BQ2 Tourism Supply Chain by We Are UMi

SPECIAL REPORT: TOURISM SUPPLY CHAIN

SCALE CHALLENGERS Bank champions Scottish business RIGHT VAN MAN Meet the bespoke camper van guru THE DRAM BUSTER Financier’s spirited career change

CONTENTS

CONTACTS

04 NEWS

ROOM501 LTD Christopher March Managing Director e: chris@room501.co.uk Bryan Hoare Director e: bryan@room501.co.uk

All the key updates affecting the tourism supply chain

10 LEARNING LESSONS

EDITORIAL Kenny Kemp Editor e: editor@bq-scotland.co.uk

HIT Scotland boss David Cochrane talks of building on 2014

14 RIGHT VAN MAN How a business personalising camper vans is on the road to success

20 FRUITS OF THE SEA Seafood industry gets set to capitalise on ‘Year of Food and Drink’

26 THE DRAM BUSTER The financier who turned his love of whisky into a new career

32 LIVE DEBATE Business leaders contemplate how we can make the most of 2014’s legacy

42 CITY OF EXCITEMENT Investment and entrepreneurial drive could transform Dundee’s fortunes

48 GLORIOUS OUTLOOK The future looks bright for the familyowned Glen Rosa Hotel

FOCUSING ON HOSPITALITY

24 TOURISM SUPPLY CHAIN

SPECIAL REPORT:

TOURISM SUPPLY CHAIN

WELCOME

Welcome. That was a year that was, wasn’t it? Scotland 2014 will go down in history for so many reasons. Glasgow 2014, the Ryder Cup, the Year of Homecoming, the MTV Awards and the Scottish Referendum. Each played a particular part in placing Scotland and the Scots in the international consciousness. The key question for the tourism industry was, what were the lessons – and how can we maintain the momentum? This BQ2 Special Report, sponsored by Santander Corporate and Commercial Bank, takes a look at tourism and its supply chain, speaking to hoteliers about finance for refurbishment and the food and drink industry about the opportunities of the 2015 Year of Food and Drink. Our BQ Live Debate, with industry leaders, throws up a number of interesting points with Dr Mike Cantlay, the chairman of VisitScotland, saying that the whole game for Scotland must be about sustained growth. Scotland’s hospitality industry is expected to increase its contribution to our GDP by 2020, so we really expect companies to show how they are going to grow. We hope this BQ Special Report provides plenty of food for thought – and for action.

DESIGN & PRODUCTION room501 e: studio@room501.co.uk PHOTOGRAPHY KG Photography e: info@kgphotography.co.uk ADVERTISING Bryan Hoare e: bryan@room501.co.ukk t: 0191 426 6300

room501 Publishing Ltd, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT www.room501.co.uk room501 was formed from a partnership of directors who, combined, have many years of experience in contract publishing, print, marketing, sales and advertising and distribution. We are a passionate, dedicated company that strives to help you to meet your overall business needs and requirements. All contents copyright © 2014 room501 Ltd. All rights reserved. While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All company profiles are paid for advertising. All information is correct at time of going to print, November 2014. room501 Publishing Ltd is part of BE Group, the UK’s market leading business improvement specialists. www.be-group.co.uk

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BQ Magazine is published quarterly by room501 Ltd.

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Ahoy there! Scotland targets would-be sailors, Fife pubs get makeover, event organisers express concern over new charges, go-ahead of £1.5m apartments, construction firm praises bank >> Spirited idea Edinburgh Gin has unveiled a Rhubarb & Ginger Gin Liqueur, the latest addition to the Edinburgh Gin Liqueur range featuring flavours native to Scotland including raspberry and elderflower varieties. Alex Nicol, managing director of Spencerfield Spirit who own Edinburgh Gin, said: “We wanted to produce a gin that was native to Scotland to add to our collection. Rhubarb & Ginger is a great addition to the Edinburgh Gin range and we’re sure it is going to prove very popular alongside the other flavours in the range.”

>> Rest assured A luxury hotel in Scotland’s capital is ensuring guests have the ultimate good night’s sleep. The Crowne Plaza Edinburgh – Royal Terrace has designated one of their seven Georgian townhouses as a dedicated ‘Quiet Zone’ to prevent disruptions or excessive noise. Following a £7.25million refurbishment, eight double rooms have been specially adapted with soundproof windows. General Manager Lucja Leonard said: “The Crowne Plaza Edinburgh – Royal Terrace specialises on meeting the needs of the

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modern business traveller. We know how important sleep is – it’s the fuel that powers you for a productive day ahead. The Quiet Zone reinforces the Crowne Plaza ethos of giving corporate guests the opportunity to keep connected and working, to refuel and to enjoy a restful night.”

>> Fast food frustrations Restaurant guests hate waiting when ordering, paying and in particular for their food to arrive, according to research by CGA Peach and Edinburgh-based Zonal Retail Data Systems. But the use of mobile devices is seen as a good way to overcome these frustrations. The study of 5,000 people reveals customers value swift service. Nearly half (47%) say food not arriving quickly enough is their biggest frustration, with 24% saying their order being taken incorrectly is their leading bugbear. Many want to leave the table quickly after eating. One in six (17%) 25 to 34 year-olds say not being able to is a major frustration. Zonal Retail Data Systems chief executive Stuart McLean says: “What is crystal clear from this research is that consumers won’t wait. Competition is fierce, and people know that if their restaurant or pub doesn’t give them speed and convenience, there are plenty of others who will. We need to make life for our customers as easy as possible, and the brands that identify the systems and processes to achieve that will be the ones that win the race.” Zonal Retail Data Systems, based in Tanfield, is the leading provider of integrated hospitality management solutions to more than 6,000 leisure and hospitality businesses across the UK.

We need to make life for our customers as easy as possible

>> Nautical and nice! A campaign has been launched to encourage more people to enjoy a sailing holiday in Scotland. Tourism Minister Fergus Ewing launched Sail Scotland’s campaign, Sailing to Success, at Inverness Marina, which has been supported by a £22,500 grant from the VisitScotland Growth Fund. Sail Scotland – the marketing organisation for sailing tourism – will also receive £11,000 from Scottish Development International. It is estimated that Scotland’s sailing industry is worth £101m a year, supporting 2,700 jobs. The aim of Sail Scotland’s campaign is to generate an extra 8,382 visitor boat nights from its target markets, delivering £1,089,660 of additional expenditure into the Scottish economy. Sail Scotland will exhibit at a number of international boat shows in 2015: in Dusseldorf, Gothenburg, Oslo and Wales. The campaign will also include development of the Sail Scotland brand, and targeted promotional marketing activities. Tourism Minister Fergus Ewing said: “I am delighted to announce that Sail Scotland is the latest recipient of an award from the VisitScotland Growth Fund. This £22,500 grant will help the group to promote sailing holidays in Scotland to a wider audience and, given the quality of destinations and facilities on offer in this country, I have no doubt they will succeed in their aim to attract thousands more

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enthusiasts to these shores over the coming year.” Daniel Steel, chief executive of Sail Scotland, said: “At Sail Scotland we have been working hard to promote the industry for 20 years, and it is great to see Scotland beginning to realise the true potential of sailing and boating tourism. With a draft marine tourism strategy in development, this is a tangible example of how the industry will play a leading role in delivering growth. This funding will help fund one of the most ambitious marketing plans in our history, further raising awareness of Scotland as a world-class sailing destination both within the UK and overseas.

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>> A fistful of dollars

Our American cousins remain our most frequent – and high-spending – overseas visitors. Here are the top ten markets for Scotland in the first six months of 2014 for visits and spend:

>> Emirates is flying high Emirates, the Gulf-based airline, picked up several awards at the annual Scottish Passenger Agents’ Association Travel Awards. The airline was awarded Best Worldwide Airline for the 11th consecutive year and Best Sales Support Team for the second year running. Senior sales executive at Emirates, Shirley Saadi, also picked up the award for Best Airline Representative for the second time. Emirates has been a winner in this category on ten occasions. Laurie Berryman, vice president UK, Emirates, said: “Not only is Emirates recognised worldwide for excellent levels of hospitality, it is also recognised more locally, in Scotland and the North East, for its continued commitment to and investment in the region. This includes the recent opening of a dedicated Executive Lounge at Glasgow Airport in July, making Emirates the only nondomestic airline at the airport with a lounge offering.” Emirates celebrated its 10th year of connecting passengers from Glasgow to Dubai and beyond earlier this year. It is Scotland’s leading long-haul airline, with two daily flights to Dubai departing at 13:05 and 20:45.

Emirates is recognised worldwide for excellent hospitality TOURISM SUPPLY CHAIN

PASSPORT

JANUARY-JUNE 2014: INBOUND VISITS

JANUARY-JUNE 2014: TOURIST SPENDING

1. USA

173,000

1. USA

£127M

2. GERMANY

161,000

2. GERMANY

£64M

3. IRELAND

79,000

3. NORWAY

£35M

4. NORWAY

67,000

4. AUSTRALIA

£35M

5. NETHERLANDS 60,000

5. NETHERLANDS £32M

6. FRANCE

59,000

6. SWEDEN

£31M

7. AUSTRALIA

57,000

7. CANADA

£30M

8. SWEDEN

51,000

8. FRANCE

£23M

9. CANADA

50,000

9. CHINA

£20M

10. POLAND

47,000

10. IRELAND

£19M

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segment meeting again and are keen to play our part in stimulating demand. Scotland’s national brand is riding high following the successful staging of the Commonwealth Games and the Ryder Cup, and for corporate meetings there has never been a better time to be associated with an event in the country,” adds Andrew. The delegate rate at EICC will be available from St Andrew’s Day, 30 November, 2014, and will remain in place until the end of 2015.

We want to get this market segment meeting again... and to stimulate demand >> The ups and downs of job creation Scotland’s first indoor trampoline park is bouncing into action in South Lanarkshire. Air Space, Europe’s largest freestyle jumping arena and the urban playground, features more than 100 interconnected, wall-to-wall trampolines – covering the same area as more than six basketball courts. Adventure company Go Ape has invested £2 million to open at Playsport in East Kilbride. The company has grown to 28 sites nationwide since the first course was launched in 2002. The development will provide 60 new jobs.

>> Pubs to get makeovers Graham and Rachel Bucknall, the husband and wife team behind the award-winning Bridge Inn at Ratho, near Edinburgh, have taken over two of Fife’s favourite pubs: The Ship Inn and The Golf Tavern in Elie. The Bucknalls will refurbish both properties, adding bedrooms to the Ship Inn and are keen to develop links with local food and drink producers. Graham Bucknall said: “Elie is a wonderful place to live, work and visit so we’re thrilled to be taking over two such outstanding businesses. With Fife’s strength in local food and drink, we’re looking forward to working with local farmers and producers to develop the menus. The area is already recognised as something of a foodie haven and we want to add to that, boosting growth by appealing to locals and visitors alike. It will take time but

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we hope by next Easter people will start to see some exciting changes.” The Bucknalls took over the Bridge Inn at Ratho in 2010 and since then the pub and restaurant has won numerous accolades. It was awarded the Best Pub in Scotland at the AA Hospitality Awards.

>> Corporate push Edinburgh International Conference Centre hopes to increase demand in the corporate meetings sector with the introduction of a targeted day delegate rate. Corporate meetings in the 150 to 400 delegates range qualify for the simplified buying process. EICC head of sales and marketing, Louise Andrew said: “Corporate sales meetings were early victims of recessionary pressure and they have been lagging behind the recovery in the wider economy. We want to get this market

>> Ideal partners Menzies Distribution, the marketing and logistics specialist, has agreed a supply chain partnership with online group-buying platform RetailerSaver.com. The agreement will see Menzies manage the nationwide warehousing and fulfilment of products and stock for RetailerSaver.com, as well as the delivery of products to stores across the country. RetailerSaver.com is the UK’s first online purchasing group for independent retailers and was created to support high street traders by providing access to discounted rates secured through group buying power. RetailerSaver.com chief exectuive Jamie Burke said: “RetailerSaver was founded to help with the revival of the UK’s high street and provide a genuine alternative to ‘the big 3’ delivered wholesalers. An independent, healthy and local high street supports the retail market and keeps our town centres alive. It’s good for suppliers, retailers and consumers, so I am delighted to be working with a company such as Menzies Distribution who share in our desire to support local retailers.”

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>> Events hit by new charges The new charging regime of Police Scotland is one of the biggest challenges to Scotland’s outdoor events sector, says one of the country’s leading promoters. Speaking at the BQ Live Debate, Geoff Ellis, the managing director of DF Concert and Events, said: “The new charging regime which Police Scotland has raises a serious issue. It might mean we challenge this in the Scottish courts. We certainly have to tackle it on a political level, especially a 31% tax on people going to outdoor events. It’s not cost recovery for policing. It is Police Scotland making profits.” “I’m not sure what the role of the Scottish Police Authority is about in this. I raised the cost with them and they put the blame onto the Chief Constable of Police Scotland for the new charging regimes. “It could end up in a legal challenge. I’m prepared to challenge the principles because policing is a devolved power in Scotland. In England and Wales there is a definite precedent that policing for an event should be on a request for special policing services. Yet there is a level of policing that is expected by the public – and that the public are due. They pay for this in their taxes, and VAT on ticket sales.

