Isle of WightTOURISM & LEISURE DEVELOPMENT OPPORTUNITIES

2012

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INTRODUCTIONFor over a century the Isle of Wight has maintained a reputation as a rather special place to visit.

The dramatic coastline, sandy beaches, gentle climate and the excitement of arriving by boat still hold the same appeal that they did a hundred years ago. But it is the outdoor sports, the famous music festivals, the renowned yachting scene and the stylish restaurants and bars that are attracting the attention of the media, and drawing a new, younger and more affluent crowd.

The Isle of Wight has now become an ideal place for investment in the tourism and leisure sector and The Isle of Wight Council are looking to support suitable development partners and projects.

This prospectus sets out an introduction to the visitor economy of the Island and gives an overview of the opportunity. A separate prospectus has been produced to specifically address the hotel and accommodation sector.

“The Isle of Wight is shaking off its image as a tidy and unadventurous adjunct to Southern England

and instead attracting a younger, livelier crowd…”The Rough Guide to Britain

“A popular escape for yachties, cyclists, walkers and the bucket-and-spade brigade since Victorian times, it alternates between chocolate-box quaint and crazy-golf kitsch, rosy-cheeked activity and rural respite. But the last few years

have also seen a fresh youthful buzz injecting life into its southern resort towns, attracting a new generation of urbanites and romantic weekenders with gastropubs, slick hotels and big music festivals. Still, the island’s principal

appeal is its surprisingly mild climate, its myriad of outdoorsy activities

and its lush green hills that roll gently down to 25

miles of clean, unspoilt beaches.”

Lonely Planet website

Isle of Wight Fast Facts• 2.5 million annual visitors

• £400m direct tourism annual expenditure

• £25m annual spend from visiting yachts and the oldest regatta in the World – Cowes Week with 8500 competitors

• 50% of the Island is designated as Area of Outstanding Natural Beauty.

• 28 miles of designated Heritage Coast and 14 award winning beaches

• 120,000 music fans each year to Isle of Wight Festival & Bestival

Source: Island Plan Core Strategy 2012/ Isle of Wight Tourism Monitor 2010/2011

CONTENTSIntroduction 3

One of the UK’s Most Successful Destinations 4

The Market Trends are Good for the Island 6

Market Opportunity 8

A Place Where Leisure Businesses Flourish 9

Planning & Local Context 14

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A STRONG SPEND PER VISITORUK overnight visitors on the Island spend well compared to regional and national averages. Domestic overnight visitors to the Island spend about £230 per person per trip compared to the UK average of £180 and the South East average of £150.

...AND ITS NOT JUST A ONE OFFThe Island has an exceptionally high rate of repeat visitation. Nearly two thirds of all visitors to the Island have been more than once in the last 12 months.

Key InfluencIng factorS

Attraction of Countryside/AONB 63%

Peace & Quiet 60%

Attraction of Beaches and water activities 50%

Plenty for Adults to do 49%

Plenty for Children to do 27%

Key influencing factors for visiting the IslandSource: Isle of Wight Visitor Survey 2010

GETTING AWAY FROM IT ALLVisitors are mainly attracted to the Island by the lure of the outdoors - the beach, the sea, the countryside and the relaxation and activities that they provide.

POPULAR WITH ALL AGES & INCREASINGLY COOLHistorically the island has appealed strongly to older visitors (over 55) and families, accounting for 40% and 35% of all visits respectively.

But it is the growing ‘young adult’ market that illus-trates how the island’s appeal is changing, due largely to the success of the island’s festivals and its growing reputation as a place for adrenaline sports, ‘glamping’ and cool celebrity parties.

AN AFFLUENT MARKET More than half of all visitors to the Island are affluent ABC1s – people in professional, management and white collar occupations.

110,00087,000

83,000

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

4+ domestic nights Overseas staying nights1-3 domestic nights

606,000

71,000

405,000

576,000

75,000

435,000

524,000

408,000

457,000

423,000

498,000

408,000

504,000

79,000

495,000

Staying visits to Isle of Wight 2005/2010Source: Isle of Wight Tourism Monitor/Tourism South East 2010/2011

ONE OF THE UK’S MOST SUCCESSFUL DESTINATIONS

Year on year, visitor numbers to the Isle of Wight have remained consistent, proving that the island has an enduring appeal. Each year, the Island attracts around 2.5 million visitors.

