The role of the natural heritage in generating and supporting employment opportunities in Scotland

Transcription

1 COMMISSIONED REPORT Commissioned Report No. 072 The role of the natural heritage in generating and supporting employment opportunities in Scotland (ROAME No. F03NC17) For further information on this report please contact: Archie Prentice Scottish Natural Heritage Ardconnel Terrace INVERNESS IV2 3AE Telephone: This report should be quoted as: Environmental Resources Management Limited (2004). The role of the natural heritage in generating and supporting employment opportunities in Scotland. Scottish Natural Heritage Commissioned Report No. 072 (ROAME No. F03NC17). This report, or any part of it, should not be reproduced without the permission of Scottish Natural Heritage. This permission will not be withheld unreasonably. The views expressed by the author(s) of this report should not be taken as the views and policies of Scottish Natural Heritage. Scottish Natural Heritage 2004.

2

3 Background In 2004, Scottish Natural Heritage (SNH) commissioned this study to determine the contribution of the natural heritage to Scotland s economy. This updates a previous study in 1997, which identified between 7,450 and 9,110 jobs in Scotland attributable to the country s natural heritage. Since then, the definition of natural heritage jobs has developed and expanded. The following definition is used in this study to define activities relating to the natural heritage sector in Scotland: Activity relating to the protection, management, conservation, maintenance, enhancement, awareness, interpretation and enjoyment of Scotland s biodiversity and natural landscapes. It excludes environmental protection activities relating to waste management, pollution control and sustainable transport. Main findings COMMISSIONED REPORT Summary The role of the natural heritage in generating and supporting employment opportunities in Scotland Commissioned Report No. 072 (ROAME No. F03NC17) Contractor: Environmental Resources Management Limited (ERM) Almost 93,000 jobs and 2.2 billion Gross Value Added (GVA) are generated by Scotland s natural heritage. This represents 3.9% of Scotland s total employment and 3.1% of the country s GVA. The majority of jobs related to the natural heritage fall within the category of activities based on the quality of the natural heritage. Natural heritage sub-sector Employment (FTE) GVA equivalent ( m) Natural environment protection and management 17, Natural heritage products and services 6, Activities based on the quality of the natural heritage 69,011 1,616 Total natural heritage employment 92,757 2,172 The majority of natural heritage employment lies in SNH s East Area (47%), and West Area (42%), with a small number of people in the North Area of the Highlands and Islands (11%). Private sector activities account for 94% of total natural heritage jobs in Scotland; the public sector accounts for 4%, the remaining 2% working in NGOs. Voluntary and unpaid work in NGOs supports the equivalent of a further 2,000 jobs. There are a range of drivers creating opportunities to increase economic activity associated with the natural heritage in Scotland. These include changing regulatory requirements relating to the natural environment in Europe, the UK and Scotland; growing demand for nature based tourism and recreation; growth in demand for organic and goods produced sustainably; and EU expansion and the need for new EU countries to adhere to European environmental policies. In each sub-sector of the natural heritage sector, there are specific opportunities and actions that can be taken to capitalise on these opportunities, These relate to best practice in public sector procurement, integrated public sector intervention and awareness raising; encouraging growth in market acceptance and economic returns; support for the development of sustainable tourism; and continued promotion of generic and niche natural heritage attributes and related activities. For further information on this project contact: Archie Prentice, Scottish Natural Heritage, Ardconnel Terrace, Inverness IV2 3AE. Tel: For further information on the SNH Research & Technical Support Programme contact: The Advisory Services Co-ordination Group, Scottish Natural Heritage, 2 Anderson Place, Edinburgh EH6 5NP. Tel: or ascg@snh.gov.uk

4

5 Contents Summary Executive summary 1 INTRODUCTION Study aims Background and strategic context Definition of the natural heritage sector Components of the natural heritage sector Approach Report structure 7 2 POLICY CONTEXT Economic context Other strategies Summary 10 3 SUMMARY OF NATURAL HERITAGE EMPLOYMENT 11 4 NATURAL ENVIRONMENT PROTECTION AND MANAGEMENT Policy and regulation Management for restoration, protection, improvement and enjoyment Natural heritage consultancy Natural heritage contractors Production of natural heritage goods and equipment Natural heritage education and awareness Natural heritage research Natural heritage management in agriculture 24 5 NATURAL HERITAGE PRODUCTS AND SERVICES Organic farming Organic fisheries Sustainable forestry Sustainable fisheries Angling Products based on natural heritage resources 35 6 ACTIVITIES BASED ON THE QUALITY OF THE NATURAL HERITAGE Introduction Tourism and recreation 38

6 7 THE INCREASING SCOPE OF THE NATURAL HERITAGE AND ENVIRONMENT TO SUPPORT ECONOMIC ACTIVITY Introduction Natural heritage aspects of land management Association with a high quality natural heritage 43 8 OPPORTUNITIES AND BARRIERS FOR DEVELOPING NATURAL HERITAGE EMPLOYMENT Introduction Barriers Opportunities and growth potential 47 9 MOVING FORWARD RECOMMENDED ACTIONS AND RESPONSIBILITIES Introduction Natural heritage protection and management Natural heritage products and services Activities based on the quality of the natural heritage Overall progress 54 Annex A ERM classification of natural heritage employment 55 Annex B Methodologies for information and data collection 57 Annex C Attendees at SNH workshop 63

7 EXECUTIVE SUMMARY Scotland s natural heritage is one of the country s greatest assets, supporting considerable economic value as well as non-market values (eg landscape, biodiversity, carbon sequestration flood prevention etc). In 2004, Scottish Natural Heritage (SNH) commissioned this study to identify employment supported by Scotland s natural heritage. This updates a previous study in 1997, which identified between 7,450 and 9,110 jobs in Scotland attributable to the country s natural heritage. Since then, the definition of natural heritage jobs has developed and expanded. Employment in core natural heritage activity has grown over the period. This has been matched by growth in the range of jobs and businesses relying on and associating their activity with a high quality natural heritage. The current research has identified that almost 93,000 jobs and 2.2 billion Gross Value Added (GVA) are generated by Scotland s natural heritage. This represents 3.9% of Scotland s total employment and 3.1% of the country s GVA. Definitions Scotland s natural heritage is its wildlife, habitats, landscapes and natural beauty. It includes the rocks, soils, landforms and waters on which these are based. One of the challenges for SNH and partners involved in the natural environment is to create an acceptable definition of the natural heritage as an economic sector, so it can be quantified and trends in its growth/development can be monitored over time. In this study, the following definition is used to define activities relating to the natural heritage sector in Scotland: Activity relating to the protection, management, conservation, maintenance, enhancement, awareness, interpretation and enjoyment of Scotland s biodiversity and natural landscapes. It excludes environmental protection activities relating to waste management, pollution control and sustainable transport. An important consideration when defining the natural heritage sector, is to recognise it represents a component of the wider environmental economy, which also includes environmental pollution control, waste management, energy and transport activities. Simply put, activity that used, enhanced or added value to the natural heritage, was included in the current research. For this research, natural heritage activities were grouped in 3 categories, as set out in the following table and figure. Natural heritage sub-sector Employment GVA equivalent* (FTE) ( million) Natural environment protection and management 17, Natural heritage products and services 6, Activities based on the quality of the natural heritage 69,011 1,616 Total natural heritage employment 92,758 2,172 Note: See Table 3.1 in the report for sources and notes.

8 Natural heritage protection and management 1. Public sector policy and regulation/enforcement inc. wildlife protection officers. 2. Management of areas/features identified as of importance for NH. 3. Production of native plants, trees etc for landscaping. 4. Landscape contracting (soft landscapes). 5. NH consultancy incl soft landscape design. 6. NH further and higher education, interpretation, information, media. 7. NH research. 8. NH aspects of environmental management in agriculture. 9. NH aspects of land management estates and sporting. Natural heritage products and services 1. Organic farming. 2. Sustainable forestry. 3. Sustainable fisheries. 4. Eco-tourism. 5. Products based on natural resources relevant to NH. Quality of the natural heritage 1. Tourism. 2. Recreation. Geographical distribution of jobs The following table illustrates these figures geographically by SNH operational units. The majority of natural heritage employment lies in SNH s East Area (47%), and West Area (42%), with a smaller number of people employed in the North Area (11%). In terms of local significance, natural heritage employment as a share of total local employment is greatest in the North Area, more than double the East and West area figures. Geographic distribution of Scotland s natural heritage employment Employment % of NH employees as % (FTE) NH employment of total local employees North Area 10,176 11% 9% East Area 43,496 47% 3.9% West Area 39,086 42% 3.7% Total 92, % The natural heritage is now a valuable resource for a broad range of businesses. This study covered aspects of private sector activity not previously incorporated in the definition of the natural heritage sector, for example tourism and recreation based on the natural environment, sustainable forestry and organic farming. Private sector activities account for 94% of total natural heritage jobs in Scotland; the public sector accounts for 4%, the remaining 2% working in NGOs. Voluntary and unpaid work in NGOs supports the equivalent of a further 2,000 jobs. Some employment supported by the natural heritage is relatively easy to quantify. However the research also identified a range of employment, harder to quantify, which is related to the natural heritage.

9 Examples include sustainable land management on estates, game keeping, wild harvesting, and jobs in the production of goods using inputs dependent on the natural environment, such as whisky, textiles and bottled water. Figures for some of these these activities have been identified in the research but not included in overall totals. As our understanding of the relation between this activity and the natural heritage grows, it is likely this employment will be included in future research. A conservative approach was adopted for this research, so it is likely that figures for natural heritage employment and economic activity understate the actual totals. Drivers of opportunity There are a range of drivers creating opportunities to increase economic activity associated with the natural heritage in Scotland. These include: changing regulatory requirements relating to the natural environment in Europe, the UK and Scotland. The Strategic Environmental Assessment (SEA) Directive for example will improve assessment of the potential environmental impacts of organisation s plans and programmes, integrating environmental considerations into their preparation and adoption; growing demand for nature based tourism and recreation; growth in demand for organic and goods produced sustainably (including food and drink, forestry products and inputs to construction); and EU expansion and the need for new EU countries to adhere to European environmental policies will provide good opportunities for the transfer of Scotland s natural heritage skills and services such as consulting and contracting. Moving forward In each sub-sector of the natural heritage sector, there are specific opportunities and actions that can be taken to capitalise on these opportunities. Natural heritage protection and management Adopting best practice in public sector procurement and contract specifications, where public sector requirements and specifications in contracts consider the natural heritage, and ensure public procurement of natural heritage products wherever appropriate; Public sector intervention must become more integrated, providing financial and economic incentives to create positive natural heritage related outputs such as urban regeneration projects taking account of natural heritage considerations and enhancing urban wildlife and green spaces; and Raising awareness to promote the (economic) value of the natural heritage and encourage the development of sustainable management. Closer collaboration between business and the design of higher education and further education courses would ensure that people access appropriate skills.

10 Natural heritage products and services Raise awareness of the role of the natural heritage in the primary sector, by encouraging agriculture, forestry and fishery products associated with a high quality natural heritage; and Encourage the growth in market acceptance and economic returns associated with investing in natural heritage products and services. Quality of the natural heritage Continue to promote the generic natural heritage attributes that differentiates Scotland from other tourist destinations; Raise awareness of and promote the different niche natural heritage related activities supporting tourism and recreation in Scotland; Support the development of sustainable tourism activities.

