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Taymouth Castle will boost Perthshire economy by £390m, say experts

A new assessment of the controversial Taymouth Castle project paints an optimistic picture of its value to the region.

Taymouth Castle exterior
The homes will be built near Taymouth Castle. Image: Steve MacDougall/DC Thomson

The Taymouth Castle resort is forecast to boost the Perth and Kinross economy by £390 million over its first 25 years.

The project at Kenmore, on the shores of Loch Tay, is due for completion by the end of 2029.

Once up and running, it’s expected to provide around 250 full-time jobs.

Analysts say visitor spending in the area could create another 55 jobs, and inject £1.5m a year into the local economy.

And they predict the project could raise average wages – and help to reverse an aging local population and shrinking school rolls.

The figures are contained in a new independent assessment of the Taymouth Castle project’s socio-economic value.

Taymouth Castle exterior
Taymouth Castle, near Kenmore, Perthshire.

It was commissioned by the estate’s developers Discovery Land Company and compiled by the Ekos consultancy.

The report puts the total value of the Taymouth Castle development at £790m.

That includes a direct investment of £370m from Discovery Land Company, plus additional spending from people who buy homes on the land.

The report states: “The development represents one of the largest private sector investments in Perth and Kinross’ history.”

And it does not take into account another £30m which the developer is spending on the other buildings it has since purchased in Kenmore.

These include the Kenmore Hotel, the village shop, the Taymouth Trading restaurant and various residential properties.

Kenmore Hotel exterior
The Kenmore Hotel is closed for renovations. Image: Steve MacDougall/DC Thomson

Here, Ekos says renovations could support in the region of 200 additional construction jobs, paying wages of around £5m.

Taymouth Castle redevelopment has not been plain sailing

Discovery Land Company purchased the Taymouth Castle Estate in 2016.

The firm, owned by US tycoon Mike Meldman, has already spent millions on renovating the 19th century castle, which had fallen into disrepair, and the golf course.

Once completed, the castle will feature 23 suites, two restaurants, multiple bars and gym facilities.

A spa and equestrian centre are also planned, along with approximately 145 private homes.

Taymouth Castle library, with seats around a long dining table and elaborate carved panelling
The Taymouth Castle library.
Taymouth Castle Chinese room with group of people in hi vis jackets and hard hats looking up at ceiling
The Chinese Room is now decorated with silk panels matching the original design from 1801.

A number of parts of the project are under way. Plans for a temporary wellness retreat were submitted to Perth and Kinross Council last month. Another application for a golf buggy garage was withdrawn following objections in March.

But the resort ran into controversy last year when the Protect Loch Tay protest group was set up.

The group’s online petition, labelling the scheme “a private resort for the mega-rich” has attracted more than 150,000 signatures.

However, many locals are in favour of the development and say the negative publicity is harming Kenmore’s reputation as a visitor destination.

Taymouth Castle value expected to be substantial over long-term

The figures in the Ekos report might explain residents’ optimism.

It says construction activity on the Taymouth Castle Estate site is expected to create 2,620 one-off jobs in Perth and Kinross. These could generate £70m in wages and contribute £160m to the local economy.

The resort itself is likely to lead to 200 full-time equivalent jobs. These could generate £8m in wages and contribute £14m a year the Perth and Kinross economy.

And over 25 years, the estate is forecast to contribute £390m to the Perth and Kinross economy. This includes £210m in local wages.

John Swinney addressing packed public meeting in Aberfeldy Town Hall
John Swinney held a public meeting in Aberfeldy to hear concerns about the Taymouth Castle project. Image: Mhairi Edwards/DC Thomson

Ekos says the Highland Perthshire area currently has lower than average employment and an older population.

And it adds: “These new jobs located in the Kenmore area could contribute towards re-dressing some of the demographic challenges facing the local area, both by attracting working age people to live and work in the region and by providing job opportunities for local young people.”

Economic value only part of Taymouth Castle picture, say bosses

Sharing the report with Kenmore and District Community Council, David O’Donoghue, Taymouth Castle general manager, said: “Authors of the study note that some workers who move to the area are likely to have children who will enrol in the local schools.

“This could help address the challenges associated with falling school rolls in the region over the past several years.”

And he added: “While important, the economic activity generated by the estate does not tell the entire story.

“Maintaining and enhancing the quality of life in the region also requires a commitment to preserving and protecting the environment, honouring the Scottish tradition of open access, and contributing to the wellbeing of the community in other ways.

“We remain equally committed to having a positive impact in these areas, as well.”

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