Investing in Dumfries and Galloway's visitor economy

Investing in Dumfries and Galloway

The announcement that Outlander star Sam Heughan is investing in Galloway Distillery in Newton Stewart is welcome news for Dumfries and Galloway and the South of Scotland. Investment in tourism products such as this is important for the region’s ambition to grow its visitor economy.

Tourism and events remain one of Scotland’s most valuable sectors, with visitors spending £10.8 billion in 2023. That, in turn, has far-reaching benefits boosting businesses, stimulating investment, and supporting local communities.

This investment aligns with the ambitions of the Responsible Tourism Strategy for the South of Scotland 2024 – 2034, which seeks to increase international visitors who typically spend more and stay longer than domestic visitors. The strategy aims to grow the visitor economy to £1.76 billion and support 20,000 full-time equivalent jobs by 2034.

This vision is also supported by the Regional Economic Partnership (REP) and the Regional Economic Strategy.

With this positive investment news bringing global attention, we've been looking at a few key investment projects in the pipeline across the region.

Sam Heughan and VisitScotland Destination Development Director, Gordon Smith

Introducing the new Galloway Distillery

Located just outside of Newton Stewart, Crafty Distillery is now known as Galloway Distillery after Sam Heughan and his business partner, Alex Norouzi purchased the business and launched a rebrand.

The distillery opened in 2017 and announced expansion plans in late 2024 after they reached capacity. Now with Heughan's global reach, particularly in the US market, the distillery anticipates an additional 30,000 visitors annually, generating an estimated £51 million in indirect economic impact for the region.

Image of phase two plans for Galloway Distillery.

Exciting plans for Stranraer

Stranraer Waterfront Regeneration is “a vision to position Stranraer and Loch Ryan as a distinctive and successful marine leisure destination”. There are nine projects proposed, and £42 - £45 million of public sector money committed which rises to £52 million with other funding.

Investment in Stranraer focuses on the waterfront regeneration, including a marina expansion supported by the Borderlands Inclusive Growth Deal and the construction of a Water Sports Hub.

£7 million is to be invested in the Stranraer Watersports Hub which is a state-of-the-art facility being developed on Loch Ryan by the Stranraer Water Sports Association (SWSA). With construction starting in 2025, the hub is expected to open in 2026. The economic and social benefits to the local economy are estimated to be in excess of £12 million.

The project was proposed following the economic impact report from the SkiffieWorlds 2019 event, which highlighted Stranraer's potential as a water sports destination. Stranraer has capitalised on this activity and hosts very successful events such as the Stranraer Oyster Festival. This popular event attracts an estimated 21,000 visitors and generated a £2.3 million economic boost in 2023.

In addition, the former George Hotel is in the process of upgrading and development. This is a Derelict Grade B Listed building where the façade will be retained. The visitor attraction will include artist studios and a climbing/bouldering centre and 28-bed bunkhouse.

The Stranraer SkiffieWorlds Championship.

Boosting the region's cycling opportunities

There are huge opportunities for growth in the region boosted by the South of Scotland achieving International Cycling Union (UCI) Bike Region status in 2023. Dumfries and Galloway hosted the first ever sanctioned British Enduro Championships at Ae Forest, and Raiders Gravel and The Gralloch in Galloway Forest Park.

Initiatives such as the Dalbeattie Rocks and Wheels project began construction works in 2024. This will transform the site into a new centre for cycling and bouldering activities along with a range of community and visitor facilities.

The project will see investment of £7.8 million over the year and is the culmination of years of hard work by Dalbeattie Community Initiative with the support of a range of funding partners.

Cyclists enjoy the views of the Forest of AE. 

Dumfries town investment

Dumfries has been selected as one of 75 towns across the UK to benefit from the UK Government’s £1.5 billion Long-Term Plan for Towns. Dumfries will receive a 10year endowment-style fund to the value of £20 million.

The funding will be focused on the issues that matter most to local people and building stronger communities.

Devorgillas Bridge in Dumfries town centre.

Ellisland Farm funding

Ellisland Farm is where Robert Burns produced a quarter of his life’s work, including Auld Lang Syne. Here he built a home for his family but now that building is in disrepair. Heritage Lottery funding to the sum of £489,207 has been received which will enable the Robert Burns Ellisland Trust to fully develop plans to secure the future of the farm.

Today, this site of international significance faces an uncertain future. Plans for the attraction include:

• restoring the 1788 cottage close to the time Burns lived there
• creating a gallery and museum space to safeguard the collection
• transforming the barns and byres into a Centre for Song
• recreating the “hermitage” bothy where Burns retreated to write among nature

The project is looking to develop new income streams and embark on a international fundraising campaign.

Find out more about the plans at their website.

Room preserved in Robert Burns' house.