11 1 INTRODUCTION 1.1 Study aims This report has been commissioned by Scottish Natural Heritage (SNH), and managed by a steering group consisting of Scottish Executive, Scottish Enterprise and Forward Scotland. The report has been prepared by ERM Ltd, and aims to assess the Role of the Natural Heritage in Generating and Supporting Employment Opportunities in Scotland. Specific aims of the study have been to: develop an appropriate classification for natural heritage related employment; identify current levels of employment and associated economic value; and assess the potential for the development of natural heritage employment in Scotland and provide recommended actions for capitalising on this potential. 1.2 Background and strategic context Scotland has a unique, rich and diverse natural environment, including wild mountains and rugged coastline, gentle farmland, green space in the more urban areas and outstanding fauna and flora. The natural environment is one of Scotland s greatest economic and cultural assets and underpins much economic activity, as well as enhancing quality of life. As stated in the Scottish Executive s Framework for Economic Development (2000): Scotland s environment is a vital natural resource. If managed wisely, it can provide a stable context for economic activity. A positive record of care for our country will help tourism, the attraction of inward investment and the marketing of whisky and other products in the food and drinks sector. Similarly, Scotland s Rural Development Vision and Strategy Rural Scotland: A New Approach (2000) and Scotland s Biodiversity Strategy state that: Scotland is world famous for its beautiful scenery, its clean environment and its rich natural and cultural heritage. They bring visitors from all over the world and they provide stimulus and enjoyment to all Scots. The natural and cultural environment, including the built environment, is what makes rural Scotland entirely distinctive. We need to value these assets and to build on them. We need to develop, sustainably, the opportunities which the natural and cultural heritage of Scotland offers Rural Scotland: A New Approach (2000). Our dramatic landscapes and seascapes, and the biodiversity they host, also underpin the tourism industry which employs more than 9% of the Scottish workforce and contributes more than 4.5 billion to our national economy. In addition, economic growth in some scenic areas of north and west Scotland is closely linked to the quality of life associated with this environment, and the value that many people place on this. Likewise, people who live in urban environments are increasingly realising that the green spaces around them are important. They add texture to life; provide opportunities for outdoor activity and healthy living; and provide a platform for learning Towards a Strategy for Scotland s Biodiversity Biodiversity Matters (2003). 1

12 This study builds on this strategic recognition of the importance of natural heritage to Scotland s economy and way of life, and seeks to quantify employment and economic activity relating to Scotland s natural heritage. The study also builds on a number of previous studies which have analysed the economic contribution of the environment at the national and UK level. A study was commissioned by Scottish Natural Heritage in 1997 (undertaken by Mackay Consultants) to determine the number of jobs arising from the natural heritage in Scotland 1. This report found that between 7,450 and 9,110 jobs in Scotland were attributable to the natural heritage. More recently, Scottish Enterprise commissioned a study to map Scotland s environmental industry 2, in recognition of the growing importance of the sector, strong regulatory and fiscal market drivers and substantial international market opportunities that provide significant growth opportunities for Scotland s environmental industry. These and other related studies that have been conducted are listed in Table 1.1. While this report was being finalised, Defra published a report called, Revealing the Value of the Natural Environment in England, focusing on the economic values and impacts associated with England s natural environment (the country s landscape and biodiversity). Natural environment activities were defined as including: Activities that help to manage and conserve landscapes and wildlife habitats, such as nature and landscape conservation, agriculture, and forestry. Also considered are the benefits that rural environmental management has on outdoor recreation and tourism, on fisheries, and on the production and marketing of food, timber and rural produce. Other environmental activities many of which are included in other studies such as the regional environmental economy reports are excluded from this one. Though some of these are located in rural areas, they are primarily concerned with the protection of the wider environment rather than directly with rural landscapes and biodiversity. It is clear that while the Defra report defines it slightly differently, the need to define natural heritage activities is increasing, and is being considered of higher priority in the UK as a whole. The SNH and DEFRA reports highlight the growing economic significance of the environment and natural heritage. This will continue as environmental objectives are becoming more central to many rural sectors. 1 Scottish Natural Heritage 1998 Jobs and the Natural Heritage in Scotland prepared by Mackay Consultants. 2 Scottish Enterprise 2004 Environmental Industries Mapping Study prepared by Connect 3 Consultants Ltd with BMT Cordah Ltd and Firn Crighton Roberts Ltd. The study team for the environmental industries report contacted around 800 organisations involved in the core environmental industries and based on responses estimated that these companies represented around 7,700 with an average of 9 employees per company. The turnover of organisations interviewed was estimated to be in the region of 200 million with an average business turnover of 235,000. 2

13 Table 1.1 Previous studies relating to environmental and natural heritage jobs Commissioning Year Title Geographic Author organisation scope SNH 1997 Jobs and the Natural Scotland Mackay Consultants Heritage in Scotland OECD and Eurostat 1999 Environmental Goods and EU and Global OECD and Eurostat Services Manual Environment Agency, 1999 An Environmental South West region Environmental Regional Assembly and Prospective for the South of England Resources partners in the SW of West of England Management Ltd (ERM) England Southern Uplands 2000 The Interaction between Southern Uplands Environmental Partnership the Environment and the Resources Regional Economy of Management Ltd (ERM) the South of Scotland: A Scoping Study NWDA, Regional 2000 The Environmental Economy The North West of Environmental Assembly and Partners of the North West England Resources Management Ltd (ERM) Forward Scotland 2001 An Overview of the Scotland Yellow Book Natural Heritage Sector Advantage West Midlands, 2001 The Environmental Economy The West Midlands Environmental Environment Agency and of the West Midlands Resources Regional Partners Management Ltd (ERM) National Trust, One North 2001 Valuing the Environment in The North East Environmental East, RSPB and Regional the North East Resources Partners Management Ltd (ERM) East Midlands Development 2001 The Environmental Economy The East Midlands Environmental Agency and Partners 2002 of the East Midlands Resources Management Ltd (ERM) JEMU (DTI/DEFRA) 2001 Environmental Goods UK and Global Environmental and Services Global Resources Opportunities for the UK Management Ltd (ERM) Environmental Industry SNH, Scottish Enterprise, 2002 Local Economic Linkages Scotland The Macaulay HIE and the Natural Heritage Institute et al. Yorkshire Forward, 2002 The Environmental Economy Yorkshire and the Environmental Countryside Agency and of Yorkshire and the Humber Resources Partners Humber Management Ltd (ERM) LANTRA 2003 Environmental and Land- UK LANTRA based Sector Market Assessment SEEDA South East of 2003 Valuing the Environment of South East of England SQW and Cambridge England Development the South East of England Econometrics Agency The National Trust and 2003 Valuing our Environment Wales Glamorgan partners Business School Scottish Enterprise 2004 Environmental Industries Scotland Connect 3 Consultants Mapping Study Ltd, in association with BMT Cordah Ltd and Firn Crichton Roberts Ltd 3

14 1.3 Definition of the natural heritage sector SNH s Corporate Strategy states that: Scotland s natural heritage is its wildlife, habitats, landscapes and natural beauty. It includes the rocks, soils, landforms and waters on which these are based. It can be found throughout the land and at sea, from the hearts of our cities to the tops of the hills and through rivers and lochs. One of the challenges for SNH and partners involved in the natural environment is to create an acceptable definition of the natural heritage sector so that it can be quantified and trends in its growth/development monitored over time. For the purposes of this study, the definition used to define activities relating to the natural heritage sector is as follows: Activity relating to the protection, management, conservation, maintenance, enhancement, awareness, interpretation and enjoyment of Scotland s biodiversity and natural landscapes. This includes wildlife and habitats and areas of scenic and natural beauty, including urban wildlife and greenspaces. It excludes environmental protection activities relating to waste management, pollution control (to air, water and soils), energy and sustainable transport etc, since these activities are not specifically focused on the natural environment, wildlife and biodiversity. An important consideration when defining the natural heritage sector, is therefore to recognise that it represents a component of the wider environmental economy, which includes environmental pollution control, waste management, energy and sustainable transport activities noted above. It is also important to recognise that economic activity relating to the natural heritage sector often has to be teased out of accepted economic data (eg SIC codes) rather than being available as a separate data set. One of the key aims of this study is to more tightly define the natural heritage sector and to inform future debate on what it constitutes. It is important to realise that as awareness of the natural heritage sector to the economy increases, and as the sector diversifies, the scope of the definition will almost certainly change. The definition used in this report allows consideration of a greater scope of natural heritage activities than before, while at the same time ensuring that it is only incorporating the natural heritage element of activities relating to the environment and environmental activities. 1.4 Components of the natural heritage sector In order to make the definition of the natural heritage clearer and easier to quantify, natural heritage activities can be broken down into 3 categories: activities associated with natural heritage protection and management; natural heritage products and services; and activities related to or dependent on the quality of the environment. The relationship between these natural heritage activities and the wider definition of the environmental economy is shown in Figure

15 Figure 1.1 The natural heritage sector in the context of the environmental economy Environmental protection and management (jobs directly concerned with managing the environment and the environmental impact of activities) 1. Environmental policy and regulation. 2. Management of the environment for protection/ improvement/enjoyment. 3. Production of environmental equipment. 4. Environmental services (clean up, landscaping etc). 5. Environmental consultancy. 6. Education and awareness. 7. RD&D. 8. Environmental managers in commerce and industry. 9. Environmental land managers. Natural heritage jobs Environmental products and services (jobs producing green versions of conventional products and services) 1. Organic farming. 2. Sustainable forestry. 3. Sustainable fisheries. 4. Nature-based tourism. 5. Green products. Quality of the environment (jobs in activities benefiting from quality of the environment) 1. Tourism. 2. Recreation. Within each of the broader categories that make up the environmental economy (the 3 large spheres in Figure 1.1), there are a number of jobs that relate specifically to the natural heritage. The current study focuses only on this natural heritage sub-set, as shown in Figure 1.2, which summarises the natural heritage jobs which are covered in this study. 5

16 Figure 1.2 The natural heritage sector Natural heritage protection and management 1. Public sector policy and regulation/enforcement inc. wildlife protection officers. 2. Management of areas/features identified as of importance for NH. 3. Production of native plants, trees etc for landscaping. 4. Landscape contracting (soft landscapes). 5. NH consultancy incl soft landscape design. 6. NH further and higher education, interpretation, information, media. 7. NH research. 8. NH aspects of environmental management in agriculture. 9. NH aspects of land management estates and sporting. Natural heritage products and services 1. Organic farming. 2. Sustainable forestry. 3. Sustainable fisheries. 4. Eco-tourism. 5. Products based on natural resources relevant to NH. Quality of the natural heritage 1. Tourism. 2. Recreation. 1.5 Approach The study makes use of existing data sets as well as additional primary research. Where existing data was unavailable in key areas, primary research has been used to fill these key gaps. Where it has not been possible to use primary research within the timeframe and resources available to the study, it was agreed with the study Steering Group to use professional judgement in providing informed best estimates of job numbers in certain areas. The different methodologies used are explained in Annex B, showing the variation in approaches due to data limitations and the difficulty in quantitatively defining the natural heritage element of certain environmental sub-sectors. Where it has not been possible to get an estimate of employment or the economic value of certain aspects of the natural heritage, these areas have been discussed qualitatively, with a view to future research and quantification (see chapter 7). In examining opportunities, barriers and actions for supporting future growth, the study has also drawn on a range of policy and strategic documents, as well as consultation with a wide range of organisations, including attendees at a stakeholder workshop held in April We are grateful for the assistance provided by organisations and consultees throughout the study. 6