TOURISM SUPPLY CHAIN

What used to happen in Scotland and the UK was that there was a working relationship with the local police commanders, and T in the Park is a great example where we have paid hundreds of thousands of pounds each year, more than we would have been obliged to pay. However, the working relationships have been very good and we’ve been OK about paying these extra amounts. It brings confidence. But this has changed significantly now and the police want full-cost recovery

Smaller festivals are concerned that they might go out of business for an outdoor event. Yet there is a level of policing that the Scottish public deserve as a statutory service.” Mr Ellis said all event organisers are facing a sharp hike in policing bills, with the police bill nearly a million pounds for T in the Park. “My biggest issue with it is the 31% overhead charge that the police stack on the bill. Even

NEWS

if you are happy with the policing bill, you get another 31%. When I’ve questioned this at chief constable level I’ve been told this is a contribution to batons, CS gas and special uniforms. These are things that the police already paid to have from the public purse. So the police are being paid twice for many of these elements. I know this is of concern and some of the smaller festivals are concerned that they might go out of business because of the charges.”

>> Peter steps down Peter Lederer, the chairman of Gleneagles Hotel who has done much as a tourism ambassador for Scotland, has announced his retirement as Scottish director of drinks giant Diageo. Peter, also a board member of the Scotch Whisky Experience in Edinburgh and Edinburgh Military Tattoo, steps down from his Gleneagles position from January 2015. The former chairman of VisitScotland ran Gleneagles Hotel from 1984 until 2008, before becoming chairman. He will continue working on the turnaround of four three-star hospitality businesses based in Scotland.

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>> Martin does the honours at Malmaison Michelin star chef Martin Wishart has opened The Honours Brasserie in Glasgow’s four-star Malmaison as part of its £3m refurbishment. The partnership is a five-year licence agreement and, if successful, will look to expand the chef’s brand across the hotel group. Malmaison chief executive Gary Davis said:“The Malmaison brand is always daring to be different and when we decided to refurbish the stunning Glasgow venue we wanted to find something that would be really special. We believe that our partnership with Martin and The Honours will deliver that.” Chef Martin Wishart said: “I have spent more than two years looking for the right location

for The Honours Glasgow and am excited to have found a home at Malmaison. I am pleased that Head Chef Andrew Greenan will be returning to Glasgow where he has previously worked under Paul Tamburrini at Malmaison’s sister venue, One Devonshire Gardens by Hotel du Vin.” The Honours Glasgow now brings the chef’s portfolio of venues up to five; with three in Edinburgh, as well as Martin Wishart at the Cameron House Hotel.

>> Go ahead for £1.5m luxury apartments in capital Old Town Chambers, operated by Lateral City, is to add another 14 serviced apartments to its offering, making it the biggest collection of five-star serviced apartments in Edinburgh. The luxury apartments will be completed in May 2015,

less than two years since Old Town Chambers was launched. The expansion, at a cost of £1.5 million by the award-winning Chris Stewart Group, will take the total number of luxury serviced apartments up to 50, which will sleep up to 200 guests. The apartments, set in the capital’s historic Old Town, will have a 24-hour concierge service, making it one of the most exclusive places to stay in Scotland. Julie Grieve, chief executive officer of Lateral City, said: “We’re delighted to be expanding in such a short space of time. To have the largest five-star collection in Edinburgh in the space of two years is testament to the success of the brand.“ Our occupancy level remains consistently high throughout the year with it reaching 100 per cent throughout key events, such as Hogmanay, rugby Internationals and Six Nations and the Edinburgh Marathon. The demand from our visitors has spurred us to expand.”

>> Construction firm finds new banking support MacLeod Construction, now a £20 million business, was set up in 1975 by twin brothers Kenny and Murdo MacLeod. The firm employs a core staff of 200 with an additional 100plus sub-contractors at any given time. The Argyll-based business manufactures and assembles timber-framed buildings across the region and constructs housing, industrial and commercial buildings, as well as health and leisure facilities. Despite being one of the largest privately owned businesses in the region, the MacLeod brothers have seen their fair share of economic peaks and troughs. During the downturn, the company moved from private sector work to local authority and housing association contracts, and this responsiveness has been a significant growth driver. Nonetheless, the recession affected MacLeod Construction’s relationship with its bank when ‘land banking’ – buying up and preparing sites in readiness for construction work – became an issue. The brothers had used their overdraft to cover land purchases and servicing, enabling the company to move quickly once building contracts were signed. “During a financial review meeting, the bank announced that they could no

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longer support this,” says Greig MacLeod, Kenny’s son and the company’s business development manager. “We enquired about other options but unfortunately they were not able to offer services to support all of our business requirements.” And so the MacLeods began searching for a new bank. MacLeod Construction was still an attractive business to a number of players. But Santander relationship director Deborah Gallacher, who already had a connection with the company, took the initiative and contacted the MacLeod brothers as they began their search. “They weren’t without their suitors,” says Deborah. “The business has an excellent track record and has been consistently profitable, adapting their business model to fit the economic climate. The fact that the MacLeod team were great to work with made the opportunity to become their bankers even more attractive.” Deborah and a Santander product partner visited MacLeod’s main sites and the areas in which it operates. The bank gained a highly positive view of the company along the way. “We were able to gather information to make an application to the credit team,” says Deborah. “By that stage, the field had been

narrowed down to three banks.” Deborah and the team took the trouble to ask the MacLeod brothers about their specific requirements and tailored a suite of solutions to meet their long-term needs. “The team took the time to ask questions about what we, as a construction company, were looking for in a bank,” says David. “Santander were the only ones to do this. They definitely had a different, more personal approach.” The bank offered a £1 million trade finance facility, and a working capital overdraft facility of £3 million. The bank also set up a £950,000 asset finance line, which MacLeod uses to buy plant machinery and vehicles. “Contracts with housing associations normally need a performance guarantee of 10%,” says MacLeod’s finance manager David Renwick. “Santander provides these guarantees on our behalf via this facility.” The switch to another bank presented a challenge which Santander rose to. “From an operational side, having an implementation manager on site on the first payroll day was crucial,” says Deborah. “The changeover needed to work seamlessly, because of the company’s local reputation.”

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B R E W E D N O A H

S I N C E

W A S

w e s t b e e r. c o m

T E M P L E T O N

W E S T

B O Y

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B U I L D I N G

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0 1 4 1

5 5 0

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OVERVIEW

CAPTURING THE LESSONS OF 2014: AN INCREDIBLE YEAR On every count, 2014 has been an exceptional year for Scotland. The international spotlight was trained on the nation – and there is immense satisfaction that the Commonwealth Games, the Ryder Cup and the Year of Homecoming were delivered with stunning success. Even the way Scotland handled itself during the passionate and often-heated referendum campaign was recognised around the world as an exemplar of a mature democracy in action. However, tourism industry leaders understand there can be no let up, or sense of complacency about keeping up the momentum. VisitScotland’s marketing gurus dubbed the three years of 2012 through to 2014, the ‘Winning Years’, that does not mean that from 2015, the country can afford to return to the ‘Losing Years’. Scotland could have a tourism industry worth over £23.1bn by 2025, with 11.5%

of the national gross domestic product, and supporting 350,000 jobs, or 12.6% of the total Scotland number. This figure is being revised upwards after the success of 2014. David Cochrane, the chief executive of Hospitality Industry Trust (HIT) Scotland, says it is important that Scottish business captures and shares the lessons learned. Speaking at a BQ Live Debate, he said that during the Commonwealth Games in Glasgow hotels learned that athletes preferred single beds in twin rooms. “We’ve had some fantastic example of what’s gone really well this year: but have we been able to capture this?” he asks. He said switched-on hotels in Glasgow that were looking ahead to the sporting events in 2015 and beyond have been picking up on specific requests. “More places who house the sports teams

now know that athletes like to travel and stay in twin rooms rather than singles. This has led to consideration on refurbishments to include more twin rooms and zip lock beds to accommodate a greater variety of guests into the future, especially if Scotland gets more international sports events next year and beyond. “I only found this out by chance in a conversation but if that was shared, then this would help us capture as an industry, the essence as well as the ‘feel-good’ factor.” He feels this joined-up learning could be part of the great legacy of 2014. There were other examples too. “The forward-looking places did their refurbishments many months ago so the visitor had a great experience of clean and wellpresented premises. This has paid dividends, particularly in Glasgow-based properties >>

So many aspects went well in Scotland. But how can the tourism industry make sure that lessons were learned? BQ Editor Kenny Kemp hears from David Cochrane

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OVERVIEW

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which have landed repeat business with later events, such as the BBC’s Sports Personality of the Year awards.” The battle for staff was another issue throughout the summer months of 2014 – although the special calibre of the volunteers, including the incredible Clydesiders, and those working at the Ryder Cup, helped keep everyone smiling. David Cochrane said that a number of places lost casual staff to the big corporate contract companies who needed hundreds of employees. That placed a strain on staffing. “The good places had already thought of this and had tied up their teams with end-ofcontract bonuses and terms to ensure they could still deliver top service with experienced staff.” There was also a need to look at how loyal workers could be properly rewarded with bonus schemes for their extra hours and effort during peak event periods. Those jobs would be distributed right across Scotland, for while urban areas such as

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We have to make sure that we capture the success stories – and replay them to people around the industry Glasgow or Edinburgh have the highest number of jobs in tourism, the percentage of tourism-related jobs are higher in Scotland’s rural areas. There were plenty of sound ideas, such as inviting taxi drivers to breakfast and ‘familiarisation’ time over a coffee allowed for knowledge transfers and quicker journeys for guests travelling to the cities for the first time. Productivity in the tourism sector is also

expected to increase by 2% per annum. While Nick Finnigan, the executive manager at Edinburgh Castle, said better networking and joined-up thinking ensured that the castle’s floodlights were kept on while the world’s media was broadcasting live on television during the referendum. This was a brilliant backdrop on which to showcase Scotland. Mike Cantlay, chairman of VisitScotland, said: “The industry is still rather shell-shocked that the events of 2014 went so well. But, of course, we have to make sure that we capture the success stories – and replay them to people around the industry.” Deloitte estimates the tourism GVA (Gross Value Added) multiplier to be 2.2, meaning that for every £1,000 generated in direct tourism GVA there is a further £1,200 that is secured elsewhere in the economy through the supply chain. According to the Deloitte study, tourism employs 270,000 people in Scotland in 20,000 diverse businesses. The same study calculates that the industry contributes £11bn annually;

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meanwhile, the tourism figures for early 2014 show inbound tourism to Scotland was at the highest level since 2008. From January to June 2014 Scotland welcomed 1.1m inbound international visits – an uplift of 16% on the same period in 2013 and the highest number of visits for six years. The amount spent during visits to Scotland in these first six months was £575m – marginally lower than the record breaking £620m spent in 2013 but still higher than any other year apart from 2013. As BQ went to press, the high-spending of July-September figures was still to be calculated. During these Q3 months the nation hosted a successful Ryder Cup in Gleneagles and of course the Glasgow Commonwealth Games. Out of all inbound visits to Scotland, business visits saw the most notable growth, with uplift of 41% to a total of 238,000 visits – the highest number for this six month period since 2009. Holiday visits rose by 9% to 497,000 – a new record – while the amount spent on ‘Visiting Friends and Family’ reached a new record of £163m. The largest number of visits to Scotland during these six months – 173,000 – came from the United States, with growth of 76%. Visits from Germany followed, with a total of 161,000 visits representing a rise of 42%. Visits from these two markets also brought in the highest amount of tourist spend with expenditure from the United States up by 42% to £127m and £64m spent during visits from Germany. Visits from China were more valuable than ever before, with this six month period seeing tourism spending by Chinese visitors reach a new record of £20m. Visits from Scotland’s other major tourism markets, including the Republic of Ireland and Norway, were also up in the first half of 2014 compared to 2013. Visits from the Republic of Ireland grew by 46% to 79,000 and spend went up 38% to £19m. Visits from Norway rose 67% to a new record of 67,000 and spend was up 47% to £35m compared to the same period in 2013. With a record number of people wanting to come and experience Scotland – the industry is keen to ensure that no stone is left unturned in making sure the visitors have a great experience – and want to return again. n

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OVERVIEW

Deloitte estimates the tourism GVA multiplier to be 2.2, meaning that for every £1,000 generated in direct tourism GVA there is a further £1,200 that is secured elsewhere in the economy

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INTERVIEW

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ON ROAD TO SUCCESS IN COMFORT A business adventure encouraged Simon Poole and Cath Brookes to set up Jerba Campervans, now one of the leading VW conversion companies in the UK, in North Berwick. Kenny Kemp hears how they are striving for excellence as an SME >>

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INTERVIEW

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INTERVIEW

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The first two-and-a-half years were a steep learning curve. It was a case of learning from the mistakes, analysing them and then making the improvements.We then tried not to repeat these mistakes SPECIAL REPORT | WINTER 14

