Celebrating St Andrew’s Day – An Assessment of the Economic, Social & Cultural Costs and Benefits

1. Celebrating St Andrew’s Day – An Assessment of the Economic, Social & Cultural Costs and Benefits Presentation of Findings of the Final Report to the Enterprise and Culture Committee of the Scottish Parliament Corporate Body 5th September 2006

2. Introduction • Dr. Neil Blake Director of Economics & Forecasting, Experian Business Strategies • Richard Sweetnam, Project Manager, Associate Director, Experian Business Strategies • Josephine Burns, Director, Burns Owens Partnership

3. Format of Presentation • Research Specification • Approach • Celebration Options • Key Findings • Comparator • Economic • Social • Cultural • Conclusions

4. Definition - St Andrew’s Day Bank Holiday (Scotland) Bill • Introduced in May 2005 • To establish a bank holiday on St Andrew’s Day (30 November) or, if the day falls at a weekend, the following Monday • To facilitate the creation of a ‘National Day’ to celebrate Scotland and its people in terms of culture, diversity, history, tradition, contemporary society, arts, sport, enterprise and international standing • Aim – to amend the Banking & Financial Dealings Act 1971 to make a new bank holiday

5. Research Specification • Objectives • To compile a set of ‘celebration options’ • Provide information on economic, social and cultural impacts of each option • Quantify impacts, in monetary terms where possible • Review relevant research on how other countries celebrate ‘national holidays’

6. Approach • Desk Based Research • How St Andrews Day is celebrated • Consultations to date • Comparator Research – 5 celebrations • Primary Research • Omnibus Survey • Local Authorities • ‘Umbrella Groups’ – ASVA, Event Scotland, SCVO, STUC, SRC, SFE, CoSLA, CBI, SCDI, SCCB • Other – VisitScotland, Homecoming Scotland, Historic Scotland • Analysis

7. Celebration Options • Changing the date of an existing bank holiday to St Andrew’s Day • Establishing an additional bank holiday on St Andrew’s Day • Having no bank holiday on St Andrew’s Day, but holding an event/ celebration to mark the day • Building on existing local practices for the purpose of celebrating St Andrew’s Day

8. Key Findings - Comparator • Ireland • Bespoke unit to develop a week long programme of activities around March 17th • Government-funded • Showcasing Ireland • France • Paris-based • Network of local activities • 0.45% increase in working time does not equate to the same increase in output

9. Key Findings - Comparator • US • Legislation to observe holidays on nearest Monday • July 4th vs Thanksgiving Day • Start of the ‘Holiday Season’ • National values – inherent part of the US social/ cultural heritage • Sweden • Research suggests the ‘cost’ of additional holiday at up to 0.3% of GDP • Neutral if substitution occurs

10. Key Findings - Economic • Negative: • Cost of days lost + any extra overtime costs • Offsetting: • Potential for re-scheduling work • Workforce more productive on other days • Positive: • Additional spending • Tourism • Retail/leisure (has to be additional)

11. Key Findings - Economic • Problems in measuring offsetting & positive effects: • Most existing Bank Holidays taking place every year • Cannot distinguish between normal seasonal movements (in sales, productivity etc) and the impact of the Bank Holiday • Have to focus on Bank Holidays that move: • Easter • Queen’s Jubilee • Neither are perfectly comparable with St Andrew’s Day (Easter is better) but they give some idea of magnitudes/directions

13. Key Findings - Economic • Impact of Easter (UK & Scotland Adjusted) • GVA => +£61m and +£4.6m (0.1% increase) • Retail Sales => +£107m and +£9.5m • Tourism (UK) => we travel more, and spend more, net ‘cost' of £14m • Alternative Method (Scotland) • Value output on a productive day • Assumptions on which sectors operate • GVA => - £135m or 0.18%

14. Key Findings - Cultural • Mechanism to celebrate St Andrew’s Day conducive to achieving optimum cultural impact • Options 1 & 2 – greatest impact, and greatest benefit and costs • Option 3 – impact mitigated – no time to celebrate, nightime activity restricted by time of year, but could still develop some activities • Option 4 – Localised impact in the short term

15. Key Findings - Social • How would people in Scotland spend their free time – Omnibus Survey • Higher proportion of people in Scotland worked – indicative of observing local holidays? • Non work – ‘at home’ (46%), VFR (21%), Short Break (12%) • UK Time Use Survey – indicate how people could spend additional free time • 2.3m in employment (FT and PT) => a day off • What sectors do they work in => 36% of jobs in sectors that will remain open, rest ‘mixed’ and ‘closed’ • 17% of residents could benefit from a day off • Willingness to pay

17. Conclusions • Clarify what it is about St Andrew’s Day that Scottish residents identify with • Distinct, but complements existing offer • 5-10 year gestation period – financial support • How to celebrate depends on presence of a holiday, and then what day? • Winners & Losers • In general Options 3/ 4 more popular with private sector, yet dilute cultural impact • Option 1 (substitution) favoured in mitigating against perceived disruption/ loss but reluctance?

18. Celebrating St Andrew’s Day – An Assessment of the Economic, Social & Cultural Costs and Benefits Presentation of Findings of the Final Report to the Enterprise and Culture Committee of the Scottish Parliament Corporate Body 5th September 2006