Inverness Castle faces £1.6 million first-year loss as workforce shrinks
Both governments back the £47m Inverness Castle project despite a first-year loss of £1.6m and a workforce reduction from 89 to 64 staff.
The Scottish and UK governments have affirmed their support for the Inverness Castle Experience despite the attraction expecting to record a £1.6 million loss in its first year of operation. Visitor numbers are running at roughly half the level originally projected.
The figures were disclosed at a Highland Council corporate resources committee meeting on 27 August. Steve Walsh, chief executive of High Life Highland, told councillors that actual footfall had reached only 55 per cent of the forecast.
High Life Highland is the arm's-length charity that operates the castle on behalf of Highland Council. Walsh acknowledged the attraction is not expected to break even until 2029.
How the shortfall emerged
The castle opened on a soft-launch basis in December 2025 and was formally inaugurated in February 2026, following a four-year, £47 million conversion from its former use as court buildings.
The Scottish Government contributed £19.6 million to the project, and the UK Government provided £7.5 million through the City-Region Deal.
As reported by the Press and Journal, councillors pressed Walsh directly on what had gone so badly wrong at the attraction. He said he was willing to be held accountable. He also pointed to a new five-year strategy targeting 15 per cent annual growth in visitor numbers.
Staff numbers reduced through attrition
Twenty-five jobs have gone. The workforce has been cut from 89 full-time equivalent posts to 64, achieved through natural attrition rather than redundancies — a process Walsh described to the committee as humane and incremental.
The move reflects a shift toward seasonal staffing to match lower-than-expected demand.
Highland Council is likely to need to provide around £2.5 million in additional financial support as a result of the shortfall. Walsh also indicated the attraction would review ticket pricing, which some councillors and members of the public had described as expensive.
It would also consider adding more historical content in response to visitor feedback.
Government positions on the investment
Both governments framed their positions around long-term economic benefit to the Highlands.
A UK Government spokesperson said the castle supports local employment, attracts visitors to the region and provides a platform for Highland culture and producers, describing it as a driver for the regional economy.
The Scottish Government took a similar view. Its spokesperson noted the castle opened only seven months ago and argued that the benefits extend well beyond the building itself, characterising the project as a long-term investment in the Highlands and its people.
Neither government intends to revisit the funding already committed.