Louise StewartStrategy and Development Director

Growing the Visitor Economy in England

Visitor Economy

Visitors • Leisure• Business• VFR • Day/overnight

Supply chain• Accommodation • Attractions• Bars/restaurants

• Retail• Transport• “other” services –

laundry, petrol stations, food suppliers

●The sector is currently worth £106bn

●It provides 2.6m jobs

●Projected to be £217bn (2025)

●It benefits every part of the country

The Visitor Economy is Big Business in England

Tourism has grown throughout the recession

Apr-0

6

Jul-0

6

Oct-06

Jan-

07

Apr-0

7

Jul-0

7

Oct-07

Jan-

08

Apr-0

8

Jul-0

8

Oct-08

Jan-

09

Apr-0

9

Jul-0

9

Oct-09

Jan-

10

Apr-1

0

Jul-1

0

Oct-10

Jan-

11

Apr-1

1

Jul-1

1

Oct-11

Jan-

12

Apr-1

2

Jul-1

2

Oct-12

Jan-

13

Apr-1

3

Jul-1

3

Oct-13

5

10

15

20

25

30

35

40

45

50

55Domestic Tourism in England – Rolling 12 Month Trend

Trips(m)

A challenging start and end to the year left domestic overnight trends down slightly on 2013

Source: GBTS

Holiday

VFR

Business

2013 % change

-2%

-2%

-5%

2010 2011 2012 20130

10000

20000

30000

40000

50000

60000

70000

80000

90000

Domestic Overnight Tourism Day Visits Inbound Spending

Despite a slight drop in 2013 performance, tourism spending in England has still grown on average by 5% year on year since 2010

+7% +11% -1% (est)

Average Annual

Growth = 5%

Spend ‘000

£71bn

£76bn£84bn £83bn

South

Wes

t

South

Eas

t

North

Wes

t

Lond

on

Yorks

hire

& th

e Hum

ber

Wes

t Mid

land

s

East o

f Eng

land

East M

idla

nds

North

Eas

t0

5000

10000

15000

20000

25000

Domestic Overnight Trips (All Purposes) 2011-2013

2011 2012 2013

Only the West Midlands and London & the South East saw growth in domestic visitor volumes in 2013

Trips(m)

Source: GBTS

The majority of visitor spending is from the domestic market

£19.0

£46.0

£18.0

Tourism Spend in England 2013 (£bn)

Domestic Overnight

Domestic Day Trips

Inbound (est.)

Source: GBTS 2012, GBDVS 2012, IPS 2012

Total tourism spending in England in 2013 was c.£83bn

0

2000

4000

6000

8000

10000

12000

14000

2012 2013

And looking at inbound trips to England, London drastically outperforms all other regions

Trips(m)

Source: IPS

94

94

ENGLAND

109Cornwall

109Lake District

107Northumberland

Yorks DalesYork

Kent

Bristol

Manchester

Gt Yarmouth

Essex

Leeds

East Sussex

Around the country – and within regions – there are wide variations in visitor satisfaction

Scarborough

109Lake District

109Yorks Moors

Liverpool

Bath

Cotswolds

London

New Forest

Isle of WightTorquay

Yorkshire Coast

97

71

73

Kent Coast

Durham

Warwickshire

Gloucester-shire

Staffordshire

Lincoln

73Eastbourne

Peak District

Skegness

94

Notting-ham

SuffolkCambridge

Newcastle

Blackpool

Chester

Bournemouth

Wey-mouth

Somerset

Oxford

StratfordShropshire

Brighton

Wiltshire

Derbyshire

Other Devon

Birmingham Other Norfolk

97

97

99102104

9797

98

98

97

100

81 79

89

88

82

89

88

77

7585

84

77

76

89

88

9193

91

9295

92

96

96

96

92

89

86

809097

It hasn't affected how I feel about taking hol-idays in England next year

It's put me off taking holidays in England next year

It's made me more likely to take holidays in England next year

81

2

17

80

16

4

Impact of Weather on Future Holiday Intentions

2012

2013

Some of our visitors will always be influenced by the weather - though most aren’t

Source: VE Staycation Research

Lacking information and inspiration

– Many simply ‘don’t know what they don’t know’

• large swathes of the country are unfamiliar and/or not expected to be appealing

• patchy awareness even amongst the self proclaimed more knowledgeable empty nesters

– Potential visitors have a relatively narrow repertoire of places visited or wanting to visit

• and often only have a vague perception of not yet visited wish list places

We can’t fix the weather or the economy but...Lack of knowledge plus broad brush prejudices can prevent consideration of much of England.

