Orkney Economic Review 2020

Photos supplied by Andrew Learmonth and Colin Keldie.

IMAGE: The cover displays the Orkney Islands Council crest above the title “Orkney Economic Review 2020”. Six photographs show a craftsperson working with a tool, Orkney grain and flour, a fishing boat marked “K1008” and “KIDOR”, an archaeological site beside the sea, an aerial view of an industrial coastal site, and cattle in a field. The cover states: “Photos supplied by Andrew Learmonth and Colin Keldie”.

This document aims to bring together and review the latest data available on the Orkney economy and statistics and information which might influence the economy. The majority of the statistics come from published sources, which are credited below each table.

Whilst it is the purpose to present up-to-date information, in a few cases, where current data was not available at the time of publication, more dated figures are shown.

Every care has been taken in the completion of this review. However, the publisher cannot accept responsibility for any errors or omissions. It should be noted that small local sample sizes can lead to some rounding of figures, and that some figures previously published in this review have been revised in light of the availability of updated statistics and research.

If you have any suggestions for subject areas which could be included in future Orkney Economic Reviews, please forward them to: economic.development@orkney.gov.uk.

Please note: The Western Isles are referred to throughout as ‘Eilean Siar’.

Table of Contents

1. Weather
   • Climate Statistics
   • Temperature
   • Rainfall and sunshine hours
   • Wind speed
2. Population
   • General Population
   • Births, Deaths and Migration
   • Households and Dwellings
3. Economic Activity
   • Workforce Qualifications
   • Household income
4. Labour Market
   • Claimant Count
5. Agriculture
   • Herd / Flock
   • Livestock Numbers
   • Milk production
   • Livestock Shipments
   • Land Use
   • Employment in Agriculture
   • Common Agricultural Policy (CAP) Subsidies
6. Fishing
   • Orkney Fishing Fleet
7. Shellfish
8. Fish Farming
   • Production
   • Employment
9. Energy
   • Oil and Gas
   • Ship to Ship Transfers
   • Accommodation Rigs
   • Renewable Generation
   • Wind Energy
10. Transport
    • Stromness to Scrabster Route (Northlink Ferries)
    • Shetland to Kirkwall to Aberdeen Route (Northlink Ferries)
    • Kirkwall Airport Traffic
    • Orkney’s Internal Ferry Routes
11. Housing
    • Average Purchase Price of Residential Property (£)
    • Number of Residential Property Sales
    • Value of Residential Property Market – Number (£ Million)
    • New Housing
12. Tourism
    • Staying Visitors
    • Visitor Attractions
    • Cruise Vessels
    • Island Visitor Survey 2019
    • The Visitor Experience

IMAGE: A map of Orkney and its internal transport routes marks the islands, roads, airfields and ferry routes. It labels Stromness, Kirkwall, South Ronaldsay, Buray, Shapinsay, Stronsay, Eday, Sanday, Westray, Papa Westray, North Ronaldsay, Rousay, Egilsay, Wyre, Graemsay, Hoy and Flotta. The legend identifies airfields, A class roads, B class roads, other roads and ferry routes.

UK Mainland Transport

IMAGE: A transport map shows Orkney Islands and mainland Scotland. Ferry routes connect Stromness with Scrabster, St Margaret’s Hope with Gills Bay, and Orkney with Aberdeen. A route connects Burwick with John O’ Groats. Flight routes connect Kirkwall with Inverness and with Edinburgh and Glasgow. The map labels Kirkwall Airport, Stromness, Scrabster, St Margaret’s Hope, Burwick, John O’ Groats, Gills Bay, Aberdeen, Inverness and Scotland.

Air Travel

Loganair operate a flight service from Orkney to various Scottish airports and onward to other UK and International airports:

• Kirkwall to Edinburgh.
• Kirkwall to Glasgow.
• Kirkwall to Aberdeen.
• Kirkwall to Inverness.
• Kirkwall to Shetland.

For more information contact: https://www.loganair.co.uk/

Sea Travel

There are three harbours in Orkney from which the mainland ferry services operate:

• Stromness (Stromness Pier).
• Kirkwall (Hatston Pier).
• St Margaret’s Hope.

