Memorandum submitted by VisitBritain
1. INTRODUCTION
1.1 VisitBritain, Incorporated under the Development
of Tourism Act 1969 as the British Tourist Authority, promotes
Britain internationally in 36 markets and England domestically
to the British. England is also marketed in four European countries
(Germany, France, the Netherlands and Ireland) where England is
a particularly strong brand. We are responsible for both the visitbritain.com
and enjoyengland.com visitor-oriented worldwide websites and jointly
fund the Britain and London Visitor Centre (BLVC) in Lower Regent
Street, London.
1.2 VisitBritain is grateful for the opportunity
to share information and views for this important inquiry into
preparations for the London 2012 Olympic Games and Paralympic
Games. There are key issues in the visitor economy that VisitBritain
would wish to be borne in mind.
1.3 It is estimated that there are over two
million tourism-related jobs in the UK as a whole, some 5% of
all people in employment. Tourism is one of the largest industries
in the UK, accounting for 3.5% of the UK economy and worth approximately
£74.2 billion in 2003, with most tourism spending in Britain
being made by the British. Of the £74 billion, around £14
billion is foreign visitor spend. The current deficit, however,
in the balance of tourism payments, is close to £18 billion.
For every £1 spent by a visitor to Britain from abroad, £2.32
is spent by a British visitor abroad.
1.4 We have kept this memorandum as brief as
possible and would welcome the opportunity to provide oral evidence
to elaborate on those areas of the visitor economy that most interest
the committee.
1.5 VisitBritain is an Associate Member of the
Tourism Alliance and we endorse close consideration of the separate
submission made by that body.
2. OUR JOURNEY
TOWARDS LONDON
2012 HAS BEGUN...
2.1 For easy reference, we enclose with our
submission copies of our leaflet "Our journey towards London
2012 has begun... Tourism opportunities and objectives for London
2012". Members will note that 50-70% of the net economic
benefit of staging the Games measured over a seven to 10 year
period could accrue through tourism. This could amount to a potential
benefit of at least £2 billion for the visitor economy from
overseas visitors, plus a potential even greater benefit to the
domestic visitor economy. However it must be noted that to achieve
and surpass this figure a considerable amount of investment and
effort will be needed.
2.2 Paramount to our thinking is the maximisation
of the Olympic and Paralympic legacy for the whole of the country.
As mentioned in the introduction, we have a tourism deficit of
nearly £18 billion—despite a doubling of inbound visitors
in the 25 years between 1979-2004. Foreign tourists are not staying
as long as the used to and are more likely to stay with friends
or relatives than they did in 1979. Average visitor stay is down
from 12.5 to little over eight nights. Spending by overseas residents
has gone down in real terms from £740 to £470 per trip.
So the doubling in tourist numbers has led to a mere 3% real terms
increase in tourist spending. This is not enough to satisfy our
ambitions.
2.3 In particular the average age of overseas
visitors has gone up over the last 25 years and the youthful focus
of the Olympic Games will allow us to appeal more to a new generation
of global travellers. This is a particular opportunity for developing
markets such as BRIC nations. Currently nearly 85% of UK visitors
come from the Americas, Western Europe and Japan, yet the strongest
outbound growth is to be found in India and China.
2.4 In 2012 we aim to surpass the success of
Sydney and Barcelona and set new standards in integrating tourism
opportunities into the Olympic and Paralympic experience—and
the subsequent legacy. That means more international visitors
from more markets spending more money in Britain. It means appealing
to key emerging markets in India, China, Latin America and Central
& Eastern Europe to tap into great opportunities for expanding
the industry. It means attracting the younger visitors associated
with the sports event tourism market through presenting an image
of Britain as a modern and youthful country—and giving them
an experience that brings them back to Britain again and again
throughout their lifetime, for leisure, education and business.
Naturally enough, there is need for investment—and co-ordination
between ourselves, Whitehall, Regional Development Agencies and
Town Halls about the organisation of tourism promotion in aid
of the industry.
