Joint memorandum submitted by VisitBritain
and the England Marketing Advisory Board
1. EXECUTIVE
SUMMARY
1.1 Since 2003, VisitBritain has continued
to work with the industry to rebuild the value of the UK's inbound
visitor economy in the aftermath of Foot and Mouth Disease and
9/11. Despite subsequent events such as the SARS outbreak, the
Iraq war and the London bombings, in 2004 overseas visitors spent
£13 billion, exceeding the 2000 spend of £12.8 billion.
In 2005, a record 30 billion visitors spent £14.2 billion
and provisional results for 2006 show a further increase to 32.2
million visitors spending £15.4 billion.
1.2 Despite returning to real growth for
the first time since 2000—in 2005 the UK tourism industry
generated £85 billion for the economy—the industry
faces enormous challenges. Britain's share of global international
tourism receipts is declining: from 6.5% in 1980 to 3.8% in 2005—a
reflection of increasing global competition. To maintain market
share it is essential to build share in growth markets such as
Brazil, China, India, Poland and Russia where we are now concentrating
a great deal of effort whilst continuing to nurture high value
mature markets such as the US and Japan.
1.3 In the domestic market, the value of
overnight visits by domestic residents is flat but foreign trips
taken by UK residents are increasing: for every £1 spent
in the UK by an overseas visitor, the British spend £2.17
overseas. Since being tasked with the domestic marketing of England
in 2003, VisitBritain has been working hard to address this under
the Enjoy England banner. We have built a portfolio of campaigns
that build on England's strengths and are achieving success in
shifting perceptions of England as a destination by portraying
it as real, fun and indulgent. We have also built a database of
1.3 million consumers who are actively interested in taking short
breaks in England; and developed a dedicated website www.enjoyengland.com
and a national database for England (EnglandNet), to present England's
accommodation events and attractions products, which is able to
interoperate with providers' own websites.
1.4 Since taking over responsibility for
the quality schemes in England, our aspiration has been to use
them as a tool to drive up the quality of the visitor experience.
From 2006, all serviced accommodation in England, Scotland and
Wales has been assessed to the same criteria, irrespective of
whether the assessment was carried out by VisitBritain, VisitScotland,
Visit Wales or the AA. For self-catering, common standards were
introduced in 2005.
1.5 We are developing new schemes to respond
to industry and consumer demand. A scheme for spas has already
been launched this year and, with the support and involvement
of the leading industry associations, we hope to introduce a National
Code of Practice for Visitor Attractions later in the year. Also,
from April, all businesses participating in any of our schemes,
will be required to produce access statements.
1.6 With sustainability at the forefront
of the agenda, VisitBritain has begun a major overhaul of its
sustainable tourism policies and has commissioned research into
domestic consumers' attitudes towards sustainable tourism. We
will also work with partners to develop an entry level "green
tourism" quality assurance scheme during 2007-08 to recognise
businesses that operate in a sustainable and environmentally friendly
way. Our intention is to support, and provide a stepping-stone
towards, existing schemes such as the Green Tourism Business Scheme
and Bellamy Award that currently have limited regional and sectoral
penetration.
1.7 The structure of public sector tourism
in the UK is complex, a natural consequence of Devolution, and
effective partnership working is necessary at all levels to maximise
effectiveness and value for money. At national level, partnership
working between VisitBritain and the national tourist boards is
well embedded.
1.8 In England, following the creation of
the RDAs which assumed lead responsibility for tourism at regional
level, introducing a joined up approach is a significant challenge.
This is being addressed by the England Marketing Advisory Board
and VisitBritain working in partnership with SWRDA and fully supported
by DCMS: the Partners for England initiative was launched in 2005
with the aim of pursuing economies of scale and creating a more
cohesive and productive English visitor economy. (In 2006: RDAs
invested £56.71 million in tourism marketing and local authorities
£122 million.)
1.9 We do not believe that there is anything
that a separately funded tourist board for England could do that
is not being done just as effectively by VisitBritain and EMAB,
and our partners. Preparations to maximise the legacy of the 2012
Olympic Games and Paralympic Games are well advanced: radically
changing the structures of public sector tourism could upset this
process.
1.10 Early estimates suggest that the Games
will generate at least £2 billion for the inbound visitor
economy between 2008-17. We are now reworking this using a sophisticated
model and will be undertaking work on the benefits for domestic
tourism that are as yet unestimated. We have identified over 1,000
international sporting events that could be won for Britain between
now and 2020. We are also in discussion with LOCOG about how we
can add value to its plans for the Cultural Olympiad between 2008-12.
1.11 To effectively maximise the legacy
of the Games, the public and private sector need to work together
to plan and invest to make them an enormous sporting and PR success.
We also have to ensure that Britain has the products, and can
offer the quality of experience and welcome, that visitors will
expect. It is a unique opportunity to fast track a decade of progress.
1.12 VisitBritain has undertaken a great
deal of work to improve the quality of tourism statistics at national
level since taking on this responsibility from the English Tourism
Council in 2003. It is recognised that national data does not
always fully meet the needs of regional users and the stakeholders
at national and regional level: as part of the Partners for England
initiative the stakeholders are pursuing the possibility of establishing
a tourism statistics unit to make combined use of our research
efforts.
1.13 Overall, VisitBritain concentrates
marketing efforts on those areas that the industry would find
difficult to deliver such as building the Britain and England
brands, delivering impartial information to consumers and converting
their interest in Britain into a visit; investing in emerging
markets to secure mid and long term growth and providing a route
to market for SMEs.
1.14 VisitBritain generates high returns
for the visitor economy. Over the three years to 2005-06, for
every £1 that government invested in VB's domestic and international
activity, we generated a return of 36:1 for Britain and England's
visitor economy. This equates to an average additional spend by
inbound and domestic visitors of £1,689.9 billion that supports
around 42,250 full time equivalent jobs. We also generate a significant
amount of revenue, primarily from partnership activities with
industry, which we estimate will amount to around £22 million
in 2006-07. In addition, last year, the coverage we achieved through
our PR activity had an advertising value of around £632 million
and, since April 2006, there have been over 17 million visits
to our websites. We now have an excellent foundation on which
to build and to deliver the legacy of the Games and the long-term
growth of the British and English visitor economies.
2. THE STRUCTURE
AND FUNDING
OF THE
TOURISM INDUSTRY
IN GREAT
BRITAIN AND
ITS EFFECTIVENESS
The Structure of Public Sector Tourism Bodies
in Great Britain
2.1 The British Tourist Authority (BTA),
together with the Scottish, Wales and English Tourist Boards (the
NTBS), was created by the Development of Tourism Act 1969 (the
Act). BTA was charged with encouraging people living overseas
to visit Great Britain and people living in Great Britain to take
their holidays there; and with encouraging the provision and improvement
of British tourism facilities. The NTBs were given responsibility
for promoting their nations domestically. Tourism in Northern
Ireland was already devolved and the Northern Ireland Tourist
Board (NITB) had been created in 1948 under separate legislation:
hence, BTA was not charged with promoting the UK albeit the Act
provides for BTA to promote Northern Ireland overseas at the request
of NITB.
2.2 In 1998, tourism was devolved to Scotland
and Wales and BTA was designated a "cross border" authority.