Northlink Ferries operate the ferry service between Scrabster (Thurso) to Stromness Pier (Stromness) and between Aberdeen, Kirkwall and Shetland. Pentland Ferries operate the ferry service between Gills Bay and St Margaret’s Hope. There is also a ferry service between John O’ Groats and Burwick for foot passengers, which operates in summer only.

For more information contact: http://www.northlinkferries.co.uk/, http://www.pentlandferries.co.uk/ and http://www.jogferry.co.uk/Home.aspx.

1. Weather

As an archipelago so dependent on economic activity related to agriculture, fishing and tourism, the weather in Orkney can be very influential both in terms of productivity and reputation.

Orkney’s climate is heavily influenced by the sea, in particular the Gulf Stream and is a marine west coast climate which is mild and cool with no dry season and warm summers. Mild winters can occur which by nature bring on heavy precipitation.

Climate Statistics

As data from the Meteorological Office (taken at Kirkwall Airport) is no longer available, 2020 data and the year averages are provided from the Loch of Hundland climate station, privately operated by Mr Keith Johnson.

Temperature

Sources: Loch of Hundland climate station and Kirkwall Airport data.

Rainfall and sunshine hours

Sources: Loch of Hundland climate station and Kirkwall Airport data.

Wind speed

Source: Loch of Hundland climate station.

Wind is a key feature of the climate. In summer there are almost constant breezes and winter there are frequent strong winds. The average wind speed for 2020 was slightly higher than the 20-year average.

2. Population

General Population

The National Records of Scotland estimates Orkney’s population in mid-2020 as 22400. This is an increase of 0.6% from the mid-year estimate in 2019. Orkney’s population continues to account for 0.41% of the total population of Scotland.

Estimated population of Orkney, by age group in 2020.

Source: National Records of Scotland.

In Orkney, 15.9% of the population are aged 0 to 15 years. This is lower than the Scottish average which is 16.8%. Persons aged 65 and over make up 24.3% of Orkney’s population, higher than Scotland where 19.3% are in this age group.

Births, Deaths and Migration

In 2020, Orkney witnessed 179 births, a decrease of 3 from the figure for 2019. The number of deaths in Orkney increased by 22 to 254 in 2020.

In 2020, Orkney’s population natural growth rate (births minus deaths) remained negative, a second consecutive year of negative growth.

The level of estimated net migration in Orkney during 2019 was 150. This is 100 lower than the estimated figure from 2018. However, the 2018 figure was the highest witnessed for 14 years.

Orkney population change 2000–2020

Sources: National Records of Scotland / Vital Events / Births Time Series Data / Table BT 4 and National Records of Scotland factsheet.

Households and Dwellings

The most recently available National Records of Scotland figures reports that the number of households in Orkney in 2020 was 10635. This is a 0.4% increase in the 2019 figure of 10589. Since 2001, there has been a 27.5% increase in the number of households in Orkney. This is the highest percentage change out of the 32 council areas in Scotland, with the Scottish average at 14.3%.

With regard to Council Tax, band B was the most common in 2020 (25.4%) followed by band C (21.1%).

Household Projections

The total number of households in Orkney is projected to change from 10506 in 2018 to 11010 at 2028, an increase of 4.8%. Within that number, the number of lone adult households is projected to increase by 10.2%, and the number of larger households in Orkney is projected to fall, with the number of households of 2 or more adults with children decreasing by 6.2% over the 10-year period.

Households headed by 75 and over age group are projected to more increase by 38.9% in number between years 2018 and 2028.

3. Economic Activity

The percentage of the Orkney population who are economically active, in other words, either in employment or actively seeking employment, tends to be consistently higher than both the Scotland and Great Britain averages.

Economically active as % of (estimated) working age population (16–64).

Source: Official Labour Market Statistics (nomis).

Orkney’s active percentage is significantly above the national averages.

Self-employment – regional comparison

Source: Orkney and Scotland data – Scottish Government. Great Britain – Office for National Statistics, Annual Population Survey.

