Recreational Cycling & Cycle Tourism in Northumberland

Asset Review & Recommendations for Growth 2013/14

Part 2: Economic and Demographic Dynamics of Cycling

& Cycle Tourism

Case studies, research and data resources for economic impact

Making sure the real-time experience matches the Potential

and the Promise

Prepared for Cycle PaD by CycleTRAX & Recreational Tourism Services

June 2013

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Part 2: Appendix Contents 2. 1 Introduction and Context…..………………………………………………….Page 3

2.2 The Benefits of Developing Cycle Tourism.…………………………………Page 4

2. 3 Continental European Cycling Facts..……………………………………….Page 6

2.4. UK Cycling Facts………………………………………………………………Page 9

2.5 Cycle Safety and Health ………………………………………………………Page 11

2.6. Bike Use by Demographic………………………………………...................Page 12

2.7 E-bikes …………………………………………………………………………..Page 12

2.8 Northumberland…...……………………………………………………………Page 13

2.9 The Economic Impact of Cycle Tourism in North East England 2007…...Page 14

2.10 Monitoring Cycling in Northumberland.………………….………………….Page 16

2.11 The Future.…………………….………………………………………………Page 18

2.12 Case Study: Way of the Roses Cycle Route.………………………………Page 19

2.13 Case Study: Cycle Tour Operator – Saddle Skedaddle………………..…Page 20

2.14 Case Study: The Bike Hire Centre – Cyclexperience.…………………….Page 22

2.15 Case Study: Cyclists Café and Guesthouse – Parkhead Station.……….Page 24

2.16 Case Study - The Tourism Business Network………………………………………………………………………………Page 26

2.17 Case Study - Scotland and the 7stanes…………………………………....Page 27

2.18 Local Business Perspective………..………………………………………..Page 29

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2. 1 Introduction and context

Over 80 reports and studies were researched for Part 2 of this report which is devoted to the economic and demographic dynamics of cycling and cycle tourism. The starting point is the stark fact a comprehensive and accurate study on cycle tourism and its economic outputs has never taken place anywhere in the North of England which of course includes Northumberland.

To provide a substantiated picture as possible and meet the requirements of this part of the report, the authors have taken an approach that uses data that is currently available, specific case studies from outside Northumberland and their own comprehensive and detailed knowledge of the sector.

Latest research from MINTEL finds that Brits spent some £120 million on dedicated cycling holidays in 2006. Over the year, UK cycling enthusiasts went on an impressive 450,000 two wheeled holidays with some operators experiencing as much as a 30% increase in bookings on 2005 figures.

The research however, shows this is merely the tip of the iceberg. MINTEL estimates that a further 2.25 million holidays taken by UK residents in 2012 included some kind of cycling adventure which might have included a day’s bike hire or a city sightseeing tour by cycle.

Despite being a niche market, it is forecast that demand for cycling holidays is set to reach new heights. Although 16% of adults (8 million) have already been on some kind of cycling holiday, as many as 12% who have not been on one would like to do so in the future. This suggests that (6 million) UK residents are on track to become first time cycling holidaymakers in the future.

"Britain is becoming a nation of cycling enthusiasts. Cycling has been given a new lease of life by recent environmental issues, such as sustainable transport, carbon emissions and eco travel. With these topics set to grow in importance, cycling holidays should continue to see a rise in loyal followers. An increased interest in health and fitness and this year’s Tour de France will also help keep the nation pedalling." “Although ‘fly and flop’ still dominates the mass market, many well-travelled and well-off consumers are growing bored with sun worship and are seeking more active experiences.” “The growth of independent travel is creating a new breed of holidaymaker, who is resourceful, adventurous and hungry for a taste of authenticity away from the crowds. Cycling is a great way to explore the hidden secrets of a region, enjoy intimate contact with local culture and an opportunity for travellers to feel good about benefiting local economies." “Whilst Britons cycle less than many other Europeans, they take more frequent holidays and cycling breaks. These do not have to be the preserve of cycling clubs and the Tour de France-emulating hard core. Cycling holidays will also appeal to families, sightseers, and those simply seeking relaxation and escape from the crowds."

Richard Cope, Senior Travel Consultant: MINTEL

MINTEL believes that the greatest future scope for the cycling holiday market lies in combining cycling with mainstream holidays. Operators could re-brand more holidays as "cycling-plus" trips, offering cycling interspersed with other experiences such as rest and relaxation (R&R), spa, walking, boating and other hobbies.

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Pedalling towards a bright future Among 15 to 24 year olds, over one in five (22%) has not been on a cycling holiday but would like to do so in the future. This quintile is the highest of any age group and the reason potential growth of the cycling market is set to grow exponentially.

2.2 The Benefits of Developing Cycle Tourism The development of cycle tourism can offer a considerable number of benefits, as discussed below: • Cycle tourists represent a growing and valuable tourist market particularly for rural areas. Cycle tourists will spend at least as much in a rural area as other types of tourist if not more. Used Fact: The C2C Cycle Route regularly attracts over 13,000 coast-to-coast cyclists per year and excluding raised income from charity motives, the estimated average expenditure of £155 per person per trip contributes in excess of £2 million to the local economy. • Cycle tourism generates local trade and offers income opportunities for rural businesses and services. Spending by cycle tourists can help to support rural pubs, village shops, small-scale rural attractions and rurally-based providers of accommodation. Cycle tourism also offers opportunities for the development of cycle hire and cycling holiday operations in rural areas. Used Fact: The Tarka Trail in North Devon has generated the establishment of some ten cycle hire operations along its length. The C2C Cycle Route has supported the establishment of a multiple successful cycle tour operations and has generated significant additional trade from tourism along the route. • As cycle tourists will use local businesses, there is a greater likelihood that the money they spend will stay in the local economy • Cycle tourism is an environmentally sustainable form of tourism with minimal impact on the environment and host communities • Cycle tourism can help reduce traffic impact • Cycle tourism makes good use of existing and often under-utilised resources e.g. country lanes and by-roads • Cycle tourism can provide an alternative use for redundant or derelict resources e.g. disused railway lines • Encouraging visitor arrivals and movement by bike can play an important role in visitor and traffic management • Cycle tourism can help introduce rural traffic-calming which will further benefit both local people and tourists • Cycle tourism can provide new incentives for people to visit an area and can help attract new types of visitor to new areas Sustrans Cycle Tourism information data Ref TT1 (1999)

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2.2.2. Benefits of a Cycle Boom

1. Safety according to the Jacobsen’s Growth Rule: If the amount of cycling doubles, the risk per cyclist falls by 34 percent. If cycling halves, the risk per cyclist increases by 52 percent. Source: Safety in numbers, more walkers and bicyclists, safer walking and bicycling

2. Health - 70% of women and 60% of men fail to take sufficient exercise and obesity is forecast to rise. Cycling at least twenty miles a week reduces the risk of heart disease to less than half that for non-cyclists who take no other exercise.