17 1.6 Report structure The report is structured into the following sections: Section 2 Policy context. Sets out the economic and policy context for the study, highlighting the importance of capitalising on employment and sustainable economic activity associated with Scotland s unique natural heritage. Section 3 Summary of employment in the natural heritage sector. Summarises the study s findings, including the number of jobs involved in each natural heritage sub-sector. Section 4 Environmental protection and management. Describes activities in environmental management and protection delivered by employees in the public, private and voluntary sector. Section 5 Natural heritage products and services. Describes activities that result in the production of natural heritage products and services in the private sector. Section 6 Activities based on the quality of the natural heritage. Examines the employment created through activities such as tourism. Section 7 The increasing scope of the natural heritage and environment to support economic activity. Looks at those aspects of the natural heritage that are more conceptual in nature and more difficult to quantify. Section 8 Barriers and opportunities. Discusses the barriers and opportunities for future growth in natural heritage employment in Scotland. Section 9 Moving forward. Recommends actions for developing employment and skills in Scotland s natural heritage sector. 7

18 2 POLICY CONTEXT In examining the significance of natural heritage related activities in Scotland s economy it is important to provide an overview of current economic development trends and strategic priorities; as well as other related policy areas in sustainable development, rural development and tourism. 2.1 Economic context The Scottish Executive s economic development strategy, The Way Forward: Framework for Economic Development in Scotland (FEDS) (2000) identifies objectives, challenges and priorities for developing Scotland s economy, and sets the framework for future activities to support economic development. As stated in the FEDS, economic development priorities include: developing indigenous employment; providing long-term employment opportunities including rural areas; diversifying rural economies; reducing out-migration; and increasing rates of business creation. Development of economic activity based on the environment has an important potential role to play in addressing these priorities: Scotland s environment is a vital natural resource. If managed wisely, it can provide a stable context for economic activity. A positive record of care for our country will help tourism, the attraction of inward investment and the marketing of whisky and other products in the food and drinks sector. The FEDS also highlights the importance of developing tourism in Scotland, particularly in rural areas and as a means of enhancing the positive perceptions of Scotland; and also highlights the importance of natural environment to tourism. Tourism is one of the sectors in which Scotland has a number of strengths based on natural assets, environment and culture. It is also one of the sectors which contributes to economic development in both rural and urban areas. Promotion of the tourism industry therefore has the potential to benefit both the growth, social justice and regional objectives; and promotion of the environmental objective will in itself assist the tourism industry by enhancing the positive perceptions of Scotland among potential customers. Similarly, Scotland s Rural Development Vision and Strategy Rural Scotland: A New Approach (2000) states that: Scotland is world famous for its beautiful scenery, its clean environment and its rich natural and cultural heritage. They bring visitors from all over the world and they provide stimulus and enjoyment to all Scots. The natural and cultural environment, including the built environment, is what makes rural Scotland entirely distinctive. We need to value these assets and to build on them. We need to develop, sustainably, the opportunities which the natural and cultural heritage of Scotland offers Rural Scotland: A New Approach (2000). 8

19 Features of Scotland s economy which provide important context for the study include the following: In 2001, Scotland s GVA was 69.6 billion, equal to around 14,400 per capita 1. Employment was around 2.4 million in 2003, at a rate of 74.2%, and with an ILO unemployment rate of 5.8%. Scottish average earnings were almost 92% of the average earnings in Great Britain (April 2002) 2. In 2001 there were 149,300 enterprises in Scotland 3. Manufacturing and production activities accounted for the majority of economic growth in the last quarter, of 2003 a change from previous recent trends whereby the service sector has been driving growth. However, over 2003 as a whole, the service sector remained the main source of growth, at a rate of 2.3% compared with a 1.6% drop in the production sector and a 5.7% rise in construction. The Scottish food and drink industry employs over 55,000 people in more than 1,500 businesses. They produce combined sales of 7.3 billion and export sales of 2.4 billion. Tourism supports about 9% of all Scottish employment which rises to 15% in the Highlands and Islands. In 2001/02 over 19 million tourists took overnight trips and spent almost 4.5 billion. 2.2 Other strategies Other strategies which provide important strategic context for the study include the Sustainable Development strategy, the Food and Drink strategy, the Tourism strategy, Biodiversity, Agriculture and Forestry. For example, Scotland s Biodiversity Strategy, Towards a Strategy for Scotland s Biodiversity Biodiversity Matters (2003) states that: Our dramatic landscapes and seascapes, and the biodiversity they host, also underpin the tourism industry which employs more than 9% of the Scottish workforce and contributes more than 4.5 billion to our national economy. In addition, economic growth in some scenic areas of north and west Scotland is closely linked to the quality of life associated with this environment, and the value that many people place on this. Likewise, people who live in urban environments are increasingly realising that the green spaces around them are important. They add texture to life; provide opportunities for outdoor activity and healthy living; and provide a platform for learning Towards a Strategy for Scotland s Biodiversity Biodiversity Matters (2003). Scotland s Food and Drink Strategy, The Big Challenge states that: Scotland has already built an international image and reputation for the quality of its products and has a rich endowment of natural resources, established industries, and worldclass food-related research institutes. This is an excellent base to build from. 1 National Statistics Headline Gross Value Added at Current Basic Prices by Region Source: Scottish Development International, November Source: Scottish Development International, November

20 One of the priorities in the Food and Drink Strategy, is to have excellence in raw materials through: Creating a significant position in healthy/natural/organic animal protein and related segments, through differentiation around Scottish branding, sustainable farming, natural preservation techniques and a stringent regulatory regime. This is a very high growth market, with strong underlying competitive potential. Part of the vision of Scotland s Agricultural Strategy, A Forward Strategy for Scottish Agriculture (2001) is that the farming industry should: play a major role in sustainable rural development and help to maintain the prosperity of our rural communities; be a leading player in the protection and enhancement of our environment; and embrace change and new opportunities. The vision and guiding principles of Scotland s Forestry Strategy, Forests for Scotland (2001), emphasises the importance forests play in all aspects of Scottish life: Scotland will be renowned as a land of fine trees, woods and forests which strengthen the economy, which enrich the natural environment and which people enjoy and value. Highquality trees, woods and forests can help make Scotland a better place for people to live and work in and to visit. Increasing confidence in the future of forestry will encourage investment that will benefit current and future generations. The Strategy proposes 5 Strategic Directions for Scottish forestry, which are: to maximise the value to the Scottish economy of the wood resource becoming available for harvesting over the next 20 years; to create a diverse forest resource of high quality that will contribute to the economic needs of Scotland throughout the 21st century and beyond; to ensure that forestry in Scotland makes a positive contribution to the environment; to create opportunities for more people to enjoy trees, woods and forests in Scotland; and to help communities benefit from woods and forests. 2.3 Summary A wide range of strategic policy documents highlight the important contribution that the natural environment makes to economic development in Scotland. They also highlight opportunities for increasing this contribution in the future. This study helps to quantify this contribution and identify actions to capitalise on these opportunities. 10

21 3 SUMMARY OF NATURAL HERITAGE EMPLOYMENT The analysis presented in Sections 4 6 reveals that around 93,000 jobs and 2.2 billion Gross Value Added (GVA) relate to Scotland s natural heritage summarised in Table 3.1. This represents 3.9% of Scotland s total employment and 3.1% of GVA. Table 3.1 Natural heritage sector employment Natural heritage sub-sector Employment GVA equivalent* Section (FTE) ( million) reference Natural environment protection and management 17, Section 4 Natural heritage products and services 6, Section 5 Activities based on the quality of the natural heritage 69,011 1,616 Section 6 Total natural heritage employment 92,758 2,172 Source: *Note: Office for National Statistics Regional Value Added ; Office for National Statistics Annual Business Enquiry. Gross Value Added (GVA) measures the contribution to the economy of each individual producer, industry or sector in the United Kingdom. In this case, GVA has been estimated by applying the employment to GVA ratio of the sectors comparable to natural heritage employment this equates to GVA of 23,424 per employee. It has been assumed that this average is applicable across the 3 sub-sectors. It is not possible to apportion total natural heritage jobs into smaller regional areas due to data limitations, but it has been possible to apportion them according to SNH operational units, as shown in Table 3.2. Table 3.2 Estimated employment in Scotland s natural heritage by SNH operational units Employment % of NH employees as % (FTE) NH employment of total local employees North Area 10,176 11% 9% East Area 43,496 47% 3.9% West Area 39,086 42% 3.7% Total 92, % Source: Survey and Annual Business Inquiry It is important to recognise that in each natural heritage sub-sector, these jobs exist in both urban and rural areas. However, in rural areas they often represent a very high proportion of total employment and are thus integral to the survival of rural Scotland. This is particularly true of land-based industries such as agriculture (organic farming and agri-environment schemes), land management (through game keeping etc), sustainable forestry and sustainable fishing. Table 3.2 provides employment comparisons with other sectors in Scotland s economy clearly highlighting the significance of natural heritage jobs. 11

22 Table 3.3 Sector comparisons, 2001 figures Sector/sub-sector No. employed % of total GVA per sector % of total employment million GVA Biotechnology 24, % Mining and quarrying 37, % Call centres 40, % Electronics 41, % Natural heritage 92, % 2, % Financial intermediation 109, % 3, % Construction 194, % 4, % Source: Office For National Statistics, Labour Force Survey; Office for National Statistics Regional Value Added ; Office for National Statistics Annual Business Enquiry. 12

23 4 NATURAL ENVIRONMENT PROTECTION AND MANAGEMENT This section provides an analysis of employment and economic activity involved in the environmental protection and management category of the natural heritage sector. It consists of the following activities: Policy and regulation relating to natural heritage. Management for restoration, protection, improvement and enjoyment of the natural heritage. Natural heritage consultancy. Natural heritage contracting. Production of natural heritage equipment/goods. Education and awareness relating to natural heritage. Natural heritage research activities. Natural heritage management activities within agriculture. Natural heritage aspects of land management estates and sporting. As shown in Table 4.1, employment relating to natural environment protection and management is estimated at 17,663 full-time equivalents. These different elements are detailed below. Table 4.1 Summary of employment in natural environment protection and management No. of Section employees reference Policy and regulation 843 Section 4.1 Management for restoration, protection etc 2,520 Section 4.3 Natural heritage consultancy 522 Section 4.4 Natural heritage contracting 931 Section 4.5 Production of natural heritage goods and services 95 Section 4.6 Education and awareness 1,651 Section 4.7 Research 510 Section 4.8 Natural heritage management in agriculture 10,592 Section 4.9 Natural heritage aspects of land management estates and sporting Section 7.2 Sub-sector total 17,663 *Note: Some jobs may be sustained rather than created through activities relating to the natural environment. The estimated regional split of natural heritage jobs in this sector, according to SNH operational area, is shown in Table 4.2. Because of data limitations, these estimates represent relatively simple apportionment of the natural heritage jobs in the protection and management of the natural environment. The SNH operational areas are shown in Figure

24 Table 4.2 Estimated regional split of employment in natural environment protection and management Region Employment in % of total NH protection Protection and (SNH operational areas) NH protection and and management management as % of management employment total local employees North Area 4,114 23% 3.6 East Highland 1,862 11% North Highland 520 3% Northern Isles 367 2% West Highland 1,000 6% Western Isles 365 2% East Area 9,793 55% 0.8 Forth and Borders 6,291 36% Grampian 910 5% Tayside and Clackmannanshire 2,592 15% West Area 3,757 21% 0.3 Argyll and Stirling 1,178 7% Dumfries and Galloway 737 4% Strathclyde and Ayrshire 1,842 10% Total 17, % Figure 4.1 Scottish Natural Heritage operational areas 14

