A tourism boom will see Dundee snare at least 700 new jobs by 2017 despite the city losing out in the race to become UK’s City of Culture.
Research for Scottish Enterprise found the city is poised to land hundreds of new posts in hospitality and retail as it continues its regeneration, with the V&A at Dundee a major driver.
However the study, details of which were revealed by Dundee City Council, also warns of skill gaps which need to be addressed to ensure the city’s workforce is able to meet the needs of new employers.
“A working assumption for potential tourism employment to 2017 would be a net increase in tourism-related jobs of around 700, of which around a third (200-300) would be directly associated with visitors to the V&A at Dundee,” it says.
“These jobs will primarily be in food and drink (bars and restaurants), accommodation (hotels) and in retail.”
The Dundee City Region Tourism Labour Market Study found around 20,000 people work in tourism-related roles across the Angus, Dundee and Perth and Kinross council areas and the parliamentary constituency of North East Fife.
The industry was worth £380m to the economy in 2011.
However, it acknowledges forecasting in the sector is “challenging” while “expectations often exceed the reality”.
“Despite previous strategies and targets aspiring to significant growth, the level of staying tourism remains broadly where it was in 2005, so it is sensible to be cautious,” the report, completed by specialist consultant SQW, adds.
City development convener Will Dawson welcomed the employment fillip, despite what he called a “conservative” jobs estimate.
“Tourism is a vital part of our economy and the opportunities for growth and jobs in the sector is one that we must all work hard now to grasp,” Mr Dawson said.
“Job opportunities are there for almost every conceivable role in the sector but in particular there will be a need for people to take up skilled jobs like chefs.”
The £1 billion redevelopment of Dundee’s Waterfront has already reached the halfway point, with around £500m already committed to major projects.
Preparations for the creation of the Kengo Kuma-designed V&A are already under way, with contractors for major structural work expected on site in the coming months.
Other studies have already hailed a billion-pound decade of tourism spending following the completion of the £45m museum project, and an estimated 300,000 visitors a year.
It is also estimated that the city needs an additional 500 hotel rooms in addition to those already in development.
The city council launched its new tourism strategy earlier this year, while city development director Mike Galloway is working to promote Dundee to would-be investors.
He estimates the city’s regeneration could create a total of 9,000 jobs across all sectors.
Meanwhile, councillors are poised to discuss the city-wide adoption of the internationally-recognised WorldHost Destination customer service training programme when they meet up on Monday.
Scottish Enterprise location director Mick McHugh said the positive outlook was “welcome news” for a city-region with “much to offer” and also highlighted the likely impact of the Ryder Cup and Commonwealth Games.
The report comes hard on the heels of research by Deloitte and VisitBritain which showed tourism could generate 60,000 jobs and £23bn for the Scottish economy by 2025, as well as the launch of VisitScotland’s £5m Brilliant Moments marketing campaign.