2. Congestion - can play a role in limiting congestion which costs the UK economy over £20bn per year

3. Quickest Way to get to work – in 2004, a survey by the Chartered Management Institute found subject to distance, the most reliable way of getting to work is by bicycle.

4. Solution to rising oil prices - cycling typically saves users money

5. Pollution – in 1919 research suggested that a tenfold increase in cycling from car use could save up to three quarters of a million tonnes of carbon monoxide, 100,000 tonnes of nitrogen dioxide and 16 million tonnes of carbon dioxide from being emitted into the atmosphere (CTC (1993) Bikes not fumes) 6. Economic impact – leaving out spend on equipment and clothing, in 1999 a Sustrans evaluation report estimated cycle tourism was worth £635m per year. Fourteen years later this will have more than doubled. Cycling is good for the rural economy. A visiting cyclist spends an average of £25 per day on locally provided food and services compared to car-borne visitors who spend £7.30 per day on average. Car users bring what they need with them whereas cyclists are unable to do that. Because of the exercise, cyclists feel hungrier when they stop and that they have earned the right to buy some calories.

CTC’s new vision for cycling updated February 2013

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Corbridge tearoom: Sunday 16th June 2013

2. 3 Continental European Cycling Facts

Cycling tourism is one of the biggest growth sectors in tourism. A new study says it’s worth €44 billion per annum to Europe. Experts are getting ready to discuss how they can make this sector even bigger at a conference this week in Nantes.

According to the new study which was released during EU mobility week, there are an estimated 2.295 billion cycle tourism trips in Europe with a value in excess of €44 billion per annum. The same study also says that ECF’s EuroVelo network will generate €7 billion of direct revenue when completed.

“This study shows that cycle tourism is more sustainable environmentally, socially and economically; being less reliant on air travel,” Rd. Richard Weston University of Central Lancashire.

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The EuroVelo Network, which when complete will bring in €7 Billion in direct revenues. – note NCN 1 Coast & Castles Cycle Route is part of the network.

“Cycle tourism disperses visitors to areas that traditionally do not attract tourism and supports employment in local economies,” Dr. Richard Weston University of Central Lancashire.

2.3.1: The European Cyclists’ Federation (ECF)

With over 70 members across nearly 40 countries, the European Cyclists’ Federation (ECF) unites cyclist’ associations from across the globe, giving them a voice on the international level. Their aim is to get more people cycling more often by influencing policy in favour of cycling. ECF’s members are complemented by networks Scientists for Cycling, Cities for Cycling and the ECF Cycling Industry Club. The ECF recently set up a Cycling Barometer give a multi-dimensional view of cycling across all EU countries.

“The barometer shows that we really need reliable statistics on cycling in the EU to enable governments and advocates to assess progress on cycling and to allow collaborative working between countries to improve cycling for European citizens.” ECF Cycling Barometer Project Manager Chloe Mispelon

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The results are:

Rank Country Score Rank Country Score Rank Country Score

1= Denmark 125 10 UK 80 19 Luxembourg 52

Netherlands 125 11 France 78 20= Poland 47

3 Sweden 119 12 Slovenia 77 Lithuania 47

4 Finland 114 13 Czech Republic

69 22 Cyprus 41

5 Germany 105 14 Ireland 65 23= Portugal 36

6 Belgium 100 15= Estonia 56 Spain 36

7 Austria 95 Italy 56 25 Bulgaria 30

8 Hungary 91 17= Latvia 54 26 Romania 30

9 Slovakia 88 Greece 54 27 Malta 15

“This is a valuable analysis carried out by our ECF staff working across several disciplines. Now the advocacy community and our partners can use this to press governments for real, measurable change. If we are to double cycling in Europe it is also vital for the EU to use this data and develop it to show where strategic investments, structural funds and research funding must be focused in coming years.” ECF Secretary General Bernhard Ensink

Britain still lags behind countries with similar weather, population density and geography.

• Holland – 27% of trips, 848 km per person per year

• Denmark – 19%, 936 km pp/year

• Germany – 10%, 291 km pp/year

• UK – 2%, 75 km pp/year

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2.4. UK Cycling Facts

• Cycling in the UK has never been as popular since the end of WW2. 200,000 more people are cycling now than twelve months ago according to Sport England’s latest results from its Active People Survey

• Over 1.9 million people are now cycling at least once a week

• 1,150,000 new people are now riding their bikes once a month as a result of the British Cycling/Sky partnership since 2008

2.4.1: Cycle Rates in UK Summary

• Cycling on the road in the UK has increased 12% up the last 10 years (using 3 year rolling average)

• The biggest increase has been on surfaces other than the road. The percentage cycling ‘mainly on the road’ has fallen from 46% in 2002 to 40% 2009

• London has seen the biggest boom with over 110% increase since 2000 • Britain is spending more on bikes • Cycling is a diverse activity with participants from all socio-economic groups, but

cycling rates are highest amongst young professional men According to National Travel Survey 2011 the proportion of people who never cycle during the year fell from 71% of the population to 68%.

2.4.2: Retail Booming Retail sales have grown by more than 15 per cent in the last year. Britons have being spending more on bikes whilst spending on cars has fallen from £40bn to £35bn. There has been a bigger growth in expenditure on cycling than growth in cycling distance. Expensive bikes have become more popular perhaps helped by the sportive boom and the

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greater interest in ‘classic’ style commuting bikes rather than the cheapest MTBs that used to be more popular.