It is fitting that North Berwick – a holiday town with its bracing sea air and beach – should be the home of Scotland’s only Volkswagen recognised campervan conversion business. But Jerba Campervans, in the lee of the volcanic stump of Berwick Law, is a midget gem of a Scottish manufacturing business, employing ten people, with a turnover touching £2m. Its founder and managing director Simon Poole, a fastidious and determined business figure, is committed to making high-quality motorhome conversions so part-time adventurers can enjoy the comforts during their leisure time. In 2014, the company has converted 43 vans, and it has bookings until May 2015. Simon and his wife, Cath Brookes, lived in Canada in the mid-1990s and bought an old-style T2 Volkswagen in Vancouver. “It seemed like an easy thing to do. We would go off for the weekend when we were hiking, camping and climbing. It was a relatively cheap way of getting around. After seven months in Vancouver, we drove right across Canada and sold it in Montreal, and returned to the UK.” After their sabbatical, Simon returned to Cancer Research UK as a charity fund-raiser. However, the couple were smitten by the touring bug, and hired various motorhomes for trips before buying a newer T4 VW van. With three children soon part of the family, they toured New Zealand and Australia and learned about what’s essential in layout and design. They often wondered if those who designed the various motorhomes had actually spent a day or a night in their creations. His work as a fund-raising consultant brought him to Scotland, but he missed the contact with the charities and seeing how the money he helped to raise was being disbursed. Simon was an accomplished weekend craftsman, who found he was handy at building kitchens and modifying kits and decided to convert his own VW. So he turned his passion into a business. In 2005, Cath and Simon bought a new VW Transporter T5 and undertook the painstaking conversion. In 2006, they set up Jerba Campervans, based in North Berwick. “The first two-and-a-half years were a steep learning curve. It was a case of learning from the mistakes, analysing them and then making

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INTERVIEW

We’ve been able to capture the Scottish market and we’re also getting orders from all over the rest of the UK. We are still smaller in volume... our lack of space has restrained us over the years the improvements. We then tried not to repeat these mistakes. Everything we did was ploughed back into the business,” he recalls. The company takes the VW T5 Transporter and turns it into a bespoke campervan for those who love to explore the great outdoors. The typical customer is a fifty-something outdoor type who loves hill-walking and scenic touring, but whose kids have left home and is now wanting a bit more comfort, rather than camping in a tent. They are not into anything flashy – they simply want a high quality campervan. “People will sell their big cars, get a small car for the town and buy a campervan for ten years for long holidays in Europe and weeks away here and there. The van can easily cover 150,000 miles but most of the customers use it for holidays and that’s nearly always less than 10,000 miles a year.” Jerba Campervans has been approved by Volkswagen Commercial Vehicles as a registered bodybuilder and works closely with the franchise dealership, Volkswagen Van Centre (Edinburgh) at Bilston, outside Edinburgh, through whom the vans are supplied. The customer buys the whole van and the conversion from Jerba. When Jerba started, a particular rival company in Surrey was already doing conversions along a similar design layout, but Simon believed he could do this better in Scotland. “The company was selling 25-30 vehicles a year in Scotland and people were travelling down to see the company, then returning to pick up the van. I could see that nobody was challenging them at the top end of the market, in what was then the £35,000-plus bracket, so I figured we could do in Scotland. There are only three or four UK-registered bodybuilders for VW Transporter

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T5 campervans – and we are one of them, based in East Lothian. The others are all based in southern England, some way away, but we still compete strongly.” “We’ve been able to capture the Scottish market and we’re also getting orders from all over the rest of the UK. We are still smaller in volume because we didn’t have enough room. Our lack of space has restrained us over the years.” The company has outgrown the back of the old Ben Sayers golf club factory in North Berwick, which is due to be demolished. The remedy for Jerba has been to spend £300,000 on a new facility on the back road to the ruined Tantallon Castle, where Jerba will be opening its new 7,500sq ft premises on the site of a disused mushroom factory. Jerba have been converting over 40 vans a year, while their largest competitor is doing more than 100. Simon says the new factory will allow his team to work 40% more effectively and reach 60 at the top end of the market. “We’ve built up a reputation for high quality and excellent customer service. We have a flexible approach which is our point of difference to some of the guys down south. While they have an excellent reputation and very good quality, all of their furniture is precut in Germany and then sent across. They assemble it in the UK. At Jerba, we have invested in the machinery and the skills and training to do the cutting ourselves. We can do bespoke conversion, whereas the other guys really can’t do this.” The order book is testimony to the success. If you want a T5 Campervan conversions, you need to order now, to get it in time for your next summer holiday. It takes around four weeks to convert each van, and >>

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approximately 150 hours of work. But it is obviously worth the wait. One specific order from a customer in southern England was for extra items and work which came to £65,000. The customer was delighted with the work and the finish. However, a typical price is around £44,000 for a VW T5 Jerba Sanna, with seats and berths for four people, with single or double bed, a plumbed-in swivel loo, a kitchen with a two-burner hob, a Vitrifrigo compressor fridge with freezer. All of this on a two litre, 138bhp engine, with a payload of 703kg for a passengers and all the kit. When Simon worked in the charity sector he was influenced by Peter Vicary-Smith, the chief

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executive of consumer group, Which? and a former McKinsey consultant.“Peter was very good with his corporate mantra: he would say: ‘a clear strategy enables me to say no to a good idea, or ‘data takes the emotion out of decision-making’, these were great business basics which I took from him.” “I’ve been fixed on what we do. People come and ask if we can do other things. I want to focus on what we do well. If we can turn it out quickly and do it well, then it is not going to come back with a problem. People are delighted and you build your brand, rather than trying this or that.” A breakthrough has been Jerba’s involvement with the Scottish Manufacturing Advisory

Service (SMAS). Simon pays tribute to the help he has received. “I approached Scottish Enterprise about three years ago. I wanted to wait until my business was established and doing well and had a brand position within the market.” Jerome Finlayson, of SMAS, who had worked with Glenmorangie as a production manager, and at Ethicon in Edinburgh, came to North Berwick and could see the obvious potential. Jerba, by then turning over £1million, was plotting its growth. To meet new DVLA safety regulations introduced in 2012, the firm invested in European Whole Vehicle Type Approval (EWVTA) which applies to motorcaravans. It gained the approvals for

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all of its five types of converted vehicle. “The proper way of proving the safety is to get the actual installation tested. We got a vehicle shell from VW, put in our rear seats and took the vehicle to a testing station. How we install safely is critical and we have European certification that covers all those key areas that we adapt and change from the original VW T5 factory-made Transporter van. This whole certification process cost us around £35,000 to do, but it is worth it because we are now ahead of the competition.” An SMS adviser came to help with lean management production. “The guy who arrived used to work for the RAF and was in charge of the servicing of Harrier jets at Lossiemouth. So he helped us with our engineering process. He made us think about every aspect of our workflow.” From the moment the new T5 arrives in North Berwick, every single job and movement was captured and analysed to see how it could be done more effectively. At this stage, the vehicle is a painted shell on its chassis with windows all the way around, and with the factory-fitted front swivel seats and the motorhome dashboard. The back is empty, ready for the conversion. Even for an SME, such as Jerba, this whole process can be refined by lean manufacturing. “We had our guys sitting with Post-it notes all over the place. We broke it down into 15-minute segments and it showed that it was a pretty useful exercise. It made us think about where we put our tools and when a process or job should be undertaken. All the little things can be pieced together in a more sensible and efficient way. It was about having the right tools in the right place and life became easier. It improved our productivity instantly.” The results for Jerba have meant that fewer vans are returned with these irritating newvehicle glitches. One early element that has improved is the drilling into the chassis, without shorting or damaging the underlying electrical systems. “In a VW T5 there are electric cables running all over the place, for the wipers and the rear lights for instance. It was very easy to drill a hole through a cable or screw through something. As part of SMAS work, we identified every single time we had an

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INTERVIEW

We do all the installation and fitting out from start to finish. The guys are very skilled, especially with the finished carpentry where we are working with edge-banding machinery electrical problem and how we could prevent it. We instigated an electrics check after certain jobs.” “The message is that small companies can use lean management. The principles are simple and this is how we have done it,“ he explains. “We do all the installation and fitting out from start to finish. The guys are very skilled, especially with the finished carpentry where we are working with edge-banding machinery to bond 15mm lightweight plywood. The team have to work, mould, shape and trim this for the vans. The furniture all has to fit beautifully.” Simon has been ploughing the profits back in, which has allowed Jerba to open its new premises and the team is looking at designing

and manufacturing some of its own parts. Does he think there are markets abroad for his work? “It is hard to export because we can’t order left-hand drive vehicles. VW won’t let us do that, which is fine but we can still be a thriving business for the Scottish economy and the rest of the UK.” For 2015, Jerba will be focused on delivery and maintaining its high level of quality in the new East Lothian premises. “It amazes me how other companies cut corners, I can see it but the customer might not always notice. If I stick to my principles and do it right then ultimately, as long as our spending is controlled and focused then I know that this underlying ethos will always win out in the end.” n

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FRUITS OF THE SEA With Scotland’s 2015 Year of Food And Drink on the horizon, Karen Peattie looks at how the seafood industry is stepping up to the plate

VISITORS to Dubai will almost certainly find an abundance of premium Scottish fish and seafood on the menu when they sit down to dinner on the first night of their holiday or business trip. Indeed, if they are flying out of Glasgow Airport with Emirates, those delicious, fresh langoustines will most likely have been on the same flight, such is demand for Scotland’s fruits of the sea in the Middle East. Make no bones about it, fish and seafood is big business for the Scottish economy. Exports are soaring with the salmon industry, for example, growing overseas markets by £60m in the first six months of the year – proof that demand remains high. In fact, an additional 12,000 tonnes of Scotland’s salmon made its way to kitchens and dining tables around the world, marking yet another outstanding period of growth for an often much-maligned

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industry. The fact that Scottish salmon is now enjoyed in 65 countries is impressive and testament to the efforts of an industry that frequently finds itself in the firing line of the anti-fish farming lobby. Yet while the world’s appetite for Scottish fish and seafood shows no signs of abating, how is it faring on the menu at home? James Withers, chief executive of industry body Scotland Food & Drink, is heartened by VisitScotland’s recognition that food and drink is now a vital component of tourism. Fish and seafood, he points out, is punching well above its weight when it comes to enhancing Scotland’s reputation for world-class produce both at home and overseas. But he warns that having a fantastic larder overflowing with quality produce is not enough, and urges everyone involved in the hospitality industry to use the Year of Food

and Drink in 2015 to “up the ante” and showcase Scotland at its best. “We know that food and drink is now one of our greatest success stories and the Year of Food and Drink couldn’t come at a better time, following the amazing year we’re leaving behind. “Scotland’s reputation for world-class produce is advancing across the globe as well as at home so now we have this fantastic opportunity to keep the momentum up. The potential is huge but we still have to win over some hearts and minds in parts of the tourism industry that have not yet embraced how important food and drink is to a visitor’s experience.” To that end, it is what happens at a local level that will be key, suggests Withers. “I often say that food and drink is one of Scotland’s bestkept secrets,” he says. “The industry is booming: it’s worth £14 billion to the Scottish

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INSIGHT

The industry is booming: it’s worth £14 billion to the Scottish economy and employs 360,000 people

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economy and employs 360,000 people. And if you consider that £1 in every £5 that a tourist will spend in Scotland will be on food and drink, you certainly can’t ignore it. “At this year’s big events, food and drink was critical and both the Commonwealth Games and Ryder Cup enabled Scottish suppliers to show the world how good our food is,” Withers continues. “However, there is still work to be done and it is what we do locally that is the foundation for future growth. The great news is that we have a national tourism industry that truly understands the importance of food and drink but it’s down to us – we all have to tap into the opportunity and you don’t get a bigger opportunity than the 2015 Year of Food and Drink.” Menus, he believes, are the perfect starting point for hotels, restaurants and pubs to engage with visitors. And when it comes to fish and seafood, many are already serving up a master class in provenance. Carla and John Lamont, owners of the award-winning Ninth Wave restaurant near Fionnphort on the Isle of Mull, represent a prime example of the “local” approach that James Withers alludes to. Who could resist pan-seared Mull hand-dived scallops, freshly caught Mull lobster or >>

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warm crab and Scottish Applewood smoked cheesecake made with fresh Sound of Iona crab? It’s not difficult to incorporate a story on a menu, and in the case of Ninth Wave, winner of the 2013 Highlands & Islands Food & Drink Restaurant of the Year, local really does mean local. Fisherman John, who is responsible for the daily catch of lobster and crab, swaps his oilskins for his kilt to perform front-of-house duties in the restaurant where he turns raconteur, regaling diners with stories about the produce and Mull itself. Visitors soon discover that the scallops are supplied by the couple’s next-door neighbour while other seasonal produce comes from neighbouring farms and producers. Meanwhile, Ninth Wave’s kitchen garden bounty boasts a wide array of fresh, seasonal produce with head chef Carla growing much

of the fruit, vegetables, herbs and edible flowers that she uses in her recipes herself. Local sourcing couldn’t get any closer to home and it is this dedication that has helped put Ninth Wave – and Mull – on the culinary map. “We’re just a wee seafood restaurant that opens during the tourist season,” says Carla, who hails from Canada. “Being so far off the beaten track means it can be quite difficult for people to find us so we play to our strengths – we know that tourists want to hear about where the food on their plate comes from and the fact we can tell them their scallops were caught locally that morning is a fantastic selling point for us. “As well as promoting the provenance of our food on our menus, we also use our website to go into even more detail,” she continues. “It’s an effective marketing tool but also a good way to let people know we are here. It allows us to tell our special story in a way that is going to make Ninth Wave

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James Withers, chief executive of industry body Scotland Food & Drink

We know that tourists want to hear about where the food on their plate comes from and the fact we can tell them their scallops were caught locally that morning is a fantastic selling point for us

appealing to potential visitors.” Of course, there are many other fish restaurants adopting the same mantra as Ninth Wave – Loch Fyne Oyster Bar & Restaurant in Argyll, Gamba in Glasgow and Edinburgh’s The Ship on the Shore to name just a few. On the west coast, Oban markets itself as the ‘Seafood Capital of Scotland’ while VisitScotland promotes the Scottish Seafood Trail – a culinary journey of discovery through the west coast taking in a selection of fine-dining restaurants and chilled-out eateries all with one thing in common: the freshest Scottish seafood possible. And don’t forget that most ubiquitous fish dish, either – Scotland’s fish and chip shops are quickly realising that even the humble fish supper can tell a story. Frankie’s Fish & Chips at Brae on the shores of Busta Voe in Shetland, winner of Best Eatery in the 2014 Highlands & Islands Food & Drink Awards and Scotland’s best chippy in the National Fish & Chip Awards on two occasions, screams provenance from the rooftops. All haddock, mussels, scallops and crab are Marine Stewardship Council-accredited with mussels coming from Blueshell, just half a mile up the road. Customers are even told the name of the boat that caught the haddock in their fish supper! This is exactly what Scotland Food & Drink’s Withers is talking about.