Since that time our Funding Agreement has taken full account of
our cross border role and contains specific targets related to
spreading the benefits of inbound tourism throughout Britain.
2.3 Also in 1998, the Regional Development
Agencies Act created the nine RDAs and, in 2003, they assumed
strategic responsibility for tourism in the English regions. In
most cases, the RDA contracts with its Regional Tourist Boards
to deliver its strategy, although in the East Midlands and Northern
East the RDA undertakes delivery in house and, in the North West,
the RDA uses five sub-regional boards as its delivery channel.
In 1999, the Greater London Authority Act gave the GLA a statutory
duty to promote Greater London as a destination and as a gateway
to the rest of the UK.
2.4 On 1 April, 2003, following a review
by DCMS, BTA and the English Tourist Board—by then trading
as the English Tourism Council (ETC)—were merged to create
VisitBritain. At that time, ETC was not funded to undertake any
marketing activity but it had become apparent, post Foot and Mouth
Disease, that there was a critical role for the public sector
to play. Thus, in the interests of efficiency, VisitBritain (VB)
was created to promote Great Britain overseas and to co-ordinate
the marketing of England domestically. In legal terms, VB is a
trading name for the BTA.
2.5 To ensure that there was a clear delineation
between VB's international and domestic roles, DCMS created the
England Marketing Advisory Board (EMAB) to oversee the creation,
implementation and delivery of a marketing strategy for England
and the grant-in-aid that VB receives for this activity is ring-fenced.
Furthermore, VB conducts its England activity under the Enjoy
England banner to ensure a distinct identity and the team effectively
reports to EMAB which then advises and reports back to the VB
Board.
2.6 Finally, on 1 April 2006, the Welsh
Assembly abolished the Wales Tourist Board and transferred its
staff and functions into the Assembly within which it now operates
as Visit Wales.
Public Sector Funding for Tourism in Great Britain
2.7 VB has calculated the total amount of
public sector investment in British tourism and plotted it on
the map below.
2.8 As can be seen, the amount spent by
VB is dwarfed by the overall spend, particularly in England by
RDAs and local government. The way in which we are addressing
the challenge of co-ordinating this spend is discussed below.
Working Effectively at National Level to Promote
Britain
2.9 VB regards VisitScotland, Visit Wales,
Visit London, the Northern Ireland Tourist Board, and latterly
the England Marketing Advisory Board coupled with its own Enjoy
England team, as key strategic, and equal, partners (the Strategic
Partners) in building the value of inbound tourism to Britain.
We recognise the synergies and efficiencies that can be obtained
by working together to promote Great Britain overall, especially
in less mature markets where the individual country brands are
not recognised, and we have a long history of co-operative working.
2.10 The Chairmen of VS and EMAB have ex-officio
seats on VB's Board, and the Welsh Assembly now appoints someone
to the Board directly to represent the interests of Wales. The
Chairmen of the Northern Ireland Tourist Board, Visit London and
the South West Regional Development Agency, which has lead responsibility
for tourism among the RDAs, all attend Board meetings as observers.
Beneath this, the tourist board chief executives meet quarterly
to discuss areas of common strategic interest and, in parallel,
there are similar meetings between directors and senior operational
staff engaged in all areas of our activity such as International
Marketing, Public Relations, Quality, Research and Strategic and
Business Planning.
2.11 VB is active in 36 markets around the
world, operating out of 22 offices. In a further 14 locations
our staff are co-located with the British Council or British Embassy
or are based in one of our hub offices. Our overseas infrastructure,
local market knowledge, contacts and general professional expertise
are highly valued by our Strategic Partners as is our work in
emerging markets. Against this background, and in recognition
of the increased investment being made in tourism by the Scottish
Parliament, Welsh Assembly and the GLA, in 2003, VB and its Strategic
Partners introduced the "Agency Model".
2.12 Under the Agency Model, VB withdrew
from all proactive Britain marketing in four "priority markets":
France, Germany, Ireland and the Netherlands, where each of the
individual country and the London brands were firmly established
and recognised by consumers. Instead, VB acts as a marketing agency
in providing services to the Strategic Partners and, in addition,
guarantees the on territory provision of core infrastructure and
expertise that can be used by the Strategic Partners to develop,
co-ordinate and launch individually branded marketing activities.
2.13 A welcome consequence of this development
was that DCMS widened EMAB/Enjoy England's remit to include international
marketing in the priority markets. Given that ETB/ETC never enjoyed
overseas marketing powers the significance of this development
cannot be underestimated and, in legal terms, it was only possible
due to the fact that Enjoy England is technically a division of
VB.
2.14 On the international side, the introduction
of this model has enabled VB to reallocate £1 million per
annum to promoting Great Britain and its constituent brands in
emerging markets and we have also been successful in winning agency
contracts from the English regions. In 2006-07, our agency model
turnover amounted to around £3.4 million. Our Strategic Partners
have been extremely positive in their support and we are consulting
with them on an updated version of the Model which would enable
us to free up further funding for emerging market work.
Working Effectively to Promote England
2.15 In 2006-07 VisitBritain received grant
in aid of £14.4 million to invest in Enjoy England. On the
other hand, the RDAs invested £56.71 million in tourism marketing
and, beneath this level, local authorities spent £122 million.
2.16 Clearly there is a commitment at regional
and local level to invest in English Tourism. However, it is widely
recognised that this spend is all too often fragmented and ineffective.
English regions and sub-regions are increasingly in danger of
over-competing with each other, particularly from an international
perspective, rather than competing with other destinations outside
England and addressing the sizeable balance of payments deficit
which now stands at £18 billion, having trebled in real terms
since 1999. Put another way, for every £1 that is spent in
the UK by an overseas visitor, the British spend £2.17 overseas.
2.17 The growing recognition of these concerns
promted EMAB and SWRDA, under the leadership of their respective
Chairmen Hugh Taylor, and Juliet Williams, to join forces in 2005
to create the Partners for England (P4E) initiative which has
been supported fully by VB and DCMS from the outset. The vision
was—and remains—to bring together the public and private
sector to address the key issues surrounding the tourism industry
in England, with particular emphasis on the national/regional/local
tourism interface and the pursuit of economies of scale and a
commitment from all the parties to create a more cohesive and
productive visitor economy. The scale of the challenge is immense
but so is the prize.
2.18 The first steps were simply to get
the parties around the table, open a dialogue and imbue a shared
sense of purpose. Thus, for the first time since the establishment
of the RDAs, RDAs, Local Authorities, national agencies and the
private sector came together at two summits in December 2005 and
June 2006 to debate issues of common concern. Four areas emerged
as being in most urgent need of attention:
— Destination management, and
2.19 Working Groups, whose members have
been drawn from DCMS, RDAs, VB and local authorities, have been
formed to take forward these priority areas by developing statements
of intent and action plans that can be placed before the next
P4E forum for consideration on 18-19 June.
2.20 Clear strategic leadership is essential
in order to influence, interpret and embed policy at all levels
within the domestic visitor economy. EMAB is best placed to provide
this and, with the full support of DCMS, its membership is being
reviewed to ensure that key stakeholders will be represented on
the Board. EMAB will then report back to the P4E forum on which
all of the stakeholders will be represented. By analogy, we see
this operating in a similar way to a company reporting back to
its shareholders.
