The Scottish Parliament’s Public Audit Committee has warned that the ongoing costs of monitoring and maintaining the Cairngorm Funicular may outweigh its benefits to the local and national economy.
The findings are set out in a new report published on 24th of February 2026 following scrutiny of the funding and operation of the railway.
The funicular first opened in 2001 at a cost of £19.5 million but was closed for four years from September 2018 due to track issues.
It briefly reopened in 2023 before closing again for further repairs and finally resumed operations in February 2025.
During that period, ownership transferred into public hands through Cairngorm Mountain Scotland Ltd, a company owned by Highlands and Islands Enterprise.
More than £16 million has been spent to reinstate the railway, with the project now reliant on public finance.
The Committee has raised concerns that future monitoring and maintenance costs could become disproportionate to the economic return.
It has also called on the Scottish Government to provide greater transparency about long term plans for the funicular and to demonstrate that the project represents value for money.
Members expressed frustration at the level of information available to assess decision making by Highlands and Islands Enterprise on the future of the railway.
The report urges HIE to significantly improve transparency and to simplify governance arrangements to allow clearer public scrutiny.
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.”
The Committee previously took evidence from HIE and Cairngorm Mountain Scotland Ltd in September 2025, visited the resort in November 2025 and met local stakeholders and campaigners as part of its review.
The future of the Cairngorm Funicular remains under scrutiny as MSPs question whether ongoing public investment can be justified against uncertain long term returns.
