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== Economic effects == Scotland's identity and heritage are deeply intertwined with Scotch Whisky, a cornerstone of the country's economy exported to nearly 180 markets.<ref name=":1" /> The Scotch Whisky Association estimated that Scotland's whisky industry supported 40,000 jobs and accounted for £4.37 billion in exports in 2017. Of that total, single malt Scotch accounted for £1.17 billion in exports, a 14% increase over 2016.<ref>{{Cite news |date=10 September 2018 |title=Scotland's Next Wave of Whisky Distilleries |url-access=subscription |first1=Cator |last1=Sparks |publisher=Bloomberg News |url=https://www.bloomberg.com/news/articles/2018-09-10/scotland-s-next-wave-of-whisky-distilleries |access-date=11 January 2020}}</ref> The drink is exported to nearly 180 markets and, in 2022, its exports were valued at over £6 billion for the first time. The industry's contribution to the economy of the UK was estimated as £5.5 billion in 2018; the industry provided £3.8 billion in direct GVA (gross value added) to Scotland. Whisky tourism has also become significant and accounts for £68.3 million per year. One factor negatively affected sales, an extra 3.9% duty on spirits imposed by the UK in 2017. (The effect of the 25% increase in tariffs imposed by the U.S. in October 2019 would not be apparent until 2020.) Nonetheless, by year-end 2017, exports had reached a record-breaking amount.<ref>{{Cite web |title=Scotch Whisky Economic Impact Report 2018 |url=https://www.scotch-whisky.org.uk/newsroom/scotch-whisky-economic-impact-report-2018/ |website=Scotch Whisky Association |date=30 April 2019 |url-status=dead |archive-url= https://web.archive.org/web/20230406101221/https://www.scotch-whisky.org.uk/newsroom/scotch-whisky-economic-impact-report-2018/ |archive-date= Apr 6, 2023 }}</ref><ref>{{Cite web |title=Whisky Tourism Facts and Insights |url=https://www.visitscotland.org/binaries/content/assets/dot-org/pdf/research-papers-2/whisky-tourism-2018-final.pdf |website=VisitScotland |orig-date=March 2015 |date=2018 |url-status=dead |archive-url= https://web.archive.org/web/20220412014544/https://www.visitscotland.org/binaries/content/assets/dot-org/pdf/research-papers-2/whisky-tourism-2018-final.pdf |archive-date= Apr 12, 2022 }}</ref><ref>{{Cite news |last1=Stewart |first1=Heather |last2=O'Carroll |first2=Lisa |date=7 October 2019 |title=PM urged to confront Trump over US tariffs on scotch whisky |newspaper=The Guardian |url=https://www.theguardian.com/uk-news/2019/oct/07/pm-must-challenge-trump-directly-over-us-scotch-whisky-tax |url-status=live |archive-url=https://web.archive.org/web/20231020124329/https://www.theguardian.com/uk-news/2019/oct/07/pm-must-challenge-trump-directly-over-us-scotch-whisky-tax |archive-date= Oct 20, 2023 }}</ref><ref>{{Cite news |last=Inman |first=Phillip |date=12 October 2017 |title=Cut duty on Scotch whisky to raise industry spirits, say distillers |newspaper=The Guardian |url=https://www.theguardian.com/business/2017/oct/12/cut-duty-scotch-whisky-raise-industry-spirits-association |url-status=live |archive-url=https://web.archive.org/web/20230405054849/https://www.theguardian.com/business/2017/oct/12/cut-duty-scotch-whisky-raise-industry-spirits-association |archive-date= Apr 5, 2023 }}</ref> In November 2019, the Association announced that the government of the UK had agreed to consider revising the alcohol taxation system, hopefully producing a new plan that was simplified and "fairer".<ref>{{Cite web |title=SWA response duty system review |url=https://www.scotch-whisky.org.uk/newsroom/swa-response-duty-system-review/ |website=Scotch Whisky Association |date=7 November 2019 |url-status=live |archive-url= https://web.archive.org/web/20230605031714/https://www.scotch-whisky.org.uk/newsroom/swa-response-duty-system-review/ |archive-date= Jun 5, 2023 }}</ref> Exports in 2018 again increased 7.8% by value, and 3.6% in the number of bottles, in spite of the duty imposed in 2017; exports grew to a record level, £4.7 billion.