Workforce Qualifications

In terms of accredited skills and education at a higher level National Vocational Qualification (NVQ) 4 and above, the most recent figures below suggest that the Orkney working-age population lags slightly behind that of Scotland but slightly ahead of the aggregated Great Britain labour pool. When it come to the other NVQ qualifications, Orkney is slightly behind both Scotland and Great Britain. However, when it comes to other qualifications, Orkney is noticeably ahead of both Scotland and Great Britain.

Qualifications – people aged 16 to 64, 2020

Source: Office for National Statistics, Annual Population Survey.

Notes: NVQ is known as Scottish Vocational Qualification (SVQ) in Scotland.

In vocational terms NVQ4 indicates management skills; and in academic terms, NVQ4 or above indicates HND or above (Scottish Credit and Qualifications Framework level 8 and above).

indicates sample size is too small for reliable estimate.

Enterprises

Reliable and inclusive data on business churn is not available. However, an enterprise birth and death rate is available in respect of what is termed ‘Active Registered Enterprises’, in other words, those which had either turnover or employment at any time during the reference period and were registered with Her Majesty’s Revenue and Customs (HMRC) for VAT and / or PAYE.

Active registered enterprises – Orkney

Source: Office of National Statistics, Business Demography.

The availability of new business start-up grant funding via Orkney Islands Council’s Business Gateway service commenced in April 2011. This has contributed to the higher business birth rates in 2011 and 2012, with 34 new businesses supported with advice and / or funding in the two-year period to end March 2013. This was followed by 47 in year ending March 2014 and 49 in year ending March 2015. The numbers of businesses supported in the years ending March 2016 and 2017 were 44 and 49 respectively. 2018 also witnessed 49 new businesses supported by the local Business Gateway service. During 2019 this figure was 44. The 2020 figure was 34, most likely due to the impact of COVID.

The Scottish Government’s ‘Businesses in Scotland’ publication provides information on the characteristics of Scotland’s business stock – including Orkney, and how business stock has changed over time. It shows the estimated total enterprises, registered for VAT and / or PAYE, the table below shows information for Orkney over the last 6 years.

The estimated (rounded to the nearest 5, excluding central and local government) enterprises operate in the following sectors (Standard Industrial Classification, 2007).

Source: The Scottish Government, Business in Scotland Tables.

There are a substantial number of enterprises in Orkney which have no employees and are therefore not included.

The table shows that the overall numbers of active enterprises has decreased slightly in 2020. Once again, this is most likely attributed to the impact of COVID.

4. Labour Market

Claimant level (% Jobseekers) in Orkney 2011–2020

Source: Office for National Statistics.

Note: These unemployment rates represent the proportion (%) of the resident population who are of working age and who are seeking employment (ages 16–64).

Up to September 2015 the headline Claimant Count figures include people claiming Jobseeker’s Allowance (JSA). As of October 2015, this figure includes people claiming JSA and Universal Credit.

The above table illustrates the unemployment rate measured by Claimant Count rate (%).

The figures between 2014 and 2015 may be more difficult to compare with the introduction of Universal Credit figures, now added to those claiming JSA in 2015 figures.

The 2019 average was the highest since 2012. However, the 2020 figures show a sharp rise from April 2020. This is presumably due to the first lockdown from COVID.

Claimant Count

Job Seeker Allowance and Universal Credit

Under Universal Credit a broader span of claimants are required to look for work than under Jobseeker’s Allowance. As Universal Credit Service is rolled out in particular areas, the number of people recorded as being on the Claimant Count is therefore likely to rise.

Source: Office for National Statistics – Claimants change and LA Comparison.

Notes: Totals may not always tally due to round and, owing to rounding, the apparent movements by age group and duration may therefore be distorted.

The data relating to age breakdowns, flows of claims or for duration of claim cannot be extracted from the Universal Credit. Therefore, these series will be suspended from June 2015.

5. Agriculture

Herd / Flock

Livestock values returned at Orkney Auction Mart have fallen since reaching a high in 2014.

Orkney Auction Mart Prices – Average price, pence per kg

Source: Orkney Auction Mart.

