Select Committee on Culture, Media and Sport Written Evidence


Memorandum submitted by the Historic Houses Association (HHA)

OVERVIEW

  1.  The Historic Houses Association is in an authoritative position to comment on the practical effects of tourism policy.

    —    Over 500 of the historic houses, castles and gardens in the membership of the HHA are open to the public, more than those in the stewardship of the National Trust, English Heritage and their equivalents throughout the UK, combined.

    —    In 2005 these houses welcomed some 15 million visitors.

    —    About seven million of these were to special events, such as concerts, festivals, conferences, weddings, civil partnerships and corporate events.

    —    These visits generated £1.6-£2.0 billion in spending in the UK economy (using the former BTA "multiplier" that £1 spending at the entrance gate generates up to £24 in accommodation, transport, catering and retail.) In fragile rural economies expenditure in and related to historic houses can be crucial.

    —    10,000 people are directly employed by privately owned historic houses in tourism opening (HHA 2002 Survey)

    —    The tourism enterprises operated by historic houses are key to underpinning the viable management of these landscapes; without tourism, agriculture alone would no longer be able to support them.

  2.  Britain's tourism industry depends on our historic environment and the critical message within this submission is that the chronic under-funding of public support for the maintenance of Britain's heritage needs to be addressed.

  Britain's historic environment helps define our national and international identity, shaping how we think about ourselves and how other people see us. Iconic images of Britain's heritage featured strongly in our successful Olympic bid and VisitBritain's research demonstrates, by way of example, that 72% of tourists from Russia and 66% of those from China say that castles, churches, monuments and historic houses are top of their list of things to visit in Britain.

  However, the physical fabric of the historic environment, both our public buildings, listed places of worship, and our privately and charitably owned heritage, is in ever increasing need of investment and repair.

  3.  In January 2007, Britain's leading heritage organisations—Heritage Link, English Heritage, the Historic Houses Association, the National Trust and the Heritage Lottery Fund—presented Government with a report, Valuing our Heritage—The case for future investment in the historic environment (not printed), which details the challenges facing owners and guardians of our historic sites, buildings, places and gardens. The report shows that spending per head on heritage in England is less than in many other European countries whilst heritage regularly tops the list of reasons why tourists visit the UK, supporting a tourist industry which contributes £83 billion to the economy each year. Over 17,000 buildings are at risk in England alone despite the money already committed to maintenance by private owners and public support.  HLF awards are down 15% in real terms over the last two years, and English Heritage has seen its spending fall by £19.6 million in real terms over the last five years.

  4.  We need to invest in the resource upon which this is dependent and Valuing our Heritage set out the benefits of investment in the historic environment and the case for targeted increases in funding to:

    —    support the implementation of the new heritage protection system;

    —    maintain the fabric of our heritage by increasing funding for restoration and preventative maintenance including for listed Places of Worship;

    —    restore English Heritage's grant in aid to 1997 levels; and

    —    broaden audiences and get more people involved with the historic environment.

Q1.  The challenges and opportunities for the domestic and inbound tourism industries, including cheap flights abroad and their impact on traditional tourist resorts

  1.1  The popularity of heritage including historic buildings as a driver of domestic and inbound tourism continues unabated. Internal competition for visitors is now being met by competition from abroad. The fall of the Iron Curtain, development of low-cost airlines and expansion of the EU has opened up new outbound travel possibilities for that significant segment with an interest in culture and heritage.

  1.2  The Grey Market. 50% of global population growth between 2006-50 will be a result of the increase in the number of people aged 55+ (US Census Bureau projections). This means one in four people alive in 2050 will be aged 55 or over and this market segment is more likely than younger market segments to be motivated in choosing destinations by culture and heritage. Between 2000-05 the growth in visitors to the UK aged 55+ has been 32% and in 2005 more than 5 million over 55s visited Britain from overseas, representing 1 in 6 of the UK's 30 million inbound visitors. The UK will be competing for this culturally and heritage orientated Grey Market, seeking to retain domestic visitors who might otherwise go abroad and to promote potential inbound tourists the exceptional heritage of Britain.