25 4.1 Policy and regulation There are approximately 843 people employed in natural heritage positions relating to policy and regulation within public sector organisations and NGOs 1. Data was gathered through direct contact with these organisations in order to deduce what percentage of jobs is related to the natural heritage. The public sector organisations that have been included in this study include: Scottish Natural Heritage (SNH); Scottish Environment Protection Agency (SEPA); Scottish Executive; Local authority officers, including police wildlife officers; and The Forestry Commission. Other natural heritage policy and regulation employment in the public sector falls within other commissions, such as the Deer Commission and others, but these employment numbers have been included under Section 4.7 Research Scottish Natural Heritage policy and regulation Scottish Natural Heritage (SNH) has a mission of working with Scotland s people to care for the natural heritage. It employs 814 people (FTE), within its headquarters in Edinburgh and other offices throughout Scotland. SNH is split into operational units North Areas, East Areas and West Areas and also has various area offices (including Edinburgh). Of these jobs, around 453 FTE jobs are in policy and regulation (whether directly or in a support role). These are geographically distributed as shown in Table 4.3. Table 4.3 SNH employment related to policy and regulation Location Office based Field based Total number of jobs (FTE) North Area Aviemore 1 1 Golspie 1 1 Inverness East Area Aberdeen Battleby Edinburgh West Area Clydebank Dumfries 1 1 Lochgilphead 1 1 Stirling 2 2 Total The figures included here are the jobs in NGOs that are related to policy and lobbying. 15

26 4.1.2 Scottish Environment Protection Agency (SEPA) SEPA is the public body responsible for environmental protection in Scotland. Its main aim is to: provide an efficient and integrated environmental protection system for Scotland that will both improve the environment and contribute to the Scottish Ministers goal of sustainable development. In broad terms, SEPA regulates: activities that may pollute water; activities that may pollute air; storage, transport and disposal of waste; and keeping and disposal of radioactive materials. It is clear from SEPA s role and responsibilities, that only a small percentage of its activities and personnel relate to the natural heritage (using this study s definition). SEPA has estimated that of their 1,050 FTE employees, around people are employed in jobs that are 100% directly related to the natural heritage, while small parts of other people s jobs are related to the natural heritage, equating to around 5 FTEs. Thus in total, there are FTE jobs in SEPA in policy and regulation relating to natural heritage The Scottish Executive The Scottish Executive Environment and Rural Affairs Department (SEERAD) is responsible for advising Ministers on policy relating to agriculture, rural development, food, the environment and fisheries, and for ensuring the implementation of those policies in Scotland. As part of this study, group heads within SEERAD were asked to estimate the percentage of staff time spent on natural heritage related activities. On this basis, an estimated 56 FTE jobs in SEERAD relate to the natural heritage Forestry Commission The Forestry Commission Scotland serves as the Scottish Executive s forestry department. Forestry Commission Scotland manages the 620,000 hectares of Scotland s national forests. The Forestry Commission s objectives are to: maximise the value to the Scottish economy of the wood resource becoming available over the next 20 years; create a diverse forest resource of high quality that will contribute to the economic needs of Scotland throughout the twenty first century and beyond; ensure that Scotland s trees woods and forests make a positive contribution to the environment; create opportunities for more people to enjoy trees, woods and forests in Scotland; help communities benefit from woods and forests. 16

27 We estimate that around 600 FTE jobs in the Forestry Commission in Scotland relate to the natural heritage. The breakdown of these is approximately: 83 FTEs in policy and regulation (included in the total Policy and regulation figure in Table 4.1); 434 FTEs in management of forests (included in the total Management for Restoration, protection etc figure in Table 4.1; and 83 FTEs in research (included in the total research figure in Table 4.1). For details of the methodology for this calculation, see Section 5.3 and Annex B of this report Local authority and police wildlife officers Local authority officers In total, around 90 FTE jobs in Scotland s 32 Local Authorities relate directly to natural heritage. Local authorities play an important role in the protection and management of the natural environment, with a number of people employed in roles specifically for this reason. Examples of roles in local authorities include: biodiversity officers (represented in all local authorities); conservation officers; access officers; (natural heritage) planning officers; jobs relating to local nature reserves (managed and unmanaged); urban forestry officers; and woodland officers. Dumfries and Galloway Council and Edinburgh City council have the most officers with jobs related to the natural heritage (13 each), followed by Fife and Perth and Kinross Councils (12 each). Police wildlife officers A relatively recent addition to the police force in Scotland is the role of police wildlife officers, whose main duties are investigative and educational activities. Conversations with these officers have resulted in an estimate of the proportion of time spent on natural wildlife duties in relation to other type of police duties. It was found that approximately 11 FTE jobs are created through natural heritage activities, approximately 9 of which are a result of investigation and enforcement, while 2 of which are related to educational activities. 4.2 Management for restoration, protection, improvement and enjoyment There are approximately 2,520 FTE jobs in positions in the management of the natural heritage for restoration, protection and enjoyment. This includes jobs in the public, private and voluntary sectors. 17

28 4.2.1 Scottish Natural Heritage and the management of the natural heritage SNH jobs that involve the management, restoration, protection, improvement and enjoyment of the natural heritage amount to around 361 FTE jobs, as shown in Table 4.4. Table 4.4 SNH employment related to management of the natural heritage Location Office based Field based Total number of jobs North Area East Highland North Highland Northern Isles West Highland Western Isles East Area Forth and Borders Grampian Tayside and Clackmannanshire West Area Argyll and Stirling Dumfries and Galloway Strathclyde and Ayrshire Total Forestry Commission As stated in Section 4.1, Forestry Commission jobs that involve the management of the natural heritage amount to 434 FTEs Voluntary sector/ngos In total, there are approximately 2,200 natural heritage related paid full-time equivalent jobs in voluntary sector/ngos in Scotland. Around 34% of these (approx. 745 FTE jobs) relate to fieldwork and support activities in the management and improvement of the natural heritage, often linking to social and regeneration activities based on the natural environment. The remainder are in roles such as policy and lobbying, publicity and media and research positions, as shown in Table 4.5. As well as direct employees, there is also a high level of volunteer activity. Although not specifically adding to economic output in terms of paid posts, they contribute an enormous amount in terms of social and community benefits, as well as skills development and learning. Total volunteer time in Scotland equates to approximately 1,900 FTE posts around 20% of these (380 voluntary FTEs) are directly related to the natural environment. 18

29 Table 4.5 Employment in NGOs in Scotland (FTE) Type of job* Paid employment Voluntary employment No. (approx) % of total No. (approx) % of total Field work (management) % 168 9% Field work (operational) % % Policy and lobbying 122 6% 48 3% Publicity and media 127 6% 96 5% Teaching and education 182 8% % Research 68 3% 154 8% Other % % Total 2,196 1,873 *Note: These categories include administrative support for each type. The largest voluntary sector organisations involved in the natural heritage in Scotland are the National Trust for Scotland, the Royal Society for the Protection of Birds (RSPB) and the Scottish Wildlife Trust see Table 4.6 below. Table 4.6 Employment in the 3 largest NGOs in Scotland Paid employment (FTE) Voluntary employment (FTE) National Trust for Scotland 840 1,000 RSPB Scottish Wildlife Trust (estimate) Source: Numbers provided directly by organisations (RSPB voluntary jobs calculated from voluntary hours provided) Other Other jobs under this section amount to 980 FTEs and include those in Local Authority reserves, as well as those jobs that NGOs could not classify under any of the sub-sectors as presented in the questionnaire. In order to ensure that these job numbers are captured, they have been included in this section. 4.3 Natural heritage consultancy Employment in consultancy There are around 522 FTE jobs relating to the natural heritage in environmental and engineering and landscape consultancy. These were estimated by surveying environmental and engineering and landscape consultancies across Scotland (20% of companies surveyed responded, equalling 15% of consultancies). The consultants were asked what proportion of their time is spent on work related to the natural heritage, and this proportion was allocated to the total number of jobs in this sector. Landscape consultancies were further asked what proportion of their time was spent on soft vs hard landscaping. 19

30 4.3.2 Geographical distribution Environmental and Engineering Consultancies The majority of work undertaken by environmental and engineering consultants that responded to the survey is carried out across the whole of Scotland (66%) and Central Scotland (22%), with the remainder being undertaken in Southern and Western Scotland. The survey data indicated that relatively fewer natural heritage consultancy jobs relate to Northern and Eastern Scotland. A number of companies, such as Carl Bro Group (150 FTE employees) work in England and Wales. Some companies, such as CEL International, ERM and Hyder Consulting are international companies, which have offices all over the UK and internationally. Landscape Consultancies The majority of work undertaken by surveyed landscape consultancies (including designers, architects and planners) is also carried out across Scotland (60%), however, the work of many of these consultancies seems to be more localised than environmental consultancies and engineers, with 7% of respondents saying that the majority of their work is in one specific area of Scotland (North, East, South or West Scotland). Furthermore, landscape consultancies seem to focus more on Scotland and Northern England, rather than international markets. Box 4.1 Case studies Environmental Resources Management, Nocturne Environmental Surveyors There are a number of consultancies in Scotland, ranging from large multinationals with branches of their consultancies in Scotland, to very small 1-person and 2-persons specialised operations. Environmental Resources Management Ltd (ERM) is one of the larger environmental and planning consultancies in Scotland, employing 27 full-time equivalents. ERM provides advice and assistance to clients on all matters relating to environmental protection and management of the environment, including natural heritage issues. Karen Raymond, a principle partner in ERM in Scotland estimates that between 30 and 50% of their time is spent on activities related to the natural heritage. Karen is of the opinion that steady growth can be expected in consultancy related to the natural heritage, as a result of new nature conservation legislation, which is expected to increase requirements for ecological work. Increasing expectations on natural heritage protection for new development projects will also lead to increased work. Karen sees a significant barrier to increased work and employment in this area as being a lack of qualified landscape architects and ecologists with experience in environmental issues that are able to apply their skills in the wider context. Nocturne Environmental Surveyors is an example of a small specialist company. Nocturne specialises in doing commercial bat surveys and other surveying services related to bats. The services offered by Nocturne initially started as a hobby, mostly for residential properties and for the Bat Conservation Trust. However, as commercial demand for bat surveying increased, Helen Lundy and her partner started offering commercial bat surveys. These are generally requested by developers or by environmental consultancies as a part of larger environmental impact assessments. Helen is of the opion that there is scope for growing their business, as demand for bat surveys is increasing as developers become more aware of bat conservation as an issue. However, the demand is generally from larger developers and it is unlikely that smaller builders and developers would commission bat surveys while there is no legislation or planning requirements in place to require them to do this. Helen is of the opinion that if people were made more aware of bats and the destruction to their habitats, this line of business could increase significantly. 20