2.4.3: Creating value The Gross Cycling Product was calculated by the LSE taking into account factors such as bicycle manufacturing, cycle and accessory retail and cycle related employment. A 28% jump in retail sales in 2010 led to 3.7 million bikes being sold at an average price of £439 each. Accessory sales also made a significant contribution followed by a further £500 million with 23,000 people employed in the sector.

2.4.4: Bike Retail Market

2012 - £705 million 2017 - £869 million 23% growth (Mintel 2013)

Average Price of a Cycle in 2011 was £439 with 3.7 million sold in that year.

Over £852m of cycling accessories are sold in the UK alone each year. Mountain Bikers like to buy gloves, glasses, shoes, clothing, hydration systems, GPS navigation, pumps, bike tools, high-powered lights, body armour, helmets, first aid equipment, apps and more...

British Cycling Summary of London School of Economics report (2011)

• LSE report shows an 11% increase in number of cyclists in 2011 = 13 million Britons cycling

• £2.9 billion total cycling contribution to UK economy = £230 per cyclist per annum • Sky and British Cycling are on course to convert 1 million more people to becoming

regular cyclists which will generate £141 million • The report quantifies for the first time the full economic success story of the UK’s

cycling sector which generates £2.9 billion for the British economy equating to a value of £230 for every cycling Briton in the country. It also claims one quarter of the UK population can/do cycle.

2.4.5 British Cycling British Cycling has reported that its membership has increased to over 50,000 in 2012 which is a 100% increase since 2008. It’s the highest level of membership since the organisation was formed in 1959.

2.4.6 Sky Ride Events More than 298,000 people have taken part in the free Sky Ride events since they started in July 2009. New cyclists are being introduced to cycling at a steady rate and when more returning cyclists are added in, it means the conveyor belt effect is well and truly working. This has two implications: any activity that feeds in new participants as a matter of policy is set for an assured future and the more high quality options that future can offer the greater the likelihood those options will continue to benefit ad infinitum.

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2.4.7: Cycling Participation Events • Over 25,000 people are currently competing regularly in competitive events. Almost 3,500 competitive cycling events now take place each year • Over 300 sportives (cycling participation events) have taken place in the last 12 months involving over 100,000 participants Increasing levels of participation A growth in the amount of cycling events and initiatives such as Sky Ride is boosting the number of Britons getting back on their bikes. 208 million cycle journeys were made in 2010 meaning that there were 1.3 million more cyclists bringing the total UK cycle population to 13 million. The increasing levels of participation mean more money with new cyclists contributing £685 million to the UK economy. 2.4.8 Further opportunities There are approximately 2.2 million Britons who would chose cycling when asked what sport activity they might consider start participating in; this represents around £516 million of untapped economic potential. As part of their joint partnership, Sky and British Cycling are already on course to get 1 million more people cycling regularly by end of 2013 which will generate £141 million. As more people take to their bikes, the report also projects significant environmental benefits. A 20% increase in cycling levels by 2015 would save Britain’s economy £207 million in reduced traffic congestion and £71 million in lower pollution levels. Since 2008, Sky has been the principal partner of British Cycling, with the aim to inspire one million more people to get back on their bikes and cycle more regularly by 2013. The partnership includes a whole range of ways for people to get involved; from large scale traffic-free city events, to local weekly rides, from routes and trails to courses and training. 2.5 Cycle Safety and Health

• It is accepted that green space and exercise makes people feel better • Society is arguably ignoring hidden dangers of sedentary lifestyles • In the UK deaths from cancer and CHD related to inactivity in 2003 were 85,000 • Deaths from cycling in 2003 were 113 • Walking briskly for at least 30 minutes per day and cycling at least twenty miles a

week reduces the risk of heart disease to less than half that for people who take no other exercise. 70% of women and 60% of men fail to take sufficient exercise). Obesity is forecast to continue rising. (British Heart Foundation, Morris)

“Every £1 spent on walking and cycling initiatives can generally return up to £4 in saved costs to the NHS and value to the economy. The health benefits of walking more and cycling outweigh the risks by twenty to one.” Dr Adrian Davis: Health and transport specialist According to data produced by ONS, there has been improvement in cycle safety in past two decades. The reported fatalities per kilometer travelled have nearly halved. This is due to a combination of traffic calming measures and it also reflects gains from increased numbers cycling. This can only be a positive indicator that encourages more people to cycle.

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2.5.1: Helping Create a Fitter, Healthier Workforce Increased levels of cycling also bring a range of positive benefits for businesses. Regular cyclists take one sick-day less per year which saves the economy £128 million per year in absenteeism. LSE found that over a ten year period the net present value of cost savings to the economy could rise to be £1.6 billion. A 20% rise in cyclists by 2015 could save a financially-challenged NHS £52 million in costs.

Health & Well-being: Sources The National Institute of Clinical Evidence (NICE) guidance suggests that implementation of their recommendations www.nice.org.uk/PH008 should help health and well-being boards deliver on their requirements within the public health white paper ‘Healthy lives, healthy people’ (2010) through ‘promoting and creating built or natural environments that encourage and support physical activity’.

http://www.nice.org.uk/nicemedia/live/11917/38983/38983.pdf http://www.gov.uk/government/publications/linking-places-fund-tranche-2 http://www.snh.gov.uk/docs/B585725.pdf https://www.gov.uk/government/publications/nhs-health-well-being-improvement-framework

2.6. Bike Use by Demographic

Men are nearly three times more likely to cycle than women. The gap is largest amongst the age group 11-21. 2.7 E-bikes Britain is seventh largest E-bike market in Europe; Germany is 43.25%, the Netherlands is 24.85% and Britain is 2.79%. The interest in E-Bikes is increasing; this is part due to the affordability of new e-bikes and technological improvements, on range in particular. Sales of E-Bikes are increasing in none specialist cycle shops, however there is still the challenge of affording adequate stock.

