world-class facilities for both academic research and enterprises working to commercialise the latest scientific and technological breakthroughs. In animal biosciences in particular, and in life sciences generally, Scotland is among the leading centres of research globally. The co-existence of medical bioscience and animal bioscience expertise in a very concentrated location sets Edinburgh apart from the international research community and offers huge potential for life sciences as it’s unlikely that stem cell research will be used to benefit humans until the work has been proven to benefit animals. > Further information: www.ebrc.ac.uk
Edinburgh Festival, in August, marking the attendance of the Gebirgsmusikkorps, from Garmisch-Partenkirchen in Bavaria, at the Edinburgh Tattoo. “In October, Edinburgh will also have a presence at Munich Expo Real,” adds Elaine Ballantyne.“This will be an important step in promoting our collaboration with Munich, and an opportunity to explore further business and sectoral links”. Leon Johnson, Economic Development Officer, Investor Support, adds: “We are attending Munich Real Expo to promote a number of investment opportunities that exist in Edinburgh’s four development zones – City Centre, Waterfront Edinburgh, West Edinburgh and South Edinburgh. Our stand, 013 in Hall A1, will have details on each of these opportunities. I would welcome potentially interested parties contacting me in advance to arrange appointments to meet at Expo Real, in order to learn more about what Edinburgh has to offer.”
further information e: leon.johnson@edinburgh.gov.uk e: elaine.ballantyne@edinburgh.gov.uk
| july to september 2011 | INVEST EDINBURGH 13
<ANALYSIS
Immigration to Edinburgh:
They’ve done it – and don’t regret it: migrants to Edinburgh
Scotland’s capital is an ever more attractive location for enterprising people
A
s the globalisation of industry and education transcends national borders, living in a location other than your place of birth is becoming a perfectly normal occurrence. This is to Edinburgh’s benefit: latest figures published in 2010 confirm that in-migration exceeded out-migration by 5,066 people. This briefing reveals Edinburgh’s advantage: young and enterprising people just want to live here. Klaus Zimmermann, head of the Institute for the Study of Labour, a think tank based in Germany, explained why many UK cities attract far more foreigners than many other European cities: by immediately granting citizens of new EU member states the right to work, the UK not only attracted business-minded tradespeople to Britain; the liberal ‘open doors’ approach also appealed to welleducated, talented people. Edinburgh was particularly successful in attracting both groups: between 2002 and 2009, the number of adult overseas nationals registering to work in the city
14 INVEST EDINBURGH | july to september 2011 |
soared by 149%. A particular buoyant rise was observed between 2004 and 2005 (it more than doubled then); the largest share of newcomers in that period stemmed from EU accession states, in particular Poland.
“Edinburgh has a fantastic cultural environment.” In-migration from overseas countries to Edinburgh was well above the Scottish average, reflecting the city’s strong economy. Glasgow and Dundee, for example, also had an increase; however, figures for Scotland’s capital are higher when relating it to the size of its population. Only Aberdeen, Scotland’s third most populous city and home to the North Sea oil industry, has a similar pattern to Edinburgh. Evidence from Scotland as a whole suggests that non UK-born individuals were more likely to be employed in professional occupations than those born
in the UK (17.3% and 12.9% respectively). Most overseas immigrants in 2008/2009 were in the younger age groups – 69% were aged between 16 and 34 – which in part reflects the large inflow of students and graduates willing to stay. A survey into graduate retention conducted by the University of Edinburgh found that good jobs and career development opportunities were the most important factors for graduates to stay; for others it was important to live in a family-friendly environment or near their partners. Edinburgh’s unique mix of good job opportunities, strong economic conditions and an outstanding quality of life are also reasons for many UK residents to move north of the border. A study conducted by the market research firms Experian and Leithal Thinking found that most migrants to Edinburgh from the UK were young, well-educated professionals earning salaries higher than UK average. The study found that around a quarter of those who moved to Edinburgh were part of the so-called ‘Liberal Opinions’ group.