31 4.4 Natural heritage contractors There are approximately 931 FTE jobs in natural heritage contracting in Scotland. According to LANTRA 1, there are 112,400 people employed in the landscaping industry and 28,000 people employed in landbased engineering in the UK, 5% and 10% of which is in Scotland respectively. A calculation of full-time equivalents 2 shows that there are around 7,300 FTE jobs in landscaping and land management industries in Scotland. An assessment of these figures, based on the percentage of soft landscaping and natural heritage work done by environmental and engineering and landscape consultancies, and on discussions with representatives from the contracting industry 3, allows us to assume that around 13% of these jobs are a result of activities related to the natural heritage. Box 4.2 Case study AEL Enterprises Limited AEL is a civil engineering, contracting and vocational training company. AEL estimate that around 25% of their work relates to the natural heritage, as opposed to hard engineering or contracting that have nothing to do with the environment. Around 90% of the work that AEL do is for the public sector, while the rest is for community trusts etc. The company covers all Scotland, and has operational bases throughout central Scotland. AEL employs 50 full-time equivalents, split across 2 principle key areas civil engineering and contracting (15 20 core staff); and vocational training (20 core staff) 4. In the former area, AEL specialises in construction works in areas of high environmental sensitivity where traditional access methods are not permitted. The company undertakes a programme of works to construct, repair and maintain cycle paths, bridle paths and footpaths. AEL also specialise in the design and build of footbridges in remote areas to provide access to the countryside. In the area of vocational training, AEL is an Investor In People company which also holds Scottish Quality Management System Accreditation. AEL works successfully in partnership with local authorities, Local Enterprise Companies, Employment Services and the European Social Fund to develop and deliver Intermediate Labour Markets (ILM s). These ILMS help to bridge the gap between long term unemployment and direct employment. In fact, since AEL has been involved in the ILM programmes, they have employed a number of people from the programmes who have progressed within the company. Rod Tweedie, Operations manager at AEL Enterprises is of the opinion that in order to increase the amount of natural heritage work that they do, the best value regime would need to be adopted and enforced in the industry (requirements by clients) rather than pure cost considerations of the initial outlay. He is of the opinion that very often, the environmental considerations that they specialise in providing, are not valued by people that demand civil engineering and contracting work. 1 Source: LANTRA Land-based Engineering Industry Action Plan 2003/4; LANTRA Landscaping Industry Action Plan, November Assuming that part-time work is equal to half of full-time work. 3 Rod Tweedie of EAL Enterprises Limited, Jim Turner of CECA Scotland. 4 The remainder of the staff provide joint overhead and support to both teams. 21

32 4.5 Production of natural heritage goods and equipment Jobs falling in this category are related to the production of green versions of conventional products and services. Analysis undertaken during this study shows that an estimated 95 FTE jobs relate to the production of natural heritage goods and equipment in Scotland. A questionnaire was sent out to a sample of nurseries, garden centres and producers of natural heritage products as part of this study. The number of employees and percentage of time spent on the natural heritage according to respondents were extrapolated upwards to estimate the amount of time (and thus full-time equivalent positions) spent on natural heritage activities. This number is considered an underestimate, as it represents mainly employment in specialist garden centres and nurseries. Other companies producing natural heritage goods and equipment were difficult to identify, as they do not fit within any specific categories. There was a very poor response rate to the study questionnaire it is therefore statistically difficult to extrapolate upwards from these company responses. 4.6 Natural heritage education and awareness There are approximately 1,651 FTE jobs in education and awareness-raising relating to the natural heritage in Scotland. This employment is found at many levels and sectors, including in schools (primary and high), higher education institutions (including universities and colleges), and in further education institutions. As well as these jobs in education (essentially teachers, lecturers and tutors (both public and private)), there are jobs within media and other public sector departments and NGOs, which entail public awareness-raising and education. There are 801 FTE jobs in schools that can be attributed to the natural heritage, equating to around 2% of all teaching jobs. This has been calculated by assessing the 5 subject areas of the school curriculum and selecting the subjects which are related to, or have elements of, the natural heritage. Staff time was then attributed to this percentage 1. There are around 530 FTE jobs related to the natural heritage in higher education and further education in Scotland. Data on staff numbers in higher education institutions were provided by the Higher Education Statistics Agency (HESA) and these were analysed according to cost centre to assess the amount of time spent on natural heritage education in each subject area. Information on staff numbers in colleges and other further education establishments in Scotland are difficult to find, thus an estimate was made of employment in this sector in consultation with professionals in the field. In addition to these jobs, there are around 320 FTE jobs in public sector bodies, NGOs and in the media. The NGO jobs were estimated from direct responses from a number of organisations and extrapolated up to the total number of NGOs that are related to the natural heritage in Scotland. The media jobs were estimated after conversations with various media organisations about their staff numbers and the percentage of their time spent on natural heritage subjects. 1 Further correspondence with teachers and through conversations with the education profession allowed us to make specific assumptions. 22

33 The following media organisations were consulted: Scottish Media Group; The Herald; The Scotsman; Daily Record; Envirotech; The Scotsman; Press and Journal; Scotland on Sunday. The public sector jobs related to natural heritage education are underestimated in this analysis due to lack of information, but do include educational aspects of police wildlife officer jobs. Box 4.3 Case study Wise Group The Wise Group is a charitable organisation which is dedicated to helping unemployed people back into work. The Wise Group offers an innovative mix of training, personal development and paid work experience which prepares people for the job market. Their extensive network of employer links helps match temporary workers with the appropriate employer. For the past 20 years, the Wise Group has worked with public, private, voluntary and community partners to offer training and development opportunities for unemployed people. They provide training courses in a variety of fields from traditional landscaping and insulation services to office-based roles in IT and call centre work. Each project combines an innovative mix of training, personal development and paid work experience tailored to the individual circumstances of our temporary employees. The Wise Group s projects have helped over 14,000 unemployed people back into work, and from an initial base in Glasgow, they now operate throughout Scotland and the North East of England. 23

34 4.7 Natural heritage research There are approximately 510 FTE jobs in research related to the natural heritage in Scotland. This employment is found in universities, research institutes and in NGOs. Data on staff numbers in higher education institutions were provided by the Higher Education Statistics Agency (HESA) and these were analysed according to cost centre to assess the amount of time spent on natural heritage research in each subject area. It was found that approximately 177 FTE jobs are created in universities. Direct contact was made with research institutes to enquire about their personnel numbers and their percentage of time spent on natural heritage research activities. Due to the difficulty in defining natural heritage activities, many institutes struggled to assess the exact percentage of time spent on this research, therefore estimates were made based on conversations with people in the organisations and on professional opinion. It has been assumed that there are around 182 FTE staff employed in natural heritage research in these institutes, but this is considered an underestimate. Examples of research institutes in Scotland include, amongst others: The Centre for Ecology and Hydrology; British Geological Survey; Macaulay Land Use Research Institute; Institute of Grassland and Environmental Research; Centre for Mountain Studies; Environmental Research Institute. The Forestry Commission is estimated to employ around 83 FTE jobs in research. The number of paid staff in natural heritage research in NGOs was estimated at around 68 FTEs, while voluntary staff are estimated to equal around 134 FTEs. 4.8 Natural heritage management in agriculture Whilst relatively few jobs are created by agri-environment schemes in Scotland, it is recognised that these activities help to sustain many more existing agricultural jobs in the areas covered by these schemes Agriculture and agri-environment schemes Agriculture is an important part of the Scottish economy and employed 68,301 in 2002, of which 28,645 were full-time, 35,709 part-time and 3,947 were casual and seasonal jobs 1 together accounting for around 1.9% of total employment in Scotland. Whilst, as in other parts of the UK, agricultural employment in Scotland has been in decline, it continues to represent a very important part of the rural economy. 1 Scottish Agricultural Statistics, Scottish Executive. 24

35 Agri-environment schemes The agri-environment programme is made up of schemes which receive financial grants or subsidies (for 5 10 years) for agricultural activities, where environmental protection or enhancement work is undertaken. This programme is one of the largest sources of funding for conservation management in the countryside. Grants or subsidies received are listed in Box 4.4. The Environmentally Sensitive Areas scheme (ESA) was introduced in 1997 to offer incentives to farmers to adopt agricultural practices which would safeguard and enhance parts of the country (within the ESA designation) of high landscape, wildlife or historic value. ESA payments contribute significantly to land management in both SSSIs and National Parks that are also within the ESA designation. Outside ESA areas, Rural Stewardship schemes aim to do the following: Conserve traditional countryside landscapes and features; Improve and extend wildlife habitats; Conserve historic, geological and landscape features; and Restore traditional aspects of the countryside. Box 4.4 Agri-environment schemes Environmentally Sensitive Areas (ESAs): Incentives are offered to farmers within these areas to adopt agricultural practises that will safeguard and enhance the rural environment and create improvements in public access. Countryside Stewardship Scheme targets the conservation and enhancement of some key Scottish landscapes, features and habitats, and where appropriate, improvements in public access. Rural Stewardship Scheme superseded the Environmentally Sensitive Areas Scheme and the Countryside Stewardship Scheme in CSS Arable Stewardship Scheme: Relates to wildlife enhancement in arable areas. Moorland Scheme: The Moorland Scheme, now closed to new applicants, provides money to upland farmers outside ESAs to reduce stocking densities and manage land to improve the condition of moorland. Habitat Scheme: The Habitat Scheme gives annual payments per hectare for management or setaside of waterside land. This scheme is also now closed, although a number of agreements are still in operation. The Scottish Forestry Grants Scheme Farmland Premium: replaced the Farm Woodland Premium Scheme (FWPS) in June It aims to encourage the creation and management of woods and forests, to provide economic, environmental and social benefits for now and the future. In Scotland, around 2 million hectares of land are covered by agri-environment schemes (excluding organic conversion schemes 1 ). This is equivalent to around 28% of total agricultural land. 1 For the purposes of this report, organic conversion schemes are included under Natural Heritage Products and Services. Around 304,000 hectares of land were covered by this scheme in

36 Table 4.7 Environmental land area of land in agri-environment schemes ( 000 hectares) in Scotland Environmentally Sensitive Areas (ESAs) Countryside Premium Scheme Rural Stewardship Scheme Organic Conversion Scheme Habitat Scheme Heather Moorland Scheme Farm Woodland Premium Scheme Source: Defra Agriculture in the United Kingdom, Natural heritage employment in agriculture It is widely recognised that the character and quality of landscapes is shaped by agriculture, and that managing the natural environment is an integral part of agricultural activity. However, because of the difficulty in teasing out this natural environment aspect of land based jobs, the study has focused on activities which aim explicitly to improve the environment ie jobs relating to agri-environment initiatives. (Jobs relating to organic production are covered in Section 5 Natural Heritage Products and Services). This approach does not cover any aspect of conventional farms where sustainable methods of farming are practiced, but are not covered by agri-environment schemes. On the one hand therefore, an employment number based on this approach could be an overestimate. On the other hand, however, many of the agri-environment schemes will be on non-intensively managed hill land, thus apportioning the share of agri-environment employment may overestimate. Future studies may be able to determine the extent to which these factors should be taken into consideration, but for the purposes of this report, we will assume that they balance each other out. Methodology If one assumes that employment is allocated across land covered by schemes as it is across other agricultural land, it can be assumed that around 10,592 FTE jobs on land covered by agri-environment schemes, including 7,900 full-time, 4,900 part-time and 1,100 casual labourers (This excludes natural heritage jobs in employment in organic farming as estimated in Section 5.1). A report for Scottish Natural Heritage 1 assessed the extent to which agri-environmental schemes created additional jobs. The findings of the report were that there is no convincing evidence that schemes have an unambiguous employment impact in Scotland, thus it is not possible to estimate the increased employment from these schemes 2. However, as the report notes, although these schemes may not create jobs, they are very important in helping to sustain employment in agriculture and in rural areas of Scotland. An alternative approach, as discussed in Defra s report for England 3 is to assume that employment relating to agri-environment schemes is proportionate to its share of agricultural output. The expenditure on agri-environment schemes in Scotland 2003 amounted to 27 million (excluding organic aid schemes), equal to around 1.3% of total agricultural output. If one applies this percentage to employment in agriculture, it can be assumed that only around 900 FTE jobs are sustained through agri-environment schemes. As in Defra s report, the preferred methodology is apportioning labour to land. 1 Scottish Natural Heritage, Agri-environmental Employment in Scotland by Scottish Agricultural College. 2 This report is unpublished due to concerns regarding the methodology adopted in the report. 3 Revealing the value of the natural environment in England, March 2004, A report for Defra by GHK. 26