Does the Current Structure Work?
2.21 We would argue that there is nothing
that a separate tourist board for England can do that is not being
done just as effectively by VB and, moreover, done more cost effectively
due to the synergies that can be obtained as a result of maintaining
a single operating organisation.
2.22 The success of EMAB and Enjoy England
in establishing a distinct and separate identity for England marketing
is witnessed by the fact that, in November 2006, Enjoy England
won Best European Tourist Board at the British Travel Awards.
2.23 Our strategy is centred around building
the value of tourism in England by working with partners to develop
and promote England as a quality destination and exploiting the
technology at our disposal to provide the best possible service
to visitors and industry.
2.24 We are aware that there are some calls
from the industry for a review of the Development of Tourism Act,
and for EMAB to be funded directly and re-established as a separate
English Tourist Board. We do not believe that this would achieve
anything that the current structure cannot. It is also worth noting
that, as tourism is a Devolved matter, restructuring the national
tourism bodies across the UK is not a matter for DCMS alone. Any
review of the Development of Tourism Act would require the full
involvement of the Scottish Parliament and Welsh Assembly.
2.25 VB, working as equal partners with
Visit London and DCMS, is now well advanced in preparations to
maximise the tourism legacy of the 2012 Olympic and Paralympic
Games. Radically changing the structures of public sector tourism
support at national level could affect this process. In any event,
any review would certainly need to be undertaken swiftly if it
were to have any positive effects on support for the industry
in the 2012 context.
3. VISITBRITAIN:
OUR WORK
TO SUPPORT
INDUSTRY
3.1 VB's strategic priorities are to:
— Build the value of tourism to Britain,
generating additional revenue throughout Britain and throughout
the year, including by working with partners to position Britain
as a world class destination by creating world class destination
brands and marketing campaigns;
— To build the value of tourism in
England including by working with partners to promote England
as a quality destination and to improve the quality of welcome
for visitors;
— Invest in and exploit the technology
at our disposal to provide the best possible service to visitors
and industry.
3.2 And, woven through all of this:
— To maximise the legacy of the London
2012 Olympic and Paralympic Games for the benefit of the visitor—and
wider—economy—which is dealt with in section 4 below.
3.3 We concentrate our efforts on those
areas that the industry would find difficult to deliver. In particular,
building the Britain and England brands; delivering impartial
information to consumers and converting interest in Britain and
its constituent parts into a visit; providing advice and a route
to market for the 130,000 SMEs that make up 70% of the industry;
and investing in emerging markets to secure mid and long term
growth.
3.4 Our work generates high returns for
Britain's visitor economy. Our evaluation methodology has been
subject to audit and in its November 2004 Value for Money Report
on VB's activities the National Audit Office said: "There
is little doubt that its [VisitBritain's] activities are generating
high returns'.
3.5 Over the three years to 2005-06, for
every £1 that government invested in VB's international and
domestic activity, we generated an average of £36 for Britain
and England's visitor economy meaning that inbound and domestic
visitors are spending £1,689.9 billion that would not otherwise
have been spent. In turn, these returns are supporting around
42,250 full time equivalent jobs in the industry.
3.6 VB is an award-winning professional
marketing organisation. We achieve this high ROI by carrying out
comprehensive market research and gathering intelligence to inform
marketing decisions, and by adopting new media technology to reach
target market segments. Further contributors to VB's effectiveness
are the high level of trust consumers and industry have in the
organisation, and our ability to broker partnerships with public
and private sector interests. Partnership working is embedded
in virtually all areas of our activity.
3.7 Because of its importance in improving
Britain's image, the overseas press coverage that we generate
is also subject to external evaluation. For 2005-06, we achieved
a score of 4.42 out of 5, for the appropriateness and quality
of media message and content, in the 6,758 articles and broadcasts
that we generated and they had an estimated advertising equivalence
of £600.4 million. During the first six months of 2006, we
generated 3,804 articles and broadcasts with an advertising equivalence
of £524.8 million.
3.8 In the following sections, we describe
some of these areas of our activity in more detail.
Balancing Activity Between Mature and Emerging
Markets
3.9 Britain's market share has declined
over the past generation from 6.5% of international tourism spend
in 1980 to just 3.8% in 2005: it is forecast that, in the future,
traditional European destinations will be outperformed by the
emerging market nations. We are already seeing evidence of this
in that we are losing market share from key mature markets such
as the US and Japan.
3.10 Consequently, to achieve sustainable
growth and address the challenges posed by globalisation, VB must
carefully balance its promotional activities between mature and
growth markets. We must continue to nurture mature high yield
markets whilst building market share in the growth markets to
ensure the security of long-term growth prospects.
3.11 At the same time we must retain the
flexibility to react swiftly to changing market demands and to
redeploy funding as appropriate. Our partnerships with the British
Council, and sometimes the FCO, whereby we "piggyback"
on their infrastructure is critical to this. In fact, none of
the growth markets are new to VisitBritain but we have switched
resource in and out of them over the years in response to economic
conditions.
3.12 We must also be ready to respond to
crises affecting tourism to Britain in which, post FMD, 9/11 and
21/7, VB has a proven track record in leading the industry (through
the Tourism Industry Emergency Response Group) to agree an immediate
response to the crisis, minimise the impact on the visitor economy
and help rebuild confidence in Britain as a destination.
3.13 To achieve maximum growth of inbound
visitor volume and value, we focus on those markets—whether
mature or growth—and market segments with the greatest potential.
Growth markets with the most potential for Britain are Brazil,
Russia, Poland, China and India and our research shows that Russia,
China and India are also the most likely markets to agree with
the statement "I'm more likely to want to visit Britain in
the next few years because London will host the 2012 Olympics".
In these and other growth markets, our activities are carefully
targeted to recognise the degree of maturity present in the market
as illustrated in the diagram below.
Growth Market Development Stage Model
3.14 Our initial forecasts estimate that,
with adequate investment, increased visits from growth markets
generated by heightened awareness of Britain as a destination
from the Games could account for £300 million of additional
spending over the period 2013-17. Further research suggests that
Britain could increase this by a further £170 million per
year in additional inbound tourism spend from China, India and
Russia by 2020.
3.15 Our work in mature markets continues
in parallel. For example, in February, we launched a three-year
campaign in the US designed to re-invigorate the Britain brand.
The "Be a Brit Different" concept aims to inspire Americans
to see Britain in a fresh way, create a WOW factor about the destination
and deliver a sense that now is the time to visit.
Branding Britain
3.16 If Britain is to be successful in attracting
visitors it must build and maintain a coherent image of Britain
overseas and establish itself as being different from its competitors.
This is particularly important in growth markets where future
holiday and business travel decisions will be taken based on an
image that is being created now.
3.17 There is also a strong correlation
between a country's image overseas and inward investment and export
sales. A 2003 MORI study for the FCO showed that perceptions of
whether the British are "trustworthy" and "welcoming
to visitors" had a significant impact on respondents' overall
opinion of Britain; not just their view of it as a visitor destination.
