Select Committee on Culture, Media and Sport Written Evidence


Memorandum subitted by The Tussauds Group

  1.1 This submission is in response to the announcement made on 16 January, that the House of Commons Culture, Media and Sport Committee is conducting an inquiry into the tourism sector in the UK.

  1.2 By way of background to our submission, the Tussauds Group (TTG) owns/operates a number of major tourist attractions within this country, including Madame Tussauds, the London Planetarium, Alton Towers, Chessington World of Adventures, Thorpe Park, Warwick Castle and the London Eye. Each site has to contend with considerable challenges and constraints in terms of their location, character and/or geography. For example:

    —  Thorpe Park is located within the Green Belt, is within the River Thames floodplain and contains two listed buildings. Part of the site is also located within a conservation area; and

    —  Warwick Castle is located within River Avon floodplain, is a Grade I listed building and the site also contains a number of other listed buildings and a scheduled ancient monument. The site is also located within a conservation area.

  1.3 In terms of the additional heritage constraints noted on the above sites, the historic features referred to are restored, maintained, enhanced and given new economic uses as integral elements to the attractions.

  1.4 All of TTG's attractions are major contributors to the national tourism industry and to their local economies. Indeed a recent economic study, prepared by Nathaniel Lichfield and Partners (2006) in support of a planning application for development at Alton Towers, identified that the Park:

    1. attracts a total of £111 million of visitor spending both on and off-site;

    2. generates some £30 million of additional income in the local economy, and up to £100 million nationally, through the total visitor spending associated with the Park;

    3. helps support some 200 local firms through supplier spending;

    4. provides 3,800 direct jobs on site (2,400 Full Time Equivalents), making it one of the largest private sector employers in Staffordshire Moorlands District;

    5. accounts for a total of 3,980 direct, indirect and spin-off jobs in the local area, and 5,140 in the West Midlands region;

    6. supports the growth of the local tourism industry and accommodation sector by creating a destination which raises the profile of the area and encourages increased visitor spending, and

    7. provides a range of other local economic, tourism and community benefits.

  1.5 However, the Committee should also note that the theme park sector is highly competitive and visitor numbers at theme parks across Britain and Europe no longer show signs of continued growth and, in certain circumstances, are actually in decline. To ensure that tourist attractions retain their position in the market and improve their reputation and standards, it is necessary to improve the product continuously, to meet rising expectations and standards. Such improvements often take the form of new development.

  1.6 For example, there is an increasingly strong trend amongst European theme parks to supplement facilities through the provision of theme parks hotels. From the early 1990s, with the development of hotels at Disneyland (seven hotels), Efteling (Netherlands, Europe's seventh most popular theme park with 3.2 million guests annually), Europa Park (Germany, fourth most popular with 3.6 million guests), Liseberg Viking Hotel (Sweden, sixth most popular with 3.2 million guests), Legoland (Denmark, 17th most popular with 1.6 million guests), Alton Towers (10th most popular with 2.5 million guests) and Parc Asterix (15th most popular with 1.8 million guests), theme parks have begun to recognise the importance of providing associated hotel accommodation for the long-term economic benefit of the Park. In 2003 alone, over 2,000 rooms in seven hotels were added to Europe's top theme parks, including Hotel Phantasia near Cologne; Tussauds' new water park hotel Splash Landings at Alton Towers, three Disney Partner Hotels and Blackpool Pleasure Beach's the Big Blue Hotel.

  1.7 TTG has most recently secured planning permission for a 150 bedroom hotel at its Chessington World of Adventures (CWOA) theme park and a current planning application for a hotel at Thorpe Park is being considered by Runnymede Borough Council. This latter proposal is for a 250 bed hotel, which it should be noted in relation to the penultimate issue raised by the Committee of the practicality of promoting more environmentally friendly forms of tourism, will deliver 14.5% of the annual energy use of the hotel from renewable sources.

