The enterprising laird of a 13,300-acre estate, who is the formal host of this week's Royal Highland Show, says investment is key to Scotland harnessing the huge potential of its rural tourism.

Dr Jamie Williamson, third generation laird of the Alvie & Dalraddy Estates at Kincraig, near Aviemore, says a £200,000 funding award from Bank of Scotland is the latest boost for the estates business, which has an annual turnover of £1.5 million and a local workforce of 20.

The funding award, he says, will help promote the Highlands as a year-round holiday destination.

Dr Williamson is Highlands & Islands President of this year's show at Ingliston, where it is the region's turn to play official host, and is leading a campaign to raise awareness of a "land of opportunity" in tourism, food production and renewable energy.

The latest investments at Alvie and Dalraddy, one of Scotland's smaller sporting estates, have enabled it to target new customers with a package of recreational options including a 1.5km zip wire course, quad bike trails, paintball contests and bushcraft courses.

Camping and caravan pitches with satellite TV and internet access already offer "glamping", alongside hunting. shooting and fishing.

"It's for the toffs to the bobble-hats and everything in between," says the laird, 65, whose doctorate is in forestry and who has run the business for 30 years. "When I took over it was losing money; it was up to me to try and turn it round."

The estates have a colourful history: previous owners include Sir John Ramsden of Ardverikie (Monarch of the Glen) fame and Lady Carnarvon, widow of Egyptian explorer Lord Carnarvon.

The Williamson family bought it in 1927 with money made from South American railways.

Diversification from sheep farming and field sports began in the 1950s when the family helped launch the first Cairngorm skiing site, while a caravan park catering mainly for skiers arrived in 1968. Gliding at Glenfeshie followed soon after, in 1970.

"Winter tourism was bigger than summer tourism right up until the 1980s with us," Dr Williamson says. "I started putting chalets in, and now we have nearly 1000 visitor beds, which is more visitor beds than sheep."

On the importance of tourism he says: "It has taken time to build up but it now underpins the economy of the estate."

Soaring heating costs for the 44-bedroom Alvie House, a former shooting lodge, prompted the company to instal a biomass boiler and embark on a renewable energy strategy, cutting costs and becoming the local supplier of woodchip.

"We are now looking at a plan for two hydro schemes," Dr Williamson says. "The idea is that it will cost roughly £1 million but should bring in £100,000 a year from selling to the grid."

The laird says the latest moves were driven in part by the pressures on the corporate and weddings markets also served by Alvie House, while sporting revenues can fall prey to the weather as happened last year when snow on May 18 wiped out the grouse chicks. "This year we had snow on May 23 but we are hoping that because we had no warm spell before that it will be OK," Dr Williamson says.

He adds: "In the past, subsistence farming couldn't keep people on the ground, but the development of renewable energy, tourism and niche market food production has made the Highlands and Islands one of the best opportunities in Britain, if not Europe."

The laird hopes that son Ruaraidh, who runs a metal alloy recycling business in the US, will one day return to take up the reins of the company.

Sharon Ellen, senior commercial manager at Bank of Scotland, which has worked with the estates since the 1920s, says: "It's great to see how Alvie & Dalraddy Estates is staying ahead of the game and making a solid commitment to diversification and growth with our financial support and guidance."