People from this group tend to be avid explorers of new ideas, cosmopolitan in their tastes and liberal in their social attitudes. They work in knowledge-intensive jobs, particularly within government, the media, research, consultancy and information technology. Edinburgh is second only to London in attracting movers from this profile. Edinburgh has a fantastic cultural environment with a year-round programme of festivals and events, it is the first UNESCO City of Literature and has various theatres and independent cinemas. The city provides outstanding job and career opportunities in financial services, tourism and the creative industries. It is this combination that will, without a doubt, continue to attract talented people to Scotland’s capital.
further information www.talentscotland.com www.edinburgh-inspiringcapital.com/live For a summary of the UK Visa system see: http://www.ukvisas.gov.uk/en
www.investedinburgh.com
George Minev, RuVisa (moved from Bulgaria) George arrived from Bulgaria 20 years ago. Being familiar with the intricacies of completing visa forms, he decided to create a company that assists businesspeople to rapidly get visas to Russia. Nowadays, RuVisa assists with all BRIC and various other countries.“The biggest nations have embassies and consulates in Edinburgh,” George explains. “Compared to London, embassies here are around the corner which means that we can access them quickly.” Nevertheless, RuVisa founded another branch in London to also capture the biggest market south of the border. George now employs seven staff. George concludes that “besides being business-friendly, Edinburgh is a great place for raising my kids. There is no better place to live, work and grow a company than here.”
Annette Götzkes, LanguageLinks (moved from Germany) Annette stayed in Edinburgh after finishing university here. “I didn’t have any concrete plans to create a language school,” she remembers.
“I began formalising things when I got my first corporate client, BP. A designer friend created the logo, I opened a business account, bought a fax machine and LanguageLinks was born!” Soon afterwards, Lidl, various Scottish Councils and other big players queued for her services. Annette also became the preferred language supplier for Standard Life – the Edinburgh-based FTSE 100 life assurance and pensions business. LanguageLinks now has a pool of tutors teaching German, Italian, Spanish and French. Besides the successful business, Annette enjoys Edinburgh’s vibrant cultural life: “I find it astonishing that a city of this size has four theatres and hosts one of the largest art festivals in the world. I also like the residents’ openness, their wit and easy going ways.”
Prof Sethu Vijayakumar, University of Edinburgh (moved from Japan) After completing his PhD at the Tokyo Institute of Technology, Sethu headed eastwards to become a research assistant professor in Los Angeles. The next step further east brought him to the School of Informatics at the University of Edinburgh where he became Professor of Robotics. Sethu knew that the School’s research is internationally recognised, that Informatics in Edinburgh delivers more world-leading research than any other school in the UK and contributes 10% of the UK’s worldleading research in the Computer Science and Informatics Unit of Assessment (UoA). Any plans to move further east? After living in Tokyo and Los Angeles,“I find Edinburgh a perfect size in terms of raising a family. Culturally it’s very rich, too. Edinburgh brings everything together. For me, that’s enough reason to stay.”
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<addedextras
<Making it happen 19
City generates interest from occupiers Site HI.
Ben Reed, Director for Office Agency at Jones Lang LaSalle* in Scotland, writes... A year ago, we wrote in this magazine about the cautious improvement in business sentiment providing a more stable backdrop upon which corporate plans and strategies could be devised. A more forward looking stance amongst corporates during 2010 assisted the Edinburgh office market – allowing it to return to more normal conditions, with total take up representing an increase of 35% on the previous year and sitting just below the five and ten year average at 72,464m2 for the city. Demand was primarily focused on well located, good quality smaller open plan offices within the city centre with a strong emphasis on public transport and local facilities for staff. A notable proportion of deals were driven by lease events and some of the largest transactions were ‘opportunistic’, clearly taking advantage of weaker market conditions to secure better quality offices on attractive financial terms. Building on improved leasing activity, 2011 has seen continued interest from occupiers with take up reaching around 13,935m2 in Q1. Supply continued to decline with the overall vacancy rate falling to 7.3%, significantly lower than any other UK Regional Office Market. This has been driven largely by declining Grade B space. However the Grade A market remains constrained with vacancy rates stable at just 3.5%.
As we continue through 2011, we expect to see a slow but steady increase in demand with financial services including wealth management, business services and media/technology proving to be the dominant sectors. For example, Virgin Money is establishing a new 2,787m2 headquarters in St Andrew Square whilst BlackRock and State Street both recently announced significant growth in staff numbers for their Edinburgh operations. Edinburgh also captured a significant inward investment opportunity with Amazon confirming a new call centre operation at Waverley Gate creating 380 new jobs. This was a significant coup for the city, competing against Newcastle as a location, where property costs are considerably lower. Whilst in 2010 we saw a number of sizeable relocations from within the public sector, including NHS and Creative Scotland, we anticipate that demand will reduce as austerity measures take hold. However Edinburgh, unlike many other UK Regions, has a relatively small exposure to public sector employment at just 15%, being more aligned to the South East of London than to the North East ,Wales and Northern Ireland which has the highest public sector employment figures. In 2011 the focus will remain on cost effective space. However, options are becoming more limited. This squeeze is particularly apparent for large requirements where organisations
seeking over 4,645m2 of modern Grade A space would only have four options to choose from within the city centre. The total Grade A supply stands at approximately 51,096m2 which is equivalent of approximately two years average take up. Whilst we expect occupiers to remain cautious, a dwindling supply of larger buildings should start to register on corporates’ agendas, especially where they have lease events in the next two to three years. While we expect developers to begin positioning themselves strategically to take advantage of the impending shortage, the lack of speculative development funding will result in a severely limited pipeline. As Grade A supply reduces further, we expect to see a return to pre-letting activity. Within the city there is just one speculative scheme under construction, providing 17,326m2 within the heart of the Exchange District, which is due to complete in Q1 2013. Known as Site HI, this is the only new development outside of London and the South East to offer over 9,290m2 by the time it completes. The timing of this development should prove opportune taking advantage of a spike in lease events that will occur during 2013 to 2016.
