Scottish Traditional Boat Festival chairman Roger Goodyear told the Journal: "We are delighted she is attending in the year of homecoming."

She will meet the local youngsters involved in the Portsoy Faering Project.

The project has already built one traditional North Sea faering boat, and the youngsters are now learning about sail and rope-making.

Thanks to the generous donation of two more boats – the Girl Katy from the West Coast, and BF333, from the Sellar family of Macduff, restoration work is now starting on these boats too.

The Princess Royal will also see round the salmon bothy museum, which has developed since it opened last year, and now includes an old wooden boat, which was known as the Boddam pilot boat.

She will also visit the genealogical centre at the bothy, which uses computers to help visitors trace their family history.

Later in the day, Princess Anne is to visit Troup House residential school near Pennan.

The Princess Royal last visited Portsoy in November 2004, when she officially opened the Portsoy Sports Pavilion.

The boat festival was itself honoured with a royal presence just two years ago, when Prince Edward made an official visit.

Meanwhile, organisers say this year's festival will occupy a bigger area, and last longer than ever before.

The footprint of the festival will include the wally green for the first time – which means that the food fayre and the entertainment marquee are now inside the festival boundary, so no longer free to enter.

This year, the festival has a programme of events on Thursday and Friday – all free, including a symposium on boats, craft demonstrations and workshops, music and dancing.

New signs will make it easier to navigate round the festival's four main areas: The harbours, the Salmon Bothy, the Wally Green, and Loch Soy Adventure Land.

Changeable signage will also be at the ready in the event of bad weather to allow the organisers to change plans – and to keep the public well informed as to where the action is.

The changes are all part of the festival's improved wet weather strategy, of having more events under cover, and less dependency on the two traditional days, Saturday and Sunday, explained festival chairman, Roger Goodyear: "We lost £16,000 last year because of the weather on Sunday.

"We had reserves so we were able to absorb the loss.

"We want to rebuild our reserves. I hope people will understand; it's not a money-making event; it is about covering costs.

"All residents inside the festival area will, as always, be given free entry passes.

He explained about the wet weather programme: "We are introducing it this year. If the weather breaks, we can divert the music programme to the Wally Green, the Salmon Bothy and associated marquees."

The programme of demonstrators and workshops has been significantly developed this year, and is another way to make sure there is plenty for all to do, whatever the weather at the festival.

One of the biggest attractions in bad weather or good, is the food fayre, and this year it is bigger than ever, with 26 exhibitors.

The main festival starts with a bang on Friday night, with the Showcase Concert in the big marquee.

Headlining is Donnie Munro, the former Runrig singer, with his full band.

Also appearing is Scots singing duo Sinsheen, Christine Kydd and Barbara Dymock – both solo stars in their own right in the Scots' traditional scene, and with a string of credits with other great Scottish bands.

Compere is the legendary folkie and TV presenter Alastair McDonald.

Tickets are already selling well for the Showcase, which is always one of the highlights of the festival.

Mr Goodyear paid special tribute to Moyra Stewart, who is again in charge of the music programme.

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