2020 statistics are the average price, not average price per kilo. This is due to changes in the monitoring system used by Orkney Auction mart.

Lamb values per kg are unavailable for 2013 onwards, however values per head is available below.

2020 saw the highest values for Lambs in recent years.

Livestock Numbers

Herd / Flock size in Orkney (2014–2020)

Source: Scottish Government’s Rural and Environmental Research and Analysis Directorate (RERAD), agriculture census annually in June.

Dairy cattle

In 2017 Orkney farms held 49% of all dairy cattle in the North West of Scotland (Shetland, Orkney, Hebrides and Highland). The Orkney figures for 2018 saw a slight decrease in herd size, with the 2019 figure showing a very slight increase. 2020 figures witnessed a decrease to the lowest levels seen in recent years.

Beef cattle

At the 2015 census date, Orkney was home to 36% of all female beef cattle in the North West of Scotland region. However, the 2016 census data shows a significant fall in the number of all cattle in Orkney in 2016. This was likely to have been a knock-on effect of the poor weather in 2014 / 2015 which caused local shortages of winter feed and bedding and farmers reducing stock levels as a consequence. 2017 and 2018 continued to witness a decline in beef cattle numbers with a 3.7% decrease on the previous year figure. 2019 has witnessed an increase, with the highest figure since 2015 recorded. 2020 saw an increase in beef cows but a decrease in other beef, bringing the overall figure down from the previous year.

Sheep

Over the 2014–2017 period, the number of sheep witnessed annual increases. 2018 figures saw a decrease back towards the numbers from 2015. 2019 witnessed a slight increase, but still lower than the 2017 figure. 2020 has seen the highest overall figure in recent years with increases in all recorded breeds.

Milk production

The level of milk production took a fall back in 2010–2011 when two dairy farms withdrew from the market which resulted in the loss of almost 1 million litres of production. Milk production has declined significantly since its peak in 2009–2010. However, the figure for 2017/18 shows a 3.1% increase in production on the previous financial year. The estimate for 2018/19 remains similar to the previous year whilst the 2019/20 figure shows a slight decrease, as does the 2020/21 figure.

90% of all Orkney milk production goes towards the manufacture of Orkney Cheddar, produced by the Orkney Cheese Company Ltd.

Orkney Milk Production

Livestock Shipments

The following table shows that livestock shipments through Orkney Islands Council (OIC) ports have increased significantly since 2007, with cattle shipments up by 41% over the period to 2015 and sheep movements up by 263% over the same period.

However, as data for the privately-run St Margaret’s Hope to Gills Bay ferry service is not published, total livestock shipments from Orkney cannot be accurately ascertained.

Livestock Shipments from Orkney (OIC Ports)

Source: OIC Marine Services.

The increase in 2015 and 2016 shipments possibly reflects the severe weather-related problems experienced in Orkney during summer-autumn of 2015.

Land Use

Agricultural Land Use in Orkney (hectares)

Source: Rural and Environmental Research and Analysis Directorate (RERAD) – Section C Times Series.

Notes: Totals may not always tally due to changes in reporting methods.

The total land area utilised by agriculture remained largely the same between 2014–2016 with the area of land utilised increasing in 2016. 2017 witnessed a 4.5% decrease from the previous year. However, this trend was reversed during 2018, with a 0.5% increase on 2017 figures. Whilst 2019 witnessed a decrease, 2020 has seen a small increase on the previous year.

Grassland remains the largest land use in Orkney, which suits Orkney’s climate well and would support the production of beef cattle, dairying farming and sheep farming in Orkney.

Employment in Agriculture

Agricultural Employment in Orkney (2014–2020)

Source: Rural and Environmental Research and Analysis Directorate (RERAD) – Section C Times Series.

Total employment in agriculture between 2014–2020 has steadily decreased. Falling levels of employment over the past 7 years is probably symptomatic of the increasing industrialisation within the sector.

Common Agricultural Policy (CAP) Subsidies

The total of all subsidy payments received by Orkney farmers during recent years under the EU Common Agricultural Policy (CAP) support schemes is set out in the following table. Fluctuations may be due, in part, to currency exchange rate movements and changes in eligibility for dedicated schemes.