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Popular consumer events are also playing their part in raising awareness of the availability, variety and affordability of premium fish and seafood. Eat Drink Discover Scotland, hailed as Scotland’s largest celebration of Scottish food and drink, took place this autumn as part of Scottish Food & Drink Fortnight at the Royal Highland Centre at Ingliston. This three-day extravaganza brought together 100-plus exhibitors, celebrity chefs, demonstrations, talks and sampling sessions, with the Perth-based Scottish Salmon Producers’ Organisation (SSPO) one of the key participants. Bringing together salmon producers and chefs for a series of demonstrations, SSPO showed visitors how easy it is to cook salmon at home but also spent time talking to visitors about salmon’s journey to their plate. Seafood Scotland, meanwhile, is working hard on the sustainability message, taking it to an audience of around 700 chefs and culinary students at the recent Scottish Chefs’ Conference in Glasgow. “I want to enhance their knowledge, passion and understanding of what Scotland has to offer from their doorstep, and the efforts that the industry takes to ensure it is responsibly fished and sustainable,” explains Jess Sparks, the organisation’s environmental and technical manager. Also at the conference demonstrating his signature sustainable haddock and lobster dish was Michael Smith from the Three Chimneys restaurant on the Isle of Skye, which has just achieved its first Michelin Star. “Scottish seafood takes centre stage on our menus at The Three Chimneys every day, constantly inspiring our chefs and delighting our customers,” he says. All chefs attending the conference were presented with a selection of educational items, including Scottish species guides, recipe books and seasonality guides, to encourage them to include more seafood on their menus. And that can only be a good thing for the visitors from home and overseas using Scotland’s hotels and restaurants during the Year of Food and Drink. n Carla and John Lamont’s new book, titled ‘The Ninth Wave: Love & Food on the Isle of Mull’, is published by Birlinn (RRP £20).

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New vessel Sally Ann will be a vital asset The growth of the industry means new boats and feed barges. Sea trials have been completed for Scottish Sea Farms’ latest vessel. The £1.3 million Sally Ann wellboat, a vessel which is set to service all of the aquaculture company’s fish farms on the Scottish west coast. The vessel is 22.8m long with a displacement of 120 tonnes. It has a service speed of 9 knots with a maximum speed of 10.5 knots and is capable of carrying 105 tonnes on deck. Sally Ann was delivered from Arklow Marine Services in Ireland during August and extensive sea trials have been taking place over the past few months to ensure that the vessel meets all the stringent safety and performance standards. This follows from Macduff Shipyards in Aberdeenshire signing a £3.32m deal with the company. The contract is for four 150T steel feed barges and two 15m landing craft general purpose fish farm vessels. The barges and vessels have been designed by the yard in co-operation with Macduff Ship Design and will have a capacity of 150T each, to be fitted with Orbit GMT feeding systems, and powered by John Deere engines. Jim Gallagher, managing director of Scottish Sea Farms, said: “We are continually investing in our staff and equipment at Scottish Sea Farms and this £1.3 million new vessel will assist us in meeting an ever increasing demand for our high quality salmon.” Keith Wardhaugh, Logistics Manager, Scottish Sea Farms, owned by Leroy Seafood Group and SalMar, said: “The Sally Ann is a fantastic asset for the company. Not only will she provide the support services to our sites but, importantly, the state of the art technology on board will spearhead the fight against any biological threats to our stocks.” Managing director of Macduff Shipyards John Watt, said: “The barge contract will be completed in the Macduff and Buckie yards and this type of project allows us to plan for the future. The yard has just taken on ten new apprentices this year and increased the workforce to cover the additional work. Also it is good news for subcontractors who work at the yard and the local economy, it’s good to be competitive and keep this type of work in Scotland.” “Macduff Shipyards Ltd has worked on refurbishing barges and vessels for Scottish Sea Farms for many years but this is the first time that new barges have been built at the yard. The experience we have gained refitting existing barges has been invaluable in designing the new barge. The first two barges were delivered by the end of 2014 with a further two barges and the two vessels due next year.“

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A BANK WITH A STRONG FOCUS ON HOSPITALITY BUSINESS SPECIAL REPORT | WINTER 14

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INTERVIEW

BQ Scotland editor Kenny Kemp hears how Santander is keen to build on business confidence whilst establishing itself as a ‘scale challenger’ in the hospitality sector It is refreshing to see a banker with a broad smile on his face. Kevin Boyd, Santander’s Divisional Managing Director for Scotland, is an upbeat guy and speaks with passion about how Santander Corporate & Commercial is forging ahead on a number of fronts. A recent Santander business growth survey has shown that business confidence in the UK is at its highest level for three years, with businesses focused on growth both at home and overseas. It’s extremely encouraging and while business owners report that trading conditions remain challenging, a fifth believe that their business has never been in better shape. Santander is committed to helping businesses prosper and has been a consistent supporter of businesses in the UK, with lending over the last four years growing by an average of 17% per year. In the hospitality sector specifically, companies, such as Crieff Hydro, which has purchased the Peebles Hydro, and aiming for a turnover of £30m, and Seamill Hydro Hotel, on the Ayrshire coast, which has invested £5m in refurbishment, have been among those switching their business to Santander. LEARNING FROM THE MASTERS But Boyd and the team at Santander recognise that the role of the modern banker in supporting businesses involves more than just providing a business current account or loan facility as he explains “We aim to provide ‘added value’ experiences that help bring our network of influencers together and, where possible, work with our own customers to help deliver ‘thought leadership’ Masterclasses. One such Masterclass took place towards the end of 2014 with Crieff Hydro, the iconic Scottish tourist business. The journey that Stephen Leckie, John Jennet and their team at Crieff Hydro has been on over recent years

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is a truly fantastic one and we were delighted that they were prepared to share it with 17 other businesses. “ This is real example of how Santander is really adding value with an experience that you would not typically expect to be offered from a bank. SOURCING FUTURE TALENT The survey also showed that the outlook for staff retention and new job creation is also positive, which is welcome news for the wider UK economy and the hospitality sector. While the industry has been working hard to improve levels of training, Santander has been involved with Hospitality Industry Trust (HIT Scotland), supporting events to raise funds for industry bursaries and scholarships. Boyd says “The need to attract quality staff continues to be a challenge for hospitality businesses and by linking up with universities across Scotland we’ve been able to make a positive impact. Firstly, we work with the universities to source suitable candidates; individuals that are interested in building a career in the hospitality sector and welcome the opportunity to go and work with an employer for a three month period. Secondly, we fund 50% of the salary costs for the period.” This is an excellent way

of helping SMEs get an important project off the ground, where employment costs may otherwise prove to be a barrier and about putting young talented people into hospitality businesses and improving their business acumen. Boyd confirms, “What’s more, you don’t have to be a Santander customer to take advantage of this initiative – of course we’d like you to be - but it really is a genuine attempt to support these important sectors and, in so doing, help the wider Scottish economy. It is just one part of our innovative Breakthrough programme designed to support the UK’s best fast-growing small businesses. Santander is keen to extend its portfolio of business in Scotland’s hospitality sector, bringing added value through its innovative schemes. Boyd stresses the importance of sustaining the relations with the client. “Our ethos is in relationship banking, getting to know our customers, what’s important to their business and developing solutions that are a good fit on both sides. We want to look after their business and believe we have a lot to offer Scottish SMEs.” Kevin Boyd is obviously relishing his role and the challenges and opportunities ahead, so it’s no wonder he maintains such a broad grin on his face. n

Our ethos is in relationship banking, getting to know our customers, what’s important to their business and developing solutions that are a good fit on both sides

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THE DRAM BUSTER Alan Mitchell had a corporate career becoming general manager of a household Scottish financial company. Then he changed tack, turning his passion for whisky into a lifestyle business. He spoke to Kenny Kemp

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The Scottish whisky industry is buoyant at the moment. It is a worldwide product. It is a wonderfully unique industry and appeals to people across the widest spectrum Alan Mitchell is living the dream – or should that be ‘the dram’. He has taken his love of Scottish whisky and turned it into a niche business that is growing organically. “My business, Straight From The Cask, emerged from my hobby which grew around Scotland’s greatest product – whisky. I’ve always enjoyed whisky – and I wanted to share this with other people. My business is growing year on year and I have always said I want this to remain fun and a passion, so getting the right balance between work and pleasure is important to me,” he says. Alan built a career in financial services and human resources and rose to become a general manager of the Dunfermline Building Society. But once his time in management came to an end, he set about creating his own business. He launched his website in 2010 having bought the domain name straightfromthecask.co.uk some 15 years earlier. The business, based in Linlithgow, is a tiny part of Scotland’s tourism supply chain, selling its own branded malts from Scotland, bottled straight from the cask, and also arranging whisky clubs, tastings, distillery tours and walks for corporate and private events. Straight From The Cask is just one of several scores of small Scottish businesses offering specialist services to the drinks industry. “I think I offer a unique and less-formal tasting experience but I’ve been able to use my previous experience as a human resource manager for corporate team-building sessions too, often after board meetings,” he says. Straight From The Cask has had six bottlings from all over Scotland from Bladnoch in Galloway in the south-west, to Glen Ord in the North. “The corporate tastings have developed. Recently my tasting in London was a great

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success matching Michelin Star food to some superb whiskies. I have also expanded the number of whisky clubs/venues with new tastings planned for Perth. Tastings are popular around Christmas and New Year and Burns Suppers in late January. I have also found my clients like to relax and enjoy the event and prefer something different.” Straight From The Cask buy from individual whisky brokers and distilleries, where the casks are kept in the bond along with the rest of the stock until they are ready. “The recent bottling of my own cask at Bruichladdich was a highlight. The newest batch is a 12-year-old cask and, as always, the whisky is bottled at cask strength. I have a massive respect for the team on the island of Islay. Jim McEwan was the man who inspired me to set the business up and stop me just talking about it. The Distillery Academy at Bruichladdich, sadly no longer offered, was the best week of my life and to all those responsible for that experience, I thank them. To have my own bottling, bottled and made at Bruichladdich Distillery is a dream come true.” “I also have on offer a wonderful 18-year-old Lochranza, Isle of Arran, and a 15-year-old Glen Ord from the Black Isle, and I have a part share in a cask from Tullibardine, near Gleneagles, which will be bottled this year.” Straight From The Cask has over 200

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special bottles for sale. “I see 2015 as a year when I need to decide how much more work I take on. My clients expect a professional service. I have found that to offer a more personal, tailored event to fit their needs is much more enjoyable and fun. I offer a bespoke event and, as an independent, I do not ‘sell’ one particular brand but all brands.” Is there a growing opportunity for others to undertake similar kinds of business? “I do see expansion. The Scottish whisky industry is buoyant at the moment. It is a worldwide product. It is a wonderfully unique industry and appeals to people across the widest spectrum.” “A few years ago, I made contact with a Norwegian company and then conducted a tour for around ten who wanted to visit a distillery. We went to Glenkinchie in East Lothian and the day was a great success.” The personal Scottish touch obviously plays its part in selling whisky. “It’s funny how business develops sometimes. What I did not know was the parents of the company owner were ‘on the tour’ and gave personal feedback to their daughter! I have since hosted her and let her experience the tour first hand and now have bookings for next year.” “I also sold the Norwegian boss a rare St Magdalenes from my collection. We photographed the bottle with the old Linlithgow distillery, which closed in 1983, in the background and a chap walking past was caught in the picture. It turned out the elderly man worked there as distillery manager in the 1980s. A small world indeed,” he says. n www.straightfromthecask.co.uk

My business, Straight From The Cask, emerged from my hobby which grew around Scotland’s greatest product – whisky. I’ve always enjoyed whisky – and I wanted to share this with other people

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TOUR DE FORCE

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Robin Worsnop, the founder of Rabbie’s Small Tours, which has been expanding in London and Ireland, reflects on 2014 and looks ahead to next year

BQ: WHAT KIND OF YEAR HAVE YOU HAD? ROBIN: 2014 has been good for Rabbie’s though we didn’t grow as much as we planned and frustratingly we had to turn away quite a few customers, because we didn’t have enough capacity to either carry them or find them accommodation across the country. We’ve seen growth across all our divisions, significantly in London and Dublin and steady increases across Glasgow and Edinburgh. BQ: WHAT HAS BEEN THE HIGHLIGHT FOR YOUR BUSINESS? ROBIN: The highlight this year has undoubtedly been the opening of our first Rabbie’s café and hub for our passengers and locals at the end of Princes Street in the stunning colonnaded Georgian building which is one of the bookends of Waterloo Place. The opening of this beautiful space to the public is a great addition to Edinburgh’s offering. To see the Rabbie’s branded sign go up above the door at the beginning of April was a proud moment and a long distance away from Rabbie’s humble beginnings 21 years ago. BQ: WERE YOU BUSY DURING THE GLASGOW GAMES / RYDER CUP? Robin: We didn’t expect to be busy during the Glasgow Commonwealth Games and Ryder Cup as events like these can interfere with our normal operations. I’m not complaining though because these events help showcase Scotland to the world and help with our long term growth plans. As it happened we were pleasantly surprised that business was largely unaffected. BQ: WHAT IS 2015 LOOKING LIKE FOR YOU? ROBIN: We are seeking to capitalise on the great exposure Scotland has had in 2014 from both the successful events mentioned and the worldwide attention Scotland received during the great democratic debate that took place this year. We are still seeing legacy from the 2012 Olympic Games and our operation from London is going from strength to strength. The Edinburgh café is still a work in progress and we are applying for a licence and hope to get that through and open next year and longer in the evening, perhaps as a tapas-style bar.