  1.3  New air routes offer both challenges and opportunities. A trend towards North Africa becoming a destination for low-cost carriers is growing. Ryan Air has reached agreement with the Moroccan Government to establish up to 20 new routes to the country from its European bases during the next few years. Conversely, the creation of a second international airport at Beijing within the next five years will mean air travel in China continuing to expand exponentially, both in terms of domestic and international travel. Similarly, economic growth in India, together with significant infrastructure investments including airports, will open opportunities to attract inbound tourism from those countries. To reduce the balance of payments deficit (£18bn in 2005) there is a need to ensure that the UK visitor economy benefits from expected growth in travel from emerging markets such as India, China and Eastern Europe as well as recapturing some of the ground lost in more mature markets including the USA and Japan.

  1.4  Short Break Holidays. The growth in domestic short break holidays provides new opportunities for marketing not only on a regional basis but the packaging of attractions and accommodation. Heritage attractions which might typically merely market themselves both locally and nationally could benefit by combining with providers of accommodation to produce specific short break offers. Two out of three English holidays are short breaks. The 2005 UK Tourism Survey (UKTS) shows the increasing trend of short break holidays overtaking the longer, more traditional holiday. In 2005 there were 44.8 million overnight holiday trips lasting between one and three nights, with 23.1 million holiday trips lasting four or more nights.

  1.5  Filming. There is a very strong link between filming, literary connections and tourism. It generates media attention which focuses on tourist attractions (eg the Da Vinci Code—Rosslyn Chapel and various locations; and Miss Potter—the Lake District). Successful films have been a notable generator of tourism for several decades (some short term impact and some longer term—eg Brideshead Revisited—Castle Howard) but fewer films are now being made in the UK due to the incidence of taxation and the financial incentives provided for filming elsewhere. A benevolent taxation regime for film makers in Britain would directly contribute to the promotion of UK as a tourism destination.

  1.6  Cost. The UK is an expensive destination, most noticeable in the price for overnight accommodation. The cost of a destination is one of the most important drivers of demand. Costs to the tourist are of course affected not only by domestic inflation but also by currency exchange rates. The UK has become less competitive relative to destinations across the Americas, Asia and parts of Europe. Since 1996 the cost of Sterling has risen by 17% in US$ terms, whereas the cost of many South American currencies has declined by more than 50% during the past 10 years.

Q2.  The effectiveness of DCMS and its sponsored bodies (such as VisitBritain) in supporting the industry

  2.1  Need for Investment in the Tourism Asset: "There is a close relationship between the successful development of tourism and the strengthening of the cultural assets of the country... Good management of the things that make everyday life better benefits us commercially and socially by attracting satisfied visitors". (Tomorrow's Tourism Today, DCMS 2004).

  Heritage is a key contributor to tourism revenue and should be recognised as such. The overview on page one of this submission sets out a compelling case for investment in our historic environment. From the HHA's perspective, the scale of the threat can be further quantified: HHA's 2003 survey revealed a £260 million backlog of repairs to privately owned historic houses. The increasing costs of conservation and regulations compliance have been accompanied by the declining provision of local authority grant support (which has virtually disappeared) and of English Heritage restoration grants, now only about £2 million per year in practice for the whole of the privately owned sector. The cumulative real terms fall in the grant from DCMS to EH between 2000-01 and 2005-06 is measured by EH at almost £20 million, which has also estimated that an increase of £3 million per year would be needed to restore the real terms value of grants to former levels.

  The result is that the maintenance of privately owned heritage, not only in the larger houses, but also in the smaller houses for which the costs of opening constitute a higher proportion of the house's overall turnover, is under threat. Unless there is a positive increase in the provision of public financial support for privately owned heritage, the cost of repairs and restoration will become harder and harder, or in many cases impossible, to meet and the current backlog of repairs will continue to grow. As owners become unable to fund repairs there will be severe consequences for the tourism benefits to the local and wider economy.

  There is also a need for the Heritage Lottery Fund to invest in initiatives that the private sector provides in the realm of capital improvement—including repair—for public benefit. The HHA will continue to press strongly for restoration and conservation projects for heritage in independent ownership, which deliver public benefits, to be eligible for Lottery funding.