Source: Scottish Government, Agriculture and Rural Economy, Kirkwall Office.

The subsidy payments have decreased slightly in 2020 despite the number of recipients increasing. Despite this, these payments remain critical to the viability of Orkney farming. Significant variations in annual values are largely due to fluctuation in the exchange rates prevailing at the appointed conversion date, with annual subsidies being allocated in euros (€).

6. Fishing

Orkney Fishing Fleet

Source: Marine Scotland Science Scottish Sea Fisheries Statistics ‘Vessel and Employment’.

Pelagic / demersal landings by Orkney vessels

Source: Scottish Sea Fisheries statistics.

Along with reduction in fleet size, the volume and value of landings of demersal and pelagic fish by Orkney Vessels fell considerably in 2012 and 2013; however, this was followed by considerable increase in value of landings in 2014.

Subsequently though in 2015 the value of landings suffered a large decrease again although the weight of landings in 2015 was slightly higher than the previous year.

2016 witnessed a reverse in the previous year, with landings decreasing by 19% but the value of the landings increasing by 66%. This represents the highest value of landings since 2011. Whilst 2017 witnessed a 14.5% drop in landings and a 4% drop in value, the 2017 value is similar to 2007 despite landings for that year being considerably higher. In 2018, landings took a considerable drop, falling by 20% on the previous year. Despite this, the value witnessed a small increase over the same period. 2019 and 2020 has continued the downward trend, albeit at a slower rate.

With so few Orkney vessels in the demersal fleet, variations might be due to a number of factors, for example, a vessel temporarily laid up, quota variations, or changing market prices.

Employment

With vessel numbers falling in general, lower regularly employed in the sector is to be expected. In 2016 this figure has dipped under 200, representing a 3% decrease from the previous year. Recent years this figure witnessed an increase, with lower numbers partially employed. However, 2020 saw a reduction in regularly employed and an increase in partially employed whilst the total reduced slightly from 2019.

Orkney fishermen employed

Source: Marine Scotland Science.

Note: Figures relate to those employed on vessels which submit landing declarations to Marine Scotland.

7. Shellfish

Shellfish species landed in Orkney since 2012, their live weight and values are as follows.

Quantity (tonnes)

Value (£000s)

Source: Scottish Sea Fisheries statistics.

8. Fish Farming

Production

The following table shows salmon and smolt production in Orkney as presented by the Scottish Government.

Salmon and smolt production in Orkney

Source: Marine Scotland Science – Scottish Fish Farm Production surveys.

Production has been relatively steady between 2013–2015 with little variation in numbers produced. Between 2016–2018 Salmon production has increased, with an increase of 4,200 tonnes in 2018 over the previous year. This is despite smolt production falling. 2019 witnessed a decrease in both tonnage and smolt numbers.

Employment

Employment levels in the industry fluctuate from year to year and no explanation is offered for this. The following table shows fish farming employment in Orkney as presented by the Scottish Government.

Fish farming employment in Orkney

Source: Marine Scotland Science – Scottish Fish Farm Production surveys.

The above statistics are not however supported by figures reported by the trade body, the Scottish Salmon Producers Organisation (SSPO) who reported that direct employment by their members in Orkney increased from 91 in 2011 to 115 in 2012 and 135 in 2016. It is not known why the two figures differ. There has been little change in the recorded figures between 2018–2019.

9. Energy

Oil and Gas

The volume of crude oil leaving the Flotta Oil Terminal back in 2012 was almost half of that shipped in 2010 and there were no shipments of propane gas.

2015 and 2016 has seen significant increase in volume of crude oil leaving Flotta. In 2016 levels were almost 3 times that shipped in 2012. This increase is as a result of the Gold Eagle field which began producing oil in late 2014. After witnessing a 5.5% increase during 2017 on the previous year, 2018 saw a reduction in crude oil tonnage of approximately 30%.

Foinaven oil has not been shipped via the Flotta terminal since 2008.

Annual Tonnages of Cargoes Loaded from the Flotta Oil Terminal

Source: OIC Marine Services.