3.18 VB's Britain brand values of "depth,
heart and vitality", which were developed in close consultation
with our Strategic Partners, are well established in mature markets
and we are working to establish them in growth markets. Our PR
activity is of vital importance here and we have already referred
to its value at 3.7 above. We have also produced a three minute
Britain brand film that will be shown at all major international
events, shows, exhibitions and conferences and video-streamed
on our website. Our objective is to promote Britain as a passionate,
vibrant and welcoming destination.
3.19 We are also working with other Government
agencies responsible for driving awareness and understanding of
Britain's image overseas through the Public Diplomacy Partners
Group, chaired by VisitBritain. In December 2006, key partners,
including British Council, UK Trade and Investment, the FCO, Visit
London and L2012, held the first of a series of brand workshops
designed to review the delivery of Britain as a brand in light
of the opportunities posed by the 2012 Games. Several activities
have already been put in place including that we have agreed with
the FCO and British Council that we will merge our brand tracking
activities via the Anholt-GMI Nation Brand Index,[1]
resulting in considerable savings.
3.20 The 2003 MORI study found that only
55% of people surveyed in 15 countries rated Britain as "welcoming
to visitors". This was our weakest attribute and one on which
Britain fared worse than that all of its main competitor destinations
included in the survey: France, Germany, USA, Japan and China.
Our strongest attributes were being creative, innovative, trustworthy
and lively. We have continued to track Britain's perceived quality
of welcome in the quarterly Nation Brand. Since the end of 2005
we have been ranked 16th or 17th out of 35 countries for perception
of welcome with most European neighbours placing Britain in the
bottom half of their list.
3.21 Continuing concern over the quality
of welcome, especially in the run up to 2012, has led to the Public
Diplomacy Partners Group setting up a Welcome to Britain steering
group, chaired by VB, and involving members drawn from BAA, HM
Revenue & Customs, UKvisas, UKinbound and People 1st. The
Group's aim is to improve the quality of welcome both in terms
of experience and perception. As a first step, we are drawing
up a visitors' charter that will set out the standards of welcome
that visitors can expect to receive from a wide range of participating
stakeholders. We will then evaluate visitors' experience against
the Charter in order to track progress.
Marketing Activity: Converting Consumer Interest
into Action
3.22 Our marketing activity is driven by
different elements of the customer journey—Look, Book, Travel,
Stay, Tell, Keep in Touch—the "consumer journey".
The Consumer Journey
3.23 We work in partnership with the industry
to implement marketing campaigns which deliver a much improved
"fit" between product strengths and consumer needs,
for all of our key market segments. This builds on our unique
combination of product strengths and opportunities—culture,
heritage, coast, countryside, sport, luxury services and food
and drink.
3.24 We are also working with our industry
partners to create a competitive advantage for Britain over rival
destinations by facilitating an increased conversion of consumer
interest into action. We are providing services throughout the
consumer journey at which our website is at the heart.
3.25 VisitBritain has introduced a range
of new marketing platforms, including:.
— EnglandNet—a database
of England's accommodation, events and attractions products, developed
with the active backing and support of DCMS, and in full partnership
with the RDAs which now help to fund the project;.
— Travel Engine—a referral
service for all elements of the transport sector: flights, ferries,
trains, car hire services;
— Online Shop—connecting
potential visitors up to ancillary products and services designed
to enable the customer to get the "best" from their
visit to Britain or around England.
3.26 In developing these platforms, we recognise
that it is insufficient to promote the virtues of Britain and
England as visitor destinations without providing increasingly
sophisticated customers with the means to undertake their journeys.
In other words, VisitBritain must not only generate "interest"
in travel to Britain and England, but translate that interest
into "action" for the industry.
3.27 Moreover, VisitBritain has taken a
unique approach to the development of these services, creating
platforms designed specifically to bring industry partners and
consumers together so as to:
— Optimise the benefit to customers
by providing them with access to the widest possible range of
available quality-assured product; and
— Increase industry productivity by
providing new routes to market for strategic, regional and industry
partners.
Exploiting the Technology at our Disposal to Provide
the Best Possible Service to Visitors and the Industry
3.28 VisitBritain's use of new media technology
lies at the heart of its marketing activities.
3.29 www.visitbritain.com
consists of 43 separate country/language specific portals and
will rise to 46 by the summer; www.enjoyengland.com—the
official site for English tourism, is focused on the British market
as well as France, Germany, Ireland and the Netherlands.
3.30 Tailoring our international website
to specific market segments has led to traffic to the sites doubling
within the last three years and evaluation results show that it
generated £1,178 million in additional expenditure by visitors
during 2005-06. Meanwhile, from a base of £47 million incremental
spend in 2004, EnjoyEngland.com has seen a growth of over 400%
in monthly traffic levels during the last year in the British
market alone and incremental spend is expected to grow in line
with this.
3.31 In addition, visitor registrations
on the sites have enabled us to build our customer databases to
over 7 million contacts. Internationally, the use of robust CRM
capabilities enables the database to automatically segment new
"customers" into one of fifteen profiled segments. Within
the UK we have devised both attitudinal and geodemographic segmentation
that we use to improve the targeting of communications and the
effectiveness of media spend. Our regular e newsletters to customers
achieve a 25% open rate and a 25% "click-thru" rate,
almost three times the industry average.
3.32 We are building on this work with the
new generation of our websites that will have an even greater
range and depth of content. The new version of www.enjoyengland.com
was launched last September with improved search tools and mapping,
inspirational new content, a customer friendly "smart agent"
tool and a "blog" section which has proved highly popular.
3.33 The next version of visitbritain.com
will be launched in all of our markets between April and June
2007. Its architecture has been devised to mirror the customer
journey, taking users from inspirational and practical information
(themed regional and national itineraries; interest-based content
such as gardening, shopping, sports, things to do for people like
me—based on the personal profile held and destination guides)
through to a "My trip" planner where information on
personal preferences can be found and communities developed.
3.34 Our websites are at the heart of our
marketing activity and at their heart lies the EnglandNet database,
a search and referral facility for England's accommodation, events
and attractions products, developed with the active backing and
support of DCMS, and in full partnership with the RDAs. This platform
is aimed at promoting small and medium size businesses online
and we are now working with our national tourist board partners
to convert it into a Britain wide platform.
3.35 The EnglandNet database currently holds
information on around 35,000 accommodation products. Last September
we introduced a booking referral service whereby customers clicking
on a "book now" symbol are passed through to the provider's
website to book direct with them. Around 6,000 products can be
booked in this way through the consolidators which are linked
into the site: 21 of these consolidators are Regional or DMO operators
which provide the route to EnglandNet, and thus to market, for
the majority of SMEs.
3.36 In addition to our consumer facing
websites, we also have a dedicated industry support site: www.visitbritain.com/ukindustry.
This site provides details of all of our sales and marketing opportunities,
product development initiatives and industry resources such as
our marketing intelligence, publishing services and image library
and much more.
3.37 Our new on line marketing planner enables
businesses to search our database for opportunities to work in
partnership with VB in all 36 markets around the world, tailored
to the various market segments and media type that the business
is interested in. A PDF marketing proposal is then produced and
e-mailed to the customer within minutes.
Enjoy England Marketing
3.38 Significant progress has been made
in establishing Enjoy England as a brand and our brand tracking
research shows that in 2006 awareness of Enjoy England advertising
among the UK population had risen to 40% against 24% in 2005.
