Rural and island Business Improvement Districts: Creating opportunities, delivering positive change

Scotland’s rural and island communities are distinct in their challenges and opportunities, yet they have a commonality in spirit: a commitment to enhancing local economies, supporting businesses, and improving quality of life.

In a number of them, Business Improvement Districts are playing a part in delivering on those ambitions.

This case study examines four such BIDs – Dornoch BID, Kirkwall BID, Living Lerwick, and Dunoon Presents – that have successfully driven positive change in their communities, highlighting how local leadership and collaboration have unlocked new possibilities for both businesses and visitors.

Dornoch BID 

Dornoch BID, established in 2024, became a key rural Business Improvement District, laying down an important marker for how small, historic towns can leverage their unique assets. Nestled in the Highlands, Dornoch is world-renowned for its Royal Dornoch Golf Course, one of the top-ranked courses globally. However, the town offers much more than just golf. With its historic Dornoch Cathedral, boutique shops, and stunning beaches, the town is a gem for visitors looking for both culture and outdoor activities.

Managing
  • Golf as a Gateway: Dornoch BID capitalises on its reputation as a golf destination, but what makes the BID special is its focus on connecting golfers with other aspects of the town’s offerings. By working with Royal Dornoch Gold Club and local hospitality businesses, the BID promotes tailored packages that encourage golfers to explore more of what Dornoch has to offer. From whiskey tastings to guided walks around Dornoch Beach, visitors are treated to a well-rounded experience.
  • Visit Dornoch: The BID’s Visit Dornoch website acts as a comprehensive guide for visitors, offering insights into accommodation, dining, local events, and hidden gems. This digital presence is bolstered by social media campaigns that highlight seasonal offerings and local stories, drawing in visitors from across the UK and beyond.
Maintaining
  • Festivals and Events: Dornoch is home to several popular events, including the Dornoch Whisky Festival and the Dornoch Hogmanay Street Party, which attract visitors during traditionally quieter seasons. These events not only increase footfall but provide local businesses with opportunities to showcase their products and services. Fun fact: The Dornoch Whisky Festival has become so popular that it now attracts attendees from as far as the United States, making it a major event in the Scottish whisky calendar. The BID will be seeking ways to enhance these existing opportunities for businesses in the area and to elevate the overall visitor experience. 
  • Infrastructure and Public Realm Improvements: The BID will spearhead initiatives to improve parking facilities, signage, and pedestrian pathways, ensuring that Dornoch is easy to navigate for visitors. These improvements, combined with the town’s natural beauty, make it a welcoming destination year-round.

Dornoch BID demonstrates how rural communities can thrive by building on their unique strengths and fostering collaboration between local businesses, tourism bodies, and residents.

Kirkwall BID

Located in the Orkney Islands, Kirkwall BID has successfully positioned the town as the commercial and cultural heart of the islands. With its Viking Heritage, historic St. Magnus Cathedral, and the vibrant local economy, Kirkwall has long attracted visitors to its shores. The BID plays a key role in ensuring that visitors not only come to Kirkwall but stay longer, spend more, and return year after year.

Managing
  • Heritage and History: Kirkwall’s rich Viking and Norse history is one of its main draws, and the BID has been instrumental in promoting heritage tourism. The BID works closely with historical groups and local attractions like the Orkney Museum to offer guided tours and educational experiences that bring the town’s history to life. These experiences have been particularly successful with cruise passengers, many of whom now plan extended stays after their initial visit.
  • Cruise Market Collaboration: Kirkwall is a key stop on many North Sea cruise routes. The BID has created partnerships with local businesses to ensure that cruise passengers are well catered for during their time in town. From shuttle services that bring visitors directly to the town centre to exclusive offers for cruise passengers, Kirkwall BID makes sure that the town maximises the economic impact of the cruise industry.
Maintaining
  • Streetscape Enhancements: Over the past several years, Kirkwall BID has led efforts to improve the town’s streetscape, making it more attractive and accessible. From upgrading signage that reflects the town’s Viking past to adding more public seating areas, the BID ensures that both visitors and locals can enjoy the town comfortably. Fun fact: Kirkwall’s Viking heritage is celebrated annually during the Orkney Viking Week, where locals and tourists alike dress up in Norse costumes and engage in various festivities, from re-enactments to Viking feasts.
  • Year-Round Events: The BID organises several key events, including the Orkney Food and Drink Festival, which showcases local produce and culinary expertise, and the Kirkwall Christmas Lights Festival, which transforms the town into a winter wonderland. These events not only draw visitors but also foster a sense of pride among the local community.

Through strategic partnerships and a focus on heritage tourism, Kirkwall BID ensures that the town remains a vibrant and prosperous hub within Orkney.