Ship to Ship Transfers

Following approval of the new OIC ballast water management policy in 2013, 2015 again saw the commencement of ship to ship transfers, and 2016 saw a significant increase in the number of STS transfers with 22 transfers taking place. 23 transfers took place in 2017.

Ship to ship transfer of liquefied natural gas (LNG) took place in 2016 following previous transfers back in 2013, 2010 and 2007.

The world’s first liquefied propane gas (LPG) ship to ship transfer was managed in Scapa Flow in 2016 with 15,464 tonnes transferred. This achievement was matched in 2017. 2018 witnessed a significant increase in ship to ship transfers and oil tonnage, as Scapa Flow is continued to be marketed for this purpose.

Ship to ship operations

Source: OIC Marine Services.

Accommodation Rigs

New economic activity has been attracted to Scapa Flow as sheltered storage for accommodation vessels whilst they undergo maintenance. Late 2015 saw the first arrivals of 2 Semi-Submersible accommodation rigs to Scapa Flow for maintenance programmes.

Renewable Generation

From 2012 to 2017 the % output increased each year. 2018 witnessed a slight decrease in both categories recorded, however the 2019 figure for each category has increased. 2020 achieved the highest figures since recording began.

Source: Orkney Renewable Energy Forum.

Wind Energy

The Department of Business, Energy and Industrial Strategy provided ‘Sub-national Feed-in Tariff Statistics’ which is maintained by Ofgem and the most recent extraction of information for quarter 1 2019 highlights there were 766 feed in tariff (FIT) eligible wind generators in Orkney, of which 654 were domestic. The 2019 figures show 774 FIT eligible wind generators in Orkney, of which 659 were domestic.

In 2012 a moratorium was imposed on new generator connections to the grid in Orkney, this has resulted in delays to new developments being realized. Grid curtailment continues to be an issue impacting on revenue generation.

10. Transport

Stromness to Scrabster Route (Northlink Ferries)

Traffic on Stromness to Scrabster Route (Northlink Ferries)

Source: OIC Marine Services.

Passenger and accompanied car numbers fell in 2010 and 2011. An upward trend has however been evident again since 2014, with significant increases year on year. COVID-19 has impacted heavily on all 2020 figures.

Pentland Ferries does not publish the traffic statistics for its St Margaret’s Hope to Gills Bay service.

Shetland to Kirkwall to Aberdeen Route (Northlink Ferries)

Traffic on Shetland to Kirkwall to Aberdeen Route (Northlink Ferries)

Source: OIC Marine Services.

There was a slight increase in passenger and accompanied cars on the Shetland to Kirkwall to Aberdeen route in 2011, however, following this there was a downward trend, with a slight recovery in 2015. There was a slight decrease in passengers in 2016, however 2017 and 2018 witnessed an increase in all traffic.

Commercial vehicles and cargo figures significantly increased in 2012 by 31.8% and 46.4% respectively on the 2011 figures. The numbers continued to increase until 2015 and have remained fairly constant in 2016. There was however a significant increase in cargo in 2017, with an additional 35639 tonnes shipped. This trend has continued into 2018, with a further 37327 tonnes shipped. Once again, COVID-19 has led to a significant decrease in figures during 2020, with the exception of cargo.

Kirkwall Airport Traffic

Source: Highlands and Islands Airports Limited (HIAL), Annual Reports.

During 2018–2019, figures for both passengers and movements fell slightly. During 2019–2020 COVID-19 has had a major impact on both passengers and movements.

Orkney’s Internal Ferry Routes

Passengers: single journeys – year ended March

Vehicles: single journeys – year ended March

The total levels of passenger numbers on the internal ferry routes had been decreasing since 2013. However, the 2017 figures have shown an increase of 4.5% on the previous year. This trend has continued, with a 0.7% increase witnessed in 2018. 2019 saw further increases, with the highest figures recorded over the past 10 years. 2020 witnessed a slight reduction which may be due to COVID-19.

Figures for the internal ferry routes for Shapinsay and Lyness continue to show significantly higher passenger numbers than other ferry routes in Orkney. The Lyness and Flotta route continues to show the highest number of vehicle numbers using those crossings.