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2.8 Northumberland

Northumberland is the fifth largest county in England. The population density for England averages of 401 people per square km but the population density for Northumberland is 62. Source: Office for National Statistics Percentage of people who cycle comparison between Northumberland, the South East, and England Source: Active People Survey - Sport England updated April 2013

In 2011 / 2012 Once a month Once a week 3 times a week 5 times a week

Northumberland 13% 8% 4% 2% South East 18% 11% 5% 3% England 15% 10% 5% 3%

2.8.1: North East Health & Well-being Source: Office for National Statistics

• People aged 65 + in the North East in 2009 made up 17.1 % of the population, compared with 17.7 % for the under-16s. This compares with averages for the UK of 16.4 and 18.7 respectively

• In the North East men aged 65 in 2007–09 could expect to live another 17 years and women 19.5 years. This compares with 17.8 and 20.4 years in the UK as a whole

• The unemployment rate in the North East stood at 10.2 % in the fourth quarter of 2010, higher than the UK rate of 7.9 %

• The proportion of children living in workless households in the second quarter of 2010 was higher in the North East (18.8 %) than the England average (15.9 %)

• In April 2010, the median gross weekly earnings for full-time employees (adult rates) who were resident in the North East was £443, lower than the UK median of £499

2.8.2: Current Status There are 315 miles of Long Distance Cycle Routes in Northumberland There are circa 91 miles of dedicated MTB routes but only at Kielder There is the potential to offer many miles of ‘natural’ MTB routes in conjunction with access network in Northumberland.

There is insufficient data to answer the following:

• How many people cycle in Northumberland • How many people use existing mapped and signed cycle routes in Northumberland • The average spend by cyclists either on route or generally • Where people cycle • How frequently the majority of cyclists cycle • The origin of the visiting cyclists or any meaningful data about them

Observation evidence and case study feedback points to the fact that a lot of people cycle in Northumberland despite the varying levels of support they receive to do this. DFDS state that 200,000 plus passengers travel into North Shields per annum. They do not have any data on numbers of cyclists, or who visits Northumberland.

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In Northumberland there are circa:

• 12 cycle hire businesses • 8 luggage/cyclists/cycle carrier businesses • 0 cycle tour operators • 10 qualified cycle guides • 11 cycle shops • 20 cycling clubs • 1 cycling campaign group

In Kielder alone 5,200 people have taken part in events since 2005 which has produced a spend factor value of between £156,000 and £260,000. This does not include cyclists visiting Kielder for other purposes.

2.9 The Economic Impact of Cycle Tourism in North East England 2007 Report This study investigated the economic impact of selected cycle tourism routes in the North East. It extrapolated figures about the number of users and types of journeys and projected the spending of cyclists on identified routes. These projections were used to estimate the total amount of spend associated with those routes.

The study also researched where service providers such as guesthouses and B&Bs spent the money they received from cycle tourists. The total impact was then estimated using the local multiplier.

Although the extrapolation approach has been criticised, there is no disputing the discovery that the flow of money into a given area is mainly then re-circulated in the local economy on local goods and services. This generates more local employment and wealth-creation than money spent nationally and internationally. The research was managed by Professor Les Lumsden with Dr Richard Weston, UCLAN. The report was commissioned by ONE North East but never approved. The executive Summary has been used by many agencies as the main source of data for cycle tourism in the region. The key conclusions are below:

Event paricipation levels Kielder since 2005

Year Name of Event DisciplineNumber of people

participatingsince 2005 to current The Bike Place/ Kielder Trail Reavers XC race 400

2006 International MTB Assoc GB Conference Conference 2002006 Northface XC race 200

2007-2009 Avalanche Saab Salamon Enduro 9002007 Orienteering xc orienteering 250

2008-current Kielder 100 1 lap 100 mile xc race 20002009 661 Enduro Enduro 300

2011 & 2012 Bellingham Blast Sportive 2002010 to current Northern Downhill Downhill 450

Run Bike Run Kielder Marathon weekend Run / Bike /Run 300

Grand total 5200of competitors / participants

£30.00 spend per head 156000£50.00 spend per head 260000

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Key headlines for the North East region

Four cycle routes in North East England make a notable contribution to the regional tourism economy. The routes; the C2C (Sea to Sea) Cycle Route, the Coast and Castles Cycle Route, Hadrian’s Cycleway and the Pennine Cycleway (northern section), form part of the National Cycle Network.

• Those parts of the four routes lying within the North East region attracted 302,000 cycle trips in 2006; the combined total for the whole of the routes (North East and North West region) exceeds half a million

• Route users contributed £9.6 million of direct expenditure to the North East economy

in 2006

• This represents a value of £13.4 million to the wider regional economy

• This supports 216 jobs in the immediate vicinity of the routes in the North East

• In 2006 route users from out-of-region visiting the North East generated £5.9 million, supporting 95 full-time equivalent jobs

• Users attribute an additional amenity value of £1.7 million to the routes in the North

East

• Cycling activity is important to local supply chains, with major implications for the circulation of income in the local tourism economy

Impacts of each of the key routes

• Coast & Castles: 68,000 trips were made on the Coast & Castles Cycle Route in 2006. Of these 8,100 were end-to-end users. The route generated £3,300,000, and created or safeguarded 53 full-time-equivalent jobs.

• C2C: 241,000 trips were made on the C2C Cycle Route in 2006 (113,000 in the North East and 128,000 in the North West region). Of these 14,000 were end-to-end users. The route generated £10,700,000 and created or safeguarded 173 full-time-equivalent jobs.

• Hadrian’s Cycleway: 160,000 trips were made on Hadrian’s Cycleway in 2006

(81,000 the North East and 79,000 in the North West region). Of these 7,500 were end-to-end users. The route generated £6,500,000 and created or safeguarded 105 full-time-equivalent jobs.

• Pennine Cycleway: 39,000 trips were made on the Pennine Cycleway in 2006. Of

these 2,100 were end-to-end users. The route generated £1,800,000 and created or safeguarded 28 full-time-equivalent jobs.