People living in the south of England provide the majority of visits, espe-cially those in the close counties of Hampshire, West Sussex, Surrey and London. 40% of all domestic overnight visits come from London, Hampshire and Surrey.

Spend per head for domestic overnight visitors 2010/2011Source: Isle of Wight Tourism Monitor/Tourism South East 2010/2011

£250

£200

£150

£100

£50

Isle of Wight

UnitedKingdom

SouthEast

£0

£228

£181

£151

Socioeconomic profile of visitors 2010 Source: Isle of Wight Visitor Survey 2010 – based on occupational status of highest income earner

60%

50%

40%

30%

20%

10%

ABC1 C2 DE0%

52%

38%

10%

Visitor age profile 2010Source: Isle of Wight Visitor Survey 2010

VISItor age %0 to 15 34%16 to 24 7%25 to 34 3%35 to 44 4%45 to 54 12%55 to 64 18%65 to 74 17%75+ 55%

PERFECTLY LOCATED FOR SHORT BREAKSThe Isle of Wight’s favourable location on the south coast makes it an ideal short break destination. In 2010/ 11 there were around 500,000 short break trips of 1 to 3 nights, a market that grew by nearly a quarter on the previous year.

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Key Features: Changing Social Structure

• Wealthy (with tightening budgets) but less time means people are seeking value for money and value for time

• Getting older, but growing ‘agelessness’

• ‘SKIers’ (Spending Kids Inherit-ance) and ‘Kidults’ spend well on holidays and leisure

• More families

• More single people

• More informed and discerning consumers

• Greater choice and flexibility

14

Pre/no family Families Third Age Retired

10

12

8

% c

hang

e 20

11-2

016

6

4

2

0

-2

2.0%3.1%

- 0.9%

13.0%

CHANGING SOCIAL STRUCTURE MORE RETIREES & FAMILIESOver the next 5 years, the number of retired people and those in the family lifestage are set to grow strongly. This is good news for the Isle of Wight which appeals to both of these markets.

THE STAYCATION EFFECTThe ‘staycation’ effect began in 2009 as consumers looked to save money by holidaying at home. Recent statistics show that this trend has continued whilst trips taken by British residents travelling abroad have continued to fall.

65

milli

on

2006 2007 2008 2009 2010 2011

Holiday Trips AbroadHoliday Trips at Home

60

55

50

45

40

35

30

25

Forecast adult population trends by lifestage 2011-2016Source: ONS/TGI/Mintel

UK Holiday market share 2006-2010Source: UK Tourism Survey/ONS

The Isle of Wight is very well positioned to take advantage of national trends that will be shaping consumer and visitor behaviour in coming years across the UK.

THE MARKET TRENDS ARE GOOD FOR THE ISLAND

2 Hour

3 HourLONDON

Bristol

Oxford

Reading

Southampton

Bournemouth

Brighton

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THE MARKET OPPORTUNITYThe Isle of Wight offers one of the best market opportunities in the UK because of its close proximity to the short break markets of the affluent south east and London. This unique location and island charm gives it a competitive edge over more distant destinations like Cornwall and Devon. The Isle of Wight has an exceptional catchment market. 2.5m people live within 2 hours drive of the Island (including the ferry crossing), and 13.4m within 3 hours, taking in most of Greater London.

An ACORN* analysis shows that the number of affluent households within the Island’s catchment area is significantly higher than the UK average.

Acorn Profile Total % UK Avg %

Wealthy Executives 375,000 14.7% 9.1%

Affluent Greys 275,000 10.8% 7.4%

Flourishing Families 240,000 9.4% 8.6%

Prosperous Professionals 38,000 1.5% 1.9%

Educated Urbanites 104,000 4.1% 6.4%

Aspiring Singles 82,000 3.2% 3.6%

Starting out 149,000 5.8% 4.3%

Secure Families 335,000 13.1% 14.6%

Settled Suburbia 124,000 4.8% 5.6%

Acorn Profile Total % UK Avg %

Prudent Pensioners 120,000 4.7% 2.4%

Asian Communities 4,000 0.2% 1.6%

Post Industrial Families 194,000 7.6% 4.7%

Blue Collar Roots 119,000 4.7% 7.4%

Struggling Families 232,000 9.1% 13.0%

Burdened Singles 75,000 2.9% 4.1%

High Rise Hardship 38,000 1.5% 1.8%

Inner City Adversity 2,000 0.1% 2.0%

Unclassified 52,000 2.0% 1.5%

Drive time catchment populations by consumer profile*ACORN is the most widely used market segmentation tool that breaks down the UK population into 56 different groups

The island’s visitors and residents already support a wide range of activity, but as the events, festivals and businesses show, it is a place with potential for leisure ideas and activities to flourish.