“(South East)The wrong kind of people – not for me.” (Derby: Empty nester)

“Liverpool, Birmingham, Leicester triangle, is there anything there to see or do?” (London: Pre-family)

“I think the majority of seaside towns in the UK are tacky apart from Cornwall.”(London: Pre-family)

Source: VisitEngland Thematic Research

We need to provide 3D inspiration and information to build consideration – and eventually, action

Where to go?Heard of places or

have vague appealing image, but not always

both

Where is it?People's geography

can be quite poor, and location and proximity

steers are helpful

What’s there to do?

Beautiful scenery is not always enough, especially for longer

trips (and if it rains…)

Need a sufficiently 3D view to be compelling

Source: Motivations and Barriers Research

The Seaside

31% seaside (14.4m)

Trips to the seaside made up 31% of the 46.0m overnight domestic holiday trips taken in 2012

40

16

13

11

10

8

3

0

0

24

14

11

9

16

8

4

9

6

The South West accounts for 40% of all domestic holiday seaside trips which involve an overnight stay

SW

SE

Y&H

East

NW

East Mids

NE

London

West Mids

44

26

10

14

6

27

40

9

10

12

Holiday camp / camping /

caravanning

Hotel / motel

Other serviced accommodation

Self-catering

Friends / relatives

44% of all domestic seaside holidays which involve an overnight stay include camping / caravanning sites

Almost half of overnight stays at seaside destinations take place in summer (Jul-Sep), although there are

still notable off-peak trips

Jan-Mar Apr-Jun Jul-Sep Oct-Dec

10

32

44

1414

28

38

20

Overnight Domestic Holiday Trips

Seaside trips % All trips %Source: GB Tourism Survey

Seaside holidays including overnight stays are more likely than other trips to include children

The length of stay at destinations tends to be longer for seaside trips than trips to other destinations

Seaside trips including overnight stays are predominantly made by car

Seaside trips are also more likely than other trips to be made by those from lower social grades

29

29

22

20

36

30

19

15

AB

C1

C2

DE

82

6

5

6

78

12

3

7

1 2-3 4-7 8+

7

27

3230

18

35

26

17

Number of nights away

47%34%

53%66%

Seaside trips All trips

With children

No children

Car

Train

Organisedcoach

Other

Seaside trips % All trips %Source: GB Tourism Survey

Overnight Domestic Holiday Trips (Cont’d)

What are the main overnight seaside destinations?

Annual Average Overnight Trips (millions)

2006-8 2007-9 2008-10 2009-11 2010-12

Scarborough 1.40m 1.53m 1.53m 1.63m 1.62m

Blackpool 1.65m 1.55m 1.50m 1.54m 1.48m

Isle of Wight 1.00m 1.05m 1.05m 1.11m 1.03m

Skegness 0.87m 0.88m 0.95m 1.01m 1.03m

Brighton 1.00m 1.10m 1.08m 1.10m 1.02m

Bournemouth 1.02m 0.98m 0.93m 0.97m 0.96m

Great Yarmouth 0.71m 0.72m 0.70m 0.72m 0.68m

Portsmouth 0.62m 0.64m 0.59m 0.61m 0.67m

Torquay 0.63m 0.62m 0.54m 0.60m 0.63m

Newquay 0.72m 0.70m 0.64m 0.62m 0.57m

Weymouth 0.54m 0.55m 0.54m 0.57m 0.52m

Source: GB Tourism Survey

2006 2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

40.4 41.3 39.8

47.043.5

46.2 46.0

14.4 14.4 13.116.2

14.2 14.5 14.4

Overnight trips to the seaside have fallen back to pre-recession levels, unlike holiday trips overall

2006 2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

2529 31

3539

4247

2025 25

3033

36

42

All trips Seaside trips

Online booking of seaside trips is rising in line with trips overall, although seaside trips are still slightly behind the online booking curve

Number of overnight holidays (millions)

Source: GB Tourism Survey

% of overnight holidays booked online

2006 2007 2008 2009 2010 2011 201210

20

30

40

25 26 26 2729

2927 28 29 29 29

23 2321

23 23 22

26

23 23

24

2118

20

Seaside Holidays (%)

AB C1 C2 DE

30

2006 2007 2008 2009 2010 2011 201210

20

30

40

32 32 33 3336 36 36

30 31 32 3230 31 30

20 2018 18 19 19 19

18 17 17 1715 14 15

All Holidays (%)

Overnight seaside trips are more likely than other trips to be made by lower social grades. However, the representation of lower social grades on seaside holidays is in decline, in line with the holiday market overall

Source: GB Tourism Survey

Overnight seaside trips not only tend to be longer in duration than other trips, but have also remained longer when the market overall has shortened trip lengths slightly

2006 2007 2008 2009 2010 2011 20120

20

40

60

33 35

36

33

36 36 3534 3635

38

34 35 3334

30 30 30 31 30 32

Seaside Holidays (%)

1-3 nights 4-7 nights 8+ nights

2006 2007 2008 2009 2010 2011 20120

20

40

6049 49 51 50 52 52 53

27 28 28 29 27 28 26

20 2017 18 18 17 17

All Holidays (%)