The Economic Impact of Cycle Tourism in North East England Executive Summary (2008)

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2.10 Monitoring Cycling in Northumberland The location of counters in Northumberland The schematic map on page 16 indicates the location of cycling counters in Northumberland. The greatest number are located in South East Northumberland and though not directly related to the use of long distance cycle touring routes, the green counters do reveal the extent of local cycle journeys undertaken by residents in this part of the county. The blue counters are located on the long distance cycle touring routes having been placed there over the years without adjustment in response to changing patterns of cycle tourism.

There is no evidence the data these counters provide has been used to any degree by any body to influence policy decisions regarding the management of cycle tourism in Northumberland.

Why monitor The answer is simple – it is impossible to make informed decisions about any activity and then influence and manage that activity if there is no reliable data about the extent of the demand and use of that activity. History Monitoring cycle route usage has been the practice in Northumberland since the early days of the NCN but the data has not been freely available or used in a meaningful way – certainly in regard to recreational cycling and cycle tourism. The extract below was taken from the English Regions Cycling Development Team’s assessment of the NCC’s monitoring process in 2004 commissioned by the DfT.

Targets and Monitoring

The council has a network of automatic counters which are monitored by the North East Sustrans monitoring unit. Six are located in the urban south-east of the county and a further six in the rural north and west. A limited amount of questionnaire and interview work has been carried out.

To date, monitoring does not inform and direct policy decisions on where route development is needed or would bring improved increased cycling. There is an ad hoc budget for monitoring which may now be increased.

2003 Bell Rating: 1 2004 Bell Rating: 1 (Maximum 5)

2004 Recommendations

• The programme of monitoring and reporting to be thoroughly reviewed by the Cycling Officer and Sustrans Monitoring Unit and appropriate improvements to be implemented

• Use monitoring information to greater effect and guide cycling decisions

2013 position In regard to monitoring long distance cycle touring routes in Northumberland, little if anything has changed over the last decade because neither of these recommendations were implemented. Whilst cycle tourism has changed over the last decade and continues to change, nothing has changed in regard to how it is presented in Northumberland. This partly reflects why cycle tourism has been under-achieving in the county for as long as it has.

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2.11 The Future

The potential for economic benefit resulting from, and stimulated by, recreational cycling and cycle tourism is clear and evidence of the expansion of leisure cycling all over Europe including the UK, needs to be recognised, understood and embraced by Northumberland.

The Cycle Hire and the Tour Operator case studies demonstrate that there IS existing exponential growth in recreational cycling and cycle tourism. The case study of mountain biking in Scotland is a very good indicator of what can be attained by adopting a managed approach.

Mountain biking has enjoyed sustained growth over the last decade but until Northumberland recognises this and provides for this market, apart from the dedicated trails at Kielder, the MTB market potential and associated benefits will remain a lost opportunity.

Road cycling is still a very under developed product in the UK or so it is believed. What this reveals is that there is undoubted potential for Northumberland to be a UK leader in the development of road cycling products with little more than modest interventions to the current cycle routes network together with the promotion of new long distance routes using existing routes more creatively – for more details see Part 4.

Family Cycling / New Leisure Cyclists – probably the biggest growing market in cycling for the UK. To capitalise on this market a consistent and quality offer HAS to be present, along with strong cycling products. This market, perhaps more than all others has the potential to have the greatest impact on the broadest numbers of businesses, with an obvious impact on job creation.

Coast & Castles Cycle Route Here's an experience of the off road cycle track north of Holy Island on NCN Route 1: It was very marshy land in the very wet summer of 2012. The rut that had been the route was so deep that the bike pedals caught on the grassy edges making it impossible to ride. There was a point where the cycle route crossed the A1 near West Mains when we would have gone straight across taking the wrong road; except there was a local man strategically placed outside the Pub who pointed us to the right road 'because cyclists usually go wrong there.' he said. Otherwise our ride from Berwick to Alnmouth was wonderful. I'd like to do it again. Barbara Grundey

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2.12 Case Study: Way of the Roses Cycle Route

The Way of the Roses is 174 miles (274km) in length and is a recent addition to the ‘coast to coast’ cycle routes family that starts at Morecambe on the west coast and finishes at Bridlington on the East Coast. The Way of the Roses Cycle Route provides valuable economic benefit to the local communities along its length. Open for just two years it already attracts 13,000 cycle trips, including 8,000 complete route cyclists and generates approximately £3 million to the local economy whilst supporting approximately 60 FTE jobs. There is scope for further growth in cycle usage which will have the potential to instigate a corresponding growth in supply and accommodation industries. The Way of the Roses - 2012 statistics

• 130,000 leisure cycle trips 8,000 cycled the entire length of the route Route generated £3 million for local economy Over 60 full time equivalent jobs have been created by cyclist spend

Estimated economic impact of cyclists on the complete Way of the Roses route

Way of the Roses, Cycle route Economic Impact Report, September 2012

Conclusion – although a relatively new route and product The Way of the Roses is already reflecting a national trend for people adopting well managed, and astutely marketed and well signed long distance cycle routes.

http://www.wayoftheroses.co.uk/

http://wayoftheroses.info/

http://www.wayoftheroses.org.uk/index.html

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2.13 Case Study: Cycle Tour Operator – Saddle Skedaddle

Saddle Skedaddle www.skedaddle.co.uk This company is the largest independent cycle tour operator in the UK selling UK and worldwide holidays. They turn over circa £2.5million and sell approximately one third of their products as UK trips which have a diverse offer. They tend to provide to a relatively high end market mainly from SE England and they offer fully supported and bespoke holidays as well as tailored and self-guided tours.

Two thirds of their UK product impacts on Northumberland with their most popular holidays being The C2C Cycle Route, Hadrian’s Cycleway and the Coast & Castles Cycle Route in that order.

They work with overseas tour operators who sell holidays to the UK on their behalf and subsequently these tour operators market the county. They employ a network of businesses to deliver their holidays and help sustain luggage transfer companies, people transfer companies. Local guides and accommodation-providers (and previously mentioned services) are sustained by the volume of business they are given by Saddle Skedaddle.