  2.2  Role of DCMS: DCMS needs to champion tourism much more strongly. Tourism is the UK's seventh largest industry, generates £15 billion pa in export earnings and employs some 2.1 million people (source: Tourism Alliance). Yet despite the size and value of the industry to the UK economy, DCMS allocate fewer than 3% of their total staff to tourism. DCMS is also failing to ensure that the policies and initiatives of other Government Departments do not adversely impact on the tourism. This is particularly concerning as an estimated 80% of tourism businesses are classified as SMEs, which are particularly prone to changes in the regulatory regime.

  2.3  Policy Development/Advocacy/research: The creation of VisitBritain and the demise of the English Tourism Council have resulted in DCMS becoming the sole statutory repository of tourism advocacy, policy development and research. VisitBritain and its subsidiary Enjoy England, have been created to provide what appears to be solely a marketing and promotion function and we have lost a statutorily funded independent tourism voice capable of holding the Government to account. The need for credible, authoritative and independent statistics and research to provide a sound base for policy development, funding decisions and agenda setting is critical.

  2.4  Sponsored Bodies: Greater clarity is needed in the relationships between VisitBritain/Enjoy England, VisitLondon, the RDAs, Visit Scotland, Visit Wales, the regional tourist boards (where they exist) and local destination management organisations and authorities. There exists—even within these organisations themselves—confusion about roles and responsibilities and for those who work with and are dependent upon these bodies, the lack of any commonality of structure in the nation countries and regions has resulted in a frustrating and confusing tier of tourism functions.

  2.5  Domestic Marketing To ensure UK residents fully appreciate the attractions on their doorstep before opting for travel overseas, there must also be domestic campaigns, nationally and regionally co-ordinated. Promotion of domestic tourism is likely to be more effective than punitive measures aimed at deterring outbound travel (taxation and limiting airport capacity). The achievements to date from Enjoy England have been encouraging but it will be important to ensure that they are adequately resourced to deliver their identified strategic targets through, at least, to 2009. Present funding for the marketing of England stands at only £12.4m. Confidence in the statistical analysis and the feedback will be crucial to the success of every campaign—they are at present someway short of delivering that confidence.

Q3.  The structure and funding of sponsored bodies in the tourism sector, and the effectiveness of that structure in promoting the UK both as a whole and in its component parts

  3.1  Central government funding. At a time when Britain should be increasing its tourism profile in the run up to the Olympics, it is perverse that VisitBritain's budget is being reduced in real terms. Britain cannot compete in the global market if funding is so restricted that we have the situation where Tourism Australia has spent more on one campaign targeting anglophone countries (So where the bloody hell are you?) than VisitBritain's entire budget, which has to cover the whole world. VisitBritain receives £35.5 million to market Britain in 36 countries around the world; Tourism Australia spent £72 million on this one campaign! We need to see a substantial increase in funding to VisitBritain if the UK is going to compete on a level-playing field. Undoubtedly, VisitBritain has the ability to better inform but is disadvantaged by having much smaller budgets than tourism organisations in other countries that are competing to attract the same visitors.

  While total DCMS funding has increasing by 61% over this period, VisitBritain has fared the worst of all DCMS sponsored bodies with only a 9% increase in its funding. By comparison, broadcasting and the media received 182%, sport 134%, the arts 109% and museums, galleries and libraries 42% over the same period. The increase for the Architecture and the Historic Environment sector over this period was only 14%, and to English Heritage itself, 11%, below the rate of inflation, so the heritage sector is being hit by a double whammy.

  3.2  Regional funding: The inequalities of regional funding across the UK mean that the playing field has been described as "mountainous".

  RDA direct investment into tourism is out of step with where visitors go and with where visitors spend. In 2003, the South-East was ranked second (only behind London) in respect of tourism contribution to the UK economy but in terms of RDA investment, it was ranked ninth (out of 10) with only the East of England receiving lower investment. This situation lacks credibility and does not reflect the reality or real value in tourism terms on the ground.

  Receiving funding via the RDA means that tourism has to compete against all other potential regional economic activities. This is a dangerous position to be in as RDAs can be more easily influenced by shifts in Government policy. There is a need for secure and guaranteed funding—tourism promoters and providers need three year rolling commitments (at least) so they can plan ahead—and resources are being wasted in every region due to the uncertainties and complexities of the annual bid process. The HHA has received details from its members of obstructive practices within RDAs together with evidence of a lack of understanding, knowledge and experience within the RDA about tourism. Likewise, the recognition by RDAs that the historic environment is a positive element in economic growth, but also needs to be conserved in order to survive to fulfil this role, is patchy.

