Memorandum submitted by Blackpool Council
1. INTRODUCTION
1.1 The development of the tourism industry
fundamentally shaped Blackpool's past, continues to dictate its
present, and will determine its future. For these reasons Blackpool
welcomes the DCMS inquiry into tourism, and this opportunity to
contribute to a vital review of this key sector of the UK economy.
1.2 Over the last three decades the economy
of Blackpool—like many other coastal resorts—has been
subject to serious decline as a consequence of the continued contraction
of the traditional tourist industry. This economic decline has
created a series of highly specific, interrelated problems, which
have led to some of the worst social outcomes in England and Wales.[6]
Nevertheless, Blackpool remains the UK's most popular and important
coastal resort, still attracting 10 million visitors per year.
Indeed, Blackpool still sees its future defined by tourism. In
recent years a dynamic response to decline has begun: local and
regional partners, spearheaded by a new Urban Regeneration Company
(ReBlackpool), has framed and started to implement a radical Masterplan
that will reinvent and regenerate the resort—physically,
economically and socially—into a 21st century destination
of choice.
1.3 It is our view that a great deal more
could be done by Government to support and develop the UK tourist
industry and those places, such as Blackpool, that continue to
depend on it for their economic existence. We firmly believe that
a greater level of state intervention is required to create a
strong, viable new product in many coastal areas; there is certainly
a market for an enhanced offer. We also believe that Government
fails to accord an appropriate level of importance and resource
to tourism given its value to the UK economy. In this context
it is worth pointing out at the outset that tourism is the UK's
seventh largest economic sector. Furthermore, all evidence points
to continued growth in tourism and leisure spending in the future.
1.4 In the sections below we outline our
responses to the various questions of the inquiry, and include
in each our view of what more could be done to maximise the value
of tourism to the nation, and coastal resorts such as Blackpool
in particular.
2. THE CHALLENGES
AND OPPORTUNITIES
FOR THE
DOMESTIC AND
INBOUND TOURISM
INDUSTRIES, INCLUDING
CHEAP FLIGHTS
ABROAD, AND
THEIR IMPACT
ON TRADITIONAL
TOURIST RESORTS
2.1 Recent decades have been extremely difficult
for those areas of the UK that rely on the traditional tourism
industry, most notably seaside resorts. In the case of Blackpool,
the unique scale of accommodation and attractions enabled it to
survive better than smaller rivals, but has reinforced and concentrated
the effects of sharp decline. From 1987 to 2003, visitor numbers
to Blackpool reduced from 13.2 million pa to 10.6 million. More
significantly, the average stay over this period declined from
an average of five days to 2.4 days; visitor spend reduced from
£800 million pa to £500 million pa. The effects of this
decline are visible in the physical condition of the resort and
its inner neighbourhoods, and are evident in increasingly depressing
socioeconomic statistics.
2.2 There can be little doubt that Blackpool
has suffered owing to the growth and availability of cheap holidays
abroad, and rising disposable incomes which have supported the
growth in international travel. It is also true to say that for
a multiplicity of reasons Blackpool has struggled to match growing
expectations in terms of the visitor experience when set against
other locations in the UK as well as abroad. The importance of
this should not be underestimated in terms of domestic competition
for short breaks, which are now the dominant market.
2.3 Low cost carriers are affecting the
industry at weekends in particular; there is certainly a perception
that a weekend abroad via a low cost airline is cheaper and preferable
to a weekend in the UK. National bodies should be better resourced
to advance an alternate image of the UK, for the short break market
especially.
2.4 Increasingly, Blackpool's primary competitors
are the UK's cities—Birmingham, Manchester, Liverpool, Newcastle
etc. With Government money, and considerable footloose tourism
developments, these places have produced a quality of place which
has undermined the offer of traditional tourist areas. Taking
the Northwest for example, since 1990 there has been £194
million of public investment in visitor attractions in the Northwest
of England. However, only a fraction of this figure came to support
traditional tourist areas, with £150 million going to Manchester
and £35 going to Merseyside. If Government treated tourism
in the same way as other forms of industry, such distribution
of public money would be subjected to greater scrutiny and strategic
process.
2.5 Despite the challenge of recent times
and rising levels competition, seaside tourist resorts continue
to possess significant assets and opportunities that can be utilised
in creating positive futures as tourist destinations. Many seaside
towns have been able to break into niche markets, especially those
adjacent to buoyant economies, eg the greater South East. More
generally, short breaks continue to rise and the seaside continues
to be considered as something special, creating an atmosphere
and environment that is impossible within a typical urban environment.