Now based at The Cycle Hub on the Quayside in Newcastle, Saddle Skedaddle help run the social enterprise http://www.thecyclehub.org/ and they plan to start hiring road bikes in 2014 as a reflection of the popularity of road cycling which now accounts for 40% of their holiday sales. They donate 5p per mile for every customer that uses the National Cycle Network (NCN). This accounted for 64,402 miles (£3,220) in 2010 and 66,656 miles (£3,332) in 2012. Business performance:

Year analysed 2006 2010 2012 Turnover £1 million £2 million £2.5 million Long Haul nos. 39% 24% 24% European nos. 25% 35% 38% UK nos. 36% 41% 38% Average Spend on Holiday Cost pp

£654 per person £862 per person £860 per person

UK Sales 38% 42% 36% Average UK bedded nights

4,032 9,680 10,500

Saddle Skedaddle’s view on…….. Northumberland’s strengths: Existing NCN routes, quiet roads, low traffic volume, range of natural resources (countryside and coast), having a National Park and two AONBs, having the most popular multi-day cycle route in the UK (C2C) passing through a corner of the county.

Northumberland’s weaknesses: - Poor integration of the county with major conurbations e.g. Tyneside & Edinburgh; an example of a poor connection is Alnwick to the coast for leisure / family cyclists. - Overall destination marketing (DM) related to integration and would like to see a regional destination management approach.

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- Market knowledge of stakeholders working strategically with the industry; reluctance to use regional skills and embrace out-sourcing - Saddle Skedaddle is “desperate for more investment into cycling provision and marketing cycle tourism” - Cost of accommodation on the Northumberland coast stating they pay more for accommodation here than anywhere else in the UK. - Not providing single night stays, particularly on coast.

Observations - Consider the Reivers Cycle Route (NCN 10) is in poor condition but has product potential - The C2C Cycle Route is their leading product with the best infrastructure and ability to ‘self-market’. Quote “The C2C Cycle Route is a mature product with longevity but limited future growth as its level is already so high”. They consider there are ‘pinch points’ along the route which if not supported could weaken the offer an example of which is Parkhead Station which is a café and B&B which relies on the traffic from the C2C Cycle Route for 95% of its business. - Hadrian’s Cycleway has a good profile and developing infrastructure. They only use the section from Bowness on Solway to Tyneside. The West Coast section needs development. - The Coast & Castles Cycle Route has great potential, but a failure in a complete infrastructure and mixture of cycling surfaces does not make it a useful product. Quote “If there was an effective connection for families and leisure riders from Alnwick to the coast we could sell so many more holidays along this route” - Would be supportive of a Grand Cycle Tour of Northumberland product for both leisure & road cyclists. Quote “Create a name and market it but infrastructure improvements must follow” - Believe volume is incredibly important as it provides a stronger negotiating position and sustains suppliers such as luggage transfer businesses. - Road – believe there is a good road offer in the county and if suggested routes were marketed it would help them. - Mountain Biking – 10 years ago this was a big seller for them in the UK but now not a major income sector. - Leisure & Family is a core part of their business and will continue to grow especially with a better infrastructure.

Conclusion Potentially, Northumberland has a fine cycling offer and Saddle Skedaddle make the most of what there is but if the offer was improved then more cyclists would come. Flexible and fairly priced accommodation hampers growth of the offer along the coast.

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2.14 Case Study: The Bike Hire Centre – Cyclexperience

Summary: A large multi-site cycle hire and cycle shop business that has been trading for 20 years experiencing the challenges of the current economic situation. Growth has slowed but numbers of customers has stayed at 15,000 cycle hires per annum with a bike hire turnover of approximately £225,000. Cyclexperience Ltd Brookley Road, Brockenhurst, Hants, SO42 7RR +0044 1590 623407 www.cyclex.co.uk Brockenhurst Retail Store: 01590 624204 Cycle Hire Centre: 01590 624808 Wareham Hire/Retail: 01929 556601 Associate Retail Stores Cyclexperience, Christchurch: - 01202 486278 Cyclexperience, Hythe Retail Store: 02380 840765

“We are a family business and will only rent products we would feel safe using ourselves”

Cyclexperience History:

Cyclexperience opened for business in 1993 in a dilapidated stable building in Brockenhurst with a £5,000 loan from the Prince’s Trust, 35 bikes, a poor promotional leaflet and a telephone. And so New Forest Cycle Hire Centre began its life.

Cyclexperience Ltd is now one of the most prominent and unique cycle businesses on the South Coast with four retail shops stocking hundreds of cycles and accessories and a first class repair service provided by NVQ-accredited technicians. It offers a fully integrated on-line shop stocking thousands of product lines. It is the biggest one-stop Cycle Hire shop in the New Forest with 300 models available from their 100ft long wooden Cycle Shack at nearby Brockenhurst Rail Station. In 2008 they bought out their competitors in Brockenhurst, Country Lanes and now run two hire venues at the same location.

In 2005, their popular cycle hire service was awarded runner-up status in the prestigious Tourism Excellence Awards where the business was nominated for Best Tourism Experience. In 2007, the business received a Highly Recommended acknowledgement from Tourism South East whilst in 2009; they won a runner up award for the new Forest Brilliance in Business. Cyclexperience regularly features in tabloid articles after various travel journalists have hired bikes and had a favourable taste of the Forest experience.

The business is still family owned by Ross and Nikki Kempson, the original owners who obtained funding through the Prince’s Trust after being unemployed since graduating from Bournemouth University. Their philosophy is based on providing friendly service at a professional level with the emphasis on the leisure cycling market. Based in the New Forest, they have a lot to do with local cycling issues and try to ensure their customers get the most out of their stay in the area but at the same time, are mindful of the fragile nature of the forest ecology and sensitive conservation issues.

The Cyclexperience business: “We always run out of bikes at bank holidays on a massive scale but most of the time there are bikes hanging in dead space.”

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Cyclexperience sales and volume

Over last 3 years sales trade has reduced by £90,000 pa. Hire trade has dropped by £20,000 but remained constant year on year. Despite this drop in sales they think the recent poorer performance is indicative of previous exceptional performance and a more stable trading platform is emerging.