A PLACE WHERE LEISURE BUSINESSES FLOURISH

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CASE STUDY IOW FESTIVALThe Isle of Wight Festival is an annual rock/pop music festival held at Seagrove Park, a recreational ground on the edge of Newport.

The Festival was launched in its modern guise in 2002 by music promoters Solo, in conjunction with the Isle of Wight Council who own the site. The event typically runs for three days in June (Friday-Sunday) with recent acts including Bruce Springsteen, Kings of Leon, Paul McCartney, Coldplay and the Rolling Stones.

The event draws upon the heritage of three legendary music festival events held on the Island in the late 1960’s. The third and final one was estimated to be bigger than Woodstock with over 600,000 visitors attending in 1970.

Over the last 10 years, the Festival has been a great success pulling increasing numbers of people from all over the UK to the Island. Visitor numbers have grown from 8,000 in 2002 to 65,000 in 2011.

Research has shown 90% of visitors are aged 16-45, with about 75% travelling from the UK mainland. The event is estimated to generate about £10-15m of economic activity on the Island, £5m of which is spent outside of the festival site. Most people camp on site, with 15% staying in local hotels and accommodation.

CASE STUDY ISLE OF WIGHT CAMPERSThe Isle of Wight Campers is a company owned and run by Sarah and Paul Guy from their premises near Shanklin. The couple now own a fleet of twelve vintage Volkswagen camper vans which they hire out, fully equipped with everything that is needed for a short break or longer stay motoring holiday around the island.

The idea first occurred to the couple 14 years ago after they had hired a basic, ‘no frills’ van to drive around Australia. In 2007, and looking to make a life change, they decided to set up their own version – only in this case, the added value would be that every detail that makes for a comfortable holiday would have been thought about and provided for.

Although Campers’ customers come from all over the world, the majority are families or couples living in London or the Home Counties taking short breaks or second holidays on the island.

Sarah believes that the location of Isle of Wight is absolutely central to the success of the business. ‘Our customers would typically have taken their short breaks in Devon or Cornwall, but have realised that it is just as quick and affordable to come to the island instead. And the journey to get here is a lot more fun’.

Other factors, such as the island’s microclimate and the roads that are nearly always pleasant and enjoyable to drive on also helps, she believes. Many customers will bring or hire bikes, or combine their trip with surfing or walking and clearly, the excellent opportunities for outdoor activities are also part of the compelling package.

‘The Isle of Wight and Volkswagen camper vans go together like fish and chips’ – Coast Magazine, February 2010.

The couple are now setting up a second business on the island – a shop and website selling lifestyle goods and offering cookery courses and workshops to adults and children. The fact that access to London is easy has, Sarah believes, been essential in allowing them to expand. It is the ‘ideal combination of a great location and an idyllic place to live’ that has created the perfect business opportunity for them.

‘ The Isle of Wight and Volkswagen camper vans go together like fish and chips’Coast Magazine, February 2010.

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75%Other UK

23%IoW residents

2%Non UK

9%45-64

43%16 - 24

48%25 - 44

0.3%65+ Age Profile

Source: Isle of Wight Council

Place of OriginSource: Isle of Wight Council

Total visits by yearSource: Isle of Wight Festival

70

Festival Year

50

60

40

Tho

usan

ds

30

20

10

02 03 04 05 06 07 08 09 10 11

1312

26%Sports & Recreation

15%Museums & Galleries

8%Leisure & Entertainment

3%Theme Park

13%Historic Properties

4%Arts & Crafts

2%Farm Park

11%Wildlife & Nature

5%Visitor/Heritage Centre

1%Railways

10%Sailing & Watersports

4%Food & Drink

Isle of Wight attractions by type - % of total

Source: Isle of Wight Council database 2012, based on 103 properties/businesses

CASE STUDY THE HAMBROUGHThe Hambrough is a fine dining restaurant with seven 5 star rooms, overlooking the sea at Ventnor. It is owned by chef Robert Thompson, one of the youngest chefs to achieve a Michelin star at the age of 23.