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BQ: WHAT ARE CLIENTS EXPECTING THESE DAYS? ROBIN: They expect to be entertained and informed about Scotland – and on our other tours too. They want to see something authentic and they love meeting our driver / guides who really are the genuine characters who make what we do special. I know that our clients are surprised and delighted by their experiences. BQ: YOU MADE A LOT OF INVESTMENT THIS YEAR, CAN YOU EXPLAIN A BIT MORE? ROBIN: We’ve added another 15 Mercedes Sprinters for our fleet, each with 15 seats, and this is an investment of nearly £1m. We bought a ruined house in Portree and turned it into a home-from-home for our tour drivers. We’ve also bought a more secure site in the north of Glasgow, which is safer for our people and vehicles. BQ: ANY FAMOUS CELEBS OR UNUSUAL GUESTS THIS YEAR? ROBIN: Are you talking about the bald business magazine editor who took our Highland trip to Inveraray? BQ: YOU’VE ALSO GOT ANOTHER BUSINESS WHICH WILL BE AVAILABLE DURING SCOTLAND’S YEAR OF FOOD AND DRINK? CAN YOU TELL US MORE? ROBIN: I’m also the chairman of Mara Seaweed, which is bringing the flavour of the sea to our tables. It’s an ancient food for modern cooks and it is very healthy. The company has been co-founded by Fiona Houson, Xa Milne, and seaweed man Rory MacPhee. Brilliant people and a business to watch. Several top chefs are now using the natural products for their Scottish recipes. n

The highlight this year has undoubtedly been the opening of our first Rabbie’s café SPECIAL REPORT | WINTER 14

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SCOTLAND RAISES THE BAR – HOW DOES IT KEEP IT UP? The issue: How can we take advantage of the legacy created from recent key events in Scotland such as the Year of Homecoming, Glasgow 2014 and the Ryder Cup, and what do we need to do to further support the sector? When the American golfers were driven in their luxury coaches up the M9 with their police escort towards Gleneagles, the motorway gantry signs flashed a change: ‘Ryder Cup 2014: Scotland Welcomes the American Team’. Once the team had passed, the sign reverted back to more mundane traffic information. But, for Mike Cantlay, the chairman of Visit Scotland, this was a great example of how joined-up Scotland is embracing the importance of tourism to our country. “How dinky was that? If we can do that, we can do anything,” he said at the introduction of the BQ Live Debate on the Royal Yacht Britannia. The event, chaired by Caroline Theobald, was looking at how the legacy of 2014 can be extended towards 2020 and what further work was required. It was also

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noted that the MTV Awards, with 500 million viewers around the globe, were being hosted in Glasgow later that week. Mike Cantlay: “The whole game here is growth – and sustained growth. Tourism follows the economic cycles. For Scotland, it is about building on the momentum of 2014. We’ve had these great events of the Winning Years. It’s great to look around the room and see businesses who were part of this success – so congratulations on that.” The value of Scotland’s tourism was calculated at around £11bn in 2014 and is expected to more than double to £23.1bn by 2025, representing 11.5% of our national GDP. Another report suggested that revenue from tourism between 2014 and 2017 will grow by 28%. “In the period between 2012 and 2014,

TAKING PART Peter Lederer, chairman of The Gleneagles Hotel and director of Diageo Scotland. Kirsty Johnston, relationship director with Santander Corporate and Commercial bank. Lucy Scillitoe, general manager of Dundas Castle, South Queensferry. Dan Thurlow, director of exhibition sales at the Scottish Exhibition and Conference Centre, Glasgow. Henk Berits, director of commercial services, marketing and development, The National Trust for Scotland. Martin O’Kane, head of treasury in Scotland, Santander Global Banking and Markets. Dr Mike Cantlay, chairman of VisitScotland. Stephen Leckie, chairman of Crieff Hydro and the Scottish Tourism Alliance. Kevin Boyd, divisional managing director of Santander Corporate and Commercial bank in Scotland. Geoff Ellis, chief executive of DF Concerts and Events. David Cochrane, chief executive of Hospitality Industry Trust (HIT), Scotland. Nick Finnigan, executive manager of Edinburgh Castle. Steve Hand, regional business development director of Santander bank in Scotland Peter Taylor, chairman of The Town House Collection. Graham Silcock, regional director of Santander Corporate and Commercial bank in Scotland. Karen Wood, head of events, at the Edinburgh International Conference Centre. Hosted by: Santander Corporate and Commercial Bank. In the chair: Caroline Theobald, BQ Group Taking notes: Kenny Kemp, editor BQ Scotland Venue: Royal Yacht Britannia, Edinburgh BQ is highly regarded as a leading independent commentator on business issues, many of which have a bearing on the current and future success of the country’s business economy. BQ Live is a series of informative debates designed to further contribute to the success and prosperity of Scotland’s economy through the debate, discussion and feedback of a range of key business topics and issues.

tourism in Scotland created 29,700 jobs. Our tourism industry is off and running. The question is: what do we do now?” he said. He said that it was unlikely there would be

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three themes integrating so well for Scotland again: The Year of Homecoming, with 970 events, the Commonwealth Games, and the Ryder Cup. “It was very special.” However, in 2015, the Year of Food and Drink is ready to be exploited and is a ‘perfect theme’, focusing on an international consumer market. “We should be able to use that theme to go out and sell around the world,” he said. Scotland now has a proven track record in delivering major international events, and this includes the likes of T in The Park, proving Scotland had the capability of organising brilliant events that were safe and wellorganised. But, in such a global industry, Scotland could not afford to be complacent. “If there was one thing that people omit about 2014’s success: it is the Scottish people. It only worked because Scots got into it. This is really back to Peter Lederer’s mantra: ‘Tourism

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is Everyone’s Business’. Millions of extra tickets for events were bought by Scots. Scots played a great welcoming role for our guests.” Graham Silcock, in welcoming as the sponsor, said it was a pleasure to host the event. “We have a fantastic tourism, hospitality and leisure industry in Scotland and a vital cog in our economy, with £11bn a year of economic activity and nearly 9% of employment. 2014 has clearly been a momentous year for Scotland. We have been in the global spotlight for a wider variety of different reasons. We have every reason as a country to be proud of how we’ve been perceived in terms of infrastructure, organisation, security of major events but also the overwhelming sense of professionalism in the welcome that was displayed. Over the last couple of years at Santander we have been delighted to show our commitment to the sector, at a time when perhaps others have been pulling back. We’re

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proud of what we have done. We want to do more in terms of funding, where we are committed to supporting the leisure tourism and hospitality in Scotland … I believe we can look to 2015 with great confidence and I’m looking forward to hearing how we keep the momentum going.” David Cochrane: “We’ve been talking about the ‘Winning Years’ for many years – and 2014 has been a winning year. But I’d like to think that winning is in the plural. It is not just the end of it. Scotland has been showcased internationally and also at home, it has brought different parts of Scotland to life with different audiences. This is good for future business. However, while it has been very successful, there has been huge complacency in Scotland. We have been reliant on some of the success created by public sector money and I wonder what our industry might be like if it didn’t have these global events coming >>

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to its doors. Yes, there’s been huge success but also room for improvement in some quarters.” Henk Berits echoed the view that it has been a phenomenal year for Scotland. “There is no doubt about it. I believe that the themed years since 2009 [Year of Homecoming] has really helped collaboration and raised the profile of Scotland. We all know that next is the Year of Food and Drink and this is a huge opportunity for Scotland on the back of what has happened this year. The National Trust for Scotland has places such as Bannockburn, with a £10m project and its cutting edge digital technology. This is helping visitors enjoy and interpret history. “I was impressed with the difference between 2009 Year of Homecoming events and 2014. The Ryder Cup was different and in a league of its own. However the quality of everything we did, with events taking place up and

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down the country, was immense and involved working with partners and organisations we have never worked with before. This helped lift the whole visitor experience and this was key for me.” Peter Lederer: “There are some strategic issues that we all need to think about that are coming down the track. The Living Wage is going to be an enormous issue for this industry. The tourism sector has struggled with the Minimum Wage and the political movement towards the Living Wage is happening, and this will have an impact on our industry. Technology is another area. I think the hotel industry will be more impacted by Air BnB than anything else it has seen in the last 50 years. A colleague stayed for five days in a stunning New York apartment for the price of a mediocre hotel. Why wouldn’t you? And there are other online

The sector has struggled with the Minimum Wage and the political movement towards the Living Wage is happening, and this will have an impact on our industry developments that are pretty scary.” He also talked about the environment and how Scotland has to work to maintain its beautiful scenery, caring more for the pristine landscapes. He also expressed concern about the ‘public sector dependency’ and the expectation ‘it was going to sort everything out’. “I don’t think we should over-estimate what the public sector can and will do. The difference is made when the private sector comes together and decides it is going to do it. The public sector then has a role to play in supporting that, not the other way around. The other thing we don’t do well is selling. If we don’t sell, we don’t have a business.” Stephen Leckie said a rapidly rising wage bill was a definite concern for the tourism industry. “An increase of 10-15% on wages comes straight out of profits. OK, we can probably still live with that but what happens to the money that is needed for investment? It’s back to quality: how do you keep investing when you’re spending a further £1.5 to £2m a year on wages? It’s a real live issue.” Lucy Scillitoe: “I would say congratulations to Scotland for achieving something phenomenal by having the Ryder Cup and the Commonwealth Games. From the perspective of looking at the tourism campaign and what we’ve learned, the question is ‘what next?’ We have The Open in St Andrews, and the

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Ryder Cup coverage was shown in 183 countries, reaching 500 million. “The campaign needs to reach these people to get them back to Scotland. While a lot of people come for the golf, it is not all about golf. It’s important, but people who came for the golf can be targeted to come and enjoy other things.” She spoke about how Scandinavia has become one of the castle’s strongest markets as direct air links from Norway have opened up, and also from the Middle East as the airlines were flying directly to Scotland. Peter Lederer: “One of the things we learned around the G8 summit in Gleneagles was the event generated a belief in Scotland in the

wider business tourism market that Scotland can run pretty serious events. We got a lot of business out of that.” He said the Commonwealth Games and the Scottish Referendum have both done a similar amount for Scotland in terms of reputation. “The perception of what was happening in Scotland was very positive. A mature country having this kind of debate and process. It was handled very well.” Dan Thurlow: “I joined the SECC at a great time. We were a very proud venue for many of the Commonwealth Games events. From a customer legacy point of view, it has made our job easier because a lot of people will have seen the SECC and Glasgow as the consistent

Stepping up in our delivery is fundamentally important and I look forward to next year showing the best that Scotland has to offer. It has to get better and better all the time

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backdrop for the Commonwealth Games. The wider perception of Glasgow has changed – and it has proven its ability to host any kind of events, including the largest international sporting events in the world.” Henk Berits: “Stepping up in our delivery is fundamentally important and I look forward to next year showing the best that Scotland has to offer. It has to get better and better all the time.” Martin O’Kane: “The majority of visitors come to Edinburgh, the Highlands and Islands, they don’t head to Aberdeen, Dundee and Glasgow and I wonder how we move things forward to expand the festivals and cultural events and improve the transport link between the cities.” Mike Cantlay: “During the recession we saw ‘stretch’ in Scottish tourism. Three things have been essential to success: gaining a clear view of the consumer and what they want; capable industry leadership; and access to capital finance as required. With those three things there are many businesses in a happy state. But not all..” Stephen Leckie of Crieff Hydro gave some personal background on collaboration and leadership. >>

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“For many years, Crieff Hydro has been my home. Until about five years ago all I used to do was work, live and play in Crieff and my friends used to say I got a nosebleed when I left Crieff. This changed five years ago with the advent of the Scottish Tourism Initiative group, chaired by Bob Downie, which refreshed Scotland’s tourism strategy. This opened my eyes to what else was happening and the national picture in Scotland.” It wasn’t a healthy position. The Scottish Tourism Alliance emerged from the ill-fated Scottish Tourism Forum which collapsed because of its over-reliance on the public sector. Leckie, as chair of the STA, went to see Scotland tourism minister Fergus Ewing and then set about fund-raising for the new body, urging business members to get behind the new body. The STA, through its various associations, now touches 75% of the 20,000 tourism industry businesses in Scotland. “All these small businesses in geographical areas across Scotland are involved in their local STAs. There over 200 associations, such as the Blairgowrie and East Perthshire Tourism Association, all working more closely. For STA it is about bringing the tourism strategy into

alignment with these hundreds of businesses.” Kevin Boyd. “I’m passionate about living in a vibrant Scottish economy. I’m interested in the challenges being faced by Scottish business and how we, as a bank, can help. I agree it’s about capitalising on the fantastic things that have happened in Scotland in 2014. How do we make the most of that for 2015?” Geoff Ellis, who is also a board member of Glasgow City Marketing Bureau, said: “My company does about 800 events a year on average from 100 people to 250,000 people at T in the Park. We work at all levels and we take the risk on most of our events and concerts and hope we sell enough tickets to get the cost right. One of our main clients is the Hydro and the SECC, where we do what Beyoncé to AC/DC, Take That at Hampden and One Direction at BT Murrayfield. The majority of our work is in live music and we’re best known for T in the Park, although we do other non-specific events such as the Papal visit to Bellahouston Park and the Ryder Cup Gala in September.” Caroline Theobald posed the question of how could the tourism industry make ‘joinedup’ thinking happen?