Throughout this period, their stock of bikes has stayed about the same. Average bike hire is £15 per day and 15,000 hires produces a turnover of circa £225,000 pa.

Cyclexperience market Typical bookings comprise families and young couples on a day ride. Bike hires are mostly mountain bike with hybrids as an option. They supply to mountain bike events each year which helps them gain maximum rental potential.

They have introduced 29ers this year (29” wheel MTB bikes) and people are starting to ask about road bikes. They also hire electric bikes though there is currently not a great demand.

Cyclexperience Partnerships A lot of businesses are looking to work with Cyclexperience as cycling has become part of many company's business plan but they are yet to see this converted into meaningful sales. Country Lanes has been developing cycling packages but the bulk of the trade still comes from fine weather weekender walk-ins which are mirrored by Cyclexperience.

Corporate and Event Hire was a growth market for Cyclexperience but has dropped off in the last 12 months possibly due to the recession.

Challenges “The weather is our best friend and worst foe and this has been a real problem over the past few years. As soon as the weather perks up, we are inundated and cannot cope with immediate demand. That is the case for both retail and hire.” Obstacles for growth are heavy reliance on staff to share the owner’s ideology and it is a constant challenge to take the team forward to new ways of thinking and operating.

Sustainability Cyclexperience’s credentials are providing carbon-free tourist activities. Complementary to this, their hire centre is powered off-grid and has been since 1998.

Conclusion The nature of a cycle hire business is to succumb to the seasonality of the offer, having cycle shops and working with partners for events help manage this. Weather and ‘premium days’ pressure presents the challenges along with workforce. Overall Cyclexpereince is a solid company with the ability to spread their profits and liabilities over the whole year.

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2.15 Case Study: Cyclists Café and Guesthouse – Parkhead Station Parkhead Station House B&B and Tea Rooms Stanhope Moor Stanhope Co. Durham DL13 2ES Tel: 01388 526434 Fax: 01388 526434 E-Mail: ParkheadStation@aol.com

Parkhead Station history

Terry and Lorraine Turnbull have restored and rebuild a derelict Station Master's house at the 100 mile marker and turned the premises into a highly successful B&B and tearoom. It lies on the C2C Cycle Route which is Britain’s most popular long distance cycle route and they have been operating Parkhead Station for 13 years.

Both cyclists and with Lorraine being part of the team at Sustrans that created the C2C Cycle Route, they identified a need for essential cyclist services at this location. This grew into a business that relies 90% on cyclists and on sunny days, weekends and bank holidays (premium days) they operate at maximum capacity almost to the point of exhaustion. Parkhead Station has been specifically designed with cyclists and walkers in mind. It is renowned within the cycling fraternity and it occupies a prime location on the C2C Cycle Route from where it is gently downhill virtually all the way to Tynemouth and / or Sunderland. Parkhead Station - the Business Parkhead is now such an accepted part of the C2C cycle route that it is seen as a victim of its own success. Not only does it provide services to long distance cyclists, it is also an aspirational destination for the day cyclists. On warm sunny days, they can experience around 1,000 cyclists congregating at Parkhead Station over the day with some 750 being customers.

Parkhead Station - what they sell

Food and beverage, accommodation, hire venue, cycling merchandise, C2C memorabilia Parkhead Station sales and volume Turnover is £50,000 to £60,000 which they try to turnover below the VAT threshold to fit their business model.

750 + visitors on a premium day (bank holiday, sunny weekend) 75 covers in their restaurant and tea room 120 covers served in the restaurant on a premium day £10ph average spend in the restaurant £8ph average spend in the tea room

The increase in sales due to volume is mainly via bank card sales. As they sell relatively low value products, bank card charges of 60p per transaction have had a significant impact. Bank card sales are common on this section of the route due to there being little opportunity to withdraw cash along the C2C Cycle Route.

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Parkhead Station Market On a yearly average they have 30 cyclists passing through on the C2C Cycle Route per hour between 09:00 – 17:00. Based on this estimate, this means 87,600 cyclists pass through the site split between full route cyclists and day route cyclists. They estimate that the popularity of cycling has increased their market by 25% in 2013.

75% of their market is domestic 25% of their market is from overseas with the split being: 30% Dutch 20% Germans There has been a significant increase in the Belgium market

Challenges Staff retention – despite a high unemployment rate locally, they struggle to find and keep the right staff. They put this down partly to their remote location, the need for staff to regularly work weekends, bank holidays and school holidays and a general apathy within the local labour market to work in hospitality. Salaries are competitive within the sector and Parkhead Station pays over the minimum wage plus bonuses when staff meet management standards.

An interesting challenge that was identified and has been raised by other businesses is the change in customers over the last year. They say that the attitudes of a percentage of ‘new’ cyclists differ from their traditional market in that an increase in anti-social behaviour is noticeable. This issue has added pressure during busy service times as security has had to be tightened as a result. They also have experienced an increase in non-customers using their facilities and eating their own food on the premises.

Parkhead Station Partnerships

Parkhead Station work with five cycle tour operators providing accommodation, meals and general assistance. Being at a key point on the route where there is very little accommodation, tour operators compete over bookings. Parkhead station also provides evening meals for other accommodations in the area because there are very few suitable places to eat in the area and local B&B’s recommend their guests to use Parkhead facilities. Parkhead have always participated in promotional opportunities and have hosted a number of familiarisation trips.

They would welcome an initiative to develop a network along the C2C route and see that information on route conditions, how other businesses are coping and learning any route-related news enhances the offer along the route for the user and service-providers.

Conclusion Similar to Cyclexperience they have to manage an unpredictable season and have very busy periods in good weather. Being an aspirational destination on the most popular and therefore busiest long distance cycle route in the UK and having two large conurbations as feeders they manage to remain relatively busy at times when other providers are not. Diversification has also added a level of sustainability to the Parkhead Station business but at some personal cost; nevertheless, it still relies on its core market of cyclists for its primary source of income.

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2.16 The Tourism Business Network (TBN)

Scottish Borders Visitor Network (SBVN) formally - Tweed Association http://www.borderstouristboard.com/index.php

Their catchment area covers Selkirk, Eyemouth and Peebles.

