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 Special Features                      January 2007 | Issue 15
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From Fast Food to Slow Food:
Food Tourism in Scotland:

Food today plays a significant part in a destination’s product offering. Photo © 2007 Jupiterimages Corporation.

Food has become an important component of popular culture and contemporary lifestyles which today plays a significant part in a destination's product offering. We take a look at how Scotland plans to harness the role of food tourism in its drive to grow tourism revenue by 50% over the next ten years.

This special feature is adapted from the report - From Fast Food to Slow Food: The Prospects for Scotland's Cuisine to 2015 - which was originally published in a recent edition of VisitScotland's Tomorrow's World, Consumer and Tourism.

A full copy of the 24 page report is available in PDF format (3.3 mb) on the VisitScotland website.

Introduction

Scotland's association with food has many contrasts. To some people, the Scots have the worst diet and the highest obesity rates in Europe; to others, Scotland is regarded as a producer of the finest smoked salmon, game and shellfish in the world.

Food is an important feature of Scotland's culinary landscape, whether it is fast food or slow food. Today's tourist is more cultured than visitors of even twenty years ago, is well travelled, is searching for new experiences, is concerned about the environment, is interested in taking part in a health / wellbeing life-style and wants to experience the local culture when he goes on holiday.

Food tourism shapes gastro-destinations such as France and Italy, but, according to the Scottish Tourism Attitudes Survey, Scottish cuisine is a key driver for only 4% of visitors, whereas 26% of visitors are very interested in Scottish food. On average, 21% of annual tourist expenditure in Scotland is spent on food and drink. So why today is there an interest in food tourism?

This research identifies and evaluates:

  • The drivers that are shaping the role of food and drink in society
  • The concept of food tourism
  • A case study of Castle Douglas as a potential food destination (on PDF only)
  • Forecasts for the future of the eating-out market in Scotland
  • Food tourism scenarios and prospects

Drivers Shaping the Role of Food and Drink in Society

The report discusses the role of the celebrity chef and media as drivers shaping the role of food and drink in society. Photo © 2007 Jupiterimages Corporation.

We all have to eat, whether at home or on holiday. However, the concept of food tourism is becoming the focal point of travel decision-making and the hallmark attraction of destinations around the world. Eleven drivers are identified as shaping the importance of food and drink in society. These include:

  1. Disposable income and spending patterns
  2. Demographics and household change
  3. Employment patterns
  4. Individualism
  5. The multi-cultured consumer
  6. The role of the celebrity chef and media
  7. Wellbeing and food
  8. Time pressures
  9. Internet Usage
  10. The desire for new experiences and cultural capital
  11. ...However, the consumer is a hypocrite

Developing the food tourism concept

The UK market for eating out in restaurants and cafés grew by £420 million or 3% between 2001 and 2003, to reach a value of £14.1 billion. By relating this growth to the disposable income of UK households, it has been found that customer demand for eating out increases in line with increasing wealth.

Eating habits

As a proportion of the national average 'foodies' - or those who show an interest in cuisine and dining-out - make up 28% of the population. This group is twice as likely to eat out on average as other groups (with the exception of the 'fast foodies' who are more likely to eat out because of the convenience factor rather than through interest in food).

The demand for eating out increases in line with increasing wealth. Photo © 2007 Jupiterimages Corporation.

It should be noted that, from a tourism point of view, both these groups are spending money in restaurants during their visits to a destination; however the relative expenditure by the two groups differs by a significant level.

In tourism terms, the trend in recent years has been to include holidays as an essential item in a household budget, the amount spent on holidays varying depending on disposable income. This has caused the expenditure in the holiday budget on food and drink to remain constant over the years, with the actual spend value increasing or decreasing in real terms in line with prevailing economic conditions, but it is always about 20% to 25% of the overall holiday budget in any particular year.

According to Mintel, the 2001 eating-out market in the UK was worth £23.2 billion. Of this figure, tourism catering expenditure represented 25% of this spending. Dining patterns of tourists have been found to follow similar trends to the overall eating-out market. Fast food represents 26% of the market, with international tourists finding the global branding of these outlets reassuring. The remainder of the market is made up of restaurants (chain and independent), pub restaurants, cafés and hotel dining rooms.

The influence of Scottish cuisine and destination choice

Scotland has many positive factors which bolster its reputation as a food destination. In 2006 Scotland had eight 1-star and one 2-star Michelin restaurants, compared to three 1-star Michelin star restaurants in the Republic of Ireland and Northern Ireland combined.

All tourists require food and drink but those who specifically visit a destination for the food are defined under ‘gastronomic tourism’. Photo © 2007 Jupiterimages Corporation.

