THE cost to monitor and repair the Cairngorm funicular railway could outweigh the benefits to the local and national economy, the Scottish Parliament’s public audit committee has said.
The comments come following a newly published report by the committee looking at the spending and operation of the ‘troubled’ funicular. Opened in 2001 at a cost of £19.5 million, the funicular was closed for four years from September 2018 due to issues with the track. Briefly reopening again in 2023 before closing once more for further repairs, it finally reopened in February 2025.
During this time, ownership of the funicular has moved into public hands with Cairngorm Mountain Ltd, a company owned by Highlands and Islands Enterprise (HIE).
Now, with costs of over £16 million to reinstate the funicular and a reliance on public finance, the committee has raised concerns about whether the costs of regular monitoring and maintenance may become disproportionate to its benefit.
The committee has also called on the Scottish Government to be more transparent about its plans for the funicular and to ensure that the project remains value for money. Further to this, it raised ‘frustration’ at the level of information available to take judgement on HIE’s decision making on the future of the funicular.
The report calls on HIE to make ‘significant’ improvement in this area as well as ensuring that the governance arrangements in place for the funicular are be simplified and made more transparent.
Speaking as the report launched, committee convener Richard Leonard MSP said,“It is safe to say that the Cairngorm funicular has had a somewhat troubled history, with repeated and lengthy closures and requiring significant public investment.
“This committee has heard from those in charge of the funicular, the public bodies supporting it, those living and working in the area and nature conservation activists. We have heard both optimism and scepticism about what comes next. And it presents a picture of concern for us that the future benefits are not as clear as they ought to be.
“There also needs to be a much more transparent governance structure in place for the running of the funicular. A simplified structure would allow for better public scrutiny of public money and decisions on the future plans for the Cairngorm Mountain resort.”
In response to the report, HIE released the following statement, “We were pleased to support the Committee in their scrutiny of the Cairngorm funicular railway and welcome this detailed report. Key conclusions from the committee include recommendations to simplify governance structures for running the funicular and improve the availability of information, and we will reflect and act on both of these points.
“Along with our colleagues in operating company Cairngorm Mountain (Scotland) Ltd, which is a subsidiary of HIE, we are working hard to overcome the challenges of recent years and establish Cairngorm once again as one of Scotland’s must-visit attractions for families, nature lovers and snowsports visitors.
“The resort has enjoyed a huge surge of popularity since the funicular returned to service, attracting 122,000 foot passengers since April 2025, plus a further 28,000 skiers taking advantage of the excellent snow conditions this winter.
“We are always conscious of the need to obtain value for money in all our projects across the Highlands and Islands. As a publicly-owned asset for Scotland, Cairngorm is no exception.
“With the funicular back, strong leadership and management in place through the operating company and strategic guidance set out in the Cairngorm Masterplan, we believe the resort is now in a great position to achieve its full potential.
“The challenge is to make the current winter season the start of a new and successful chapter that will see Cairngorm affirm its place as a strong contributor to the economy of Strathspey and Badenoch and the wider Scottish tourism sector.”
