Self-catering accommodation is one of Scotland’s quiet economic success stories. Embedded in towns, villages, islands and rural communities across the country, it delivers substantial economic value while supporting local jobs, sustaining services, and strengthening community resilience. Far from being a marginal or extractive activity, self-catering is a cornerstone of Scotland’s visitor economy and a critical enabler of inclusive, place-based tourism.
Independent analysis by BiGGAR Economics shows that full-time self-catering and short-term lets generate almost £1bn in Gross Value Added for the Scottish economy each year and support 29,324 jobs across the country. This impact is widely dispersed, with significant contributions not only in urban centres but across rural and island authorities, where alternative forms of visitor accommodation are often limited.
At an individual property level, the difference is stark. A typical two-bedroom self-catering unit in Scotland generates around £50,159 in annual GVA and supports approximately 1.1 jobs. By contrast, the same property used for residential purposes generates around £14,451 GVA and supports just 0.1 jobs. This higher productivity reflects visitor spending patterns, which are broader, more locally focused, and concentrated in high-value sectors such as hospitality, food and drink, retail, culture, and transport.
In practical terms, every booking sets off a chain reaction of economic activity that extends well beyond the accommodation itself.
Self-catering underpins a wide and diverse local supply chain. Across Scotland, the sector supports cleaners, laundry services, tradespeople, gardeners, maintenance firms, waste contractors, photographers, accountants, booking agents, and digital service providers. These are predominantly local jobs that cannot be offshored and that provide year-round income in areas where employment opportunities are often seasonal or limited.
Visitor spend also flows directly into local cafés, pubs, restaurants, shops, visitor attractions, activity providers, and transport services. Evidence shows that guests staying in self-catering accommodation spend more per trip than the average visitor to Scotland, precisely because they are embedded in communities and make greater use of local services rather than closed, on-site facilities.
In rural, island and coastal areas in particular, self-catering is often the backbone of the visitor economy. Without it, many local businesses would struggle to survive, especially outside peak summer months.
Despite frequent claims to the contrary, the evidence is clear that self-catering is not a driver of Scotland’s housing crisis. Across Scotland, secondary short-term lets account for just 0.8% of the total housing stock, compared with 3.4% of homes that are classed as long-term empty.
Even in areas with higher concentrations of self-catering, vacant properties and second homes consistently outnumber short-term lets. BiGGAR Economics concludes that, given this small footprint, it is highly unlikely that self-catering plays any meaningful role in driving housing availability or affordability pressures at a national level.
Crucially, the report also finds no correlation between reductions in self-catering supply and improvements in the private rented sector. In areas where short-term lets have declined sharply, rents have continued to rise faster than the national average, reinforcing the conclusion that housing pressures are driven by much wider structural factors.
Self-catering aligns closely with Scotland’s ambitions for responsible, sustainable and inclusive tourism.
It offers affordable, flexible accommodation for families, groups, longer stays, temporary workers and people with accessibility needs, many of whom are priced out of traditional hotel accommodation. This makes tourism more inclusive while supporting wellbeing, reconnection with place, and off-season travel.
Environmentally, self-catering typically has a lower operational footprint than large-scale accommodation, particularly where properties are owner-managed and energy efficiency, waste reduction and water use are actively controlled. Many operators participate in recognised sustainability schemes and invest directly in upgrading older buildings, helping to improve Scotland’s existing housing stock rather than expanding new build.
Perhaps most importantly, self-catering disperses visitors. Unlike hotels, which are often clustered in city centres, self-catering is woven into neighbourhoods and rural settlements, spreading visitor spend more evenly and reducing pressure on tourism hotspots.
Self-catering does not extract value from communities. It circulates it.
Because guests shop locally, eat locally, and use local services, money stays in the local economy for longer. This helps sustain year-round employment, keeps local businesses viable, and supports community facilities that residents themselves rely on.
A single self-catering stay can support dozens of people and businesses behind the scenes, from bakers and cleaners to joiners, gardeners and digital service providers. This is not incidental economic activity. It is a connected, place-based system that strengthens communities across Scotland.
Self-catering is not a peripheral or problematic part of Scotland’s housing or tourism landscape. It is a high-value, low-impact sector that generates £864 million for the economy, supports more than 29,000 jobs, and plays a vital role in sustaining communities from cities to islands.
With a negligible footprint in the housing market and a proven ability to deliver local economic benefit, self-catering should be recognised as part of the solution to building resilient, balanced and sustainable communities across Scotland.
The evidence is clear. When self-catering thrives, local economies thrive with it.
Fiona Campbell MBE, CEO Association of Scotland’s Self-Caterers
December 2025