2.5 An industry-wide consultation exercise has
been launched—jointly led by VisitBritain, Visit London
and the Department for Culture, Media and Sport. This will define
exactly what the industry wishes to achieve and how, covering
key areas such as marketing, quality and skills. Money will be
directed to the frontline—with an effective partnership
between VisitBritain and Visit London that will jointly meet the
tourism objectives for both London and Britain, minimising inefficient
duplication.
2.6 In short, the Olympic and Paralympic Games
give Britain the opportunity of a lifetime for a lifetime of opportunity.
VisitBritain played a key supportive role with London 2012 during
the bidding process. We are now looking ahead and developing our
strategy for further engagement during the build-up phase, during
the Games themselves in 2012 and as part of the all-important
legacy planning. VisitBritain will look to deliver the benefits
of hosting the Olympic and Paralympic Games as anticipated by
Government and within London's bid.
3. KEY LEARNINGS
3.1 In the period following London's successful
bid to host the 2012 Olympic and Paralympic Games VisitBritain
have ensured that as much learning as possible has been gathered
from previous Winter and Summer Olympic and Paralympic Games,
as well as other major international sporting events.
3.2 During 2006 learning expeditions have been
made to Sydney and Melbourne during the Commonwealth Games and
Turin during the Winter Games. An initial trip to Beijing has
also been made with a view to the Summer Games in 2008. Further
contacts have been made with individuals who were present at Sydney
2000 and Athens 2004. All of this learning has informed the formulation
of VisitBritain's strategy for London 2012.
3.3 While the Games are expected to bring many
participants, sponsors, officials and spectators to our shores,
the predicted volumes of this Olympics-related tourism are within
usual levels of peak time tourism demand. The biggest potential
lies in Olympics-motivated tourism, ie additional business events
in, or tourist visits to, Britain as a result of heightened awareness
of the destination generated directly or indirectly by the hosting
of the 2012 Games. Tourism must be placed at the very heart of
the Olympics and Paralympics experience.
3.4 The biggest tourism opportunities include:
— Aligning and developing the Britain
brand to appeal to new and younger markets—and capture from
them a positive view of Britain that lasts a lifetime.
— Building on the immense media coverage
for Britain and London that the Olympics will generate to raise
the profile of Britain and enhance awareness of the country's
diverse tourism offering.
— Winning more international major
events, conferences and conventions.
— Attracting new partners and sponsors
to the tourism sector.
— Improving the welcome that business
and leisure visitors receive in this country, transforming the
quality of British tourism's accommodation and visitor attractions,
and increasing productivity and skills in the industry.
— The development of sustainability
and accessibility in the visitor economy (eg less than 1% of accommodation
providers participate in the National Accessible Scheme in 2005).
3.5 VisitBritain has extensive and expert marketing
experience. We recognise the importance of market targeting and
market knowledge. Fieldwork from February 2006 using the Anholt-GMI
Nation Brands Index has provided us with excellent research data
with which to target potential visitors and manage expectations.
We enclose copies of this Olympics Analysis for the Committee.
3.6 The importance of the Games to VisitBritain's
activities in emerging markets such as Russia, China and India
can not be overstated. Often Britain is seen through the lens
of period drama or in the pages of Dickensian novels wrapped up
in smog. These markets were among the most likely to agree that
"I'm more likely to want to visit Britain in the next few
years because London will host the 2012 Olympics". This statement
indicates a willingness to come to Britain, however it does not
necessarily mean that they will. Visible marketing activity will
have to be carried out in these markets to ensure that they do
choose the UK ahead of competitor destinations, a task which will
be made easier by good awareness and understanding of the Britain
brand work being undertaken with our public diplomacy partners.
4. VISITBRITAIN'S
PARTNERSHIP WORK
4.1 Since winning the bid to host the Olympic
and Paralympic Games in 2012 VisitBritain has been working to
ensure that tourism is well represented in the wider 2012 structures.