However, as the recent Select Committee's Report into Coastal
Towns has found, Government must urgently do more to assist and
promote the British seaside, and those resorts that fundamentally
depend on tourism. Certainly, research confirms that there is
a market for a differentiated, 21st century resort experience
within the UK market, and this is what the Blackpool Masterplan
is designed to deliver.
3. THE EFFECTIVENESS
OF DCMS AND
ITS SPONSORED
BODIES (SUCH
AS VISITBRITAIN)
IN SUPPORTING
THE INDUSTRY
3.1 Given the status, size and importance
of tourism to the UK economy, it is our view that DCMS, together
with Government more broadly, attaches a fraction of the importance
and resource appropriate to its development. Central government
lacks a solid grasp of the dynamics of the industry, which has
been exacerbated by the fragmentation caused by new structures.
As well as being extremely small, with unhelpful frequent changes
in key personnel, the DCMS tourism function is sorely lacking
in direction, overly London-centric, and does not act as the voice
of tourism across and within Government in the way it should.
3.2 In the circumstances, we believe VisitBritain
is doing fairly well. Nevertheless, following devolution to the
RDAs there is a vacuum at a national level of tourism policy and
development; in reality, VisitBritain has been unable to shift
focus onto little other than its strategic marketing remit. The
inadequate resourcing of VisitBritain is thrown into sharp relief
when compared with the Welsh and Scottish equivalent, and it is
incredible that VisitBritain is likely have a reduction in its
already meagre budget in coming years.
4. 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
4.1 Recent reorganisation of structures
and devolution has led to a lack of cohesion between sponsored
bodies in the tourism sector, with RDAs having no requirement
to work with VisitBritain for example. Certainly, devolution to
regional and sub-regional level has led to a lack of strategic
focus, with sub-regional tourist boards trying to be all things
to all people, rather than focusing on established strengths and
brands. We believe that Government should undertake an immediate
review of structures and their effectiveness, utilizing the expertise
of others, and then implement the recommendations.
4.2 Broadly, the national marketing of the
UK is insufficiently differentiated, and all too frequently presents
the typical image of castles and green fields. National marketing
needs to become far more targeted, so that it can present the
many differing offers to the right audience with confidence.
4.3 We have already highlighted the chronic
under-resourcing of tourism marketing and development by Government.
VisitBritain's budget is very small when compared globally. For
example, it is only the 26th largest National Tourism Board Budget
in the American market, which is our most important as a nation.
5. 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
5.1 The existing VAT system places tourist
industries at a distinct disadvantage with international competitors—European
in particular. Visitors to the UK pay twice the European average
VAT cost for accommodation, and it is a similar situation in terms
of admissions to attractions. Government could use the magnetic
effect of the Olympics and Liverpool 2008 Capital of Culture to
reorder VAT and other taxes, and proactively assist in levering
in millions of additional visitors to the UK in the years ahead.
5.2 Given the challenges faced by coastal
resorts in particular, we are extremely concerned about the potentially
negative impact of the introduction of a bed tax. Accommodation
providers in Blackpool are struggling to compete as it is, and
Britain is already perceived to be overpriced (and lacking in
quality) by the international market.
5.3 In general, Government must act to allow
tourism related businesses to access capital allowances, subsidies
and lottery money in ways that are afforded to other areas of
industry. In addition, we urge Government to look at relatively
small changes which would have a very positive impact on business
concerned, eg reform of business rates to exempt historic piers,
which are typically owned by small companies and are very expensive
to preserve and maintain.
6. WHAT DATA
ON TOURISM
WOULD USEFULLY
INFORM GOVERNMENT
POLICY ON
TOURISM
6.1 Quality data is essential to inform
policy and investment decisions; it is well understood and accepted
that current statistics and research is wholly inadequate given
the importance of the sector to the national economy. Government
must task a specific body to research and create the level of
data required, and resource it appropriately. This research must
include reliable data on value, volume and profitability of both
staying and day visitor, and benchmarking against our closest
competitors. In doing this we urge Government to properly implement
the recommendations of the 2004 Allnutt report.
March 2007
6 For more detail on the Blackpool experience and the
extent to which existing Government policy meets our needs, please
refer to Blackpool Council's submission to the recent DCLG Select
Committee inquiry into coastal towns-see http://www.publications.parliament.uk/pa/cm200506/cmselect/cmodpm/1023/1023we62.htm Back
| 