further information www.joneslanglasalle.co.uk
latest in heritage Trails tELLS more REMARKABLE TALEs “The contrast between the organic medieval Old Town and the planned Georgian New Town provides a clarity of urban structure unrivalled in Europe. The juxtaposition of these two distinctive townscapes, each of exceptional historic and architectural interest … creates [an] outstanding urban landscape.” UNESCO World Heritage description
further information www.ewht.org.uk whc.unesco.org
Since 1995, UNESCO has included Edinburgh’s combination of Old and New Town on its World Heritage List. Together, they provide a unique example of the evolution of town planning. While many cities boast scenes of architectural beauty and historical significance, the sheer quality of Edinburgh defies belief. It is a resource that is nurtured by Edinburgh World Heritage (EWH), a charity funded by the City of Edinburgh Council and Historic Scotland. Their role is to conserve, protect and promote the World Heritage Site. Research reveals that almost half of all visitors are aware of the city’s UNESCO status before they come – and, with more than 5,000 listed buildings in Edinburgh, visitors are spoilt for choice when it comes to choosing what to see and do. In fact, across 4.5 km2 of the city centre, 75% of all building stock has been identified for its historical importance. Exploring the streets of the New Town, it’s possible for a pedestrian to walk a mile and see only Category A listed buildings on their route. It’s hardly surprising then, that more than 90% of all visitors to Scotland’s capital report that the best experience to be enjoyed is simply to ‘walk around’ … and on every street corner there is a story worth discovering. EWH’s ‘War Stories Trail’, launched to
41% of all visitors are aware of the city’s WHS status and 17% of those who come suggest it’s one of the reasons they visit. coincide with Edinburgh’s role as the national venue for Armed Forces Day 2011, is the latest way in which to explore the Site’s rich heritage. The Trail highlights 12 eye-catching yet often overlooked statues; each of which is closely connected with the proud history of Scotland’s fighting men and women. Together with a related iPhone application, the Trail takes visitors (and residents) on a journey of military discovery, starting with the National and Nelson’s Monuments on Calton Hill, which commemorate the Napoleonic Wars. It continues over North Bridge, past the tribute to the King’s Own Scottish Borderers, before heading to the Mound and the Boer War campaigns of the Black Watch: in particular, the regiment’s brutal experience at the Battle of Magersfontein. As the new Trail exemplifies, Edinburgh’s public art has hundreds of fascinating stories to share.