Geoff Ellis: “Undoubtedly, 2014 has been a fantastic year for events in Scotland. I’d argue that Scotland is already on the international map, but we’ve increased its profile. It would be interesting to know how many local companies benefited from the variety of the events. MTV’s a good example because most of the companies are up from London. Maybe when we are tendering for events in Scotland there should be a quota of local companies, in management, general supply and public relations. That’s something worth exploring.” Nick Finnigan spoke about his secondment with EventScotland during the previous MTV event in Edinburgh. He said 64 local companies benefited with 37 workshops by their events experts. “It’s a matter of deciding in advance what you want to get out of it. It’s about maximising the opportunity, with the experts inspiring the next generation of people who understand this is the benchmark for quality.” David Cochrane: “We work with the people and the skills side of life. We run 23 events in Scotland and one in London each year. This allows us to raise substantial funds to go out and provide emerging talent scholarships for

Undoubtedly, 2014 has been a fantastic year for events in Scotland. I’d argue that Scotland is already on the international map, but we’ve increased its profile

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young people. We’ve been building up for 2014. Improving the level of skills in hospitality has to continue.” Nick Finnigan spoke about the recordbreaking attendances at Edinburgh Castle. “2014 has been an amazing year for us. In 2013, we broke our visitor attendance records and in the first seven months of 2014, we’d done the same every month. We are expecting to surpass the 1.4million visitors that we had, which is 300,000 additional visitors over the last four or five years. It is a measure of the success we have had. Edinburgh Castle is a much more versatile place than people realise. “We need to be flexible and I think it is remembering the client. It is about building around what their needs are and not the ways we’ve been used to working over the last 20 years. We can only be as good as the lowest common denominator in the city. At Edinburgh Castle, we have an important role in being ambassadors for the city. For the short break market around 73% of visitors who

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come to the city, visit the castle. If we don’t get that right, that’s going to be a bad start for the visitor and everyone else. However, it they visit us and the rest of the food and drink experience and accommodation is poor, then quite a lot of what we do will have been a waste of time. It is not just about a single business; it is a destination sell, benefiting the whole of Scotland. “Where we’ve been successful is when we’ve been more joined-up. But we need to ensure that this continues. I think the relationship building and network among the tourism industry over the last few years has really held us in good stead. We need to keep up our collaborative work to make sure that visitors get the highest experience.” Geoff Ellis talked about working more collaboratively and doing more corporate packages on events, particularly when the music tourist is willing to travel to see a concert or a band. “We don’t reach out enough, and hotels and restaurants don’t

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reach out enough to us. Perhaps this is something VisitScotland can help with. We all need to get better at it.” Nick Finnigan said in the lead-up to the Scottish referendum, many international media outlets used the scaffolding set up with Edinburgh Castle as the backdrop. He was asked if he could keep the castle floodlights on all-night, every night because of international broadcasts from the city going on 24 hours. He said this was sorted after some phone calls. This was the kind of collaborative working that might not have happened ten years ago. The level of expertise, security and care at the major events cannot be discounted.” Geoff Ellis: “If you fall ill at T in the Park you are probably better looked after than anywhere else in the UK on that weekend. At any one point, we have four A&E consultants on duty and that’s not the case for any hospital in Scotland on a weekend. There is large amount of logistics that go into any big rock and roll style event.” >>

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Every Scottish town that is inherently linked to tourism has a heartbeat and that must continue. How do you keep this going? Visitors want to visit other places around Scotland, not just the cities Steve Hand said as an adopted Scot of ten years he has never known a year when so many friends and relations from south of the border wanted to visit Scotland or talk about what was happening. “It’s been a monumental year.” Peter Taylor, who has been involved with the British Hospitality Association and the Tourism Leadership Group in Scotland, feels that connectivity, in terms of broadband, and connections and air travel have improved, but he says that Edinburgh and Glasgow as cities must work more closely together. “There is still this Edinburgh and Glasgow divide and that’s crazy. If you look at the cities in the north of England they are going to eat us up if we don’t start to work together.” Mike Cantlay said that Edinburgh and Glasgow were now working together in the tourism sphere better than ever. He was also

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positive about the prospects for Dundee, with the new V&A on the waterfront, once the substantial building projects neared completion. Peter Taylor believes there are still too many small tourism businesses – such as guest houses and Highland hotels – that are struggling to make ends meet. I slightly blame the estate agents who re-cycle some of these hotels every 18 months to two years. People come up from England and want to run a hotel on Skye with a pot of money. It’s all rosy and then it all hits in. I don’t have an answer to this – but maybe there is a partnership with banks. Could we have some way of helping people with a fast-track familiarisation for guys who are investing in a business in Scotland? We should be doing something to help these businesses survive.”

Mike Cantlay: “The Tourism Planning Framework tried to look across the country at what is going on. In terms of public and private sector investment there is £8bn on its way. There are also attempts by local authorities to see what is going on in communities and fill the gaps.” Stephen Leckie says that involvement with local chamber of commerce and community councils can all help to ensure that tourism is part of ‘everybody’s business’ in Scotland. Geoff Ellis said Scotland could make more use of the local knowledge of who came to Scotland and what they enjoyed, and where they stayed. “Surely we can use more of this as the legacy?” Stephen Leckie believes community councils are at the heart of Scotland’s towns and important for regeneration. “Every Scottish town that is inherently linked to tourism has a heartbeat and that must continue. How do you keep this going? Visitors want to visit other places around Scotland, not just the cities.” He says Oban, Peebles and Crieff have amazing potential and Business Improvement Districts are vital, so that people can pull their resources together. Stephen Leckie: “There is still a lack of awareness among the wider Scottish community about the importance of tourism, and that bothers me. Many MSPs don’t want to speak about tourism and still regard it as a cottage industry, when it is much, much more than that. It’s one of Scottish Enterprise’s four key industries for growth in the next five years. It has to be on the agenda for all the MSPs.” Karen Wood explained how she has been with the EICC for 22 years and has watched it grow from a hole in the ground to a conference centre of international size and stature, with the new extension opening in 2013. “Our raison-d’etre is to create economic impact for Edinburgh and Scotland. So we do have a vested interest in keeping the momentum to optimise the legacy opportunity. Certainly for us, the summer of 2014 put Scotland firmly in the global spotlight using multi-media channels to reach an audience of over one billion. This was a chance to shape international perceptions of Scotland as a world-class

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Scotland’s outstanding year on the world stage means we have much to play for. Our national brand index is riding high and we need to keep the pressure on government if we want to convert these gains into real economic benefits product on a global stage.” Mike Cantlay warned that previous Commonwealth Games and Olympics, preLondon, had not maximised the benefits of the events.“The clear success of London post the Olympics is obvious but I’m mindful that all the recent Ryder Cups and Olympics didn’t maximise and if you go back to the Sydney Olympics they saw a drop after the Games, and it took them ten years to get back to where they were. We can’t let the momentum slow.” Karen Wood said the evidence from London 2012 was the bulk of the net gain in tourism spend came after the event. “Scotland’s outstanding year on the world stage means we have much to play for. Our national brand index is riding high and we need to keep the pressure on government if we want to convert these gains into real economic benefits. Having elected to remain in the United Kingdom, what can we do collectively to leverage the full economic and diplomatic resources of the UK to maximise Scotland’s opportunities with key events and infrastructure into the future?” Dan Thurlow: “Moving forward we are keen to create events on the back of the Games that continue to promote a healthy active lifestyle, such as running and cycling. We are dovetailing with people such as Glasgow Life and are in the process of building on the legacy. It will be 2016 when these kind of events could be rolled out.” Stephen Leckie said the strategy had to be simply about growth. “It’s about growing revenue. Lifestyle businesses with £70,000 turnover saying, ‘They don’t want to grow anymore’, are not interested in the

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national picture of tourism. That attitude accounts for too high a percentage of our business numbers.” Peter Taylor says some have a passion and belief and it goes wrong, while others have been around for a long time and are not interested in quality. “They are just getting by. One bad experience in a small hotel or a bed and breakfast can sour someone’s view of Scotland for ever.” The question raised was should the industry care about such business when the likes of

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Trip Advisor will kill off under-performing and poorly run tourism businesses. “Many people with no experience in the industry have been very successful. That’s because they see things from a customer’s perspective. They might have been in marketing and I don’t think they need to have experience in the industry. But they need acumen to make sound judgement and the guts and understanding that it is not going to be a walk in the park.” Kevin Boyd: “It is a judgement. I think the days of banks lending on asset values have thankfully gone. We would never lend purely on bricks and mortar of a hotel. Banks need their money back. We are lending on the experience and the acumen of the people who will be running that business. It’s an art form.” Mike Cantlay: “VisitScotland can only do so much, with our tiny marketing spend, it has to be the industry that gets up and goes and sells Scotland. You have to go out there and win again. We also need to make more of the regular events – such as T in the Park and the Open Golf – which are recurring in Scotland.” n

Let’s make 2014 a springboard for success The leisure and tourism industries have always been important to Scotland’s economy. 2014, though, has been unlike any other year in recent memory. As well as our wonderful countryside and heritage sites that see people flock to our hotels, our ability to attract leading acts from the world of entertainment and large corporate conference gatherings, this year also saw Scotland chosen as the stage for landmark events like the Commonwealth Games and the Ryder Cup seeing interest and visitors to our wonderful country rise even further. The challenge now is, of course, to ensure 2014 is a springboard for the years ahead as opposed to being seen as a ‘one off year’ and Santander were delighted to sponsor a round table discussion that brought together so many of the individuals directly responsible for the success of 2014. Leading a successful business in this important sector for our economy is ultimately all about delivering ‘memorable experiences’ to customers so that they will not only return but also tell others what a great time they’ve had. Conversely, that one bad experience can have a totally opposite effect. It was a pleasure for us to be involved and support a debate that brought so many key players in this industry together to talk about the need to work collaboratively for the greater good of both the industry and the country of Scotland. 2014 was an outstanding year but the most important road is always the one ahead of you – we saw first hand that the leadership across this sector truly appreciates the issues we face and has the will and determination to face them head on. We look forward to being a part of supporting that ongoing success. Graham Silcock, regional director of Santander Corporate and Commercial bank in Scotland.

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A BREAKTHROUGH PROGRAMME WITH ITS EYES ON SCOTTISH SMES Graham Silcock outlines Santander’s innovative offering as it builds its business clients. He talks to Kenny Kemp If your finance director is looking at the company’s banking options, and not looking at Santander, then they aren’t doing their job properly. That’s the view of Graham Silcock, Regional Director of Santander Corporate & Commercial, Scotland and you would expect him to say this. But there is strong evidence that Santander is making traction in the Scottish market. Graham Silcock, a chartered accountant who spent ten years with Coopers Lybrand before joining Bank of Scotland, working in various roles including corporate and structured finance over his 16 years there, is one of several veteran bankers who moved over to Santander in 2012. Silcock says his feet have not touched the ground since – nor have those of anyone else who has joined the Santander team. There is a genuine buzz about the bank with everyone making their contribution. “We’ve been able to recruit some great people from other banks and as such have established a first-rate team of nearly 90 in Scotland. My team have a great back story, working at senior levels in other banks, so they know their business and have massive experience. We’ve been able to handpick the best practitioners from across the banking world.” “We want to be the SME bank of choice, regardless of the sector. Hospitality is one of about half a dozen sectors that we now have a significant focus on. Others include

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manufacturing, professional services, education, renewables and agriculture.” How has Santander set about engaging the SMEs when there has been a lot of turmoil in the commercial banking sector? “At Santander we have a clear vision. We place a great emphasis on building a true relationship with a business. It is in all our interests for businesses to succeed so I challenge my team to take the time to get to know their customers - warts and all. I encourage them to be inquisitive and ask questions, but more importantly, to really listen so they can truly understand what it is that makes the business tick. This helps us appreciate the true picture so that we can find the best solution for each individual business.” “We have been fortunate in that we don’t have some of the internally facing issues that our competitors have had. We haven’t been complacent about that, but it has been very refreshing for us to be working within a forward-looking, growth-based environment, which makes it an attractive place to work. However, we can’t forget that it is about lending money – and that’s what we want to do, but we will not compromise on our prudent risk management.” “The only way to take banking away from being a commodity is to build relationships with our customers and be innovative.” One way Santander is delivering on innovation

is through their groundbreaking Breakthrough programme. This initiative is designed to nurture and support businesses in the early stages of their growth cycle, helping them accelerate their growth plans. Qualifying businesses can receive funding and financial advice, as well as the chance to visit successful companies, learn from leading entrepreneurs and make contacts overseas through trade missions. The programme has supported 30 SMEs with £27m of Growth Capital and £35m of other growth-related finance providing these companies with the opportunity and support to create over 1,200 jobs in the UK economy. But Breakthrough goes beyond funding as Silcock explains, “We have created a comprehensive programme of relevant and practical experiences to help businesses advance their high-growth trajectory. We believe the most valuable lessons business leaders learn are not from business gurus or sales pitches but from like-minded people who have themselves pushed their companies to the next level. So the programme includes a number of live events where business owners can learn from one another’s experiences and from those who are one or two steps further up the growth curve. Continuing in this vein, we run ‘Masterclasses’ to established companies such as Google, McLaren, Love Film, and in Scotland this year have been into Linn Products and Crieff