That research also shows that our campaign materials are highly
motivating and engender an intense emotional response with strong
perceptions of attraction, pride and inspiration.
3.39 The focus of our domestic marketing
effort is now being channelled into challenging the negative perceptions
of England as a destination—cost, weather and quality—and
shifting perceptions to match the Enjoy England brand which portrays
England as real, fun and indulgent. The main vehicle for this
is our TV campaign which launched in September 2006 and will run
for two years. Brand tracking following the first wave of advertising,
showed that 54% of people who viewed the commercial were more
likely to consider England for their next short break. If this
impact is sustained over the course of a year, the advert will
generate some £43 million of additional expenditure representing
an ROI of 43:1.
3.40 We have also developed a portfolio
of lifestyle campaigns, which build on England's strengths, address
the priorities, and highlight hidden opportunities as identified
by our research. These focus on our revitalised and heritage cities,
outdoor activities and regional food and drink. We are also building
on England's proposition as a business destination with dedicated
"meetEngland" business-to-business marketing and, also,
extending leisure marketing campaigns to business visitors.
3.41 At the same time, we are capitalising
on the fact that England remains the first choice short break
destination for the British by focusing activity on the market
segments most likely to take short breaks and to be influenced
by our messages.
3.42 We now have a database of 1.3 million
consumers who are actively interested in taking short breaks in
England. We aim to maximise the spending of this group with regular
targeted messages and offers.
3.43 As with our inbound activity, we are
working with industry partners to create a real competitive advantage
for England and convert consumer interest into action by providing
services throughout the customer journey in which they "look—book—travel—stay—tell—keep
in touch" at which our dedicated website www.enjoyengland.com
lies at the heart.
3.44 We are also reinforcing the British
travel trade's awareness and adoption of our Enjoy England branding
and collateral so that consumers receive consistent messages about
England and what it has to offer.
3.45 As with our international activity,
our PR work plays a significant role in establishing the England
brand and promoting it as a destination and, between April and
September 2006, we generated coverage with an advertising equivalence
of just under £32 million.
The Quality Agenda
3.46 From the beginning of 2006, all serviced
accommodation in England, Scotland and Wales has been assessed
against the same criteria, regardless of whether the assessment
is carried out by VisitBritain, VisitScotland, Visit Wales or
the AA. Common standards for the self-catering sector have been
in operation since April 2005. For the hotel sector, we have also
harmonised the symbol we all use to stars. As a result, customers
can now expect consistency of standards when booking quality assessed
accommodation throughout Britain and VB now promotes only accommodation
that has been quality assessed. By 2009, we aim to increase membership
of businesses in the serviced accommodation sector from 47% to
66% and to increase consumer awareness of the schemes from 57%
to 70%.
3.47 Our aspiration—fully shared by
DCMS—is to utilise the quality assessment schemes as a tool
to continuously drive up the quality of the visitor experience.
To this end, in relation to the quality assurance schemes in England,
the only country in which VisitBritain owns and operates the schemes,
we are extending our portfolio of assessment services across a
broader spectrum of products and reviewing existing schemes to
embrace new trends and to respond to consumer demands. For instance,
in 2007, at the request of the industry, we launched an accreditation
scheme for spas.
3.48 With the support and involvement of
the leading industry associations, we are hoping to introduce
a revised national code of practice for visitor attractions later
this year. This will include requirements to operate the attraction
in a sustainable way and to provide access statements. Above this
basic level, our Visitor Attraction Quality Assessment Service
(VAQAS) now has over 700 participants throughout England and we
aim to increase this to over 1,000 over the next two years.
3.49 We are also working with partners to
develop an entry level national accreditation scheme for businesses
that operate in a sustainable and environmentally friendly way.
Our aim is to support—and provide a stepping stone to—existing
schemes such as the Green Tourism Business Scheme and the Bellamy
Award that currently have limited regional or sectoral participation.
As part of this process, we have conducted research into consumer
expectations in relation to sustainable accommodation and whether
or not they are prepared to pay more.
3.50 The Green Tourism Scheme, which is
operated by Green Business, has three levels: bronze, silver and
gold. It is already operated by VisitScotland and, in England,
by South West Tourism, Tourism South East and ONE North East.
Consequently, we wish to encourage its take up rather than to
compete with it.
3.51 We are reviewing the standards required
in our quality assurance schemes to make sure that they are compatible
with the sustainable tourism agenda.
3.52 In addition to our own quality assurance
schemes we also work with other leading bodies that offer assessment
services such as EnCams which operates the Blue Flag Beach Awards
with which we co-publish a Beach Guide.
3.53 The assessment service we offer to
tourism businesses is being improved by training our assessors
so that they are able to offer on the spot access to business
advice as well as quality grading decisions and advice.
3.54 Linking to this, VisitBritain, People
1st and the Best Practice Forum have signed a tripartite agreement
to introduce a voluntary "skills-needs" analysis for
establishments that participate in the quality assurance schemes
as a further mechanism for improving productivity. SMEs in the
serviced accommodation sector have volunteered to undergo a health
check as part of the quality scheme assessment. This will then
be analysed by Regional Business links to evaluate where help
and advice is needed. After a successful pilot, "Steps to
Success" is now being rolled out by VisitBritain and People
1st.
3.55 Participation in the National Accessible
Schemes for non serviced accommodation remains woefully low. It
is essential that this is remedied well ahead of the Games and
we are re-deploying resource to address this. At present, of those
properties that participate in our other quality schemes, participation
in the NAS is as follows: self-catering 64%, guest accommodation
18%, hotels 14% and hostels 4%. Our strategy will be shaped by
the results of the Welcome>Legacy consultation but we are planning
consumer and industry research into current awareness and potential
of NAS, alongside increased publicity and a recruitment drive.
3.56 Additionally, from April 2007, all
businesses participating in any of our quality schemes will be
required to produce an access statement.
4. DERIVING MAXIMUM
BENEFIT FROM
THE LONDON
2012 GAMES
4.1 As stated by DCMS in the Tourism 2012
consultation document Welcome >Legacy, if the visitor economy
is to achieve significant growth from the 2012 Games "real
progress in four areas will be crucial. The industry must: maintain
and enhance Britain's unique offer; listen to its increasingly
demanding domestic consumers; encourage a fiercely competitive
industry, with strong incentives to invest, innovate and operate
efficiently; and recognise and further develop its links with
other sectors."
4.2 Our early estimates predict that between
50-70% of the net economic benefit of staging the Games, measured
over a 7-10 year period, will accrue through tourism, and that
at least £2 billion will be generated from inbound tourism
over the period 2008-17.
4.3 We are now reworking this estimate using
a more sophisticated model and will also be undertaking work on
the benefits to domestic tourism for which no estimate has yet
been produced.
4.4 VisitBritain's vision for 2012 is:
— To grow the London & UK visitor
economies faster than would otherwise be possible;
— To spread the economic benefits throughout
the UK;
— To boost both international and domestic
tourism;
— To create a truly world class tourism
industry; and
— To secure a lasting legacy through
sustained growth after 2012.