37 5 NATURAL HERITAGE PRODUCTS AND SERVICES This sub-sector of the natural heritage sector focuses on jobs related to the production of green versions of conventional products and services. For example, jobs in organic farming fall within this category, while jobs in intensive commercial farming would not be included. By the same token, sustainable forestry jobs are included, as are sustainable fisheries. Furthermore, jobs related to man-made and/or manufactured products that are based on the natural heritage, eg bat boxes are also included. Table 5.1 Summary of employment in the provision of natural environment products and services No. of Section employees reference Organic farming 941 Section 5.1 Organic fisheries 29 Section 5.2 Sustainable forestry 1,986 Section 5.3 Sustainable fisheries and angling 912 Section 5.4 Products based on the natural heritage 2,216 Section 5.6 Sub-sector total 6,084 The estimated regional split of employment related to natural heritage products and services, according to SNH regions (some of which have been grouped due to lack of data availability), is shown in Table 5.2. Because of data limitations, these represent relatively simple apportionment of the natural heritage jobs in activities related to natural heritage products and services. Table 5.2 Estimated regional split of employment in natural heritage products and services Region Employment in % of total Products and (SNH operational areas) NH products and NH products and services as % of services services employment total local employees North Area % 0.8 North, East and West Highland % Northern and Western Isles 185 3% East Area 2,956 48% 0.2 Forth and Borders 1,703 28% Grampian 504 8% Tayside and Clackmannanshire % West Area 2,168 36% 0.2 Argyll and Stirling 518 9% Dumfries and Galloway 239 4% Strathclyde and Ayrshire 1,411 23% Total 6, % 27

38 5.1 Organic farming Employment in organic farming A number of studies have been conducted to assess the additional (net) amount of labour required on organic farms in comparison to conventional farms. The findings of these studies have resulted in a wide range of estimates, ranging from nil net increase to an increase of 100% 1. The net increase in labour depends on the diversity of the enterprise, the extent of on-farm marketing and processing activity and the crop type. Small organic farms tend to have higher additional labour requirements per hectare than do larger enterprises. Taking 40% as an estimate of the extra labour required on organic farms 2 compared to non-organic farming, and pro rating agricultural employment statistics by the amount of land under the Organic Aid Scheme, it is estimated that organic farming in Scotland currently generates 941 FTE jobs 3. However, it can also be assumed that organic farms sustain 100% of the jobs on them, therefore it can also be argued that organic farming sustains 2,350 FTE jobs. It is clear that increased land under organic schemes has an important impact on rural employment, as organic farmers tend to buy from local suppliers and use local contractors. From a natural heritage point of view, these figures demonstrate how important an increase in organic farming methods might be in adding to beneficial impacts of the CAP reform Changes to the Organic Conversion Scheme The Organic Aid Scheme was launched in 1994, and in the first 3 years, 39 farmers joined. This has shown a sharp increase by almost 2000%, to 714 in September The data showing this exponential increase is set out in Table 5.3, along with the expenditure on schemes by SEERAD, and the hectares of land covered by the Scheme, to September Table 5.3 The Organic Aid Scheme number of agreements and hectares covered (at 31 March) Number of agreements Expenditure ( 000) Land covered (hectares) , , , , , , , , , , , , ,171 Source: SEERAD Organic Annual Report, A report by ERM for The Scottish Office Agriculture, Environment and Fisheries Department (SOAEFD) in 1997 found that employment remained constant or increased. The Southern Pennines Environmental Economy Scoping Study, 2000 estimates that there is an employment increase of between 20% and 100%, while a report by SAFE Alliance has suggested that conversion results in an employment increase of between 10% and 30%. 2 This estimate is based on the distribution of answers given regarding extra employment created. 3 This estimate for organic employment is based on data provided in the Abstract of Scottish Agricultural Stats

39 In August 2003, SEERAD introduced a consultation on proposed improvements to the way in which they support organic farming, including increased payment rates for the conversion of good quality land to organic status, a new payment rate for the conversion of land in organic fruit and vegetable production and continuing financial support after the conversion period. These changes have just been introduced, and include the conversion of fruit and vegetable production, financial assistance beyond the 5 year conversion period and the introduction of financial assistance for capital items. This latter aims to include more good quality land in the Scheme. 5.2 Organic fisheries According to the soil association, there are very few fisheries in Scotland that are certified as organic. Only 12 companies have been certified by the soil association, each employing between 0 and 12 employees. If one takes a midpoint of possible employees given these numbers, and applies the same percentage of extra employment as agricultural organic farming, it can be assumed that around 29 FTE natural heritage jobs are created or sustained in organic fisheries in Scotland. 5.3 Sustainable forestry The Scottish Forestry Strategy The Scottish Forestry Strategy was launched on November 21, 2000, with the overarching principle of sustainability. The overarching principle for the Strategy is sustainability. Scottish forestry must contribute positively to sustainable development, and meet internationally recognised standards of sustainable forest management. It aims to put into practice the Scottish Executive s forestry policy in a way that is closely integrated with other aspects of land use policy, such as agriculture and rural development. As a result of this scheme, a new Scottish Forestry Grants Scheme replaced the Woodland Grant Scheme (WGS) in Scotland in This includes woodland expansion grants, which will increase the diversity of the farmed and crofting landscape. Benefiting the environment certification The Scottish Forestry Strategy was followed by a document called, Delivering the Scottish Forestry Strategy with indicators to assess progress against the Strategy. The indicator for assessing forestry s positive contribution to the natural environment is the percentage of the area of forest that is certified, as this, demonstrates compliance with independently verified standards of sustainable forest management. 1 Scotland s national forests were among the first in the world to win internationally recognised sustainability certification. By 2002, 45% of Scotland s forests, including all those managed by the Forestry Commission had received FSC certification (around 100,000 hectares of forest that is owned privately, or owned by voluntary bodies such as the Woodland Trust had been certified) 2. 1 Delivering the Scottish Forestry Strategy, November 2002, Pg Scottish Executive, UKWAS and Forest Stewardship Council,

40 5.3.2 Scotland s forests and woodlands Scotland s total woodland area is 1.3 million hectares, of which about 2% is semi-natural native Scots pine, 20% is broadleaved and 78% consists of other conifers (mostly Sitka spruce), as shown in Table 5.4. Table 5.4 Area of woodland in Scotland (thousand hectares) Conifers Broadleaves Total woodland Forestry Commission Private woodlands Total 1, ,317 Source: Forestry Commission Facts and Figures 2000, According to the Scottish Executive, the direct economic contribution of these forests and the associated industries to the Scottish Economy is around million in terms of Gross Value Added 1 representing just under 1% of the total economy. Forestry and woodlands not only contribute directly to the economy, but also provide the space for a number of recreational facilities, as can be seen in Table 5.5. Table 5.5 Forest Enterprise (now Forestry Commission) recreational facilities, March 2001 Scotland Great Britain Forest walks Cycle trails Horse riding routes Forest drives 5 12 Car parks Picnic sites Toilets Play areas 2 38 Orienteering courses Visitor centres 9 34 Wildlife hides 7 22 Forest classrooms 3 29 Viewpoints X-country ski routes 0 7 Source: Forestry Commission Facts and Figures 2000, Forestry employment According to data provided by the Forestry Commission, almost 11,000 FTE jobs are created in forestry and associated industries, as shown in Table Scottish Executive Input-Output Tables

41 Table 5.6 Employment in forestry and associated industries, Number (full-time equivalents) Forestry Commission 2,011 Private woodland owners 3,196 Forestry companies and contractors 2,223 Wood processing industries 2,917 Other employees 347 Total 10,694 Source: Forest Employment Survey These jobs fall within different categories of employment and different areas of the forestry industry, as shown in Table 5.7. Table 5.7 Forest employment (FTE numbers) Scotland Great Britain Forest nurseries Establishment 1,189 2,529 Maintenance 1,304 3,364 Harvesting 1,947 4,770 Road construction Other forest Total forest 5,192 12,676 Haulage 593 1,061 Processing 3,083 11,227 Other non-forest 1,826 4,568 Total non-forest 5,502 16,856 Total 10,694 29,532 Source: Forest Employment Survey, The Forestry Commission According to the Forestry Commission in Scotland s Corporate Plan 1, the number of people employed in the Forestry Commission in Scotland has decreased since 1998/1999. There are now around 1,550 FTE jobs in this organisation. Of these, 1,056 are involved in activities related to Scottish forests and woodlands, 956 of which are management activities. The remaining jobs are those based in Scotland that are related to forestry and woodland management throughout the UK. 1 Forestry Commission in Scotland Corporate Plan

42 The jobs in the Forestry Commission related only to Scotland s forests include: 1,056 FTEs involved in activities related to Scottish forests and woodlands; and a proportion of the jobs related to forests and woodlands across the UK. The proportion of Scottish forests to UK forests was applied to the total number of jobs in Scotland related to forestry and woodland management throughout the UK (resulting in 277 FTEs). Thus it can be assumed that 1,333 FTE jobs in the Forestry Commission relate to Forests in Scotland. Natural heritage employment in forestry It is clear that forestry in Scotland is invariably linked to the environment, but determining exactly what proportion of this is related to natural heritage is difficult. Not all forestry activities are environmentally beneficial, and thus these aspects must be discounted. However, this is not a simple task, and very often activities or jobs cannot be divided into those that benefit the natural heritage and those that have a negative impact on it. With the data available, there are 2 simplified methods of calculating natural heritage jobs in this sector. The first method is to assume that those forest jobs associated with sustainable forests can be classed as natural heritage jobs. Other jobs such as haulage and processing are not included. As 45% of forests have sustainable certification, we would estimate that 45% of forestry jobs ie 2,188 FTE jobs are attributable to the natural heritage. These include jobs in forest nurseries, establishment, maintenance and harvesting, amongst others. Table 5.8 Total forest and woodland area Thousand hectares Forestry Commission Other owners Conifer high forest ,053 Broadleaves and other woodland Total ,317 Source: Delivering the Scottish Forestry Strategy, November Alternatively, the approach adopted in Defra s recent report 1 was to assume activity concerned with the planting, management and harvesting of semi-natural broadleaved woodlands generally contributes positively to the management of [Scotland s] natural environment, while activity focusing on non-native species, especially conifers, do not. In applying this approach to Scotland s forests, one must consider that Scot pines are coniferous but are native to Scotland. The data available does not allow us to extract Scot pines from coniferous trees, but if this approach is to be used in future, it should be further considered. Thus if it is assumed that employment related to the management of broadleaves is proportionate to the share of broadleaves to coniferous trees, it can be assumed under this approach that 2,114 FTE jobs can be attributed to the natural heritage. Both of these approaches are simplified, and should be examined in more depth in future studies. For now and with the data available, we will assume a number between the 2 approaches that around 2,151 FTE jobs are attributable to the natural heritage. This includes the 434 FTE jobs in the Forestry Commission in management of forests. Excluding the 83 FTE jobs in policy and regulation and research, as discussed in Section 4.2.4, this amounts to 1,986 FTE jobs. 1 GHK Consulting Ltd and GFA-Race Partners Ltd Revealing the Value of the Natural Environment in England March 2004, for Defra. 32

