Select Committee on Culture, Media and Sport Minutes of Evidence


Memorandum submitted by the National Trust

INTRODUCTION AND SUMMARY

  1.  We welcome the opportunity to respond to the House of Commons Culture, Media and Sport Committee Inquiry into tourism policy. This comes at a critical time for the tourism sector with the approach of the 2012 Olympics, the forthcoming Government's Comprehensive Spending Review and the ongoing debates about the impacts of expansion of the aviation industry and the contribution air travel makes to climate change.

  2.  The Committee's inquiry is, therefore, well placed to reinforce the contribution tourism makes to the UK's economy, and in particular its value for the economy of rural areas; assert the need to protect and care for the assets which attract visitors, namely a high quality environment and a rich cultural heritage; and to understand what resources are required to help the tourism sector deliver a more sustainable product. This should follow up on the Government Prospectus for Tourism and the work of the Tourism Reform Implementation Group (TRIG).

  3.  We refer the Committee to the written and oral evidence the National Trust submitted to the previous Committee Inquiry Tourism After September 11th in 2002. Our contribution to the recent Committee inquiry into heritage Protecting and Preserving our heritage also provides evidence of the role of the historic environment for tourism and the specific challenges the heritage sector is currently facing

  4.  Tourism is expected to continue to grow as an economic sector for the foreseeable future and the Government's Tourism Prospectus—Tomorrow's Tourism—established a target to grow the UK market to £100 billion by 2010. However, the tourism sector faces a number of challenges that without action this target will be undermined—namely the investment and resources required to care for the assets of a high quality natural and historic environment, the ever increasing tourism deficit and the effects of the rise in visitor car based travel.

  5.  Our key points and recommendations are:

    —    to recognise the significant contribution domestic tourism makes to the UK economy and that realising the growth already occurring in this market— by concentrating on further development and promotion of domestic tourism—will address the tourism deficit much more efficiently than by greater investment into increasing the number of overseas visitors;

    —    that a secondary benefit of improving and growing the domestic tourism market is that it can tackle the need to provide greater air travel capacity and so diminish the demand for detrimental airport expansion;

    —    that tourism is particularly well placed to deliver public policy objectives for rural regeneration;

    —    that tourism has a wider importance and significance beyond the purely economic, such as the role it plays in providing local identity and wellbeing;

    —    that despite these benefits tourism, particularly on the domestic scale, remains under-recognised within current debates in the policy agenda such as sustainable regeneration or climate change, and that the contribution and impacts tourism can make needs to be integrated into wider planning and policy development;

    —    to recognise the need to reduce the environmental impact from leisure related travel through greater funding for public transport and requiring the use of visitor travel plans; and

    —    that the Government need to recognise, support, protect and enhance the high quality environmental assets ( natural and cultural) on which tourism depends including by examining the role of visitor pay back schemes

ROLE OF THE NATIONAL TRUST

  6.  The Trust's contribution to the inquiry draws on our role as owner, manager and landlord of an extensive portfolio of properties and landholdings across England, Wales and Northern Ireland with extensive public access. We seek to integrate our conservation responsibilities with the management of a major tourism business turning over £300 million each year. We annually welcome some 13 million visits to our-pay-for-entry properties and an estimated 100 million visits to our coast and countryside properties. We also undertake a vast range of tourism-related activity to support these visits. This includes:

    —    operating the Europe's largest collection of holiday cottages—with over 350 cottages across the country and an annual turnover in excess of £6 million;

    —    offering over 400 working holidays a year where people volunteer to work on conservation projects at our properties;

    —    hosting over 80 tenants offering bed and breakfast accommodation, 50 camping and caravanning sites on our land and accommodating 21 YHA hostels;

    —    running 135 restaurants, cafes and tea rooms with a collective turnover of £17.5 million—the nation's largest network;

    —    promoting and investing in regional and local produce and crafts—including 25 local vineyards, 32 local cheese makers and 20 local ice cream makers; and

    —    investing significantly in domestic advertising and promotions—including events, press and other media activity and as a partner with VisitBritain.

  7.  We are members of a large number of Destination Management Partnerships throughout England and sit on the board of several Regional Tourism Bodies. We work closely with relevant organisations such as the Association of Leading Visitor Attractions (ALVA) and Tourism Alliance and contributed our expertise and experience to the work of the Department of Culture, Media and Sports Tourism Reform Implementation Group (TRIG).