  One of the HHA's regional tourism representatives has stated: "Our [Regional Marketing] campaign in 2006 yielded a return on income of 15:1, making it almost certainly the best investment the RDA made that year, and one of the best returns of any tourism marketing campaign in the UK." Despite this, funding to date has not been guaranteed for 2007.

  3.3  Structure of Regional bodies: There needs to be a properly resourced structure that can provide co-ordination to the devolved tourism responsibilities of the nations and regions of Britain with a requirement for RDAs and regional tourism bodies to work with VisitBritain on national programmes and initiatives.

  Having set the objective of "effective and co-ordinated partnership work" (Tomorrow's Tourism Today, DCMS 2004), the result in practice has been the opposite. The delivery of tourism promotion in the regions is confusing, fragmented and opaque. There appears to be no parity of approach between regions, with coterminous regions finding it impossible to interact with each others. A common complaint from our regional representatives is that regional tourism bodies act independently with no reference to regional strategy and that marketing functions and projects are undertaken in isolation and funded independently.

  We are aware of some policies and guidelines which are perverse and counterproductive which appears to make a mockery of the Government's desire for a co-ordinated and joined-up tourism industry. In Yorkshire where the Yorkshire Tourist Board is funded by the RDA (and has a remit to bring new business from outside the region) it is prevented from promoting Yorkshire within Yorkshire. Given the region's size and geography this is wilfully obstructive. Our members are also finding that some of the sub regional organisations which are charged with promoting regions within regions are in such a state of chaos two years after their inception that this vital function simply is not being carried out.

  In East Midlands, one member historic house has been prevented from putting their leaflets in the local TIC as they were not fully paid up members of the Destination Management Partnership. It is not reasonable to expect all tourism providers to become full members of such DMPs as such a requirement would unfairly discriminate against the small tourism provider.

  However, we are aware of some innovative and far-sighted initiatives. Culture Northwest, in partnership with the Northwest Regional Development Agency (NWDA), English Heritage, the National Trust and the Historic Houses Association is involved in a unique alliance to raise the profile and develop the offer for heritage tourism across the North West. The NWDA and English Heritage jointly fund a Heritage Tourism Executive employed by Culture Northwest, with a grant scheme funded by the NWDA to match fund capital investment for heritage visitors to the North West. We would like to see this initiative replicated elsewhere.

  We believe that, on balance, the structure that appears to work best is as follows:

    (i)  the tourism body at the Regional level should be small in terms of staffing and overheads, but big in terms of vision and have the objective to promote and represent the overall tourism offer of the region. It should work closely with the RDA and work to improve the understanding in RDAs that tourism is of considerable importance to the general economic and social success of the region;

    (ii)  the tourism bodies at the immediate sub-regional level are key to the success of tourism promotion. It is here, in particular, where there needs to be close partnership working between the private and public sectors. Promotion at this level can encourage cluster marketing of heritage or other sites, along with accommodation, and can bring the local authorities in, so that their efforts are maximised and are not in conflict with the promotion work of other bodies. These sub-regional bodies, be they "Area Tourism Partnerships" or "Destination Management Organisations", should co-operate, not compete, with each other and should help to shape the strategic promotion effort at the Regional level. It is at this level that the role of the independent operator can fit best;

    (iii)  VisitBritain, and within that EnjoyEngland, does not have the clout to determine the overall national allocation of resources for tourism promotion to different regions. However, if VB was adequately resourced to carry out its function of being a provider of interpreted statistics and research to Government and more widely, it could provide essential advice and influence in the making of this allocation by Government and the RDAs. The current relative sizes of tourism promotion budgets in different RDAs do not reflect, in our view, the relative importance of tourism in the different regions, so the allocation of resources to RDAs and the way in which the RDAs decide what resource to allocate to tourism need to be reviewed by Government and the RDAs; and

    (iv)  we would not expect VisitBritain to seek to influence how the regional or sub-regional tourism bodies spend their money on day to day promotion, but we would expect EnjoyEngland in particular to sit down with the Regional tourism bodies and reach a common understanding of the priorities for tourism promotion, on a regular basis. In inputting their view, the regional bodies would be informed by the practical experience of their very active sub-regional tourism bodies. This is where the experience of the independent operator with hands-on operating expertise can add great value.

