Economy of Isle of Skye

Small firms dominate employment in the private sector. The Talisker Distillery, which produces a single malt whisky, is beside Loch Harport on the west coast of the island. Three other whiskies—Mac na Mara ("son of the sea"), Tè Bheag nan Eilean ("wee dram of the isles") and Poit Dhubh ("black pot")—are produced by blender Pràban na Linne ("smugglers den by the Sound of Sleat"), based at Eilean Iarmain. These are marketed using predominantly Gaelic-language labels. There is also an established software presence on Skye, with Portree-based Sitekit having expanded in recent years.

Crofting is still important, but although there are about 2,000 crofts on Skye only 100 or so are large enough to enable a crofter to earn a livelihood entirely from the land. Cod and herring stocks have declined but commercial fishing remains important, especially fish farming of salmon and shellfish such as scampi. The west coast of Scotland has a considerable renewable energy potential and the Isle of Skye Renewables Co-op has recently bought a stake in the Ben Aketil wind farm near Dunvegan. There is a thriving arts and crafts sector.

The unemployment rate in the area tends to be higher than in the Highlands as a whole, and is seasonal in nature, in part due to the impact of tourism. The population is growing and in common with many other scenic rural areas in Scotland, significant increases are expected in the percentage of the population aged 45 to 64 years