Living Lerwick

As the main town of the Shetland Islands, Lerwick plays a pivotal role in both the islands’ economy and cultural life. Established in 2012, Living Lerwick BID focuses on preserving the town’s unique maritime heritage while also ensuring that it remains a modern, bustling destination for both tourists and residents. With its charming harbour, vibrant local shops, and strong cultural identity, Lerwick is a popular stop for cruise ships and tourists exploring Shetland’s natural beauty.

Managing
  • Promoting Local Craftsmanship: Shetland is world-renowned for its wool and textiles, and Living Lerwick has been a strong advocate for local artisans. The BID works closely with local producers to ensure that their products are showcased to visitors, from bespoke knitwear to hand-crafted souvenirs. Lerwick is a key destination during Shetland Wool Week, an internationally recognized event that draws knitting enthusiasts from around the globe to learn about Shetland’s rich textile history.
  • Digital Marketing: The Living Lerwick BID website and social media channels serve as digital gateways for visitors, providing them with essential information about what to do, where to stay, and what’s happening in the town. By investing in digital marketing, the BID has successfully raised Lerwick’s profile and increased visitor numbers.
Maintaining
  • Community-Led Events: The BID organises events that celebrate Lerwick’s maritime and cultural history, such as the Lerwick Up Helly Aa, a Viking fire festival that marks the end of winter. This unique celebration, complete with torch-lit processions and the burning of a Viking longship, attracts tourists from all over the world. Fun fact: Up Helly Aa has been featured in various international travel documentaries, making it one of Shetland’s most famous cultural exports.
  • Town Centre Revitalisation: Living Lerwick BID has made significant investments in improving the town’s public spaces. From enhancing the harbour area to installing floral displays and seating, the BID ensures that Lerwick is a pleasant and attractive place for visitors and locals alike.
  • A voice for business: The BID regularly represents the business and wider communities of Lerwick to ensure that their voice is heard on both local and national matters facing rural and island communities. 

Living Lerwick has been instrumental in preserving Shetland’s unique cultural identity while ensuring the town continues to thrive in the modern economy.

Dunoon Presents

Located on Scotland’s west coast, Dunoon is a town steeped in history and natural beauty. Dunoon Presents is the BID for the area, and it has been at the forefront of promoting the town as a year-round destination for cultural events and outdoor activities. Known for hosting the Cowal Highland Gathering, the largest Highland games in the world, Dunoon is a town that embraces both its traditions and its future.

Managing
  • Event-Driven Strategy: The success of Dunoon Presents lies in its ability to leverage events as a driver for tourism and local engagement. The Cowal Highland Gathering, which attracts thousands of visitors each year, is the flagship event of the town, showcasing Highland dancing, piping, and athletics. The BID works closely with local businesses to ensure they capitalise on the influx of visitors, offering special deals and packages.
  • Partnerships for Growth: The BID has formed partnerships with outdoor adventure providers to promote Dunoon as a destination for hiking, cycling, and water sports. By developing itineraries that highlight both Dunoon’s cultural and natural attractions, the BID ensures that visitors stay longer and explore more of the area.
Maintaining
  • Beautification and Infrastructure: Dunoon Presents has led initiatives to improve the town’s public spaces, including the installation of new signage, decorative lighting, and planters. These projects have made the town more visually appealing and easier to navigate for tourists. Fun fact: During the annual Dunoon Jazz Festival, the town’s streets are filled with music, turning Dunoon into Scotland’s unofficial capital of jazz for a weekend.
  • Sustainability Efforts: In recent years, the BID has worked with local businesses to promote sustainable tourism practices. This includes encouraging eco-friendly accommodations, promoting local food, and reducing waste during large events like the Highland games.

By leveraging its rich cultural heritage and focusing on sustainable growth, Dunoon Presents has transformed the town into a vibrant hub for both locals and visitors.

Final thoughts 

These rural and island BIDs showcase the incredible impact of local leadership and collaboration in driving economic growth and enhancing the visitor experience in some of Scotland’s most unique and remote locations. Through strategic investments in infrastructure, creative marketing and a commitment to celebrating local culture, these BIDs have transformed their regions into thriving hubs for both visitors and residents. From preserving historic towns to promoting eco-friendly tourism on entire islands, these BIDs highlight the vital role of community-driven initiatives in rural and island economies.

Working alongside Scotland’s Improvement Districts, these communities have unlocked opportunities that not only benefit local businesses but also preserve and promote the distinctive charm of Scotland’s rural and island landscapes. They serve as a powerful reminder that even in remote locations, collaboration and investment can lead to lasting positive change for both locals and visitors alike.

Interested in learning more about how BIDs operate and the potential benefits for your community? Find out more about Scotland’s Improvement Districts here or email info@improvementdistricts.scot.