Q4.  The effect of the current tax regime (including VAT and air passenger duty) and proposals for local government funding (including the "bed tax") upon the industry's competitiveness

  4.1  VAT. Accommodation is the most expensive part of the visitor experience. The imposition of VAT @ 17.5%, a rate that is higher than in many competing countries, adds significantly to the cost. If VAT on accommodation could be taken down to a European average this would help the industry's competitiveness.

  4.2  Heritage Buildings. Heritage buildings are a major draw for visitors but, to perform adequately in the tourist marketplace, must be properly maintained and kept in good repair. HHA survey work in recent years indicates that 20-25% of the cost of major repairs to privately-owned historic buildings is met from the sale of works of art. The totality of the heritage product is thereby being diminished. Unlike new work or alterations to listed buildings, we are in the perverse situation where repair work is subject to VAT. The much called-for exemption of listed building repairs from VAT would make a significant contribution towards maintaining them as an important tourism asset. Freeing the private owner to apply for HLF funding would in parallel ease the maintenance burden whilst also supporting the tourism product.

  4.3  Bed Tax. An analysis by the Tourism Alliance suggests that a 5% increase in tax on hotels would see a decrease of £608 million per year, the equivalent of approximately 6,000 jobs in the tourism industry. 5% of visitors, the highest spending part of the total, would be affected by a bed tax. Elsewhere, where a bed tax has been introduced (the Balearics), tourism diminished. In 1990 the Mayor of New York City imposed a 5% bed tax, resulting in the local tourism industry stagnating, and being specifically boycotted by conference organisers. The tax was subsequently removed. We are dismayed that Sir Michael Lyons has called for further consideration of such a tax in his report published on 21 March, albeit he includes the qualification that local authorities would be required to demonstrate local public support. However, we note that, in response, the Government appear to be opposed to the tax. The idea of a "bed tax" should be "put to sleep" before it distracts the industry any further.

  4.4  Visas. Analysis of UK visa statistics showed that the higher costs introduced in July 2005, with no consultation or notice, reduced the number of applications by 10%—UKinbound have estimated that this effect has cost the Exchequer over £25 million in lost tax revenue. The joint Tourism Alliance/VisitBritain/UKinbound study on the impact of the recent increase in visa charges concluded that the impact on China and India alone was in the order of £150 million in lost revenue from export earnings—this reflects just two of the 163 countries whose citizens require visas to visit the UK. The global impact is therefore undoubtedly much higher and very significant. As an example, the Yorkshire Tourism Board is concerned that its unique opportunity to capture the Asian market this summer when it hosts the Indian International Film Academy Awards will be frustrated by the high cost of obtaining visas.

  4.5  Licensing The HHA is has contributed evidence to the Government's independent review of licensing fees, pressing for a reduction in fees for large events - ie back into line with the costs actually faced by councils—to ensure that independent venues operating often in rural areas are not unfairly disadvantaged when tendering to host such events. The HHA supports the conclusions of the Elton Review which calls for changes to the fees structure to ensure that for larger events they do reflect only the reasonable costs of local authorities in providing licences. The HHA also supports the recommendation in the Elton Review that the licensing fees regime should be de minimis for certain premises types where licensable activity is peripheral to overall activity.

  4.6  Council Tax: The Lyons report recommends the addition of new Council Tax bands for the least and most expensive residential properties. Subject to the Government's response to Lyons in relation to the threshold values for these bands and the ratio of the Tax on the new top band to the Tax on a home of average value, the HHA believes that the Lyons approach is more realistic, practical and equitable than one alternative that has been suggested, of a flat rate percentage of market value (ie the abolition of bands). A flat rate would disfavour historic houses, many of which are rated as private residences, even if they are open to the public, because the owners do not benefit from an assessed high market value. Many owners did not choose to live in the houses they manage and are not in a position to sell, and they should not be encouraged to do so. The notional market value of the house is not reflected in the income that the house may or may not generate, or the costs of its maintenance. In the case of Grade I houses there is an obligation to maintain them, for the benefit of the nation, and a significant increase in Council Tax would correspondingly reduce their ability to fulfil this obligation.