TOURISM AND THE BENEFITS IT DELIVERS

  8.  Tourism is one of the largest industries in the UK, worth approximately £75 billion in 2003 and employing some 2.2 million people, 8% of the working population. We believe that many tourism businesses are of the future—in an increasingly competitive world the raw materials for UK plc will increasingly be based on knowledge, skills, sense of place, quality and a clean environment. We are investing over £160 million in the nation's environmental infrastructure, often in places bypassed by market forces. In many ways, the Trust is like a development agency—investing for ever in the economic resources of the future. Trust activities alone in the North East, Wales, Cumbria and the South West generate between five and nine additional full time jobs for every person (Full Time Equivalent) directly employed by the Trust. In total, the high quality of the natural and built environment generates just over 137,000 full time jobs (FTEs) in these areas.

  9.  As well as being a hugely important economic driver, we believe tourism has much to offer wider social and environmental objectives. This includes providing opportunities for education and lifelong learning (through visits to properties but also through active engagement and volunteering to help look after these properties), underpinning the viability of a huge range of rural (often small) businesses, promoting a sense of positive local identity and social cohesion from a shared local history/culture and the resources that it offers and providing attractive places where businesses and communities can thrive.

  10.  Given its importance in rural areas, the aforementioned targeted growth of tourism by the Government also has the potential to contribute to the Government's rural regeneration targets to raise economic productivity within the least well performing rural wards. For example, in Cornwall, the poorest county in the country, tourism is a key driver of the local economy. The sector contributes up to 24% of Cornwall's GDP, including retail spend—a figure five times the national average—and one in five people in Cornwall gain an income from the tourist industry.

  11.  However, whilst the impacts of the 2001 Foot and Mouth outbreak, which saw tourism losses at £3.3 billion, illustrated just how important tourism is to rural economies, this experience and the lessons learnt have not yet been fully appreciated. As a result, the Trust believes the wider role of tourism is still not properly recognised in either current debates about tourism or the public policy framework which supports it. All too often the focus of much of the tourism debate remains on large scale visitor attractions, infrastructure and the international market which needs to move to one that emphasises the potential contribution of tourism to sustainable regeneration and development in both urban and rural areas and its dependence on a high quality environment and the competitive advantage of local and regional character in building sustainable and successful businesses.

DOMESTIC TOURISM

  12.  The role which domestic tourism has to play in driving forward the sector is, in particular, underplayed by current tourism policy and investment from national and regional Government. There is at present an £18 billion balance of payments deficit at the expense of the domestic tourism industry. As the DCMS Tourism Prospectus recognises the domestic market in England accounts for 86% of the tourism revenue and there is the potential for further significant growth in short break and rural and cultural tourism markets. The recent domestic marketing campaigns run by VisitBritain and EMAB have been extremely welcome and we look forward to continuing to work with them and the various regional partners in future domestic campaigns. We are disappointed, however, that despite the overriding importance and future potential of the domestic market, government tourism policy overall continues to place significant emphasis on international markets and the pursuit of growth per se. This is despite the fact that even small changes in the trends in domestic tourism would outstrip even significant changes in the much smaller international market.

  13.  VisitBritain is given £35.5 million to spend on international marketing, but only £13.3 million to invest on marketing England to the domestic tourist in 2005-06. However, in terms of tourism revenue, the domestic market far out-strips the international market with UK residents contributing over £60 billion a year compared to just under £12 billion from international visitors. As the graph below shows, a 10% rise in domestic tourism would generate £6 billion in additional revenue, whilst the same rise in international would result in just £1.2 billion.


  Graph: Office of National Statistics

  14.  Moreover the benefits and burdens of domestic tourism are more widely spread over the UK, given the focus of international tourists on relatively few locations. This is especially important in rural areas where, for example, in the south-west of England domestic visits account for 14 times the number of those from overseas. The Trust believes more emphasis needs to be placed on persuading people to take short breaks and holidays in this country. This would bring a range of benefits including helping to reduce the growing balance of tourism payments deficit, bring welcome tourism revenue to rural (and urban) communities and reduce the risks to the sector of the continued volatility in international tourism and travel.