Source: GB Tourism Survey

NATIONAL

The Tourism and Policy Delivery Landscape

DCMS/ National Government

VisitEngland

Destination Management

Orgs

Private business

In simple terms…

200,000 tourism businesses

57 trade associations

England’s Strategic Framework for Tourism 2010 - 2020 • 5% growth year on year in the value of

tourism• Creation of 225,000 jobs• Additional £50bn expenditure• Driving collaboration & partnerships

The role of VisitEngland

• Champion the sector and drive forward the industry’s shared Strategic Framework for Tourism

• Advise Government on English Tourism issues

• Provide official intelligence on tourism and visitor economy in England

• Promote England's tourism offer in the UK and overseas

• Support local areas grow their economies through tourism

• 60 people based in London

• Three Directorates - Strategy & Development, Enterprise, Marketing

• 12 people overseas

• Work on behalf of all of England – regularly out and about

• Budget - £7m

• Plus Regional Growth Fund c. £6.5m

• Irregular funding for specific activities e.g.

GREAT, Flooding recovery

• Quality schemes − Accommodation – National Quality Assurance

Scheme− Attractions – Visitor Attractions Quality Assurance

Scheme− Others - racecourses, places of interest, motorway

services……• National Tourism Awards• English Tourism Week

Business support and advisory information

Quality Edge Magazine – essential business advice magazine featuring real case studies and practical tips

Pink Book – the complete guide to legislation relevant to accommodation providers in England, available online and in print

Accessibility and Sustainability – a wealth of tools and resources to help operators enhance customer appeal by providing access for all and operating sustainably

Online Marketing Toolkit – a comprehensive series of step by step guides to help businesses embrace digital marketing (available from Summer 2014)

A Business Advice hub on VisitEngland’s new industry website will include all these resources and more when it launches Summer 2014.

If we don’t promote England, awareness of the product drops and trip taking falls

Daily Telegraph (15th March 14) – 28 pp Supplement

Essentials (w/c 31 March)

Woman (w/c 24 March)

Pick Me Up (w/c 24 March)

SUB NATIONAL

The Tourism and Policy Delivery Landscape

Sub National Tourism Delivery Structure

• In 2003 - 9 Regional Tourist Boards

Promotion

Management

Research

Business support

• By 2014 - over 200 local tourism bodies

The Tourism Landscape

• Local tourism bodies Mixture of funding sources and funding levels

Promotion vs. management

about 40 can be considered DMOs

some bodies operate within a larger entity

most bodies look for engagement with VE

• New Interest in Visitor EconomyChambers of Commerce, Business Improvement Districts, LEPs

Strong local partnerships are critical to delivering great customer experiences and developing the tourism product.

• Clear leadership • Greater engagement in

decision making about the area

• Better access to and availability of knowledge

Destination Management

A Destination Management Plan (DMP) is a shared statement of intent to manage a destination over a stated period of time.

Research & Insights

• Since 2006, the highest rate of growth in domestic trip taking is among the most affluent AB’s, but DE’s are taking fewer trips than ever before

• Strong trip growth in the 55+ age group – but only a slight uplift among under 35’s

...and as baby boomers hit retirement age, catering for this group (who don’t behave like “old” people) will be vital

• The traditional family unit is less common than it once was

…… so traditional products set up for the family may need to adapt

1. Demographic changes

2. Technological changes

• Since 2006, there has been an increase of over 100% in the number of domestic trips booked online

...but some smaller businesses don’t even have their own website yet

20% of consumers ONLY access the internet through a mobile device

• Almost universal internet penetration in the UK plus growth of holiday related social media means that the consumer has more information than ever before to help make a decision – but can feel overwhelmed

A more complex influencing task for tourist boards and businesses alike

Seaside attractions businesses are becoming increasingly savvy in the digital age

53% are on Facebook

41% are on Twitter

22% have e-newsletters

17% operate online blogs

10% have a mobile-optimised website

8% have mobile apps

Seaside Visitor Attractions(2012)

All Visitor Attractions(2012)

55% are on Facebook

45% are on Twitter

29% have e-newsletters

16% operate online blogs

10% have a mobile-optimised website

7% have mobile apps

Source: Visits to visitor attractions survey

3. Leisure time changes

• Despite the recession, spending on leisure and recreation has held up – money may be tight, but work life balance is vital

• Value-seeking (and the role of great deals) will remain crucial

• It’s not just about “the big holiday” any more - the average English holiday is getting shorter and shorter with people taking portfolios of trips

• ...and we’ve changed how we plan – last minute is ever more common, making it hard for businesses to predict customer flows, changing marketing lead times

http://visitenglandtrends.com/

More information on the National Tourist Board

www.visitengland.org

@visitengland

@visitenglandbiz

Search VisitEngland (business support videos)

Fortnightly newsletters

Questions?