* Jones Lang LaSalle is a real estate services and investment management professional services firm active in over 60 countries
16 INVEST EDINBURGH | july to september 2011 |
www.investedinburgh.com
| july to september 2011 | INVEST EDINBURGH 17
<THE STATISTICS
ANNUAL STATISTICAL OVERVIEW
Median pay for Edinburgh residents [3] £27,504
Prime city centre office rentals (sqm/year) [5] £290
Gross Value Added (in million) [1] £16,301
Industrial starter unit (sqm/year) [5] £85
Total GVA growth on previous year [1] 5.3%
Zone A shop unit (sqm/year) [5] £1,800
GVA per capita (resident population) [1] £34,562
Average residential selling price in Q4/2010 [6] £213,685
Registered Enterprises [4] 15,740
Year on year % change [6] -2%
Annual gross disposable household income [1] £17,160
Total sales value, all properties in Q4/2010 (million) [6]
Tourism
£241.20
latest
Scottish Total Int’l Exports (£m) latest
Annual airport passenger volume (million) [7] 8.6
EU Exports [17] 9,590
17.57
Agriculture, Forestry & Fishing [17] 155
Average hotel room occupancy 2010 [9] 76.90%
Production & Construction [17] 6,955
Annual rail station passenger volume (million) [8]
4500 4000 3500 3000 2500 2000 1500 1000 500 0
Average revenue per available room [9] £61.40
of which manufacturing [17]
Annual tourist expenditure (million) [10] £1,137.50
Services [17] 2,480
World ranking for conferences [11] 29
Rest of World Exports [17] 10,655
84.00% 82.00% 80.00% 78.00% 76.00% 74.00% 72.00% 70.00% 68.00%
6,695
Property Market Edinburgh v London [5] London
Edinburgh London
Edinburgh
Prime City Centre Office Rental (sqm/year)
Zone A Shop Unit
Average Room Occupancy 2010 Edinburgh v Comparator Cities [9]
Greater London Edinburgh
Paris
Vienna
Amsterdam
BowLeven plc Caledonian Trust plc Craneware plc Cupid Ltd IndigoVision Group plc Quayle Munro Holdings plc Sigma Capital Group plc J. Smart & Co. (Contractors) plc Dawson International plc Omega Diagnostics Group plc
% change on Q1 2010 12.40%
Hotel Occupancy [9] 65.4%
Sales (Edinburgh) % change on Q1 2010 [13] 2.58%
% Annual Change 1.8%
Sales (Scotland) % change on Q1 2010 [14] 1.07%
Revenue per available room [9] £45.60
Sales (UK) % change on Q1 2010 [15] 1.13%
% Annual Change 3.8%
Visitors spend on shopping, % change on Q1 2010 [16] 9.50%
Labour Market
Q1/2011
Housing Q4/2010
Jobseeker’s Allowance claimant count [20] 32,701
House Prices [18] £216,445
% Annual Change [20] -4.10%
% Annual Change [18] 3.10%
Jobseeker’s Allowance claimant rate [20] 3.30%
House Sales [18] 1,979
% Annual Change [20] -0.26%
% Annual Change [18] -6.00%
Vacancies advertised by Jobcentre Plus [21] 6,696
Average house sales comparator cities [19] [ii] 1371
% Annual Change [21] -14.23%
% Annual Change [19] -16.30%
Business Q1/2011
Scottish/UK GDP, Annual Growth to Q4/2010 Q4/2010
Business Start Ups [22] 404
Total Gross Value Added, Scotland [12] 0.8%
% Annual Change [22] -14.76%
Total Gross Value Added, UK [12] 1.4%
New Incorporations [23] 1130
Services Sector, Scotland [12] -0.1%
% Annual Change [23] 28.10%
Services Sector, UK [12] 1.1%
Foreign Direct Investment [24] 7
Construction Sector, Scotland [12] 11.2%
% Annual Change [24] 40.00%
Construction Sector, UK [12] 6.0%
Shopping £15.71
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1 2 3 4 5 6
Office of National Statistics General Register Office for Scotland Annual Survey of Hours and Earnings (ASHE) Scottish Corporate Sector Statistics (2010) Valuation Office Agency Edinburgh Solicitors Property Centre
7 8 9 10
Edinburgh Airport Office of Rail Regulation STR Global Scottish Tourism Economic Activity Monitor (STEAM) 11 International Congress and Convention Association
Eating/Drinking £23.86
Average House Prices in Edinburgh [18] 235,000 230,000 225,000 220,000 215,000 210,000 205,000 200,000 195,000 190,000
7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%
Expenditure of staying visitors in Q1 2010 (Per person/per DAY) Travel/Transport £3.48
Capital goes where it’s treated best. Figures from 2011 reveal that the UK’s combined corporate income tax rate is amongst the lowest in OECD countries. Of the English-speaking countries, only Ireland has a lower rate than the UK; New Zealand, Australia and the United States all levy a far bigger burden on companies. George Osborne, the UK Chancellor of the Exchequer, plans to further reduce the main rate of corporation tax: by 2014 the UK rate will have reduced to 23%. For companies with tax-adjusted profits below £300,000 corporate tax was decreased to 20% on 1 April 2011. The Patent Box is another measure created by the current Government to stimulate research and innovation; according to this policy, from 2013, corporation tax on the income derived from patents is reduced to 10%. 40
