Today, the main revenue producers in Shetland are
agriculture,
aquaculture,
fishing,
renewable energy, the
petroleum industry (
crude oil and
natural gas production), the
creative industries and
tourism. Unst also has a
rocket launch site called
SaxaVord Spaceport (previously known as Shetland Space Centre). A February 2021 news item indicated that a rocket manufacturer from Germany, HyImpulse Technologies, planned to launch spacecraft powered by hydrogen from the Spaceport, starting in 2023. During the previous month, the Space Centre had filed plans with Council for a "satellite launch facility and associated infrastructure". As of February 2021, information on the Promote Shetland Web site indicated that "Shetland is less reliant on tourism than many Scottish islands" and that oil was an important sector of the economy. The "process of gradually transitioning from oil to clean renewable energy ... production of clean hydrogen" was also emphasized. Fishing remained the primary sector and was expected to grow.
Fishing Fishing is central to the islands' economy today, with the total catch being in 2009, valued at over £73.2 million.
Atlantic mackerel makes up more than half of the catch in Shetland by weight and value, and there are significant landings of
haddock,
cod,
herring,
whiting,
monkfish and
shellfish. A report published in October 2020 was optimistic about the future of this sector in: "With new fish markets in Lerwick and Scalloway, and plans to expand its aquaculture offerings in Yell, Shetland is preparing for more growth in its biggest industry". As of February 2021, the Promote Shetland website stated that "more fish is landed in Shetland than in England, Wales and Northern Ireland combined', that "Shetland harvests 40,000 tonnes of salmon a year, worth £180 million" and that "6,500 tonnes of mussels are grown in Shetland, more than 80 per cent of the total Scottish production".
Energy and fossil fuels Oil and gas were first landed in 1978 at
Sullom Voe, which has subsequently become one of the largest terminals in Europe. Taxes from the oil have increased public sector spending on social welfare, art, sport, environmental measures and financial development. Three-quarters of the islands' workforce is employed in the service sector, and the
Shetland Islands Council alone accounted for 27.9% of output in 2003. Shetland's access to oil revenues has funded the Shetland Charitable Trust, which in turn funds a wide variety of local programmes. The balance of the fund in 2011 was £217 million, i.e., about £9,500 per head. In January 2007, the Shetland Islands Council signed a partnership agreement with
Scottish and Southern Energy for the
Viking Wind Farm, a 200-turbine
wind farm and subsea cable. This
renewable energy project would produce about 600
megawatts and contribute about £20 million to the Shetland economy per year. The plan met with significant opposition within the islands, primarily resulting from the anticipated visual impact of the development. However, in August 2024 the completion of the first part of the project saw Shetland connected to the mainland National Grid for the first time via a 600 MW HVDC link. The PURE project in Unst is a research centre which uses a combination of wind power and
fuel cells to create a
wind-hydrogen system. The project is run by the Unst Partnership, the local community's
development trust. 's Beryl alpha oil platform in the
East Shetland Basin A status report on hydrogen production in Shetland, published in September 2020, stated that Shetland Islands Council (SIC) had "joined a number of organisations and projects to drive forward plans to establish hydrogen as a future energy source for the isles and beyond". For example, it was a member of the Scottish Hydrogen Fuel Cell Association (SHFCA). The ORION project, previously named the Shetland Energy Hub, was underway; the plan was to create an energy hub that would use clean electricity in the development of "new technologies such as blue and green hydrogen generation". In December 2020 the Scottish government released a hydrogen policy statement with plans for incorporating both
blue and
green hydrogen for use in heating, transportation and industry. The government also planned an investment of £100 million in the hydrogen sector "for the £180 million Emerging Energy Technologies Fund". Shetland Islands Council planned to obtain further specifics about the availability of funding. The government had already agreed that the production of "green" hydrogen from wind power near
Sullom Voe Terminal was a valid plan. A December 2020 report stated that "the extensive terminal could also be used for direct refuelling of hydrogen-powered ships" and suggested that the fourth jetty at Sullom Voe "could be suitable for ammonia export".
Farming and textiles Farming is mostly concerned with the raising of
Shetland sheep, known for their unusually fine wool. Knitwear is important both to the economy and culture of Shetland, and the
Fair Isle design is well known. However, the industry faces challenges due to
plagiarism of the word "Shetland" by manufacturers operating elsewhere; a certification trademark, "The Shetland Lady", has been registered.