This independent measure of the potential for the quality of the restaurant scene in Scotland stands testament to what can be achieved. VisitScotland's Quality Assurance scheme, 'EatScotland', has 400 restaurants graded, out of 20,000 eating establishments in Scotland. With the other grading schemes and sources of information which exist, from motoring organisations to specialist guide books, the tourist should have little problem in determining the potential of an eatery prior to entering the establishment.

Although it is an obvious statement that all tourists require food and drink, the sub-section of tourists who specifically visit a destination for the food are defined under 'gastronomic tourism'. Food tourism is defined by Hall and Mitchell as 'visitations to primary and secondary food producers, food festivals, restaurants and specific locations for which food-tasting and/or experiencing the attributes of a specialist food production region are the primary motivating factor for travel'.

Wine and food tourism as a niche tourism product

The gastronomic tourism market represents a small number of the overall tourist visitors to a destination, but these tourists are big spenders. Hall and Mitchell go on to classify food tourists based upon their interest in food, including rural tourism, where interest in food is low, although the tourist would visit a farmers' market because 'it is something to do', to culinary tourism, where the tourist is moderately interested in food, and would visit a winery or whisky distillery as part of a wider range of lifestyle activities.

It is widely recognized that tourists provide a significant proportion of the market for restaurants and cafés around the world, with dining out often being cited as one of the main activities. However food tourism is bigger than just cafes and restaurants, it is also the relationship to local suppliers and producers.

Some tourists visit an area specifically to sample locally produced food. Photo © 2007 Jupiterimages Corporation.

According to research by the UK National Association of Farmers Markets, farmers markets contribute a core offering in any gastro destination as they become a living attraction for the tourist; they offer an authentic product that is rooted in the culture of the region. In addition, destinations wanting to set themselves up as food destinations must embrace the whole food chain, from production through to retail. One of the best examples of this proposition in Scotland is Arran, which supplies a range of local cheeses, produces its own beers and has a range of award-winning restaurants.

So, what are the prospects?

Eating Out in Scotland

In 2005, the eating-out market (not food tourism) in Scotland was worth £3.0bn and this is forecast to grow to £3.8bn by 2015. Economic conditions are still right for the eating-out market, but not all parts of Scotland's restaurant sector will fare equally well. Fast-food outlets, in particular, are vulnerable to changes in the competitive environment and will decline by 11.5% in real terms, compared to total eating out sales of 25%.

The ethnic restaurant market will grow by 20%, as curry remains a first-choice meal for many diners. We also expect the take-away market to grow in Scotland as a result of time pressures and the diversity of restaurants now offering such a service. The shortage of labour may impede growth, as the long-term consequences of an Eastern European labour force are still unknown, and as other service industries compete for a shrinking skilled labour pool.

The ethnic restaurant market is estimated to grow by 20% by 2015. Photo © 2007 Jupiterimages Corporation.

However, the restaurant industry has always traditionally been a multi-cultured and diverse one, whether it is Italian waiters or French chefs. Eating out is now a lifestyle choice, in which the consumer has more choice and is more demanding. For Scotland's restaurant industry to flourish it must be 'more' than it has been in the past, because 'having a meal in a restaurant' is no longer seen as being a special event. The restaurant industry will be challenged to provide that new experience, whether it is authentic cuisine or the 'wow' factor.

The Food Tourist in Scotland

Food tourism is not a driving force for international visitors, according to a report prepared for the Ministry of Agricultural, Fisheries and Food in 2000 as only 3% of overseas visitors cited food and drink as the main purpose for their visit. This factor is supported by VisitScotland's Tourism Attitude Survey, which showed that only 2% of Italian and French visitors were influenced by Scotland's cuisine and only 1% of Swedish visitors.

UK tourists to Scotland spent £601 million on food and drink, representing 20% of all expenditure; this percentage has been constant for the past ten years and there is no reason to believe that it will change in the future. Therefore, our base forecast for food and drink tourism in 2015 for UK domestic visitors is forecast to be £902m, an increase of approximately 50% from 2005. In order to understand the potential of food tourism, visitors have been segmented according to the Entreleca study of regional food tourists and Hall's classification of Food and Wine Tourism.

In the benchmark scenario, the £902 million has been distributed against the following profiles:

Gastro Tourists
The gastro-tourist represents 4% or £36m of food expenditure. This is the ultimate food expert, travelling to destinations because of the cultural heritage of its food and drink or its association with a particular chef. They are the early adopters when it comes to food, trying out a range of restaurant styles - as long as the food is of the highest quality. They are the champions and often most critical of food in destinations; they are predominately middle class, will enter cookery competitions, and have always wanted to be a chef. They will often entertain at home and they worship Gordon Ramsay.

The gastro-tourist is the ultimate food and drink expert. Photo © 2007 Jupiterimages Corporation.