Q1/2011 Q4/2010 Q3/2010 Q2/2010 Q1/2010
Combined Corporation Income Tax Rate
Q1/2011 Claimant Rates [20]
30
Entertainment £8.25
25
[i]
Accommodation £27.50 Shopping £14.34
20 15 10
Glasgow
Comparator Cities
Scotland Edinburgh Aberdeen
Eating/Drinking £19.45
Chart: Combined corporate income tax rate, selected OECD countries (OECD 2011) Charts: Lynn Jones Research Ltd, Edinburgh Visitor Survey Q1 2011
12 13 14 15 16 17
Corporation tax
35
For monthly updates on Edinburgh’s Economy see ‘Essential Trends’ and ‘Edinburgh Economy Watch’
SourcES
Accommodation £31.48
Retail Sales
% Annual Change 8.4%
14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
Footfall
Footfall (number of pedestrians in city centre) [13] 5,808,871
Revenue per available room
Retail Q1/2011
* (Figures were taken before Invest Edinburgh went to press on 22 June after 18:00)
Q1 2011 on Q1 2010 % change [7,9 & 13]
Hotel Occupancy
Q1/2011
Airport Passengers (million) [7] 1.9
0.01 0.01 0.03 0.06 0.02 -4.5 -11
Aberforth Smaller Companies Trust Edinburgh Dragon Trust Edinburgh Inv Trust Edinburgh US Tracker Trust Scottish American Inv Trust The Scottish Investment Trust plc Scottish Mortgage Investment Trust plc
Entertainment £9.45
Airport Passengers
Tourism
7.83 2.58 4.7 6.55 2.42 491.1 711
Major Investment Trust Companies
Travel/Transport £4.68
LATEST TRENDS
-1.5 7 2.25 0.57 0.4 35 -0.21 -21 0.1 -0.1
AIM Listed
Expenditure of staying visitors in Q1 2011 (Per person/per DAY)
For more annual statistical information see www.edinburgh.gov.uk/edinburghbynumbers
320.75 107 610 8.37 440.4 660 7.79 394 2 14.27
Scottish Government The City of Edinburgh Council Scottish Retail Consortium British Retail Consortium Lynn Jones Research Scotland’s Global Connections Survey 2009
18 Register of Scotland (Scottish Cities) 19 Land Registry (English & Welsh Cities) 20 Department of Work and Pensions 21 Jobcentre Plus 22 Business Gateway 23 FAME 24 FDI Markets
[i] Comparator cites are London and Norwich [ii] Comparator cities are Birmingham, Bristol, Cardiff, Glasgow, Leeds, Liverpool, Manchester, Newcastle and Nottingham.
5
Ireland
latest
Poland
Property Market
United Kingdom (from 2014)
Wealth & Productivity
Austria
With academic degree [1] 147,700 With higher degree [1] 52,300
Denmark
Net in-migration [2] 5,066 % of population aged 16-65 [2] 71%
Academic Degree
-1.3 -1.7 -4.5 -8.1 -0.99 6 0.05 -2 0 -2
Netherlands
Self-employed [1] 27,200
37.35 205.3 943 411.8 15.51 499 4.46 235.75 171 238
United Kingdom
Natural change (births less deaths) [2] 1,236
Royal Bank of Scotland Group plc Standard Life plc Murray International Trust plc Cairn Energy plc Havelock Europa plc John Menzies plc Johnston Press plc Melrose Resources plc Optos plc Wolfson Microelectronics plc
Sweden
Employees [1] 212,200
Name Last price* Change
Canada
Population density (persons/km2) [2] 1,811
Results from the Edinburgh Visitor Survey from the first quarter of 2011 reveal that 42% of all visitors to Edinburgh were aged 45+. This is up 7% from 2010 and up 13% from 2009. More than half of all visitors came from the UK (52%); the largest share of those came up from London (18%) and North West England (19%). The main overseas market was Germany – 11% of overseas visitors – followed by tourists from the US (9%; a fall from 15% recorded in 2010). The vast majority of visitors stay overnight; the average length of stay was three days. Edinburgh Castle remains the most popular attraction in the city (74% visited this site) followed by St Giles Cathedral and the National Galleries. When rating the level of service received, visitors demonstrated high satisfaction with Edinburgh as a tourist destination. The whole report can be requested from Dr Tom Mathar, Market Research Executive at Marketing Edinburgh Ltd.
New Zealand
In employment [1] 240,300
edinburgh Share Index
Norway
Households [2] 201,737
Tourism Insights
Australia
Economically active [1] 256,500
Germany
Population [1] 477,700
latest
Share of economically active Edinburgh residents with higher degree [1]
latest
France
Labour Supply
United States
latest
Japan
Population & Households
0 Chart: Combined central and sub-central (statutory) corporate income tax rate given by the adjusted central government rate plus the sub-central rate, selected OECD countries (OECD 2011)
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| july to september 2011 | INVEST EDINBURGH 19