4.5 We expect the majority of economic benefit
for tourism from 2012 to fall after the Games—the legacy
effect—but this will only happen if the public and private
sector have worked together prior to 2012 to plan and invest so
that the Games are an enormous sporting and PR success which makes
overseas residents feel that Britain is a "must see"
destination. This aim is informing our contribution to the emerging
DCMS Tourism Strategy for the Games.
4.6 We also have to ensure that we have
the products, and can offer the experience, that visitors will
expect. This is widely recognised and, as a result, we are seeing
the Games acting as a catalyst to bring together partnerships,
and accelerate initiatives, that would otherwise have taken much
longer to get off the ground.
4.7 The primary opportunities are to:
— Align and develop the Britain and
London brands to appeal to emerging and younger markets (particularly
China, India & Russia);
— Raise the profile of Britain and
London and enhance awareness of the diverse tourism offering;
— Win more events, conferences and
conventions;
— Attract new partners and sponsors
to the tourism sector;
— Improve the visitor welcome and the
overall quality of the tourism product;
— Increase skills and productivity;
— Develop sustainability and accessibility
in the visitor economy; and
— Attract the British back home.
VisitBritain's Work to Maximise the Legacy of
the Games for the Benefit of the Visitor—and the Wider—Economy
4.8 We have developed our strategy around
a six year plan:
2007 Preparing the Ground.
2010 Galvanising Britain.
2012 Welcoming the World.
2013—> Delivering the Benefits.
4.9 Although much of the work in the early
years should be seen as laying the foundations and an investment
for the future, we are confident that it will also generate early
returns. For example, our Games-related marketing activities during
these years should generate additional visitor spend of at least
£150 million before the Games, giving an ROI of well over
35:1 on marketing funds. It will also attract significant commercial
income and we expect to be able to harness non tourism partners
such as the IOC "Top" sponsors who are seeking programmes
and partners to activate their sponsorship.
Preparing the Ground for Success
4.10 VisitBritain played a key supportive
role with London 2012 during the bidding phase, and has since
developed strong relationships with key stakeholders in the new
2012 environment including the British Olympic Association, UK
Sport and the London Organising Committee of the Olympic Games
and Paralympic Games, as well as strengthening our ties with traditional
partners such as Visit London. We have also researched the experiences
of previous Olympic host destinations to build a clear picture
of the true opportunities for tourism in relation to the Games.
We are sharing this information with the industry via a comprehensive
education programme and are also using it to inform our initial
brand-building and market development work and DCMS' own Tourism
2012 consultation.
The Road to 2012
Britain Brand
4.11 The 2012 Games pose a one-off opportunity
for Britain to evolve the perception of Britain and its constituent
nations in the minds of its international audience, enabling us
to build a stronger, more engaging brand for the future. Britain
has an out-dated image in many parts of the world and the average
age of our visitors gets older each year—this is a golden
opportunity to present a dynamic, welcoming, diverse and warm
nation to the rest of the world, with a particular emphasis on
youth. We are currently working with our Public Diplomacy partners
to align the Britain brand with the Games and make the most of
this opportunity, so we can position Britain as a leading country
for exports, education, industry, culture and tourism.
International Media Relations
4.12 Both London and Britain will receive
an immense amount of media attention in the build up to 2012.
This will be a unique chance to showcase a vibrant, socially-inclusive,
quality-driven, united Britain to the world and it is essential
that VisitBritain influences this media attention as much as possible,
to ensure that the longer-term legacy of media coverage is one
that is conducive to building the visitor economy. By working
closely with the international media, VisitBritain can enhance
international awareness of Britain's diverse tourism offer. This
media activity will include programmes for visiting journalists,
provision of B-roll images, press kits, location guides and many
other initiatives, including the development of specialist services
and facilities for unaccredited media, the importance of which
was highlighted during both the Atlanta and Sydney Games.
Digital Media
4.13 2012 will be the first truly digital
summer Olympic and Paralympic Games, with the full power of the
Internet and new technologies harnessed to build digital communities
around a unique brand. VisitBritain has long realised the benefits
of technology in the tourism world and will intensify its efforts
in the run-up to 2012. Platforms such as EnglandNet are already
recognised as a great potential asset to 2012 partners and commercial
sponsors.
Commercial & Marketing Opportunities
4.14 VisitBritain will be looking to leverage
its association with the Games to enhance and differentiate its
marketing activities and programmes before, during, and after
2012. Central to this will be a broad engagement with the IOC
and the London 2012 Organising Committee with a view to developing
new long-term commercial and marketing partnerships with international
& domestic sponsors. These new partnerships could be one of
the greatest legacies from the Games—the catalyst effect—creating
a long-term revenue stream and a more effective and co-ordinated
marketing investment. VisitBritain has already entered into a
partnership with Visit London to jointly fund a Brand Partnership
Unit to maximise long-term commercial opportunities with new non-tourism
partners.
Beijing 2008
4.15 One of the key milestones on the road
to these relationships with the IOC, the London 2012 Organising
Committee and their sponsors is Beijing 2008. Learnings from previous
host cities' experiences illustrate how important it is for tourism
bodies to have a strong presence at the preceding host city's
Games to watch, learn and build important relationships with groups
such as the Olympic family and the media. A strong physical presence
in Beijing is considered fundamental to achieving our overall
marketing objectives.
Cultural Olympiad
4.16 2008 marks the beginning of London's
Cultural Olympiad which, in conjunction with Liverpool as European
Capital of Culture, represents one of the greatest opportunities
for spreading the benefits of the Games throughout the nations
and regions of Britain. VisitBritain plans to focus much of its
international and domestic marketing activity on this four-year
programme and we have established good relationships with those
responsible for devising and delivering the cultural programme
for the Games to ensure synergy within our overall marketing strategy.
We are now in discussion with LOCOG about how we can add value
to its plans.
Quality & Welcome
4.17 The long-term success of VisitBritain's
marketing work is dependent on a guarantee of widely available
quality and value for money product for visitors coming from abroad
or travelling within Britain. Significant improvements must be
made before 2012 and, as already referred to, we are working hard
to increase take up and recognition of the quality assurance and
national accessible schemes, and to encourage industry bodies
and Games' organisers to create skills based training opportunities
relevant to the industry. Through the Public Diplomacy partners'
Welcome to Britain Group, chaired by VisitBritain Chief Executive
Tom Wright, we are also working to ensure that the welcome visitors
receive on arrival in Britain and throughout their stay is world-class.
Events
4.18 Having won the right to host the world's
greatest event, Britain can now leverage the successful 2012 bid
to win more sporting and international events, conferences and
conventions. We are developing a bid support strategy in consultation
with the industry, to deliver a consistent and expert level of
support to destinations and organisations bidding for major international
events, ensuring that Britain remains in the world's view long
after the Olympic flame has left our shores.
4.19 VisitBritain has identified over 1,000
international sporting events which could be held throughout Britain
between now and 2020. These events could bring real tangible economic
benefits to the nations and regions, as well as raising their
international profile and positioning Britain as a world-class
sporting destination. It is important that major business and
sporting events and conferences are secured for the years after
the Games to ensure the international spotlight stays on Britain
after 2012.
5. THE PRACTICALITY
OF PROMOTING
MORE ENVIRONMENTALLY
FRIENDLY FORMS
OF TOURISM
5.1 The UNWTO defines sustainable tourism
as: Tourism that meets the needs of present tourists and host
regions while protecting and enhancing opportunity for the future.