<ref>{{Cite web |title=Scotch Whisky Exports rise in 2018 |url=https://www.scotch-whisky.org.uk/newsroom/scotch-whisky-exports-on-the-up-in-2018/ |website=Scotch Whisky Association |date=12 February 2019 |url-status=dead |archive-url= https://web.archive.org/web/20230406023342/https://www.scotch-whisky.org.uk/newsroom/scotch-whisky-exports-on-the-up-in-2018/ |archive-date= Apr 6, 2023 }}</ref> The US imported Scotch whisky with a value of just over £1 billion while the European Union was the second-largest importer, taking 30% of global value. This was a boom year with a record high in exports, but the [[Scotch Whisky Association]] expressed concern for the future, particularly "the challenges posed by Brexit and by tensions in the global trading system".<ref>{{Cite news |date=12 February 2019 |title=HMRC data shows Scotch exports hit record high in 2018 |work=BBC News |url=https://www.bbc.com/news/uk-scotland-scotland-business-47211794 |url-status=live |archive-url=https://web.archive.org/web/20240120072453/https://www.bbc.com/news/uk-scotland-scotland-business-47211794 |archive-date= Jan 20, 2024 }}</ref> Scotch whisky tourism has developed around the industry, with distilleries being the third most visited attraction in Scotland; roughly 2 million visits were recorded in 2018. Some 68 distilleries operate visitors' centres in Scotland and another eight accept visits by appointment. Hotels, restaurants, and other facilities are also impacted by the tourism phenomenon. Tourism has had an especially visible impact on the economy in some remote rural areas, according to [[Fiona Hyslop]] MSP, Cabinet Secretary for Culture, Tourism and External Affairs. "The Scottish Government is committed to working with partners like the Scotch Whisky Association to increase our tourism offer and encourage more people to visit our distilleries," the Secretary said.<ref>{{Cite web |date=2019-06-21 |title=Record numbers of visitors for Scotch Whisky Distilleries |url=https://insidethecask.com/2019/06/21/9348/ |first1=Andre de |last1=Almeida |website=Inside the Cask |language=en-GB |url-status=live |archive-url=https://web.archive.org/web/20231108065933/https://insidethecask.com/2019/06/21/9348/ |archive-date= Nov 8, 2023 }}</ref><ref>{{Cite web |title=Scotch whisky tourism at all-time high | Scotch Whisky |url=https://scotchwhisky.com/magazine/latest-news/26192/scotch-whisky-tourism-at-all-time-high/ |website=scotchwhisky.com}}</ref> During the [[COVID-19 pandemic]], exports of many food and drink products from the UK declined significantly,<ref>{{Cite web |date=22 March 2021 |title=Data shows collapse of UK food and drink exports post-Brexit |url=https://www.theguardian.com/business/2021/mar/22/data-shows-collapse-of-uk-food-and-drink-exports-post-brexit#:~:text=Chocolate%20exports%20went%20from%20%C2%A3,other%20hospitality%20outlets%20remain%20closed |access-date=23 March 2021 |website=[[TheGuardian.com]]}}</ref> and that included Scotch whisky. Distillers were required to close for some time and the hospitality industry worldwide experienced a major slump.<ref>{{Cite web |title=Scotland's whisky islands are dealing with a major Covid hangover |url=https://www.cnn.com/travel/article/scotland-whisky-islands-covid/index.html |access-date=23 March 2021 |website=[[CNN]]|date=10 October 2020 }}</ref> According to news reports in February 2021, the Scotch whisky sector had experienced £1.1 billion in lost sales. Exports to the US were also affected by the 25% tariff that had been imposed. Scotch whisky exports to the US during 2020 "fell by 32%" from the previous year. Worldwide exports fell in 70% of Scotch whisky's global markets.<ref>{{Cite web |date=12 February 2021 |title=COVID costs Scotch whisky exports £1.1 billion in lost sales |url=https://www.scottishfield.co.uk/food-and-drink-2/whisky/covid-costs-scotch-whisky-exports-1-1-billion-in-lost-sales/ |access-date=23 March 2021}}</ref> A [[BBC News]] headline on 12 February 2021 summarized the situation: "Scotch whisky exports slump to 'lowest in a decade{{'"}}.<ref>{{Cite news |date=12 February 2021 |title=Scotch whisky exports slump to 'lowest in a decade' |work=BBC News |url=https://www.bbc.com/news/uk-scotland-scotland-business-56040014 |access-date=23 March 2021}}</ref>
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