  15.  Encouraging the domestic market can also potentially reduce the need for further significant expansion in an environmentally damaging aviation sector. It is currently cheaper to fly from London to southwest France for the weekend than it is to take the train to Bath. We believe such cheap flights, where the price of the ticket does not factor in the true cost of either fuel or the environmental impact of air travel, are actively encouraging people to holiday overseas. This has in turn led to the aforementioned £18 billion balance of payments deficit. We are deeply concerned that this deficit can only worsen should the policy to greatly expand airports coming out from the Government's Aviation White Paper (2003) be fully realised. We believed the resulting Aviation White Paper was greatly flawed, with it findings based on unrealistic growth forecasts based on a continuation of current trends for increased air travel. However, this growth relies on anomalies within the tax system and does include environmental and social costs. Such forecasts represent derived demand, and are not a response to need. We believe that the expansion of airports and the current situation of cheap flights have caused much damage to domestic tourism.

  16.  Such impacts are not included in the economic case made for airport expansion. It is estimated that in East of England this deficit equates to £2 billion, dwarfing the £400 million contribution that BAA Stansted makes to the regional economy. In proposing locations for new airport capacity, Government also failed to take account of impacts on natural and historic environment beyond the loss of listed buildings. It is threatening many beautiful and historic properties owned by the National Trust such as the effect of noise and pollution on Hatfield Forest near Stansted, damage from vibrations on Speke Hall on the edge of Liverpool and the loss of tranquillity on the North Downs and Hadrians Wall.

  17.  The Trust takes an active involvement in aviation and related issues. This has included making representations at public inquiries into airport expansion at Manchester and Stansted and publishing research Blue Skies into the impact of the expansion of aviation on domestic tourism. We made detailed comments on each of the regional reports that made up the Government's aviation green paper. We are particularly concerned by the insidious expansion of smaller regional airports and have actively lobbied against the plans of Wolverhampton Airport and Robin Hood Airport. We would like to see a government target to reduce the current deficit by placing a greater emphasis on the domestic market, especially in marketing and promotion lessening the pressure for further significant expansion of an environmentally damaging aviation sector.

VISITOR TRAVEL

  18.  Another key concern of the National Trust, amongst others, is the high dependency of the tourism sector, particularly in rural areas, of visitors by car and the impacts these visits have on the quality of the experience, the state of the assets the industry is based upon and the wider economic, social and environmental costs of growing visitor and rural traffic.

  19.  Over the last decade, the National Travel Survey has recorded an increase of 5% in leisure travel (as measured by passenger km). The average distance travelled for each trip has increased by around 11% to an average of 6.8 miles in 1999-2001. Current figures show that more than seven out of ten tourism day trips and nearly eight out of 10 holiday visits are made by car. In some of the most popular but also environmentally sensitive areas, such as National Parks, this rises to more than nine out of 10 visits. Rural leisure trips have become one of the fastest growing sources of traffic, a rise which threatens to undermine the very assets visitors come to see and experience in the countryside—causing visual blight, noise and air pollution and visitor dissatisfaction as well as creating problems of congestion in particular hotspots. As a conservation charity and major tourism business heavily dependant on visitors who enjoy the convenience of the car, the National Trust faces some real dilemmas in meeting the needs of our visitors while seeking new and less damaging alternatives.

  20.  Visitor Travel—Policy from Practice showcases some ways in which the Trust is seeking to encourage greater choice in leisure travel and the benefits which come from doing this. Examples include the popular Devils Dyke bus in the South Downs and the Shropshire Hills Shuttles, which have both shown that such schemes can also deliver wider regeneration benefits to local economies, enhance access for both visitors and local communities and improve the quality of the visitor experience.

  21.  Our report also highlights, however, that whilst the Trust has provided financial support for transport schemes this can only ever touch the surface of what is needed to tackle the issue seriously. A stronger sense of direction on leisure traffic is needed from Government. We believe, for example, that DCMS has an important role in championing the importance of sustainable tourism, accessible both for visitors and the workforce, to Regional Development Agencies as part of their regional economic strategies. This is especially important now they have lead responsibility for funding such schemes following the demise of the Countryside Agency's projects.

