Ground-breaking! Work gets underway on Center Parcs first holiday village in Scotland
Last updated 19th Mar 2026
First Minister John Swinney has moved to allay fears the Scottish Borders may be unable to cope with the huge influx of visitors, and workers, anticipated following the opening of Center Parcs new holiday village - by pledging up to £30 million of support over the next five years to deliver the essential infrastructure needed to make the resort possible.
According to the Scottish Government, the funding will support enabling works to prepare the site, just off the A7 north of Hawick, "whilst also providing significant benefit for communities" across the region.
The announcement was made as Mr Swinney joined local schoolchildren to plant the first trees at the £450 million development on Wednesday to celebrate the start of building work.
The event marked a key milestone in the creation of the 700-lodge village, which is expected to create around 1,200 permanent jobs and contribute £75 million annually to the local economy.
Mr Swinney said: "Economic growth must reach the people and places that need it most. Investing in the South of Scotland through this project is a direct expression of our belief that every part of Scotland deserves to benefit from a growing economy."
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As part of the development, Center Parcs will create an entirely new forest - the first time the company has established woodland from scratch when developing a new village.
Hundreds of thousands of trees will be planted across the site, forming woodland that will mature over the coming decades.
Planting will gather pace over the coming months, with more than 30 species of trees and plants - including Scots pine, silver birch and aspen - planned for the site ahead of the main development phase.
The trees have been grown in Scotland, using seed gathered from across the Scottish Borders, with the contract for supplying the trees being awarded to Alba Trees.
Colin McKinlay, CEO of Center Parcs, said: “This marks another momentous milestone in the creation of Center Parcs Scottish Borders and it is fantastic that the First Minister and local schoolchildren were able to join us as we begin work on site.
“It was hugely important for us to involve local children today because the benefits Center Parcs Scottish Borders will bring will have a long-lasting and transformative effect on the future of this area in terms of jobs, the economy and the environment."
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Center Parcs Scottish Borders will be Center Parcs’ first new village since Longford Forest in Ireland opened in 2019.
Professor Russel Griggs OBE, Chair of South of Scotland Enterprise (SOSE), said: “This is a significant moment for the South of Scotland, with Center Parcs being one of a number of big investments we are currently welcoming to our region.
“Center Parcs presents massive opportunities and will help diversify the visitor economy, attract new people, deliver inclusive growth and provide significant supply chain opportunities for SMEs and entrepreneurs.
“This investment also provides a chance to tackle head-on the economic challenges of the past which still impact communities such as Hawick.”
Although planning permission for Center Parcs was granted by Scottish Borders Council in December last year, the necessary byelaws to allow safe management of the site were only confirmed by Scottish Ministers earlier this month.
Benny Higgins, Executive Chairman of the Buccleuch Group, said: “This is an exciting step forward for a project that will bring lasting economic and environmental benefits to the Scottish Borders, and we are delighted to be working with Center Parcs to help make it a reality.”
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