Interim evaluation of the Tourism Growth Programme 2001 – 2004: report

The Tourism Growth Programme aimed to target key tourism businesses with the capacity and capability for high growth to enable them to become more competitive, accelerate growth and to raise profitability and employment levels. The interim evaluation aimed to test the progress of the programme, rather than arrive at a definitive conclusion as to its cost effectiveness and overall impacts.

The methodology consisted of: a review of the wider circumstances affecting the programme’s performance; an examination of case files of assisted businesses; and a sample telephone survey of 9 respondent businesses (69%).

Finds that progress in delivering the programme has been adversely affected by the downturn in the Scottish tourism market in 2001, entirely beyond the control of Scottish Enterprise Forth Valley. Considers that the progress made in meeting programme core activity pro-rata targets was creditable. Observes that the programme has met its pro-rata target for the gross number of new FTE jobs created. Notes that the original target of net additional jobs was unrealistic. Believes that the exclusion of capital works from eligible expenditure until 2003 - 2004 was unfortunate. Describes high levels of financial assistance additionality, and assesses programme additionality within the range 55%-65%. Mentions that business performance impacts were heavily dependent on future expectations. Notes that economic leakage was not an issue and multiplier impacts were within the normative local value set. Assesses displacement within the range 45%-55%. Indicates that there was a high degree of participant satisfaction with the delivery of the programme.

Suggests that a fundamental issue arises as to whether programmes designed to encourage growth can offer appropriate tools to assist with survival. Advises that the formulation of realistic targets is essential or programme performance cannot be accurately assessed.