The TBN has 60 plus members comprising mainly accommodation-providers. Membership is £60 per annum.

International Trade Experience Chair Tom Burnham has extensive experience in working with international tourism markets. Formally of UK Trade and Investment, Tom now acts as a consultant for the Icelandic Government amongst other clients.

Marketing and Training Plans TBN want to focus on cycling and look at assessment schemes and accreditations for cycle- friendly businesses. They have been investigating joint advertising with Bay Tree Press and the Coast & Castles guide book.

The overseas market in the Borders Visit Scotland statistics show 11% of visitors to the Borders are from overseas.

Member’s reservation records show 40% is from overseas with the main groups being Dutch, German and Scandinavian in that order. Cross Border Marketing The network is willing to partner up to cross-market the Borders and Northumberland. They see that a healthy inter-border relationship with service providers is a positive and progressive move forward.

The view is that Scottish Border Council is willing to work closer with Northumberland but they only have a limited budget. Annual Cycling Tourism Conference – a proposal TBN has expressed an interest in furthering a proposal to host a business-focused tourism conference with cycling as a leading feature, working with networks in Northumberland.

Conclusion

Embracing neighbouring tourism organisations and working with them strengthens the offer to the visiting cyclists. Virtually all Northumberland’s long distance cycle routes are inter regional, and the consistent, quality offer cannot end at the county line.

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2.17 Case Study - Scotland and the 7stanes

Scottish MTB Development – quoted from www.tourism-intelligence.co.uk

Scotland boasts one of the most accessible networks of mountain biking routes in the world. According to the Economic Value of Mountain Biking in Scotland’ report, the numerous purpose-built mountain bike centres in Scotland attracting some 592,000 visits a year.

Visitor numbers In 2007, the number of tourists who undertook mountain biking during a trip to Scotland nearly doubled from the previous year as shown in the ‘UK Tourism Survey’ by Visit England. The ‘Economic Value of Mountain Biking in Scotland’ estimates the total number of mountain biking visits at over 1.3 million per year. Nearly 600,000 visitors come to Scotland to sample its purpose-built trails. 22.5% of these visitors stay overnight which amounts to almost 300,000 bed nights.

Annual Visits:

• Purpose Built Trails: 591,882 • Wider Countryside: 736,068 • Total Mountain Biking Visits: 1,327,950

Volume and value According to Economic Value of Mountain Biking in Scotland, visitors for whom mountain biking is the main reason or a key part of their trip, spend an estimated £46.5 million. QUOTE “It’s vital that we focus on all potential visitors, from entry-level bikers to specialists.” The 7stanes area in Southern Scotland attract around 69% of all visits and is well placed for both day and overnight visitors from outside Scotland.

• The Mountain Bike Market is worth over £119m to the Scottish Economy per annum

• Over £852m of cycling accessories are sold in the UK alone each year

• 11.8m people in the UK own a mountain bike and over 1.3m use them regularly

• 1 in 5 Americans mountain bike and mountain biking brings in $26billion to the US economy

The 7stanes 7stanes is a series of seven mountain biking areas located in the forests of Dumfries and Galloway and the Scottish Borders. The 7stanes attracts 400,000 visits to the south of Scotland annually which generate over £9million net additional spend to the local economy per annum. The marketing and promotion of the 7 Stanes sites is the responsibility of the 7stanes Mountain Biking Community Interest Company which is a not-for-profit organisation whose aim is to promote the 7stanes centres and work with local businesses across the south of Scotland.

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Productising the 7stanes The Mountain Bike Knowledge Transfer project is already working on a number of product development ideas with businesses ranging from young entrepreneurs to existing globally-trading companies all of whom want to capitalise on the market opportunity that this young sport brings. The Scottish brand is now particularly strong and growing stronger.

Scotland has built up a world-class reputation for trails and participation and now wants to capitalise on the opportunity that comes from product sales.

They are organising regional clinics to bring their project team to businesses and are asking for increased effort to further grow what is has become an established healthy income stream.

Conclusion Their long term strategy has been clearly implemented at an early enough stage of their evolution. The depth and quality of their economic and demographic measurements are to be admired and emulated and they have successfully built on this to acquire the level of success they now enjoy.

Are they a competitor? Yes

Are they an exemplar? Yes,

Can Northumberland learn from what they have achieved and how they have done this? Yes but only if handled by experts in that field

7stanes Glentress: the original car park now doubled in size to cope with demand

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2.18 Factors in the Success or Failure of Cycle Tourism Businesses This is section is taken from a report about cycle tour operators; however, it can be read in the context of other cycle tourism service providers. (UCCE Tourism Management, University of Teesside: G.Vickers) Over the last decade there have been many cycling holiday companies established and also closed down. Some of the reasons for failure can be written off as current economic climate; however the majority of established cycling holiday providers are growing their UK offer.

Reasons for the closure of cycling holiday providers can be part explained by the following:

• Their love of cycling exceeded their desire to run a business and consequently they never really understood the market

• They undersold their products: typically one-man-band operations thought that they could sustain a business because they could undercut the market because they were not employing other people. This had a detrimental effect on the sector as the lower priced products impacted on businesses that had realistic expectations of the market. Sustainable businesses struggled to price-match due to tight margins and hence development and growth was sacrificed.

• They were not suitably versed in the necessary best practise or understood current package regulations although this was/is rarely enforced.

• They would not work in partnership or cross sell their products: tour operators throughout the world cross-sell; once an understanding has been agreed it can protect areas of business operation.

• They offered too many products in too many locations and styles: this stretched their operations particularly in the formative years.

• Although not many of the larger operators have closed, many of the companies such as Exodus, Explore, and Nielsen who are all owned by larger general tour operators, downsized their UK offer as they could not work to the margins that were on offer. This was primarily because of the internal nature of the market and lack of ability to maintain local relationships.

• They did not work with large volumes of bookings: using the same accommodation provider regularly or, with good bookings can build a good relationship. These supplier relationships are essential in the long term sustainability of a tour operator.

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