43 Importantly, it must be considered that although these jobs may not be created on top of conventional employment, they are being sustained. It must be further considered that virtually all major felling operations are being restructured in terms of sustainability. Conventional forestry is changing, thus in time all jobs in forestry (excluding non-forest jobs) will fall within the natural heritage category. Box 5.1 Case study: Treefest 2002 ( Treefest 2002 has been a major initiative aimed at promoting use and enjoyment of forests. In addition to a number of flagship events, there has been a programme of over 800 activities organised and promoted throughout Scotland by private landowners, trade associations, voluntary bodies, local communities and local authorities, as well as the Forestry Commission. These ranged from the Edinburgh Treefest event in Inverleith Park to Tree in the Park in Hamilton (which attracted 27,000 people over a weekend); the International Forest Fest in Dumfriesshire (opened by HRH the Princess Royal); the Scottish Wood Fair in Perth; a conference on mountain forestry in Inverness; and an exhibition of paintings depicting trees. 5.4 Sustainable fisheries According to the recent Environmental Industries Mapping Study 1 for Scottish Enterprise, the sustainable fisheries sub-sector in Scotland represents only a relatively small and unpredictable proportion of the business turnover of private sector institutions with commercial subsidiaries or activities in the market. However, the report states that this is likely to change as national and EU policy and regulation encourage fishermen and fish farmers into improving the quality and sustainability of wild fish catches and farmed production. Salmon farming is by far the largest industry sector, producing an estimated 150,000 tonnes of Salmon for the market in 2001 from 320 sites. Production is dominated by multi national companies. Fifteen companies in 2001 accounted for almost 80% of the salmon production in Scotland Employment According to the Scottish Executive, fish farming in Scotland results in employment of around 2,000 FTE jobs, as shown in Table 5.9. Table 5.9 Fish farming in Scotland, 2002 Number of jobs Full-time 1,706 Part-time 611 Total 2,317 FTE 2,012 Source: Scottish Executive, Statistics, Scottish Enterprise 2004 Environmental Industries Mapping Study prepared by Connect 3 Consultants Ltd with BMT Cordah Ltd and Firn Crighton Roberts Ltd. 2 LANTRA An Industry Specific Action Plan for Aquaculture, March

44 The vast majority of these are in salmon farming, while the remainder (only around 97 staff 75 full-time and 22 part-time) are in the farming of other types of fish. These are as follows: 7 companies with 10 sites farm Arctic Char (8 tonnes); 19 companies with 26 sites farm Brown/Sea Trout (127.4 tonnes); 6 companies with 7 sites farm Cod within Scotland (207 tonnes); and 7 companies with 12 sites farm Halibut (257 tonnes). As sustainability in fish farming is not well established at this stage, it is virtually impossible to estimate which part of this is attributable to the natural heritage, therefore no employment estimates have been made for natural heritage jobs. 5.5 Angling A recent research report, commissioned by Scottish Executive Environment and Rural Affairs Department 1, has assessed the economic impact of game and coarse angling in Scotland. According to this report, around 2,800 FTE jobs are created through game and coarse angling in Scotland. At a regional level, the report estimated local employment that is possibly supported by angling, by species and by region, as shown in Table Table 5.10 Employment in game and coarse angling, by species and region (FTEs) Salmon & Sea Trout Brown Trout Rainbow Trout Coarse Fish Dumfries and Galloway The Borders Highlands North East Scotland Central Scotland Western Isles NA NA Orkney and Shetland NA 13 NA NA Source: Note: Scottish Executive 2004 The Economic Impact of Game and Coarse Angling in Scotland. These employment estimates take displacement into account, and are therefore smaller than those that do not take displacement into account. They give an indication of the number of jobs that would be lost if angling ceased. The report has calculated that anglers spend a total of 113 million on angling in Scotland, with salmon and sea trout anglers accounting for over 65% of this total. Of this, 37 million is expenditure by local anglers. It is difficult to assume what percentage of this employment is related to the natural heritage, as this includes employment in commercial angling, as well as employment in hotels and retail. Furthermore, much of the employment in angling would already be captured in tourism employment figures, therefore adding these to natural heritage employment numbers would be double counting. However, employment created through expenditure by local anglers would not be included. If this was assumed to be additional to tourism employment, and if the level of expenditure by locals was applied to employment created, it can be assumed that around 912 FTE jobs were created through angling, additional to tourism income. 1 Scottish Executive 2004 The Economic Impact of Game and Coarse Angling in Scotland. 34

45 5.6 Products based on natural heritage resources Wildlife tourism In 2002, the Tourism and Environment Forum (TEF) commissioned a Review of Wildlife Tourism in Scotland, updating the results of a study conducted in The definition of wildlife tourism as used in their review is: Support for wildlife viewing through the provision of a guide, engaged for that purpose on a full-time basis, or the availability of interpretation material which will specifically help the visitor to see and identify Scottish wildlife. This definition incorporated 3 different contexts, including: Dedicated wildlife tourism; Partial wildlife tourism; and The formal infrastructure for wildlife watching. The review identified approximately 1,471 full-time jobs and 1,489 part-time jobs in wildlife tourism in Scotland, totalling 2,960 jobs in total. However, if these are converted to full-time equivalents, these amount to 2,216 FTE jobs 1. Further findings from the report are that there was an estimated increase of 34% in wildlife tourism employment between 1997 and 2001, with full-time and part-time employment increasing by 25% and 41% respectively. Furthermore, employment by boat owners and activity operators, in wildlife centres and on nature reserves more than doubled in the same time period. The report also noted the seasonality of the facilities and sites, but did not use this in calculating their employment numbers. This would result in a lower estimate of wildlife tourism employment. Geographical distribution According to the report, the areas with the largest wildlife tourism employment numbers are: Argyll and the Islands (25% of wildlife tourism); Glasgow and Clyde Valley (7% of wildlife tourism); Skye and Lochalsh (6% of wildlife tourism); Moray, Badenoch and Strathspey (6% of wildlife tourism); and Ross and Cromarty (6% of wildlife tourism). 1 This is as per assumptions used by Scottish Executive Scottish Economic Statistics 2002 A3 Estimating the Economic Impact of Tourism in Scotland. This figure does not take seasonality into account. The issue of seasonality is difficult to determine without more thorough underlying data, and is beyond the scope of this report given that there is limited information available about the extent of seasonality in tourism employment in Scotland. 35

46 An association for wildlife tourism The latest important occurrence in wildlife tourism was the official launch of Wild Scotland, the new wildlife tourism association for Scotland, on 16th of August this year. Their objective is to promote the country as Europe s number one wildlife destination through responsible and quality-led experiences and excursions. Wild Scotland are developing a range of activities and services for their members, including: cost-effective marketing opportunities; initiatives to raise awareness of sustainable nature and wildlife tourism issues in the tourism industry and among the public; projects aimed at ensuring a quality and sustainable experience for visitors; training and educational initiatives aimed at promoting best practice; networking events and activities for members; and representing the interests of the Association and its members to Government, public agencies and other organisations. This is a major step forward for wildlife tourism. It is a good example of collaborative working in the natural heritage sector, potentially leading to growth and increased economic activity in this area. It is a good example of how businesses and entrepreneurs in other sub-sectors can come together to promote interest in, and awareness of, opportunities related to Scotland s natural heritage. Box 5.2 Wild Scotland Wild Scotland is an association of wildlife tourism operators who are passionate about Scotland s natural heritage. Members aim to provide the very best wildlife watching in Scotland, through a responsible attitude to the environment, and customers safety and enjoyment. The Wild Tourism website is found at and offers a variety of holidays, including land safaris and whale-watching cruises, birdwatching services and photography holidays. 36

47 6 ACTIVITIES BASED ON THE QUALITY OF THE NATURAL HERITAGE 6.1 Introduction This sub-sector of the natural heritage sector focuses on jobs that are dependent on the quality of the natural environment, such as tourism (though not specifically wildlife tourism). It is estimated that around 69,011 FTE jobs are attributable to natural heritage in this sector. The estimated regional split of natural heritage jobs in this sector, according to area tourist board, is shown in Table 4.2. Because of data limitations, these estimates represent relatively simple apportionment of the natural heritage jobs in activities based on the quality of the natural heritage. If these jobs were to be roughly apportioned to SNH s broad areas (North, East and West areas), around 7% of the jobs (5,102 FTE) in this sector would lie in the North area, 45% (30,748 FTE) in the East area, and 48% (33,162 FTE) in the West Area. Table 6.1 has been set out to show how the areas by Area Tourist Boards would fit into SNH areas. However, it must be recognised that this is a simple apportionment as these area representations do differ. Table 6.1 Estimated regional employment in activities based on the quality of the natural heritage Region (by Area Tourist Board) Employment % of employment Employees supported based on quality based on quality by quality of NH as % of of NH of NH total local employees North Area 5,102 7% 4.5 Highlands of Scotland 3,877 6% Island ATBs 1,225 2% East Area 30,748 45% 2.7 Aberdeen and Grampian 7,563 11% Angus and Dundee 3,351 5% Edinburgh and the Lothians 12,997 19% Kingdom of Fife 2,601 4% Perthshire 3,046 4% Scottish Borders 1,190 2% West Area 33,162 48% 3.1 Argyll, The Isles, Loch Lomond, 6,820 10% Stirling and the Trossachs Ayrshire and Arran 4,405 6% Dumfries and Galloway 2,393 3% Greater Glasgow and Clyde Valley 19,545 28% All Scotland 69, % 37

48 6.2 Tourism and recreation The natural heritage s contribution to tourism in Scotland According to ScotExchange 1, the total number of people employed in tourism in Scotland amounted to 197,400 in An approximate full-time equivalent of this number is around 145,500 FTE 2. In order to assess what percentage of these numbers is attributable to the natural heritage, it is important to consider the reasons why tourists come to Scotland. In 1999, a report was commissioned by Scottish Natural Heritage and the Scottish Tourism Board on visitor attitudes, motivations and perceptions 3. The primary finding of this report relevant to the current study was that the main attraction of Scotland, for holiday visitors irrespective of their origin or lifecycle, is the landscape, countryside and scenery. Furthermore, 90% of holiday visitors associated beautiful scenery with Scotland prior to their visit, and 49% of visitors mentioned aspects of the natural heritage as the main attraction influencing their decision to visit Scotland. Table 6.2 provides an extract of a table in the Tourism Attitudes report that highlights the aspects of the natural heritage that attract tourists, as well as showing how these compare to other attractions, such as historical sites, galleries and museums. Table 6.2 Main attractions influencing the decision to holiday in Scotland Percentage of responses* Natural heritage related Landscape/countryside/rugged scenery 30% Mountains/hills 10% Lochs and rivers 4% Nature and wildlife 3% Coast and seaside 2% 49% Other examples History/historical sites 9% Edinburgh specific attractions and lots to see 8% Galleries/museums 2% Source: Tourism Attitudes Survey, *Note: Responses added to 100%. 1 ScotExchange is the official website of the Scottish tourism industry. Launched in June 2000, ScotExchange.net is a resource for everyone involved in tourism in Scotland, as highlighted in the Tourism Framework for Action This is based on calculations and information in Scottish Economic Statistics 2002 A3 Estimating the Economic Impact of Tourism in Scotland. 3 The Tourism Attitudes Survey, 1999 (SNH and Scottish Tourist Board). 38