VisitBritain is represented on the Nations and Regions Group,
along with the Devolved Administrations and the RDAs, and the
Tourism 2012 Group, which advises the Minister for Tourism. VisitBritain
also maintains very close operational and strategic relationships
with DCMS and Visit London on matters relating to the Games, as
well as an excellent relationship with London 2012.
4.2 VisitBritain has spent much time attending
and speaking at events in London and throughout the regions to
raise awareness of the benefits of London 2012 for the visitor
economy as well as managing and aligning expectations with achievable
outcomes. In 2006 events addressed by VisitBritain have ranged
from the Local Government Association Tourism Forum held in Norwich
in March ("2012. Maximising the benefits around Britain:
key issues for tourism") to the British Resorts and Destinations
Association Annual Conference in Folkestone in June ("2012
events and the wider & longer term benefits for UK plc")
and the Visitor Attractions Conference in October (focussing on
the Cultural Olympiad and Quality). VisitBritain also supported
the 2012 Roadshow, organised by DCMS and London 2012 in July,
speaking at several events throughout the regions.
4.3 The 2008 Beijing Olympic and Paralympic
Games will be pivotal for Britain in the lead-up to 2012. VisitBritain
will be aiming to promote London and Britain as host destination
of the next Games and build relationships with key partners in
Beijing. 2008 also marks the beginning of London's Cultural Olympiad
as well as the year Liverpool will be European Capital of Culture—VisitBritain
is establishing a partnership with those responsible for devising
and delivering the Olympics cultural programme to ensure synergy
within our overall tourism marketing strategy. VisitBritain will
also be looking to maximise the opportunities presented by the
torch relay in 2012 to achieve positive media exposure of Britain
as a visitor destination.
4.4 The Games have already shown their ability
to act as a catalyst to progress partnership initiatives. VisitBritain
currently chairs both the Public Diplomacy Partners Group (with
members including the Foreign & Commonwealth Office, UK Trade
& Investment, British Council, etc), which is now developing
the Britain brand proposition to capitalise on the exposure Britain
will receive in the years around the Games, and also the Welcome
to Britain Group (with members including BAA, HM Revenue and Customs,
UKvisas, etc), which is looking at how to improve Britain's welcome
with a view towards 2012. Britain will play host to an influx
of visitors in 2012 and world media attention will be on us—providing
a world-class welcome will be critical not only to the success
of the Games but also to our long-term reputation for customer
service.
4.5 VisitBritain has worked closely with VisitScotland,
Visit Wales and the AA to harmonise quality grading schemes (ie
the star ratings awarded to accommodation providers). Improving
quality in the industry is a key focus of our partnership work,
as accommodation has to meet the needs of visitors with a first
class quality system by 2012. Our current estimate is that just
over 50% of known accommodation stock is assessed and our target
is to have 80% assessed by 2010—a challenging but achievable
goal. VisitBritain will also work to encourage the industry to
improve disability access and create skills based training opportunities
relevant to the industry.
4.6 The 2012 Games will also provide a catalyst
for developing green tourism, and they will give us the opportunity
to expand and introduce sustainable tourism as a viable option
in the British visitor economy with the industry.
4.7 A successful legacy from the Games for the
visitor economy will also be dependent on maximising the benefits
from a whole host of new non-tourism commercial partners with
whom VisitBritain aims to successfully develop long-term strategic
partnerships. To this end VisitBritain and Visit London have created
a Brand Partnership Unit (BPU), founded on the principle that
London and Britain represent world-class brands and therefore
valuable assets for these partners.
5. CONCLUSION
5.1 As can be seen above, an integral part of
the development of VisitBritain's strategy will be the engagement
with industry in getting the maximum value for money by combining
funding for common objectives. VisitBritain has extensive experience
of working with public and private sector partners over many years
to deliver joint marketing campaigns and this public/private partnership
will provide the foundation for achieving a £2 billion legacy
for the visitor economy across Britain from the London Games in
2012.
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