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Hydro. These events allow business leaders to have first-hand, money-can’t-buy access to top executives to discuss issues from expanding the management team to delivering transformational change programmes. Another key part of the programme are Trade Missions to key overseas destinations where business owners can learn how to break into new markets in order to sustain growth. We’re also hearing that Santander is also playing an ace card with its international connections, and the Group has more branches in the world than any other bank, can you tell us a bit more about that? “Most definitely, the Santander Group is in a very strong position to support SMEs and corporate businesses that are looking to expand internationally. We are growing really quickly and have ten main market territories around the world. We’re the largest financial group in the Euro-zone and Latin America, and Santander UK’s contribution is presently bigger than Spain and Portugal combined. A bank is viewed as a significant international player if it has a market share of over 8% in any region. Santander has this presence in more markets around the globe than any of its competitors. “For Scottish businesses looking at international markets, we have an incredible network available. Our unique Trade Portal is a database of businesses around the world, where we can identify connections in a new market for someone exporting. This can help companies look at specific growth markets, for example, oil and gas companies in Aberdeen looking at the emerging opportunities in Brazil. We can supply a list of business contacts and addresses in each of these territories, and contact details and names of people that we already know.” “However, it is more than just names and addresses. We can talk about the legal system, and shipping details and documentation to places such as Brazil. It’s all about helping firsttime exporters take these early steps.” Allied to this is the Santander Trade Club which has 5,000 SME members around the world. Companies are given a Santander Passport, which gives firms pre-vetted VIP credentials

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INTERVIEW

and find key contacts. It’s about easing the process, while pointing out the pitfalls and challenges as well. We are not saying we are the answer to all of this, but we can play a big part because of the presence we’ve got overseas.” It is clear that Santander are maximising their connections across the globe for the benefit of their customers and have another innovative product in supply-chain finance for SME businesses. “Others offer this at the top end of the market,” Silcock says “but we’ve had this at the heart of business in Spain and we have been able to bring it to the UK market for the benefit of our SME customers.” It is often described as ‘invoice finance in reverse’, allowing a supplier access to funds from Santander ahead of agreed payment terms. This is essentially a cost free service to our customers with the supplier meeting the cost of the facility depending on how quickly they wish to receive their payment. This innovative solution helps both customer and supplier manage their cashflow better.

We challenge all our people, every time they make a decision to ask: is this simple, is this personal, and is this fair? when moving and operating in new markets. “In each territory, we have an international desk that will help you make the right connections. We have guys who know the Brazilian market inside out and are able to help Scottish companies looking at opportunities there, and how they can set up bank accounts

There is definitely a lot for Santander to be proud of but if you had one final message for Scottish businesses what would that be? “I’d like to challenge business owners to consider whether they are getting real value from their banking partner. In Scotland where so many businesses are family enterprises often started by a previous generation and with the same bank since inception we often encounter a misplaced sense of loyalty. For me, there is a perception that switching your banking business can be difficult. It is far easier for companies to switch banking than people think. It isn’t hard for a simple account, and for more complex transfers we have a dedicated team of Customer Implementation Managers who manage the process from beginning to end often running accounts in parallel to ensure nothing falls between the cracks. So if your finance director hasn’t been thinking about Santander, then perhaps they need to pick up the phone for a chat to Graham Silcock. n

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OPPORTUNITY KNOCKS FOR HOSPITALITY ENTREPRENEURS IN DUNDEE WATERFRONT Dundee’s hospitality and tourism entrepreneurs are calling for more like-minded businesses to join them in creating more new ventures in Scotland’s ‘Hospitality City’

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With the £1bn Dundee Waterfront project gaining momentum, including V&A Museum of Design Dundee, the city is forecasting a dramatic tourist boom during the next decade. The forecast is for 3 million extra visitors and £1 billion of additional consumer spending during the next decade. The call for more hospitality entrepreneurs emerged during a discussion group hosted by Dundee Waterfront and chaired by Willie MacLeod, of the British Hospitality Association (BHA). The discussion group, held in Dundee’s new Malmaison Hotel, was attended by the new generation of local hospitality entrepreneurs including Paul McMillian, owner of the Castlehill, which holds the only two AA rosette in the city; Jonathan Horne (two restaurants and two coffee houses) and Andrew McMahon (two bars and a restaurant). Alan Watt, Dundee Waterfront Development Director, said: “Much of the discussion focused around the need for more businesses to open in the city in advance of the surge in visitor numbers and spend. There will be outstanding opportunities for new ventures across the hospitality, tourism, leisure and services sectors. We are working on raising awareness across Scotland and beyond so that Dundee is a must see leisure destination.” Willie MacLeod, Excecutive Director of the British Hospitality Association in Scotland said “Dundee has the potential to become a ‘Hospitality city’ with tourism and leisure set to be major industries. We estimate that Dundee already supports around 6,500 direct and 3,000 indirect hospitality jobs, representing more than 13% of city employment. A wealth of new business opportunities will emerge from these growing industries, stimulated by the Waterfront initiative and the V&A Museum of Design Dundee.” Paul McMillian, owner of Castlehill, said: “With 300,000 extra visitors per annum coming to our city we will need a lot more hotels, restaurants, bars, clubs and cafes open and ready for business. I would urge anyone interested to take the plunge and come and join us!” Mike Galloway, Director of City Development with Dundee City Council said: “To meet

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demand for space, Dundee Waterfront has just released 1 million sq ft of prime land across 4 sites in the Central Waterfront area, with a further 500,000 sq ft to be released during 2015. The land, which is owned by Dundee City Council, can be used for office, leisure, retail and residential projects. Dundee Waterfront also issued an appeal earlier this year for a further five hotels – or 500 bedrooms. The five new hotels will be in addition to the recently opened Malmaison, which occupies the former Tay Hotel; Apex Hotels, which recently acquired the former Customs House building; Sleeperz, which will open a hotel in the new railway station and Hilton Hampton, which has submitted a planning application. Dundee Waterfront is being transformed with a number of major infrastructure, business and visitor developments underway including the new V&A Museum of Design Dundee,, a proposed ‘Maritime Way’ from RRS Discovery to the HM Frigate Unicorn, plans for a Marina

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at City Quay, the new Dundee Railway Station, and new residential, office, leisure and recreational developments. The final infrastructure contract has been awarded and the work to create the grid street pattern and new civic space is close to completion. Andrew McMahon of The West House bar and D’Arcy Thompson summed up the mood and the opportunity for Dundee’s hospitality sector and for the city: “Dundee is a great city. I chose to build my career here and we are on the cusp of a major growth phase that

OVERVIEW

is creating a wealth of opportunities for new enterprises and entrepreneurs. The Waterfront area offers lots of potential for new ventures, and the chance to set the benchmark for the hospitality sector in Scotland.” n Entrepreneurs interested in opportunities for hospitality businesses in the Dundee Waterfront are welcome to contact Allan Watt, Dundee Waterfront director, on 01382 433 306 or allan.watt@dundeecity.gov.uk

Dundee has the potential to become a ‘Hospitality city’ with tourism and leisure set to be major industries. It supports 6,500 direct and 3,000 indirect jobs – more than 13% of city employment

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BQ: WHAT KIND OF YEAR HAVE YOU HAD? ELENA: 2014 has been the busiest year since I started the business in 2006, around 1.5 times more flights compared to last year. Coincidentally, the larger jet and helicopter charter market was up on any other year too. BQ: WHAT HAS BEEN THE HIGHLIGHT? ELENA: In the summer months we usually see an upturn with helicopter charters which are often golf related. This year however as you can imagine there was a double increase on helicopter charters during the summer and the Ryder Cup week. You only had to look up at the sky during the Ryder Cup. BQ: WERE YOU ALSO BUSY DURING THE GLASGOW GAMES? ELENA: Glasgow 2014 was a little disappointing for us in terms of business it brought in: we didn’t see a spike in business. However, we didn’t anticipate the same levels that we knew the Ryder Cup would bring. BQ: HOW DO YOU SEE 2015 PANNING OUT? ELENA: Well, 2014 really was a special year for Scotland with the two major sporting events as well as the Referendum. We’re not

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ON THE FLIGHT PATH

Elena Torres, founder and managing director of Exec Air, a boutique air charter business in Edinburgh, launched in 2006, discusses the ups and downs of running a thriving ‘pay as you fly’ private jet and helicopter service

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expecting to replicate 2014. However, we’ve already taken advance bookings for the Open Championship in St Andrews. The first quarter tends to be our slower time of the year and most of our trips are ski related to the Alps. We are fortunate our client base has a wide geographical spread across both the UK and Europe. The summer months are filled with jet charters to the Med and bookings from the US, often golfing trips to Scotland. BQ: WHAT ARE CLIENTS EXPECTING THESE DAYS? ELENA: Our clients expect nothing less than the very the best personal service. Flexibility is also key for them, which is why they charter as it allows them to make changes to schedules, add passengers or even change departure or arrival airports. We need to respond quickly and notify everyone in the chain. The clients are looking for a seamless door to door service.

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INTERVIEW

Our clients expect nothing less than the very the best personal service... they are looking for a seamless door to door service BQ: DO YOU SEE EXPANSION IN YOUR BUSINESS? ELENA: Since launching, Exec Air Charter has entered a joint venture and secured investment from a Scottish businessman who was bought out – both were learning curves! This business has grown organically and continues to do so year on year. Nine years on, we really understand the demands of our clients and our strategy remains to focus on a manageable client list that allows us to deliver a highly customised service. It is this that sets us apart. We now also

have an accommodation platform www.tartanmarmalade.com showcasing Scotland’s luxury hotel and self-catering offering. This was initially set up as a recommendation resource for our Exec Air clients but has proved hugely popular with those seeking a luxury leisure break experience. BQ: ANY FUNNY THINGS THAT HAVE HAPPENED WITH YOUR CLIENTS? ELEANA: Many... however confidentiality agreements have been signed! n

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As Mike Cantlay introduced the first screening of VisitScotland’s new Brilliant Moments TV advertisements, it was clear that the national tourism body had become very serious indeed about food and drink. This was, after all, the launch of the Year of Food and Drink Scotland 2015 so it was only to be expected that one of the new ads would whet the appetite by serving up a mouthwatering entrée of Scotland’s larder. Featuring berry picking in Perthshire, sumptuous seafood from North Berwick, the Spirit of Speyside Whisky Festival, and Shirley Spear and Michael Smith from the Michelinstar The Three Chimneys on Skye, the ad also weaves in iconic images of Scotland such as deer on the Isle of Rum, Eilean Donan Castle and the Ring of Brodgar. It will be shown throughout the UK during 2015. With Scotland’s food and drink tourism industry now worth an estimated £2.5 million per day to the economy, it is hoped that the Year of Food and Drink – a Scottish Government initiative led in partnership by EventScotland, VisitScotland and food industry body Scotland Food & Drink – will go

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THE DARLING SPUDS OF TAYSIDE Karen Peattie finds out how leading potato company Albert Barlett is focusing on the provenance of the humble tattie in promoting Scotland’s ‘Year of Food and Drink’

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INSIGHT

The Year of Food and Drink will see visitors from far and wide come to sample our enticing natural larder – and Scots enjoy the delicious cuisine that is right on their doorstep

a long way to cementing the nation’s global reputation as a ‘Land of Food and Drink’. Speaking at the BT Murrayfield launch of the year-long celebration, Cantlay nodded to the success of the Commonwealth Games, Ryder Cup, the 970 events that were part of Homecoming Scotland and the recent MTV European Music Awards in Glasgow as instilling an “appetite for success” in everyone involved in tourism in Scotland. “2014 showed the world that Scotland was the perfect place to visit with warm welcoming people, a fantastic atmosphere and unmissable events,” said the VisitScotland chairman. “The Year of Food and Drink will see visitors from far and wide come to sample our enticing natural larder – and Scots enjoy the delicious cuisine that is right on their doorstep.” So with visitors spending one-fifth of their holiday budget on eating and drinking, is Scotland’s hospitality industry – and the producers which supply it – doing enough to capitalise on the lucrative growth opportunity? Many are. Take the partnership between Lanarkshire-based Albert Barlett, the UK’s leading grower and packer of potatoes and the Michelinstar chefs Andrew Fairlie and Michel Roux Jr, who star in the company’s TV ads. As Michael Jarvis, head of marketing for Albert Bartlett and its sister company, Scotty Brand, explains: “The provenance of our produce is pretty much at the core of everything we do.