5.2 The objective of sustainable tourism
is to retain the economic and social advantages of tourism development
while reducing or mitigating any undesirable impacts on the natural,
historic, cultural or social environment. This is achieved by
balancing the needs of tourists with those of the destination.
Therefore, to be sustainable, all tourism activity must comply
with the following four key principles:
— Visitor Satisfaction: (visitors
must be satisfied with all aspects of the tourism product);
— Industry Profitability: (the
return to the industry must allow for reinvestment and growth);
— Community Acceptance: (account
must be taken of the host community's present character and future
aspirations);
— Environmental Protection:
(the natural, historic and cultural resources on which the industry
is based must be protected).
5.3 Over the last few years, the environmental
protection element of sustainable tourism has come to dominate
the agenda with an increased recognition of the impact of tourism
related activities on the environment, particularly in the area
of climate change.
5.4 Consequently, VB began a major overhaul
of its Sustainable Tourism policies last December. This work has
four elements:
— The provision of leadership by VB
to the industry in support of Government's sustainability agenda;
— Working through our marketing activity
to encourage visitors to act in a way that supports sustainability;
— Engaging with the industry to encourage
tourism businesses to act in a sustainable way;
— Ensuring that VB's "own house"
is in order.
5.5 One of our first steps has been to commission
research to investigate consumers' attitudes towards sustainable
tourism. This is only now being completed but the top line findings
are:
— There is an expectation among consumers
that sustainable tourism will become increasingly important in
future given the attention being given to environmental issues
generally;
— Currently being "responsible"
is seen as somewhat of an effort, something you'd have to go out
of your way to arrange and somewhat of a luxury. It is perceived
as something that comes with a high price tag; and
— Consumers can see it becoming more
of a necessity but think that it needs government backing/heavy
promotion to become a reality in the near future.
5.6 We also looked in detail at consumer
attitudes to sustainable accommodation and attractions. We are
still analysing this material and, as referred to at 3.49, will
be using the findings to influence the development of a quality
accreditation scheme that recognises businesses that operate in
a sustainable and environmentally friendly way.
6. VALUE OF
UK TOURISM, TRENDS,
OPPORTUNITIES AND
CHALLENGES
Total value of tourism
6.1 In 2005 the UK tourism industry generated
£85 billion for the UK economy, 80% of which was from domestic
tourism. (An estimate for 2006 will not be available until later
in the year.)
6.2 Changes to survey methodologies make
it difficult to compare these results with individual preceeding
years, but it is clear that over the period 2000-05 UK tourism
suffered a major setback due to the outbreak of Foot and Mouth
Disease and the impact of the 11 September terrorist attacks in
the US from which it took four years to fully recover.
6.3 The £85 billion total is made up
from a number of different components, in line with internationally
agreed standards for developing a Tourism Satellite Account, these
are:
— Spending by inbound visitors, estimated
at £14.2 billion in 2005;
— Fares paid to UK carriers by overseas
residents, estimated at £2.8 billion in 2005;
— Spending by domestic residents on
overnight domestic trips, estimated at £22.7 billion in 2005;
— Spending by domestic residents on
"tourism day visits', estimated at £44.3 billion in
2005; and
— Imputed rent from second home ownership,
estimated at £0.9 billion in 2005.
6.4 Tourism "day visits" constitute
more than half of the total figure, and it is important to recognise
that much of the growth in spending on this type of trip in recent
years is driven by changing leisure behaviour leading to significant
increases in spending on retail items estimated at £21.2
billion out of the £85 billion (25%) that qualifies as being
generated on "tourism day visits". (Defined as one lasting
for more than three hours and not taken on a regular basis.)
6.5 The following table sets out the figures
in detail for each year from 2000-05 (excluding 2004). A number
of figures are estimated and figures for both overnight and day
visits by domestic residents are subject to changes in survey
methodology, meaning figures are not strictly comparable over
time.
Trends
6.6 According to the United Nations Tourism
Organisation, a record 808 million international tourist trips
were undertaken in 2005, an 83% rise since 1990. By contrast,
the number of international arrivals to the UK increased from
18 million to 30 million, an increase of just 67%. Spending abroad
by international tourists is now worth more than $2 billion per
day to the global economy if spending on foreign passenger transport
is included. Britain's share of this financial pot in 2005 stood
at 3.8% down from 6.5% in 1980.
6.7 The following chart summarises how our
market share has declined over the past generation. The growth
in recent years is attributable to the exceptionally strong rise
in inbound tourism to Britain from EU Accession States with the
number of visits from Poland breaking through the one million
barrier in 2005.
6.8 Provisional estimates indicate that
in 2006 the UK welcomed 32.17 million inbound visitors, with spending
reaching £15.4 billion, meaning that we maintained our global
market share for both arrivals and spending.
6.9 The UNWTO forecasts that Europe will
lag behind emerging markets in capturing future growth in international
tourism. Asia Pacific and the Middle East are forecast to be the
biggest beneficiaries as intra-regional travel becomes more affordable
to millions of citizens across Asia. Hence, it is to Asia that
we must look in future for inbound visitors due to the high economic
growth rates being enjoyed in countries such as China and India.
6.10 By contrast, the performance of the
North American market has been lacklustre over the past few years
and, despite some upturn in 2006, it is highly probable that around
450,000 fewer US citizens visited Britain in 2006 than in 2000.
The number of visits by high spending Japanese visitors also continued
to decline into 2006. In 1995 the UK economy earned £539
million from Japanese visitors; in 2005 this figure had dropped
to just £269 million.
6.11 In general terms, trips to visit friends
and relatives have delivered the most reliable growth in inbound
tourism during recent years accounting for 23% of all visits in
2000 but 29% in 2005 according to IPS figures.
6.12 Despite being fifth in the league table
for international tourism receipts and sixth in terms of international
tourist arrivals last year, the UK was the third most important
origin of outbound tourism spending behind Germany and the USA.
The extremely high propensity for outbound travel from the UK
(with 107 outbound trips per 100 of population) is one of the
factors underpinning the dramatic rise in the UK's international
tourism balance of payments deficit. The situation has been compounded
by the fact that we have experienced a steady fall in the average
length of stay, and thus average spend per visit, for each inbound
visitor coming to Britain.
6.13 In 1979 the typical inbound visitor
stayed for 12.4 nights, whereas in 2005 it was 8.3 nights. This
translates into an average spend per visit in 1979 (at 2005 prices)
of £759 compared with an average spend per visit in 2005
of just £476. The following chart summarises the evolution
of the UK's international tourism balance of payments deficit.
Domestic
6.14 Due to a series of methodological changes
in the way data has been captured over the past sixteen years
it is difficult to measure long term trends in the volume and
value of overnight domestic tourism.
6.15 However, as can be seen from the chart
below, the 1990s appeared to be a time of steady growth in the
volume of overnight trips taken by UK residents in the UK. The
change to a "phone based" survey in 2000 resulted in
a sharp uplift in the reported number of trips, but then gave
way to a persistent and steep decline through to 2004. The estimated
number of trips in 2005 is on a par with the total number of trips
taken in 1999 (the last time that the survey used a "face-to-face"
methodology) . The chart also shows results for the value of trips,
adjusted to 2005 prices. It is evident that the total value of
spending by UK residents on overnight trips in the UK is, at best,
flat.
