Lack of connection between events such as Edinburgh's festivals and the tourism market mean the full economic potential has not yet been achieved, said industry leaders.

And there are bigger opportunities to cash in, as more Scots and other UK citizens decide to stay at home rather than run the risk of holiday disruption from aircrew strikes or volcanic ash.

The Scottish Tourism Forum event in Glasgow heard that the Scottish Government had recognised how complex and important the sector was.

Focusing on cultural and event tourism, delegates were told "staycations" made 2009 a success for Scotland while global tourism fell by 4 per cent.

Stephen Leckie, managing director of Crieff Hydro and chairman of the industry group with the forum, said the sector was "fragmented and complex" and getting the different organisations together was a challenge.

Scotsman