The Foodie
The food tourist or foodie represents 6% or £54m of expenditure. The foodie is a semi-dedicated food enthusiast who subscribes to the food channels, reads food-related magazines and chooses destinations based upon culture and cuisine. The foodie is sophisticated in his food choice, well informed and interested in good quality, locally sourced and seasonal food and drink.

Interested Purchaser
This group represents 30% or £230m of expenditure. People in this group believe that food in general can contribute to the enjoyment of their holiday and they purchase and/or eat local foods when the opportunity arises. These tourists do not pre-plan and are often the most active purchasers of local foods. They go to local farmers' markets as an alternative to something else to do, such as visiting castles.

Un-reached
This group represents 17% or £153m of expenditure and believe that food and drink in general can contribute to their enjoyment on their holiday. They are happy to try local food if they come across it, but, at present, would not consciously go out of their way to do so.

Un-engaged
These people do not perceive food and drink as adding to the enjoyment of their holiday, but they are not completely negative towards sampling local food. They represent 23% or £207m of food and drink expenditure.

Laggards
They have no interest in local food and avoid unfamiliar cuisine. They represent 20% and £180m of food and drink expenditure.

Today, food tourism provides a destination with a strong regional identity through the accumulation of cultural capital and social cachet. Local food and drink are an authentic experience as food is rooted in local produce, is simple, fresh, ethical in nature, good for the environment and community-based. The outlets for the produce are local shops and farmers' markets; shopping and local produce are clearly linked.

Only the gastro tourist or foodie can be counted as the ‘true food tourist’. Photo © 2007 Jupiterimages Corporation.

However, in the benchmark scenario, over 60% of food purchasers are not really interested in local produce - rather food for them is functional. Only the gastro tourist or foodie can be counted as the 'true food tourist', where food is the main reason for the visit. This, combined, represents only 10% of all domestic visitors. Two alternative scenarios are presented which are variations of the benchmark scenario.

Scenario 1 - Trading Up

The consumer is trading up, as food acquires more cultural capital and social cachet than the benchmark scenario. Driving this scenario is an ageing population with disposable income who associates Scotland with a strong brand image which is human, dramatic and enduring.

Concerns about health regulation and a generally better educated population drive the growth in locally sourced, high-value, premium products. Scotland's open spaces, eco-friendly perception and strong local products which are quality assured, means an extra £98m in this scenario.

The market segment changes are based upon the gastro tourist +2%, the foodie +6% and the un-reached +11%. The change in this scenario has meant that the disengaged and laggards groups have traded up.

Scenario 2 - Food Commodity

Although food and culture are important in society, prices have fallen as the product becomes more commoditised and homogeneous. Margins are squeezed and other destinations start to offer similar products. The standards of quality have risen, but profits have fallen.

In this scenario, revenues from the foodie have increased by 3% but the uniqueness and commercial advantage of Scotland's food product has disappeared in the lower order categories. In this scenario, the value of food and expenditure drops to £829m.

Conclusion

Today, the consumer is better educated, wealthy, has travelled more extensively, lives longer, and is concerned about his health and the environment. Therefore, food and drink become more important and have a higher social status amongst certain groups.

Observations have been made in this paper about the changing nature of food in society, with health and well-being becoming mainstream, whether facilitated through regulation or by attitudinal change. However, it is not all about authenticity and local cuisine.

Food and drink have become more important and have a higher social status amongst certain social groups. Photo © 2007 Jupiterimages Corporation.

Whatever the scenario, food is not the main driver for visiting. In the benchmark scenario, only 10% of revenue is associated with 'food tourism', with the scale of opportunity rising to 20% in the Trading Up scenario. However, the number of tourists who may be interested in food ranges from 43% to 58%, whereas the uninterested ranges from only 24% to 44%.

The threat imposed by driving up quality is highlighted in Scenario 2; first of all, other destinations will deliver a similar experience at a lower price and, secondly, authenticity becomes a homogenous trade mark.

The short-term opportunities for Scottish tourism are clear, especially with the baby boomers' market, but generation X and Y may be different. Food tourism will become an evermore important aspect of the overall experience. The challenge for Scotland as a destination that is not rich in a culinary heritage is which direction it takes - one thing is clear, food tourism must be a quality product, whether it is slow food or fast food.

Scotland's food and restaurant industries have an opportunity to contribute towards the overall ambition to increase the value of Scottish tourism by 50% by the 2015. Finally, if food is not for you, there is always the no-food movement which is all the rage in Japan, where holiday-makers are flocking to the Arina Hotel in the idyllic Nagano Mountains for a fasting feast!

This special feature is adapted from the report - From Fast Food to Slow Food: The Prospects for Scotland's Cuisine to 2015 - which was originally published in a recent edition of VisitScotland's Tomorrow's World, Consumer and Tourism.

A full copy of the 24 page report is available in PDF format (3.3 mb) on the VisitScotland website.

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