BMF Tourism Executive Summary

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The British Marine Federation ( BMF ) commissioned ICF GHK to undertake a study to assess the size, importance and economic contribution of boating-related tourism in the UK. The study was funded by BMF Tourism and supported by the Association of Pleasure Craft Operators ( APCO ) , two of BMF’s subsidiary groups.

Transcript of BMF Tourism Executive Summary

Page 1: BMF Tourism Executive Summary
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The British Marine Federation (BMF) commissioned ICF GHK to undertake a study to assess the size,importance and economic contribution of boating-related tourism in the UK. The study was funded byBMF Tourism and supported by the Association of Pleasure Craft Operators (APCO), two of BMF’ssubsidiary groups.

Boating activities make a significant contribution to the UK economy through two discrete categories:

■ Expenditures on boating goods and services provided by boating tourism sectors (i.e. marinasand moorings, boat hire, charter, rental, sailing schools / training, and passenger boats); and

■ Expenditures on non-boating goods and services, which occur during trips to participate inboating and watersports activities.

The study therefore aimed to provide a robust, credible and evidence-based assessment of:

■ the economic contribution of activities in the boating tourism sectors; and

■ the impact of wider leisure and tourism expenditures of boating and watersports participants.

The assessment was based on a review of existing data and information relating to the size,performance and economic contribution of the boating tourism sectors, and levels of participation inwatersports activities in the UK. This was supplemented by additional data on expenditures capturedthrough an online survey of watersports participants, which was undertaken specifically to inform thisstudy.

OverviewIn total, the expenditures associated with the boating tourism industry and participation in boating andwatersports are estimated to have totalled £3.6 billion in 2012/13, accounting for 3.2% of all tourismexpenditure in the UK1. These expenditures are estimated to support:

■ approximately 96,000 FTE jobs in the UK economy, through direct and indirect effects.

■ more than £3.7 billion of GVA in the UK economy, taking account of all direct and indirect effects.

Table 1 Total boating tourism expenditures and associated GVA and employment impacts

Boating tourismindustry

Wider tourismexpenditures

Total boatingtourism

Total sales / expenditures (£m) 609 2,994 3,603

Direct GVA (£m) 264 1,497 1,761

Indirect GVA (£m) 170 1,796 1,966

Total direct and indirect GVA (£m) 434 3.293 3,727

Direct employment (FTE jobs) 9.088 44,904 53,992

Indirect employment (FTE jobs) 5,842 35,923 41,765

Total direct and indirect employment (FTE jobs) 14,930 80,827 95,757

Source: ICF GHK estimate, 2013

The overall economic contribution is therefore many times larger than the core boating tourism sector:

■ For every job directly employed in the core boating tourism sector, there are an additional 10 jobssupported in the wider economy through the direct and indirect effects of expenditures of boatersand boating tourism businesses.

■ Similarly, the overall GVA contribution of UK boating tourism is 14 times larger than the coreboating tourism industry, when all direct and indirect effects are included.

1 Deloitte and Oxford Economics (2013) Tourism: jobs and growth - The economic contribution of the tourismeconomy in the UK

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UK boating tourism therefore delivers a significant economic contribution and is estimated to be largerthan:

■ the recreational boating industry in Canada;

■ the total recreational and light commercial marine industry in Australia; and

■ the total tourism impact of the 2012 Olympic and Paralympic Games between 2005 and 2017,including pre-event visits, the Games themselves and the ongoing legacy effect.

Industrial and economic contextThe marine industry has experienced challenging times in recent years as a result of the globalfinancial crisis and the subsequent recessions and slow recovery of the UK economy. Realdisposable incomes have also been falling over time, which has affected participation in watersportsactivities. This report is based on watersports participation in the 12 months to October 2012, whichwas a particularly poor year in terms of summer weather.

We expect overall participation to increase in 2013 given the better summer weather and the ongoinglegacy effects of the 2012 Olympics. Furthermore, a recovery now appears to have commenced inthe marine industry following two consecutive years of positive growth, whilst the UK tourism industryhas also recovered well and the prospects for future tourism growth look good.

Assessment of boating tourism sectorsThe study assessed the economic contribution of core activities in boating tourism sectors:

■ marinas and moorings – the provision of moorings and marina berths is closely associated withtourism activity as it enables and facilitates participation in boating and watersports activities.Marinas and mooring sites provide safe storage for vessels, access to coastal waters and theinland waterways, and facilitate the movement of vessels along the coast and around inlandnetworks.

■ boat hire, charter, rental and sailing schools and training – businesses in this sector provideservices to UK residents and visitors who want to hire leisure boats, rent watersports equipmentor undertake training activities . The sector therefore provides a means for people to participatein, and improve their competence in, boating and watersports activities. It comprises a wide rangeof services for many different activities (e.g. canoeing, canal boating and yachting), and for peoplewith different levels of expertise and competence.

■ passenger boats – the passenger boat sector provides a wide range of leisure boatingexperiences on rivers, lakes and coastal waters across the UK and is therefore a key provider ofboating tourism services. The sector is very diverse, comprising very small businesses offeringday trips as well as much larger businesses owning fleets of boats offering a range of boat tripsand ferry services. For the purposes of this study, we have defined the passenger boat sector asthe provision of passenger transport services to ‘leisure’ passengers and have excluded activitiesassociated with the provision of commuter services as these do not relate to tourism.

It is estimated that the overall economic contribution of these boating tourism sectors includes:

■ a total turnover of £600 million generated directly by more than 2,000 boating tourism businesses;

■ a total GVA of £434 million generated directly by boating tourism businesses (£264 million) andindirectly supported amongst suppliers (£170 million); and

■ a total of 14,900 FTE jobs directly employed by boating tourism businesses (9,100 FTE jobs) andindirectly supported amongst suppliers (5,800 FTE jobs).

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How to order your copy of the full report

Online: www.britishmarine.co.uk/ecbensEmail: [email protected]: 01784 223615 Fax form to: 01784 475887Post form to: British Marine Federation, Marine House, Thorpe Lea Road, Egham, Surrey, TW20 8BF

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