£20.51 Million To Unlock Cairngorm's Potential

10th October 2020

Photograph of £20.51 Million To Unlock Cairngorm's Potential

Cairngorm will benefit from more than £20 million to make it a year-round attraction, generating significant economic benefits for the local area and Scotland's tourism sector.

Funded by the Scottish Government and Highlands and Islands Enterprise (HIE), more than £16 million of the investment will be used to support reinstatement of Scotland's only funicular railway and bring it back into service during winter 2021-22.

The decision to reinstate the funicular was taken following a detailed options appraisal that also considered replacing it with alternative uplift infrastructure, or removing it entirely.

Initial work to strengthen the 2km structure, which has been out of action since 2018, is expected to start later this month. Once up and running, the funicular is expected to attract thousands of visitors a year, generating benefits for the wider economy in Badenoch and Strathspey, where the tourism and hospitality sectors have been hit hard by coronavirus (COVID-19).

A further £4.35 million has been approved for potential additional capital requirements including building improvements, electrification of snow cannons, existing tow infrastructure, paths and car parking.

Rural Economy Secretary Fergus Ewing said:

"We want to unlock the full potential of Cairngorm to make it a destination people can enjoy all year-round, and this significant investment couldn't come at a better time.

"We know our tourism and hospitality sectors have been among the hardest hit by the pandemic and in Badenoch and Strathspey a quarter of the workforce is in the accommodation and food services sectors - more than double the proportion for the Highlands and Islands as a whole. By investing in the mountain, we can generate significant economic benefits for the local area and our tourism sector.

"The business case for reinstating the funicular, which HIE has published today, made clear that repair and reinstatement was the preferred option. Removal was estimated to cost approximately £17 million and would limit options around seasonal diversification on the mountain.

"The funicular will not only transport thousands of annual visitors up Cairngorm again next winter, it will also bring access to the mountain environment to a broad range of visitors, including children, older people and people with disabilities."

Charlotte Wright, chief executive of Highlands and Islands Enterprise, said:“Cairngorm is more than a mountain. It's at the heart of the community and a key driver of the local economy, providing high quality jobs and supporting the wider tourism sector in Strathspey and Badenoch.

“Today's announcement signals the importance of the Cairngorm Estate as a national asset for Scotland, with its potential as a mountain resort alongside its unique natural habitats. This investment will ensure it is ready to welcome thousands of visitors in all seasons of the year.

“With the funicular now set to be reinstated, and a range of other priority investments planned, we can continue to work with local stakeholders to ensure the surrounding business and communities can really begin to unlock Cairngorm’s potential and secure its future for decades to come."

Balfour Beatty has been appointed as the contractor for the project. The company’s national framework manager, Alastair Somerville, said:“We are pleased to be working on the Cairngorm funicular infrastructure project and look forward to continuing our close collaboration with Highlands and Islands Enterprise."

The business case for reinstating the Cairngorm funicular is available on the Cairngorm page of the HIE website.

https://www.hie.co.uk/our-region/regional-projects/cairngorm/

The Convener and Leader of The Highland Council have both welcomed the announcement made by the Cabinet Secretary for Rural Economy and Tourism, Fergus Ewing MSP that he has approved the Business Case for Cairngorm, including reinstatement of the funicular railway.

Convener of The Highland Council Bill Lobban said: “The economic importance of the decision today and the spin off to the local community it provides cannot be understated. The Cairngorms are one of Scotland’s most iconic locations and this announcement today provides us with a unique opportunity to lay firm foundations for a co-ordinated and strategic approach to managing this jewel in the Cairngorms National Park’s crown for generations to come."

Council Leader Margaret Davidson added: “We recognise the importance of the Cairngorm area in terms of tourism and the environment. Along with our public sector partners and local businesses we will play a part in improving the visitor experience in this key “gateway to the Highlands” location. I wish to particularly thank the Tourism Minister Fergus Ewing for his tireless championing of the funicular and the professional work of HIE in support.”