  4.7  Overseas Visitors: UKinbound's research into the total tax take from overseas visitors shows that a minimum of 35p in every pound spent by visitors in the UK is then taken in tax. This level of visitor taxation is the third highest in the world and has helped to undermine the UK's international competitiveness—to the detriment of the UK's share in the global tourism market and to the detriment of our home tourism businesses including the heritage sector.

Q5.  What data on tourism would usefully inform Government policy on tourism?

  5.1  Research is vital and it is needed in key markets to examine perceptions of Britain as a holiday destination. Research should include:

    —    positive and negative images of Britain when compared with competitors;

    —    the barriers and triggers to travel;

    —    knowledge and perceptions of English regions; and

    —    how marketing collateral can be designed to appeal to those markets.

  Taking the Japanese market as an example. The "baby boom" generation in Japan, known as the Dankai, are taking up new hobbies after work and there is an increased tendency to travel. Particularly popular are "must see" destinations, especially famous historic locations and world heritage spots that they may have read about or seen on television, galleries or museums. Research suggests that many were keen to travel to Britain but other destinations are higher on their list. This, it appears, may be because of a general lack of knowledge about Britain outside London. They are unaware of famous British sites and historic locations and have the impression that Britain has few museums and art galleries beyond the British Museum. Similarly it seems they are not aware of the huge heritage of historic houses and their associated contents, many of which outshine and are the envy of major museums. The implication is that if they had greater information, Britain would be higher on their wish list of destinations.

  5.2  Domestic Tourism Data. A third of the UK tourism market is made up of day visitors. For a proper understanding of how this market operates, detailed research is required, as has in the past been carried out by the national tourist boards, individually and collectively. Of particular importance are:

    —    tourism trends, number of trips, distances travelled;

    —    objectives, market groups, trends in visitors to attraction;

    —    gross revenue trends; and

    —    employment and capital investment.

Q6.  The practicality of promoting more environmentally friendly forms of tourism

  6.1  The term "environmentally friendly forms of tourism" should encompass sustainability in its overall sense, rather than only the most visible environmental "footprint" of the type of tourism concerned. In practical terms, for historic houses, castles and gardens, this means that an assessment of the environmental impact of the operation of these sites should include not only the most immediately apparent environmental impacts, such as the carbon emissions of transport to reach the site, but also the social, cultural and economic sustainability of the attractions in question, both for the local population and economy and for the wider economy and society.

  6.2  Environmental sustainability:

    (a)  Transport: The distances travelled by visitors to historic houses and the means to reach them are clearly factors in their environmental impact. It is desirable that people should be able to travel by public transport and for some historic houses there is scope to do this. Houses such as Blenheim Palace, Syon House and Chatsworth are located in or near towns with such links. However, many historic houses are located away from urban centres and therefore the scope will be more limited. The negative environmental effects of limited public transport should be balanced with other positive environmental, social and economic factors, as explained below.

    (b)  Local sourcing of food and other materials: The environmental "friendliness" of historic houses can be improved by reducing the "food miles" of the consumables sold at historic houses together with distances travelled of the products in their shops. Many houses are already increasing the proportion of products in their shops, cafes and restaurants that are locally sourced. Indeed, houses, such as Chatsworth, which have shops dedicated to local farm produce, have made it part of their public policy to do this and where the house is linked to its own farm or to local farmers this shows the integration of the house in its local community. There are a great many local food initiatives in the country such as Savour the Flavour in the West Midlands and Peak District Cuisine in Derbyshire. The building and other materials used in the maintenance and conservation of the buildings and the energy used are very relevant too and houses can be encouraged to use local building materials wherever possible.

    (c)  Energy efficiency and sourcing of energy: Current discussions at national level between the HHA and English Heritage, with the involvement of the Country Land and Business Association (CLA) are encouraging. However, questions such as the installation of new more efficient radiators in period rooms, glazing and insulation, can be controversial and there is balance which needs to be struck to ensure that the historic integrity of the building is retained. Energy use also embraces the sourcing of energy and at several historic houses there is the scope to develop alternative and renewable sources of energy to heat the house and sometimes neighbouring houses too. Biomass, ground source heating, solar heating and wind turbines are all possibilities. Biomass heating, from the estate, has been developed at such houses as Doddington Hall in Lincolnshire, Rotherfield Park in Hampshire and Winton House near Edinburgh.