  1.8 Given the importance of the tourism industry at the macro and micro-levels, and in relation to the first and fourth issues raised by the Committee, it is essential that Central Government (in their policy advice, tax regime and local government funding), as well as Government agencies, statutory bodies and local planning authorities all strike a balance between: (i) the objectives of conservation, protection and enhancement of the environment; and (ii) the need for existing tourism facilities to be enhanced, to allow them to respond positively to competition and changing markets in the tourism sector. This balanced approach would allow TTG's operations and the Group's development programmes for upgrading and continuously improving its attractions to be properly and fully taken into account, and implemented.

  1.9 Existing tourism facilities, even those in sensitive locations such as the flood risk areas within which Thorpe Park and Warwick Castle are located, have to continue to draw customers and TTG regularly reinvests in these and all the other Group's facilities so as to maintain a product that meets customers' expectations. TTG seeks to balance any environmental issues arising from its development proposals with the economic and operational issues resulting from the Group seeking to maintain viable business operations that create employment and other wider-ranging, associated benefits. It is not always clear to the Group however that other stakeholders take the same approach, particularly in terms of policy formulation at all levels of government and the stance taken by various statutory and non-statutory bodies in the process of determination of planning applications.

  1.10 In the case of the TTG theme parks, the primary function of each will continue to be that of a theme park. However, with the majority of the visitors arriving in the main tourist season (April to November), the Group is also looking in the medium to longer term to establish the parks as year round attractions. Although the activities will continue to be predominantly "open air" and involve significant rides and structures, a wider range of facilities has already been/will be proposed and introduced to support a year round operation. While it is often stated by local planning authorities in their development plans and emerging Local Development Documents that they support the development of a year round tourism industry, this is often only in principle; the development that will be necessary for operators of theme parks to provide to achieve this objective is all too often not accepted by the authority at planning application stage. In this context, there is no clear national policy guidance on the subject, for LPAs to interpret and apply to their local circumstances. In short, this is for the fundamental reason that national policy guidance, previously set out in Planning Policy Guidance (PPG) 21:Tourism, was cancelled in September 2006 and it has only been replaced by a good practice guide (May, 2006).

  1.11 We understand that it is still the case that a new Planning Policy Statement (PPS) on Tourism is not to be produced by Communities and Local Government; we consider that this is unacceptable. Representations submitted at the time when the proposed PPG21 cancellation was announced (made on behalf of TTG by our planning advisors, Nathaniel Lichfield and Partners to the then Office of Deputy Prime Minister) raised concerns that the net effect of not replacing PPG 21 with a new PPS would be that insufficient importance would be attached to the tourism and entertainment industry, particularly in relation to facilities in urban areas but also to those sited elsewhere. The comment was made at the time that the consequence of there being no PPS on tourism would be that the economic importance of tourism development in such locations would be diminished. This is proving to be the case, particularly in both development plan policy formulation and in development control. Looking into the future, we continue to believe that tourism will be perceived to be of lesser importance than other uses subject of other PPGs or PPSs, and that there will be no clear source of Government policy guiding and promoting tourism uses when not in rural areas (PPS7 provides some guidance on tourism in rural areas). These concerns are significant; we consider that the economic and other planning, social and environmental benefits of the tourism industry should be fully and widely acknowledged at the national policy level in a new PPS.

  1.12 We would therefore respectfully suggest that in their recommendations, the Culture Media and Sports Committee refer to the urgent need for new, clear national policy guidance on tourism. This new PPS in particular should refer to the Government recognising the economic, social and environmental benefits that can arise from the tourism industry and proposals for its enhancement eg through new development. The new PPS should also explain that the Government encourages the expansion and enhancement of existing tourist facilities, and that this encouragement should be interpreted, promoted and applied by all of the other bodies involved at different levels in policy formulation, development planning and development control.

  1.13 We trust that the Committee will find the above information and responses to three of the issues raised useful. We would also welcome the opportunity to appear before the Committee, to answer any questions that members may wish to pose as a result of this submission. Please also contact me, if you wish to discuss any matter that we have raised further. In any event, please note that we would now like to be kept informed of each stage of the Inquiry's progress.

March 2007





 
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