  22.  The most urgent need is to secure long term funding following the end of the successful Countryside Agency Rural Transport Partnership Scheme and the Government's Rural Bus Challenge Fund. Their loss has left many existing and highly valued transport schemes on a financial knife-edge or scrapped. More widely we believe there is a need for visitor travel planning to be given the same emphasis and promotion on workplace and school travel plans and that this might be developed in taking forward the work of Tourism Reform Implementation Group.

PROTECTING THE ASSETS—THE VALUE OF A HIGH QUALITY ENVIRONMENT

  23.  From our experience on the ground, we know that tourism contributes much needed income to local economies across the country and that there is an important link between a high quality environment and the future economic sustainability of communities. For example, our Valuing our Environment studies found that 40% of the jobs created through tourism rely directly on a high quality environment and that this increases to 60% to 70% in rural areas.

  24.  Many of these visits are attracted by the quality of the local environment—beautiful coast and countryside, well-maintained footpaths, local foods and crafts, historic towns and villages with distinctive architecture or materials, or a lively cultural life. Significantly, the quality of the overall experience is as important as the quality of the assets themselves. For example, in a MORI poll and research commissioned by the National Trust over 80% of adults, felt that visiting the countryside is a vital counterbalance to the stresses of their daily life. Over half those polled are in search of "peace and quiet".

  25.  We would like to see greater recognition of the role as an economic asset that a high quality environment plays and a greater commitment to the duty to care for what is essentially a vulnerable and fragile commodity. Our experience across the English regions, Northern Ireland and Wales suggests that whilst many tourism strategies refer to the importance of natural, cultural and historic assets the need to protect these assets is not recognised as a priority.

  26.  We also believe more could be done to consider the needs and value of tourism in other policy areas, such as land use planning policy, transport and regional economic development. For example, the costs of caring for our historic environment runs into the hundreds of millions, with the National Trust facing a £200 million backlog in maintenance costs alone, and yet these sorts of costs and the impact they will have on the quality of the visitor experience and expectations if they are not met is not merited with enough importance. Other agendas such as museums and agri-environment schemes are also relevant to the success of the tourism sector.

  27.  This is not to say that the recognition of the need to ensure the quality of the visitor experience is not beginning to be tackled. We support the new VisitBritain's National Quality Assurance Schemes, a grading scheme that is aiming to improve the quality of accommodation and services as an essential foundation to delivering a quality experience—including achieving a common grading standard that is readily understood by the customer. Such a system, however, is not without its costs and we estimate it would require significant investment by the Trust to implement across all our holiday properties. When looking at self catered accommodation the particular nature of many holiday cottages will need to be taken into account as it is often the character and setting of such accommodation rather than the range of facilities on offer that matters most.

  28.  We welcome the recommendation in the recent Lyons Report that the Government explores the costs and benefits of a permissive power for local authorities to levy taxes on tourism. Whilst we do not support proposals for a mandatory bed tax as we do not believe that these will deliver the kind of targeted ring fenced funding which is required to help protect the assets, we are in favour of imaginative schemes that can help promote sustainable tourism such as the The Tourism Conservation Partnership (TCP). This was established in 1993 to create a partnership between business and conservation organisations in the Lake District including the National Trust. The Partnership runs a "visitor payback" scheme which is optional and directed at local conservation projects. Importantly it helps to raise awareness in people's minds that "the countryside costs" and so it does an important job above and beyond the income it generates.

  29.  We would like to see the sector share lessons on investment schemes such as the North West's high profile regional programme called Natural Economy with its main objective to maximise the economic benefit from projects to improve the natural environment. The North West has also established a Regional Heritage Tourism Officer. whose aim is to award funding for heritage attractions to carry out projects that would increase their commercial benefit—eg tea shops, visitor centres and so on.

  30.  However, in general, ensuring the availability and quality of such "services" often lies beyond immediate tourism providers and therefore the sector needs to make these connections to those that do have an influence on the wider environment is critical. We believe that the DCMS can play a valuable role as a champion for tourism and that this should take in the responsibility for ensuring cross departmental working which identifies the current policy initiatives that may impact on tourism (such as DCLG's land use planning reforms, DEFRA's work on climate change or DfT's transport funding and infrastructure policies) and which DCMS and the sector should be seeking to influence.





 
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