    (d)  Waste reduction and recycling: Owners and managers of historic houses are already involved in local waste management plans to reduce waste and increase recycling.

  6.3  Social and cultural sustainability:

    (a)  The knock-on effects of employment on local services: In more remote rural areas historic houses may be an important source of employment and economic activity, especially in the winter if country sports are pursued, and when other types of tourism are dormant. Business tourism, corporate hospitality, filming and conference/banqueting are important too. The creation of new jobs to replace those lost in agriculture is highly significant. Recent HHA surveys (2002 and 2006) show not only that some 10,000 people are directly employed in house opening (in the UK, 2002), but also that many thousands more are employed in other activities, including these other aspects of visiting. Employment and local incomes have a consequential effect on the viability of other activities, such as shops, garages, pubs. In turn the availability of these services will be a factor in enabling families and others to continue to live in the area, and for services such as post offices or schools to continue. If a village can keep these basic services, and thus the people that use them, it can also continue as a hub for social activity and community cohesiveness.

    (b)  Educational facilities: Recent HHA surveys indicate that 150—200 Member houses offer educational facilities, be they primary, secondary, tertiary education or life long learning and special interest groups. Often, these are houses already open to the public seeking to expand the use of their assets. Such educational facilities are of benefit to local schools and people and are often specially designed to reach out to those communities who may traditionally have felt themselves excluded.

    (c)  Retention and maintenance of cultural assets: The richness of the heritage is often the top reason why people visit the UK from abroad. It is also a key reason for people to wish to use these places for corporate events, wedding ceremonies, concerts and festivals. Without tourism the funding to maintain the cultural asset that is the house, its contents and its surrounding land, would in the majority of medium sized and larger houses, simply be chronically insufficient. The loss, especially if works of art were sold away from these houses into private collections or abroad, would be suffered by local people and the wider British public alike.

    (d)  Identity and community cohesion: Historic houses and gardens often constitute places where people can go to get away from the daily routine and to explore, in the context of a wider sweep of history and continuity, where they themselves place themselves in 21st century Britain. Visitors are not only the better off; the DCMS Taking Part Survey of 2006 found that 56% of lower socio-economic groups had visited a historic site within the last 12 months. The Black Environment Network, the Gateway Gardens Trust and the Anglo Sikh Heritage Trail have all organised trips to historic houses within this period. This amenity for community cohesion is part of social and therefore overall, sustainability.

  6.4  Economic sustainability:

  Historic houses attract people from abroad, assisting the UK Balance of Payments and providing an alternative for British citizens considering a break abroad. The richness of Britain's heritage, unique in its combination of architecture, contents, surrounding land and continuing occupation, pulls people in from abroad and then disperses the economic benefits they bring around the economy. Tourism is one of the biggest industries in the UK, generating £75 billion turnover, with heritage at its heart.

  Using the methodology of the BTA (1999) which estimated that for every £1 spent at the door of a historic environment attraction, £24 is spent on transport, accommodation and retailing, historic houses were found in 2002 to generate in the region of £1.6 billion to the economy. They were also found to be supporting 10,000 jobs related to day visiting alone, often in fragile rural economies.

Q7.  How to derive maximum benefit for the industry from the London 2012 Games

  7.1  Heritage is a valuable asset in the objective of realising the Olympic tourism legacy. It is essential that the Government appreciates the importance of heritage in tourism and, consequently, properly investigates the benefits of building on that asset in attracting people to the UK before, during and after the Games.

  In the HHA's view, the following policy actions are necessary for heritage to be able to make its full contribution to realising the tourism legacy before, during and after the Olympics.

    (a)  The chronic under-funding of public support for the maintenance of Britain's heritage needs to be addressed: Please see comments in the introductory Overview and Questions 2.

    (b)  To successfully sell the UK as an Olympic destination in a few years time, we will need to create a definitive UK brand. This is not simply a logo or clever strapline but a brand of core values that embody the UK offering while embedding excellence, quality and value in everything that we do. Every part of the tourism industry, from government downwards, to buy into that brand and to deliver meaningful funding if we are going to be successful.

