Scottish Council for Development and Industry believes that by creating a focus for the investment of over £35m in cultural activities and attractions, the programme successfully highlighted the vitality of Highland culture and the importance of the creative sector to the Highland economy. But there may be legitimate questions about the use of some sources of public funding and whether it has quite achieved the intended profile. It is right that when a lot of taxpayers' money has been spent the results are the subject of debate.

A balanced analysis of Highland 2007 shows it could help Scotland achieve one of its most significant economic targets — the ambition adopted by its biggest industry, tourism, of a 50 per cent growth in revenue by 2015.

Tourism is one of fastest growing sectors of the world economy, but it is also one of the most competitive. Nearly every country wants a slice of the four to five per cent per annum growth in spending forecast to 2020. Scotland is blessed with unique natural, historical and cultural assets. But this fierce global rivalry means it cannot expect to achieve its ambition without constantly improving its offering.

What this means is now the subject of an inquiry by the Holyrood's Tourism Committee. I'm sure that MSPs will look closely at Highland 2007. For example, if a conclusion is that greater interest outside the Highlands could have been generated, it would be worth looking at the tourism marketing budget and transport connectivity.

SCDI has made the point to MSPs that VisitScotland has insufficient resources to carry out its flag-bearing role. Its marketing spend is down by £10m from its peak and the Scottish Budget will lead to a real terms fall in its total budget of 0.5 per cent per annum. That said, given the range of Scottish public bodies involved in tourism, there must be inefficiencies to be squeezed out.

The ease, speed and cost of travel are critical, especially to the Highlands. This requires investment in ports, roads and trains. But air travel will be increasingly crucial in the global market. So the cancellation of the air Route Development Fund (RDF) and bmi's decision to scrap the Inverness and Heathow service are setbacks. SCDI is calling for the Scottish Government to replace the RDF support for operators and for the UK Government to investigate the case for protecting this route.

Scotland must build its tourist industry at the top end of the spectrum. Entrepreneurialism, innovation and vision should be encouraged. The industry needs to provide career structures that will attract and retain quality recruits. In the Highlands, more specific intelligence is needed on consumer trends. Highland 2007 followed the right strategy, but it is one that must constantly be refined if the industry's ambition for growth is to be achieved.

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