11. Housing

Average Purchase Price of Residential Property (£)

Source: Registers of Scotland.

Orkney witnessed a steady increase in house process between 2016–2019, with the average increasing by £24146. Whilst other regions shown above, and the Scottish average, have also experienced increases, Shetland has seen a drop in the past year.

Number of Residential Property Sales

Source: Registers of Scotland.

In terms of the total numbers of residential property sales, the property market in Orkney witnessed a slight decrease 2018–2019. Nationally, the figures remained fairly statis, with only a modest increase.

Value of Residential Property Market – Number (£ Million)

Source: Registers of Scotland.

With the exception of Shetland, all local authority areas highlighted above have witnessed increases in the value of their residential property markets between 2018–2019.

New Housing

Housing Starts and Completions in Orkney

Orkney Housing Association Limited (OHAL).

A total of 1,561 new houses have been completed during the past ten years. The number of completed private developments make up 64% of the total.

12. Tourism

Staying Visitors

All staying visitors (000s)

Source: Global Tourism Solutions – Scottish Tourism Economic Activity Monitor Trend report.

The annual Scottish Tourism Economic Activity Monitor (STEAM) reported ‘All staying visitors’ (Visitors who are staying overnight for one or more nights away from home for holidays) was 77050 visitors, a decrease of 64.9% from 2019 figures.

Staying visitor’s type of accommodation

Source: Global Tourism Solutions – STEAM Trend report.

In 2020, the number of visitors staying in paid accommodation was 64390, a significant decrease of 66.1% from 189710 in 2019. The number of visitors staying with friends and relatives in 2020 was 12660, a decrease from 29840 in 2019.

Estimated Economic Impact

Source: Global Tourism Solutions – STEAM Trend report.

The Economic Impact of Tourism to Orkney in 2020 was estimated as £35480000, a decrease of 62.8% from 2019. As a result of global pandemic which restricted moment of visitors out with their geographic area as had a dramatic impact on the economic value taken from tourism.

Orkney distribution of Economic Impact by sectors

Source: Global Tourism Solutions – STEAM Trend report.

Visitor Attractions

The figures available at the time of publication reflect the major impact COVID-19 lockdown had on visitor attractions in 2020. Despite this, St Magnus Cathedral has remained the top visitor attraction. The top paid admission attraction continues to be Skara Brae. With the exception of the St Magnus Cathedral and the Italian Chapel, all visitor attractions in the list witnessed an increase between 2018 and 2019.

Source: VisitScotland, Tourism in Scotland’s Regions and Moffat Centre Visitor Attraction Monitor, Glasgow Caledonian University, and visitor attractions.

Cruise Vessels

Visiting Cruise Vessels

Source: OIC Marine Services.

There has been an upward trend in the number of passengers and port calls from visiting cruise vessels since 2011. The increase in passenger numbers of 5664 in 2019 represents a 4.5% increase on 2018 figures. The number of cruise vessels visiting Orkney has more than doubled between 2010–2019. The COVID-19 Pandemic has had a dramatic effect on 2020 figures with only one visiting vessel resulting in a decrease in passenger numbers of 99.5%.

13. Third Sector

Volunteering in Orkney

The importance of the third sector to the local economy has been increasing in recent years. In Orkney, formal volunteers contributed 0.8 million hours of help, providing £11.7 million to the local economy. This data is based on a 2-year average (2016 and 2018).

30% of adults in Orkney, an estimated 5,640 people, volunteer formally through an organisation or group. To provide a more robust result, this is calculated on a 4-year average. This is above the national average in 2018 of 26%.

Source: Scottish Household Survey Data.

Third Sector Organisations

A third sector organisation is a community, voluntary, charity or social enterprise. Locally, there are 812 third sector organisations listed. 32% of this figure is made up of charities (257). The total income from these charities is £21,626,607. The majority of this figure will come from external funding and local fundraising.

Voluntary Action Orkney supports the third sector in Orkney by providing advice, information and practical services. In 2019-20, their income was £880,448.

Source: Voluntary Action Orkney and OSCR (Scottish Charity Regulator).