    (c)  Government, at national, regional and local level, should take care not to introduce or expand regulation on tourism/heritage businesses that adds unnecessary or disproportionate costs. Britain is already in a very competitive tourism market. Impractical heritage listing obligations, over restrictive planning policies or a "bed tax" on accommodation to raise funds for local authorities, as has been suggested by some outside the tourism industry, are striking examples of the type of measures that the Government, its agencies and local authorities should not pursue. Please see detailed comments under Question 4.

  But the Government should also be more imaginative about recognising the adverse effects on heritage tourism from other possible measures. DCMS in particular, but also other Government departments, should start to take their "heritage proofing" responsibilities seriously. Otherwise the viability of heritage sites to contribute to the tourism legacy of the Olympics will be unnecessarily disadvantaged.

    (d)  Systematic use of relevant websites. Internet browsers considering a visit to Britain must be captured by the VisitBritain (visitbritain.com) and the London Olympics websites (london2012.com/en/ourvision) and then linked to other websites that can provide easily navigable guidance on heritage related accommodation and attractions. The HHA is pleased to see that since making its submission to the DCMS consultation on the Olympics tourism legacy in November 2006, EnjoyEngland has raised its profile such that anyone googling on "hotels in Britain" or "accommodation in Britain" or "staying in Britain", will now be guided to the EnjoyEngland site, amongst others. VisitScotland and VisitWales should take note.

  However, when browsers are caught by the EnjoyEngland or London Olympics sites, both of which have pages about accommodation and cultural attractions, there should be (but are not) links to the main heritage organisations—HHA, National Trust and English Heritage, all of which have easy to navigate directories of heritage attractions. It would then be easy for any HHA members with other facilities, such as training facilities for Olympic participants, to make visiting Olympic teams aware of these facilities. We are working with VisitBritain to effect such a link and will do so with the London Olympic site.

    (e)  Government should work with the grain of tourism businesses to promote higher quality welcome to visitors. For example, the representatives of visitor attractions are working with VisitBritain to develop an updated and customer-relevant national Code of Practice for Visitor Attractions, and to secure participation from as many attractions as possible.

  The exercise promises tangible benefits for visitors and the HHA is pleased that VisitBritain has said it will provide promotional support for the initiative. We await confirmation of this at the Visitor Attraction Forum meeting on 26 March 2007. It is also important that the Government explicitly confirms its recognition that grading is appropriate for tourism accommodation but not for attractions and heritage sites. Places such as Stonehenge, Blenheim Palace, Alton Towers and the Wallace Collection are very different and cannot be squeezed into a one-size-fits-all regulatory approach as has been suggested in the past. There is a responsibility on the industry to improve quality and share innovative ideas, but there is an equal obligation on Government to understand the practical realities of tourism businesses and to commit itself to support VisitBritain and the other territorial tourism bodies and moral support for the industry—a true partnership.

  It is vital for Government to lead on standards of cleanliness and customer service—we must all install a sense of pride and assume a level of responsibility in delivering the very best standards at all times. Litter, graffiti, and other sources of unsightly appearance must be eradicated to present "Britain at its best" and our customer service standards need to radically improve to present the best welcome possible for all domestic and overseas visitors.

  7.2  Business tourism and the Olympics. There is potential for business visitors to enjoy staying at a heritage site outside London as part of a business visit to London that takes in a visit to the Games. Indeed, the business could be conducted at the heritage site too, nearer to an airport, and away from the congestion of London. The website links to VisitBritain and from VisitBritain and the London Olympics site should be put in place to facilitate these opportunities.

  7.3  The Cultural Olympiad 2008-12. After the initial consultation of a wide range of heritage bodies in early 2006 there has been a period of quiet in terms of DCMS's plans for the Cultural Olympiad, certainly as regards national consultation involving private sector operators.

  Privately owned heritage properties organise a huge range of cultural events each year, ranging from classical concerts and plays through to opera, pop and rock festivals, history festivals, re-enactments and pageants. There is scope for this sector to be involved in the Cultural Olympiad and to spread the benefits of the advent of the London Games throughout the country. There is a strong case for this part of the Games preparation in particular to have a much stronger heritage focus than appears to have been the case so far.

March 2007





 
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