ABSTRACT
The Highlands and Islands are much more dependent on tourism than other parts of Scotland. The Highlands and Islands aims to play its part through improved marketing and the upgrade of existing centres such as the Aviemore Highland resort. Unemployment trends in the Highlands and Islands reflect the seasonal nature of the economy with unemployment peaking in January and reaching low points in July. The incidence of unemployment, however, varies significantly around the Highlands and Islands. The chapter reviews economic trends in the Highlands and Islands, discusses the main challenges which the area continues to face and focuses on the response of the Highlands and Islands Enterprise Network. The main problems in the region’s economy relate to its continuing reliance on primary sector industries, the rundown of the oil fabrication industry, changes in tourism markets, and the current strength of sterling against the dollar.