Thompson’s decision to move to the island and invest in the Victorian property back in 2008 was clearly viewed with some amazement at the time, but the success of the business since then has clearly justified his choice.

He was awarded a Michelin star for the Hambrough after just four months. Today, particularly during the peak season, diners have to book a

month in advance to get a table in his restaurant whilst occupancy levels in the bedrooms are around 70%, a remarkable level for a hotel in a seaside location.

Thompson’s expanding business empire also includes

two self catering properties in Ventnor, the Italian Pond

Café in Bonchurch and, most recently, the Ventnor Winter Gardens which he plans to transform into a stylish modern leisure complex with 36 bedrooms, two restau-

rants and a live entertain-ment venue.

His reason for choosing the island was fairly simple. He

spotted immediately that the loca-tion was ‘absolutely perfect’ - easily accessible from London and the South East and ‘just gorgeous’!

But the opportunity to access stunning locally produced or caught food was also part of the appeal and Thompson works very closely with all his local suppliers who provide the vast majority of food served in his restaurant and café. This close network of family orientated local businesses that all know each other and are keen to work closely together is, he sees, a core component of what makes his food taste so good.

‘I’m recreating the modern British seaside with food at the heart’.

Clearly, given the scale of his invest-ment in the Winter Gardens, he believes that the market conditions that have enabled him to flourish so far will provide a platform for even greater success in the future.

Top image courtesy of Julian Winslow, all others courtesy of David Griffen

‘Cooking from Ventnor, Thompson has easy access to prized ingredients that he treats with respect and a generous portion of imagination’

Great British Chefs website

Cowes

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1,2,3Key Regeneration Areas

Smaller Regeneration Area

Smaller Regeneration Area

East Cowes

Ryde

The Bay

Ventnor

Yarmouth

Newport

Southampton - East Cowes

Lymington - Yarmouth

Fishbourne - Portsmouth

Ryde - Portsmouth

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A full copy of the adopted Core Strategy can be found at http://www.iwight.com/living_here/planning/Planning_policy/island_plan/default.asp

PLANNING & LOCAL CONTEXTISLAND PLAN CORE STRATEGYThe Isle of Wight Council adopted a Core Strategy in March 2012 – The Island Plan. It sets out the planning and development vision, priorities and framework for the next 15 years.

Tourism development is recognised as a priority with a focus on driving higher quality and strong environ-mental credentials.

There are three Key Regeneration Areas, each will have specific Area Action Plans for the Medina Valley, Ryde and The Bay. There are also two Smaller Regen-eration Areas at West Wight and Ventnor, as well as numerous Rural Services Centres.

The Bay is a primary priority area for tourism development, with Ryde recognised as having opportunities for improvement.

Core Strategy Objective 7‘To support a diverse tourism offer on the Island’

Core Strategy Objective 5‘To promote and enhance community leisure and recreational facilities.’

CENTRAL • Newport – town centre shopping and leisure

• Music festival sites

• Walking and cycling routes

NORTH• Cowes week, yachting and the Solent

• Osborne House (English Heritage) – c.200,000 visits per year

• Medina Valley – waterfront recreation

• Ferry to Southampton

EAST• Ryde – shopping and

night economy

• Prosperous, second-home communities

• Sailing, wind/kitesurfing

• Passenger and vehicle ferries to Portsmouth

WEST• Yarmouth - quality independent offer

• The Needles

• Surfing and atlantic coast

• Rural peace and quiet

SOUTH• Traditional ‘bucket and spade’

offer of The Bay

• Majority of hotel stock

• Ventnor – emerging foodie and quality independent offer

• Blackgang Chine theme park

ISLAND HIGHLIGHTS• 300+ attractions and leisure enterprises

• 800+ food and drink establishments

• £25m annual spend from visiting yachts and the oldest regatta in the World – Cowes Week with 8500 competitors

• 50% of the Island is designated as Area of Outstanding Natural Beauty.

• 28 miles of designated Heritage Coast

• 120,000 music fans each year to Isle of Wight Festival & Bestival

Source: Island Plan Core Strategy 2012 Isle of Wight Tourism Monitor 2010/2011