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Everything is locally sourced from farmers who are as passionate as we are about growing quality food and ensuring that our customers – and the end consumer – have 100% confidence in our produce. The biggest concentration of Bartlett’s potato farms in Scotland are on the East coast, in Fife, eastern Perthshire, Angus, and Tayside. “Food is a very personal thing and increasingly people, when they’re eating out, want to know its story,” he continues. “Celebrity endorsement by high-profile chefs like Andrew Fairlie and Michel Roux is obviously fantastic for our potatoes and we’re delighted to have both of them as our ambassadors, along with the writer and TV cook, Sally Bee. It’s a connection that consumers relate to but they’re just as interested in finding out about who grows the potatoes on their plate.” Fairlie, whose restaurant Andrew Fairlie @

Gleneagles in Perthshire is Scotland’s only two Michelin-starred restaurant, needed no convincing to join forces with Albert Barlett. “He’s been using our potatoes for the last 12 years so it’s a very genuine endorsement,” says Jarvis. “Michel Roux also uses them at Le Gavroche in London so our TV adverts are very honest.” In research conducted by Bartlett, consumers answered a “resounding yes” when asked if they believe that Fairlie and Roux actually use the company’s potatoes which include Britain’s favourite branded potato brand Rooster as well as Russet, Vivaldi, Anya and Apache varieties. “That’s extremely positive and has a knock-on effect in terms of sales but we also work hard at engaging with people via our advertising, website and social media,” Jarvis points out. “You can go on to the website and get loads of recipes created by our ambassadors that are very simple so everyone can try them at home. But there are also recipes for more ambitious cooks – it’s a very user-friendly site and that’s key to engaging with people as is social media like Twitter and Facebook.” Taking the humble spud to this new level of recognition among Scotland’s premier hospitality providers is a masterclass in marketing and innovation. Remember Albert Bartlett’s previous TV ads featuring Desperate Housewives stars Marcia Cross and Jesse Metcalfe? That’s quite a coup for an independent, family-owned firm that has its head office in Airdrie! n

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The seaside on the West coast has an abundance of guest rooms with jaw-dropping views. But the vista from the Glen Rosa suite at the Seamill Hydro Hotel and Resort in Ayrshire would be high up on any league table. On a glorious, cloudless blue-sky November day, the silvery Firth of Clyde gives way to the peaks of the Isle of Arran and the majestic Goat Fell. From the window, you can see and hear the youngsters from a wedding party, some dressed in white mini-Elvis suits, jumping and jiving on the lawn, while further out, other hotel guests with buckets and spades, are digging on the wet sand as the tide is out. But the Glen Rosa wedding suite – named after a Scotland-in-miniature glen over in Arran – is worthy of comment. Here is a signature bedroom suite, with a bathroom with a bath at the window, and a touch-screen waterproof Galaxy pad, and an adjoining sitting room, with the latest multi-media audio, that would grace any top five-star hotel. Yet this recently completed suite is all part of the radical refurbishment of the Seamill Hydro, with banking support from Santander. It is exactly the kind of upgrade and attention to detail that Scotland’s middle tier of hotels require. Sylvester Sweeney, in jeans and an Ash & Dust Diesel sweatshirt, is one of the hotel’s five directors, and he has been overseeing the ongoing refurbishment, as the hands-on project manager. “This room is one of the best in Ayrshire I would say. This is a feature turret-room with a dining area, its own mini-bar, fancy zip-taps, with hot and chilled water, and the room has a high level of latest technology. Then there are guest facilities, such as Playstations, iPads, touch-screen items to control and stream the music and dimmer systems for lighting. In the wedding-suite bedroom, we’ve sourced all the items ourselves including the bed. There’s even a secret cupboard that niftily turns into a dressing room for a bride. It is touches like this that are making a difference to Scotland’s tourism market. “We have been getting fabulous feedback about this suite,” says Sylvester. The entrepreneurial Sweeney family have run the hotel, with up to 180 staff, for touching on 30 years – the anniversary is in >>

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GLEN ROSA OUTLOOK The family-owned Seamill Hydro Hotel on the spectacular Ayrshire coast has invested over £4m in upgrading its facilities with the help of Santander. BQ Editor Kenny Kemp went on a tour with director Sylvester Sweeney

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2015. Sylvester’s father, also Sylvester, and his mother, Mary, came from Donegal, and eventually bought a guest house on the south side of Glasgow which became the Mulberry Hotel, one of the most famous watering-holes in the 1970s. Then in 1985, the Sweeney’s sold up in Glasgow and bought the Seamill, in West Kilbride, which had a history as a sanatorium set up in 1879, and later a popular hydropathic with Turkish baths and steam rooms for those escaping the grim and soot of Glasgow. The family are still in charge. Sylvester’s sister, Lorraine, is front-ofhouse manager, his brother, Steven, heads up procurement, while his younger sister, Marina, a qualified beautician, runs the hair and beauty salon in the hotel. Sylvester’s son, also called Sylvester to add to the confusion, is in honours year at university but spends time working in the hotel, like many of the family. “We all dovetail well as a family. My brother would work and serve at the weddings, my sister would take bookings, deal with reservations, and I would create the websites for bookings and I built the leisure club. When my mum and dad retired, we all moved into the management.” Over 25 years ago, Mr Sweeney senior built 18 two-bedroom flats beside the hotel. Last

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We’ve been told that we are on the brink of being upgraded to a four-star hotel

summer, these were turned into 36 family holiday suites, with a frontage overlooking the sea. “We’ve been told that we are on the brink of being upgraded to a four-star hotel. There are elements here now that are five star. However, we don’t really want to be in the five-star market because that puts extra pressures on the business, when we are known as a family hotel that’s always been excellent value for money,” he explains as we tour the bustling hotel. In the leisure club area, another teenage Sweeney family member is finishing a spell of work experience, learning how to change light bulbs in the swimming pool. The leisure club

is an important part of the fabric and history. The gym has been kitted out with the latest machines, many facing out on the Clyde coast. It is what you might expect of a hotel that has hosted Scottish football teams (and even referees) and was once a favourite pre-match getaway for Jock Stein and the Celtic Football Club before big games. Indeed, for some of a certain generation it is infamous for a boating trip involving the late-great Jimmy Johnstone. But that’s another tale. “We have plans to expand to become a fullblown spa. At the moment it is a leisure club with some spa facilities. But to become an authorised destination spa you require special baths, treatment rooms, such as the laconium. We will be moving the gym to a new position to allow us to have hydro pools and jets, and salt grottos. This is a few years away.” “When you’ve not got the weather, there has to be a reason to come to a hotel, and having a proper spa with full treatments and baths seems the modern way. We have always been busy in Christmas, New Year, and from Easter to September. The shoulder months are when you have to come up with unique ideas, with such things as the bridge club.” For the Orangery Restaurant’s refurbishment, walls were knocked down, a patio built >>

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We know taking your business overseas can be daunting. It’s a big step. That’s why we created the Santander Trade Portal and Trade Club. Helping you to find the right people with the right local knowledge, they could give your business its best chance to break through internationally. It’s just one of the reasons why every eight minutes another business chooses Santander. To find out more, visit santandercb.co.uk or contact Steve Hand 07771 506701 steve.hand@santander.co.uk

Santander Trade Portal and Trade Club are available to Santander Corporate & Commercial online banking customers.

Source: Internal data 2014. You need to be an online banking customer of Santander Corporate & Commercial to gain full access to the Trade Portal and Trade Club. Santander Trade Portal is provided and managed by Export Entreprises S.A. Santander provides access to its client companies but is totally unrelated to the database contents, which are the responsibility of Export Entreprises S.A. Santander Corporate & Commercial is a brand name of Santander UK plc, Abbey National Treasury Services plc (which also uses the brand name Santander Global Banking and Markets) and Santander Asset Finance plc, all (with the exception of Santander Asset Finance plc) authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register numbers are 106054 and 146003 respectively. Credit cards are provided by Santander UK plc. In Jersey, Santander UK plc is regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991. Registered oﬃce: 2 Triton Square, Regent’s Place, London NW1 3AN. Company numbers: 2294747, 2338548 and 1533123 respectively. Registered in England. Santander and the flame logo are registered trademarks. Santander UK plc is a participant in the Jersey Bank Depositors Compensation Scheme. The Scheme oﬀers protection for eligible deposits of up to £50,000. The maximum total amount of compensation is capped at £100,000,000 in any 5 year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website (www.gov.je/dcs) or on request. CCBB 0573 NOV 14 HT

INTERVIEW

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and the kitchen was expanded, while 10 Design, based in Glasgow, was brought in to give a ‘cosy and contemporary twist’. “The food and the drink is a major part of our business. If you get the food right people will always come back.” The Orangery’s executive chef Scott Gilmour arrived from the top flight Costley Group, with its LochGreen and Brig o’Doon hotels. “A cornerstone of the business is the weddings, with up to 100 hosted per year. Overseeing this is general manager, Norman Rennie, also a partner in the business, who has been with the hotel for 20 years and something of a local legend when it comes to organising weddings. “Every wedding is different. While we offer the backdrop and the wonderful setting, it is unique to each couple,” says Norman. The Brisbane function room is one of the biggest in the area, and can host larger weddings, where the likes of Ayrshire Chamber of Commerce holds over 380 people. Smaller matrimonial occasions can be accommodated in the Arran suite with its French doors leading down to the lawn. The upgrade of 24 rooms in the main hotel is already paying dividends. “The business has grown 10-20% over the last few years because of the investment and the work we had done,” says Sylvester. There has been a lot of work: 36 suites at £33,000 per suite, then 24 rooms at £12,000 a room, and then the leisure club had £300,000, then the new gym was over £100,000. Add on the Orangery restaurant, which was £900,000, plus the refurbishment of the corridors and kitchen was another £300,000. Then the Glen Rosa suite is £150,000 alone. In total, this is over £4m in the last five years.” So how have Santander helped? “We had been with the Royal Bank of Scotland for 50 years – and it was going through its turmoil and we felt we weren’t getting what we wanted. For many years, we never used banks because my mum and dad didn’t borrow money. When the recession came along there were challenges. People were cutting down; when they were going out they were only having one course, and they might stay one night instead of two. Yet the

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hotel might be as busy with all the fixed costs. There could be a 20% drop in turnover but your overheads don’t drop.“ “We also recognised that as a family we have not had the opportunity of learning about operations in a major hotel group. Behind our family, we have a great team of dedicated colleagues who have been helping us on our journey. George Jones, our hotel development manager, and Iain Silver, our operations development manager, have brought a fresh approach to our recent success. With their help, we have adopted proven systems and procedures from their time in other venues. “We wanted to make things happen to get us out of the slump and we had great ideas, but we couldn’t rely on organic growth to fund it,” says Sylvester. “RBS were not amenable

We have a great team of dedicated colleagues helping us on our journey

at the time. We went to the market place and spoke to Christie Finance, the restaurant and pub finance specialists in Glasgow. We borrowed a fair amount from Santander, with £1 million loan for refurbishment and that topped up our investment and speeded it all up. Without this, we would be further behind.” “Santander really liked our business plan and location and felt it could work. They invested in us as a family directors and they’ve got to know us as a family working together. It was through this that we were able to build the Orangery, which is doing very well. It was a great thing to bring in Santander.” With only six rooms still to redo, and with a future four-star rating expected, the hotel’s equity value has increased. “We’re not looking to sell. We just want to get the hotel where we want it and everything in the right place.” And there are plans for an extension in 2015 with a revamped reception area. We recognised that as a family we have not had the opportunity of learning about operations by working in a major hotel group. Every day is a learning one and this has kept up our enthusiasm for the business.” n

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A MAJOR EVENT TO INSPIRE, MOTIVATE & SHARE BUSINESS SUCCESS

Emerging Entrepreneur Dinner 2015 Scotland: Wednesday 18 February, Glasgow BQ Magazine continues to support and encourage entrepreneurship across the UK. Our mission is to recognise and celebrate the contribution that entrepreneurs make to our economy, whilst encouraging and motivating others to succeed in business. The BQ Scotland Emerging Entrepreneur Dinner is being held in conjunction with MADE: The Entrepreneur Festival 2015, the UKâ&#x20AC;&#x2122;s largest annual festival of entrepreneurship. Be inspired, gain practical advice and celebrate as our successful entrepreneurs and emerging talent tell their story. BBC Home News Editor Mark Easton for an evening of chat, celebration and recognition on Wednesday 18th February.

Winning BQ Emerging Entrepreneur of the Year 2014 was an incredible honour that reflects the hard work we have been doing at Geco Industries. The award significantly raises the profile of Geco Industries and being presented at the MADE festival adds to this. LEWIS BOWEN, GECO INDUSTRIES

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Whether building your local network or a global presence, we could help your business achieve its next breakthrough. To find out more, visit Santandercb.co.uk or contact Steve Hand 07771 506701 steve.hand@santander.co.uk

Source: Internal data 2014. Santander Corporate & Commercial is a brand name of Santander UK plc, Abbey National Treasury Services plc (which also uses the brand name Santander Global Banking and Markets) and Santander Asset Finance plc, all (with the exception of Santander Asset Finance plc) authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register numbers are 106054 and 146003 respectively. Credit cards are provided by Santander UK plc. In Jersey, Santander UK plc is regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991. Registered oﬃce: 2 Triton Square, Regent’s Place, London NW1 3AN. Company numbers: 2294747, 2338548 and 1533123 respectively. Registered in England. Santander and the flame logo are registered trademarks. Santander UK plc is a participant in the Jersey Bank Depositors Compensation Scheme. The Scheme oﬀers protection for eligible deposits of up to £50,000. The maximum total amount of compensation is capped at £100,000,000 in any 5 year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website (www.gov.je/dcs) or on request. CCBB 0578 NOV 14 HT