49 Pre-visit expectations of Scotland, an important determinant of reasons for visiting a place, were surveyed. The report states that, the vast majority of holiday visitors to Scotland had associated beautiful scenery with Scotland prior to their visit. Other natural heritage related pre-visit expectations are shown in Table 6.3. Other large draws included interesting history and culture (65%) and friendly people (63%), amongst others. Table 6.3 Pre-visit descriptions particularly associated with Scotland Perception Visitors (%) Beautiful scenery 90% A good hiking/walking destination 40% Good beaches 11% Local products to eat and drink 18% A good place to relax and get away from it all 43% The Tourism Attitudes Survey shows that the natural heritage is an extremely important factor in people s decisions to visit Scotland. Calculating tourism figures attributable to the natural heritage Applying the motivation attitudes of visitors to tourism employment in Scotland (49% of visitors are motivated by the natural environment see Table 6.1), it can be assumed that around 71,226 FTE tourism jobs are based/depend on Scotland s natural heritage, including the wildlife tourism numbers in Section 5.6. The geographic distribution of these jobs is indicated in Table 6.4. Table 6.4 Tourism employment by Area Tourist Board, 1999 Region (by Area Tourist Board) Tourism as % of employment Aberdeen and Grampian 7.8% Angus and the City of Dundee 8.8% Argyll, The Isles, Loch Lomond, Stirling and the Trossachs 10.9% Ayrshire and Arran 10% Dumfries and Galloway 11% Edinburgh and the Lothians 8.9% Greater Glasgow and Clyde Valley 7.1% Highlands of Scotland 13% Kingdom of Fife 5.5% Perthshire 14.9% Scottish Borders 8.3% Island ATBs 12.3% All Scotland 8.6% Source: ScotExchange Tourism in Scotland 2002 Annual Report. 39

50 Table 6.5 Tourism expenditure in Scotland, 2002 Trips (m) Nights (m) Expenditure ( m) Scotland ,376 England ,082 Rest of the UK Total UK Tourism ,683 Total Overseas Tourism Total ,494 Source: VisitScotland 2002 Tourism in Scotland Two types of activities that involve enjoyment of the natural heritage include walking and cycling. There are 5 10 walking companies in Scotland, each employing around 15 people on a part-time basis, or around 6 FTEs each. One of the many activity organisations is Walkabout Scotland, as discussed in Box 6.1. Other than these larger organisations, there are a lot of very small organisations that organise walking tours. This is very seasonal employment. At least 75% of this business is as a result of the natural heritage rather than a wish to exercise. Therefore we assume that of the full-time equivalent jobs related to walking tours, around can be said to be a result of the natural heritage. These are already included in the previously identified overall tourism figure. Box 6.1 Case studies of outdoor adventure activities Walkabout Scotland and Highland Horseback Scotland Walkabout Scotland offers a full programme of walking holidays in Scotland, hiking tours, day tours and weekend breaks from Edinburgh to the Scottish Highlands. They also specialise in tailor made tours and other specialist group tours including corporate events. The partners of Walkabout Scotland are Paul Mason and Jon Haber, who are dedicated to showing people the beautiful mountainous countryside of the Highlands of Scotland. Walkabout Scotland caters for all levels of experience and their walking groups are small, sociable and relaxed, with the aim of providing [people] with a fantastic walking holiday experience through Scotland s inspiring scenery at a pace [people] will enjoy, whether that be a leisurely hike or full-on hill walk up some of the highest Scottish peaks. Highland Horseback Scotland Highland Horseback has existed as a long distance trail riding business for over 25 years. Its reputation has been built on providing an unforgettable experience of the amazing scenery of the Scottish Highlands. Highland Horseback is run by Fiona and Ken Hamilton, who run it as a family business, from May to September each year. 40

51 Cycling tours are offered by a number of organisations across Scotland. This is seen as a niche sector with potential for making a contribution to the growth of Scottish Tourism. A report commissioned by a consortium of organisations, Towards a Tourism Strategy for Scotland has examined the contribution that specialist cycling can make in all regions of Scotland, with each region s distinctive characteristics playing a key role in ensuring success in this area. According to this report, specialist cycling tourism in Scotland is worth 13 million per annum, with a further 179 million spent by those who take part in cycling activities while on their Scottish holiday. The report recommends that in particular, there should be: route development in rural areas; opportunities associated with Scotland s new National Parks; development of Scotland s internal leisure and holiday cycling market; and strong products in the Scottish Borders and Dumfries and Galloway to attract cycle tourism to Scotland from the North of England. 41

52 7 THE INCREASING SCOPE OF THE NATURAL HERITAGE AND ENVIRONMENT TO SUPPORT ECONOMIC ACTIVITY 7.1 Introduction The report has identified a growing awareness of the scope of natural heritage employment across a number of economic activities. As discussed in Section 1, there is increasing interest in defining and quantifying the natural heritage sector. However, the relatively new focus on this sector means there is still difficulty in collecting natural heritage data for certain sub-sectors. In the absence of any specific natural heritage classification and possibly as a result of the horizontal nature of his work, it is difficult to access quantitative data through national and official surveys. The traditional perception of natural heritage and environmental work is mainly associated with protection and management. This could be defined as core natural heritage and environmental work, driven by the public sector. However there is a range of influences including legislation, policy change or changes in markets that is leading to growth in natural heritage based employment. Many of these will currently sit outside the traditional/accepted core definition of natural heritage work. However, as this study has shown (for example with forestry) change within sectors will increase their involvement with the natural heritage. There are many more jobs that either benefit the natural heritage, depend on it for sustaining activity, or depend on the quality of it to produce goods and services that create (directly or indirectly) economic activity in Scotland. Arts and culture is an example of a sector that often utilises the natural environment, but where the linkage is difficult to define. A quantification of the natural heritage s contribution to the economic importance of this sector could require a study in itself. Other examples include wild harvesting eg berries, fungi and game, sustainably managing parts of estates to encourage biodiversity, and game keeping. The economic justification for investment in protecting or enhancing the natural heritage is incomplete when the contribution of these activities remains un-quantified. Until the natural heritage sector is quantified more accurately, this situation will continue. Increasing awareness will encourage investment. This study has identified that currently nearly 95% of natural heritage jobs are within the private sector, with the public and voluntary sector making up the balance. This would suggest that awareness in Scotland of the value of the county s natural heritage is expanding from the traditional protection and management functions. The following case studies recognise the importance of the natural heritage but were excluded from the main research findings. As understanding of the way the natural heritage contributes to these activities grows they should be included in any future study updating this current research. 42

53 7.2 Natural heritage aspects of land management The majority of people involved in land management are spending increasing amounts of time on managing the land for environmental or sustainable land management purposes. One sector that has been involved in sustainable land management for many years is the Scottish game keeping industry. Although some practices in this sector have been criticised, gamekeepers contribute to natural heritage management and preservation of biodiversity in Scotland. Box 7.1 describes possible natural heritage effects of (mainly lowland) game bird management. Box 7.1 The Scottish Gamekeeping Industry According to the Scottish Gamekeepers Association (SGA) ( some of the environmentally beneficial activities undertaken by gamekeepers include: Gamecrops: These are planted to produce cover and food. Mostly they are made up of kale, mustard, quinoa, linseed turnips or some other combination of seed producing crop. When winter comes and food is scarce these crops help to feed and shelter small birds and mammals. Without this winter crop many small birds would die of hunger and exposure. Daily feed: Pheasants and partridge are fed daily from June to April to ensure a healthy stock. This is yet another source of food for other birds and mammals. Woodland: Woods are planted, not only for commercial use, but also for driving pheasants. These woods consist of various species of trees mixed together. These mixed woods provide a haven for all native species, even before maturity. Financial: The shooting industry is one of the few sources of income in the countryside in the winter months, without which this deprived part of the economy will die even further. According to the SGA, Teenagers and local adults earn money through the days beating. Shooting clients and local residents provide custom for clothing outlets, food shops, garages etc. Gunshops, hotels, grain merchants and their employees are supported by the shooting industry. Many small communities benefit in the winter months thanks to field sports. On top of this, the government receives considerable tax from shooting. 7.3 Association with a high quality natural heritage There are a number of industries in Scotland that depend on the natural heritage, not only for their marketing value, but also as an important provider of quality inputs. The most obvious example of this is the Whisky industry, which depends on the good quality of water. Indeed, according to the Scottish Whisky Association, the majority of whisky makers originally located in Scotland purely for the quality of the water. The whisky industry is also able to utilise images of Scotland s natural heritage to help product marketing and differentiation. 43

54 A report by PTZ Pieda on the importance of Scottish Whisky to the economy 1 highlighted the following elements of the industry: Scottish Whisky sustains employment in some of the most economically fragile parts of Scotland; The considerable growth in the gin and vodka industry is a consequence of the existence of the Scotch Whisky industry which had created the necessary infrastructure; Just over 9,500 people are employed directly in Scotch Whisky production in Scotland, with a further 20,000 Scottish jobs in businesses which supply goods and services to Scotch Whisky companies; Over 7,000 jobs in rural Scotland depend upon the production of Scotch Whisky, generating income of million per year. Table 7.1 Total economic impact of Scotch Whisky production in Scotland 2000 Distilling Other Employment Direct 3,470 6,103 Indirect 8,013 11,759 Induced 4,191 7,274 Total 15,674 25,136 Income ( million) Direct Indirect Induced Total Source: The Economic Impact of the Production of Scotch Whisky, Gin and Vodka in Scotland, PTZ Pieda. The establishment of the bottled water industry in Scotland is perhaps a more recent example of business activity relying on a high quality natural heritage and environment. It is estimated that currently there are over 500 people employed in the Scottish bottled water industry, with another 200 people working in the water cooler sector. Highland Spring, a well-known Scottish mineral water company, has collaborated with Visit Scotland to produce an advertising campaign that benefits both organisations. An example of one of these adverts is shown in Box 7.2. Products such as knitwear also benefit from the positive association with Scotland s quality environment. In this sense, the natural heritage adds value to all these products, as consumers are prepared to pay more because of their association with a high quality environment. 1 The Economic Impact of the Production of Scotch Whisky, Gin and Vodka in Scotland, A Report by DTZ Pieda Consulting for The Scotch Whisky Association. 44

55 Box 7.2 Case study Highland Spring Highland Spring is the first British brand of Natural Mineral Water to achieve organic status for its catchment area. Highland Spring s water is drawn from a protected underground source in the Ochil Hills where no farming, agricultural spraying, building or habitation is permitted within the 2000 acre catchment area. The land has been kept free from pesticides and pollution for over 20 years. According to Highland Spring, not all brands of bottled water are Natural Mineral Waters Highland Spring achieved this designation in According to Highland Spring, research shows that British consumers view Scotland as home to the cleanest, purest water. In 2001 Highland Spring acquired The Gleneagles Spring Water Company, and has a growing workforce of over 300 employees. Highland Springs and Visit Scotland Advertising Campaign 45