 

Related Businesses

 

Related Articles

Yesterday : Advisory / Counseling Services

Scotland Is Attracting the Investment But Where Is Caithness and Sutherland's Share?

There is an encouraging message in the latest investment figures for Scotland.  There is also a question that should matter particularly to Caithness and Sutherland.  

15/8/2026 : Advisory / Counseling Services

Islands are at the heart of a £100bn pipeline of investment opportunities

Chair of HIE, Angus Campbell, explores how our islands are at the heart of a £100bn pipeline of investment opportunities, helping to drive economic growth, clean energy and community prosperity across the Highlands and Islands.   The Highlands and Islands has long been recognised for outstanding natural assets, entrepreneurial spirit and resilient communities.  

6/8/2026 : Advisory / Counseling Services

Highland Businesses Offered Free Support to Cut Carbon Costs and Prepare for a Low-Carbon Economy

Highland Businesses Offered Free Support to Cut Carbon Costs and Prepare for a Low-Carbon Economy New Climate Springboard programme aims to help SMEs understand emissions, reduce costs and plan for the future Businesses across the Highlands and Islands are being offered free expert support to help them understand their carbon emissions, reduce costs and prepare for the growing demands of a low-carbon economy.   The new Climate Springboard programme, supported by Highlands and Islands Enterprise (HIE), is designed to help small and medium-sized businesses, social enterprises, charities and community organisations take practical steps towards reducing their environmental impact.  

1/8/2026 : Advisory / Counseling Services

Economic Development or Political Numbers Game? How Should We Judge Organisations Like HIE?

Economic development agencies frequently publish impressive statistics: thousands of jobs created, businesses supported and millions of pounds of investment attracted.  But one question is often much harder to answer: how much of that success actually happened because of their intervention? This is one of the biggest challenges facing organisations such as Highlands and Islands Enterprise (HIE) and Scottish Enterprise.  

1/8/2026 : Advisory / Counseling Services

Economic Development: How Do We Judge Success When Taking Risks Means Some Projects Will Fail?

Economic development organisations are often asked to perform an almost impossible task: transform regions, create jobs and encourage investment in places where the private sector may be reluctant to take risks.  But when some supported projects fail, criticism quickly follows.  

24/7/2026 : Advisory / Counseling Services

 
£194k support for new satellite control centre in Argyll

The £500k project is being led by Exotopic Ltd at the Machrihanish Airbase Business Park near Campbeltown.   A £500,000 project to establish a satellite management and monitoring service in Argyll has secured up to £194,000 from Highlands and Islands Enterprise (HIE).  

24/7/2026 : Advisory / Counseling Services

 
Oban and north Lorn could play leading role in Scotland’s drones and robotics activity

Oban and north Lorn is poised to become a leading location for developing drone, robotics and autonomous systems activity, attracting high-value jobs and investment.   This is according to a new study, commissioned by Highlands and Islands Enterprise (HIE), which assesses the market potential in the region for these types of technologies.  

16/7/2026 : Visitor Attractions

John O'Groats Distillery Wins International Success with Scottish Enterprise Support

One of Caithness's newest success stories is proving that location is no barrier to reaching customers around the world.   8 Doors Distillery in John O'Groats, Scotland's most northerly mainland whisky distillery, is expanding into international markets with support from Scottish Enterprise and Team Scotland, demonstrating how businesses from the far north can compete on the global stage.  

8/7/2026 : Advisory / Counseling Services

How Rural Job Creation Actually Works

Rural job creation is one of the most misunderstood parts of economic development.  Politicians talk about “hundreds of jobs created”, enterprise agencies publish glossy figures, and press releases celebrate “transformational investment”.  

8/7/2026 : Advisory / Counseling Services

Fixing Enterprise Job Reporting: A Blueprint for Honesty, Accuracy, and Rural Reality

Enterprise agencies in Scotland have spent decades publishing glossy numbers about “jobs created” and “jobs retained”.  As the Highlands knows all too well, these figures often bear little resemblance to what actually happens on the ground.