Crofting, the farming of small plots of land on a legally restricted tenancy basis, is still practised and is viewed as a key Shetland tradition as well as an important source of income. Crops raised include oats and barley; however, the cold, windswept islands make for a harsh environment for most plants.
Media Television signals in Shetland are received from the
Bressay TV transmitter. Shetland is served by a weekly local newspaper,
The Shetland Times and the online
Shetland News with radio service being provided by
BBC Radio Shetland and the commercial radio station
SIBC.
Tourism Shetland is a popular destination for cruise ships, and in 2010 the
Lonely Planet guide named Shetland as the sixth best region in the world for tourists seeking unspoilt destinations. The islands were described as "beautiful and rewarding" and the Shetlanders as "a fiercely independent and self-reliant bunch". Overall visitor expenditure was £16.4 million in 2006, in which year just under 26,000 cruise liner passengers arrived at Lerwick Harbour. This business has grown substantially with 109 cruise ships booked in for 2019, representing over 107,000 passenger visits. In 2009, the most popular visitor attractions were the
Shetland Museum, the
RSPB reserve at Sumburgh Head, Bonhoga Gallery at
Weisdale Mill and Jarlshof.
Geopark Shetland (now Shetland UNESCO Global Geopark) was established by the Amenity Trust in 2009 to boost
sustainable tourism to the islands. According to the Promote Shetland organisation's website, tourism increased "by £12.6 million between 2017 and 2019 with more than half of visitors giving their trip a perfect rating".
Effect of the COVID-19 pandemic Tourism dropped significantly in 2020 (and into 2021) due to restrictions necessitated by the COVID-19 pandemic and the major decline in the number of cruise ships that continued to operate worldwide. As of early February 2021, the Promote Shetland website was still stating this information: "At present, nobody should travel to Shetland from a Level 3 or Level 4 local authority area in Scotland, unless it's for essential purposes". That page reiterated the government recommendation "that people avoid any unnecessary travel between Scotland and England, Wales, or Northern Ireland". A September 2020 report stated that "The Highlands and Islands region has been disproportionately impacted by the COVID-19 pandemic to date, when compared to Scotland and the UK as a whole". The tourism industry required short-term support for "business survival and recovery" and that was expected to continue as the sector was "severely impacted for as long as physical distancing and travel restrictions" remained in place. As of 31 December 2020, the usage of ferries and buses was restricted to those travelling for essential purposes. The Island Equivalent scheme was introduced in early 2021 by the Scottish government to financially assist hospitality and retail businesses "affected by Level 3 coronavirus restrictions". Previous schemes in 2020 included the Strategic Framework Business Fund and the Coronavirus Business Support Fund.
Transport aircraft in
Fair Isle, midway between
Orkney and Shetland Transport between islands is primarily by ferry, and Shetland Islands Council operates various
inter-island services. Shetland is also served by a domestic connection from Lerwick to
Aberdeen on mainland Scotland. This service, which takes about 12 hours, is operated by
NorthLink Ferries. Some services also call at
Kirkwall, Orkney, which increases the journey time between
Aberdeen and Lerwick by 2 hours. There are plans for road tunnels to some of the islands, especially
Bressay and
Whalsay; however, it is hard to convince the mainland government to finance them.
Sumburgh Airport, the main airport in Shetland, is located close to Sumburgh Head, south of Lerwick.
Loganair operates flights to other parts of Scotland up to ten times a day, the destinations being
Kirkwall,
Aberdeen,
Inverness,
Glasgow and
Edinburgh.
Lerwick/Tingwall Airport is located west of Lerwick. Operated by
Directflight in partnership with Shetland Islands Council, it is devoted to inter-island flights from the Shetland Mainland to
Fair Isle and
Foula. Public bus services are operated in
Mainland,
Trondra,
Burra,
Unst and
Yell, with scheduled dial-a-ride services available in
Bressay and
Fetlar. Buses also connect with ferries leading to
Foula,
Papa Stour, and
Whalsay. Given that the archipelago is exposed to wind and tide, there are numerous sites of wrecked ships.
Lighthouses are sited as an aid to navigation at various locations. ==Governance==