Recession 'bites' north business

Renewable energy firms, IT and tourism reported they were performing well

The recession has started to "bite" in Inverness, the city's chamber of commerce has reported.

Its half yearly business climate survey of its 300 members suggested more than half experiencing tougher trading conditions than six months ago.

Housing, construction and haulage were among the hardest hit, leading to concerns over growing unemployment.

However, the survey showed the renewable energy industry, IT and tourism doing well.

Chamber chief executive, Stewart Nicol, said two things had emerged "loud and clear" from the survey.

Global reputation

He said: "Firstly, many businesses are really feeling the squeeze in ways they weren't six months ago.

"There's also a feeling of disbelief that talk of signs of the green shoots of recovery are way too early.

"But what is also clear is that the economic landscape is changing with emerging sectors such as renewable energy, for which this region is gaining a global reputation, performing well."

Out with the survey, tourism businesses in the Highlands said trade was booming and visitor numbers significantly higher than last year.

They said the number of continental European visitors was up due to a favourable currency exchange rate and the ease of making internet bookings.

The Homecoming Scotland celebration was also cited as attracting many visitors from around the world to come to Scotland.

On the islands, the introduction of the road equivalent tariff (RET) pilot scheme, which links ferry prices to the cost of travelling the same distance by road, has made it cheaper to visit the Hebridies by car or camper van.

Last month, a Highland Council report said tourism offered "some optimism" in the Highlands amid rising unemployment caused by the recession.

The paper painted a bleak picture in the north with a higher than average percentage rise in benefits claimants.

Officers warned that the rate of unemployment was expected to get worse.

But they added that VisitScotland reported the industry as being "upbeat" and was positive about the summer season.