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The credit crunch and rising consumer prices that are eating away at the disposable income of British people could provide a benefit for Scottish tourism, an industry executive has claimed.

Philip Riddle, chief executive of VisitScotland, told Scottish parliament members that more people are likely to stay close to home to save money.

Mr Riddle claimed that the world economy is showing signs of pressure and demonstrating a 'nervousness' with regards to current conditions.

He added: 'I think one of the things that will arise from that nervousness will be people considering staying closer to home for holidays.

'I think it's a good time to capitalise on that.'

Mr Riddle also appealed to the government to renew a fund that was established to encourage more direct flights in and out of Scotland, the Press and Journal reports.

The route development fund, which was discontinued under the current Scottish executive, provided £14.4 million over four years to help the country's aviation industry.

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