6.16 By contrast to the situation for domestic
trip taking the following chart shows the relentless upward trend
in the annual number of foreign trips taken by UK residents over
the past 15 years as measured by the International Passenger Survey.
Other Challenges and Opportunities
6.17 In addressing the UK's declining market
share, a range of other factors are likely to have a bearing:
Capacity Considerations (Transport)
6.18 Hitherto un-congested airports favoured
by low-cost operators may become congested by the middle of the
next decade. The UK will need to address whether the development
of regional airports at the expense of our international hub airports
is the best solution considering the difference in spend per visit
for short-haul and long-haul visitors.
Capacity Constraints (Asset utilisation)
6.19 Capacity in certain sectors of the
industry is under utilised, often due to the seasonal pattern
of tourism activity. For example, the 2005 UK Occupancy Survey
reveals that bedroom occupancy across the year stood at 59%.
Climate Change and the Environment
6.20 Consumers may adopt an anti-flying
attitude thus benefiting the domestic industry. We may also see
changing corporate behaviour—this could come about through
fiscal measures whereby organisations are forced to pay carbon
offsets when members of staff take business flights, or through
businesses feeling the need to respond to public pressure on "green
issues" and voluntarily finding ways of using air travel
less often. The growing trend for consumers to question the origins
of products they buy may also have an impact.
Macroeconomics
6.21 A potential slowdown in the US economy
and/or social upheaval in China, derailing that nation's rapid
economic expansion, could hit disposable income available for
travel.
6.22 Dwindling global stocks of oil, leading
to higher prices, will inevitably increase the cost of air travel
if other energy sources are not found. Likewise, as the UK's stocks
of oil and gas decline, so may the demand for sterling (assuming
that the UK does not adopt the euro) this may make the UK a more
affordable choice for overseas tourists, and act to dissuade UK
residents from taking multiple overseas trips each year.
6.23 The so-called "pensions time-bomb"
is also an issue across much of Western Europe, Australasia and
parts of Asia (notably Japan). Improvements in life expectancy,
general health in old age and a greater desire to remain active
in later life are all big positives for tourism prospects in the
years to come. However, to what extent will pensions be capable
of funding the lifestyle that this group would like to enjoy?.
Demographics
6.24 Other demographic trends that may influence
tourism in the next decade are increased "inter-generational"
travel whereby grandparents take their grandchildren on holiday,
more older "singles" due to higher rates of divorce,
and more same sex couples, all with their own distinct requirements
from tourism businesses.
6.25 As older people become less inclined
to be sedentary there will be growing numbers of people with disabilities.
It is extremely likely that a larger proportion of customers will
need some form of assistance in the years ahead, not just "step
free access', but facilities and attitudes that aid independently
minded older customers with mobility, eyesight or hearing difficulties
to continue taking independent holidays.
Digital/Distribution
6.26 It is now easier than ever for visitors
to access information when they need to, being able to book accommodation,
tours and travel from wherever they happen to be.
6.27 Marketing is becoming increasingly
sophisticated, but so too are consumers, with the Internet facilitating
a new form of marketing or "advocacy', namely "word
of mouth" recommendations. Websites such as www.tripadvisor.com
are becoming more and more important in terms of gaining insight
into destination and accommodation options before consumers make
a booking, and the danger is that empowered consumers may increasingly
sideline advice from traditional purveyors of tourist information,
relying more heavily on advice from fellow consumers.
6.28 Not all technological developments
represent good news for tourism prospects. As the cost and ease
of communicating face-to-face, in business or for leisure, become
less of a barrier through services such as Skype, the need for
some trips may diminish.
Geopolitics
6.29 There is an ongoing risk of disruption
to tourism caused by terrorism and health scares. In terms of
terrorism, visitors are becoming more resilient in terms of carrying
on with their travel plans but how tolerant will people be of
the increasingly stringent security measures imposed at airports?
7. TOURISM DATA
7.1 Tomorrow's Tourism Today, highlighted
the importance that DCMS attaches to the provision of robust and
up to date market intelligence that businesses need to make investment
decisions. As this Prospectus went on to note, the quality of
tourism data was patchy and urgently needed to be improved. This
was particularly the case in relation to domestic data for which
VB had just inherited responsibility from ETC in relation to England.
Since then, we have worked with the NTBs to improve the methodology,
and therefore the quality, of the UK Tourism Survey at national
level.
7.2 We have also:
— Introduced a quarterly Survey of
Visits to Visitor Attractions;
— Formed a Domestic Industry Panel,
comprising senior business leaders in the industry and established
a survey to provide enhanced domestic intelligence for the domestic
market;
— Supported a new syndicated survey
proposed by TNS to monitor satisfaction levels of consumer and
business visitors to England/Britain. This will also enable comparisons
with other destinations and will use TNS's TRI*M model; and
— We are undertaking Improvements to
the England Occupancy Survey following a review of the existing
survey with DCMS and the RDAs.
7.3 Nevertheless, it is generally acknowledged,
including by Denis Allnutt in his recent review of Tourism Statistics,
that data collected at national level does not always fully meet
the needs of regional, sub-regional or local users. Under the
umbrella of the Partners for England Initiative, VB, EMAB, DCMS,
the RDAs and other stakeholders are discussing the possibility
of establishing a National Tourism Intelligence Unit that would
be responsible for leading and co-ordinating activity to improve
the quality of data collected on, and about, the tourism sector
in England. The aim is to produce timely, authoritative, comparable
and robust data—at national and regional level—that
effectively demonstrates the volume and value of tourism in England
and that can be used to plan the management and development of
tourism more effectively.
7.4 We have also greatly improved the communication
of our research and market intelligence to the industry. For example
through new design & richer content Market Profiles from Britain
International and Enjoy England; the creation of Visitor's Voice,
a quarterly round-up of VB's research/intelligence; and the revamping
of the www.visitbritain.com/research
web pages. We believe these achievements combined represent a
significant advance in how VisitBritain's data and intelligence
is communicated to the industry.
7.5 To better understand our overseas customers,
we are participating in the Anholt-GMI Nation Brand Index—
through which a worldwide online panel of consumers, drawn from
38 countries, is polled on their perceptions of a number of developed
and developing countries. As well as providing us with a detailed
understanding of how each country perceives Britain, we are adding
bespoke questions and will, in future, use this as our main tool
to track perceptions of the Britain brand overseas.
7.6 There are some further improvements
that we would like to see made to the International Passenger
Survey which is conducted by the Office for National Statistics.
The quality of data would be much improved if the survey was extended
to include a larger sample and the inclusion of an increased number
of ports and airports over extended surveying hours. However,
we acknowledge that this would cost a considerable amount of money.
7.7 Improved data on tourism employment
would also be useful, and will be essential if the UK is to develop
a state of the art tourism satellite account.
March 2007
1 VisitBritain buys into the Anholt-GMI Nation Brand
Index, a syndicated research survey, which polls a worldwide online
panel of consumers. Each quarter, consumers are polled on their
perceptions of the cultural, political, commercial and human assets,
investment potential and tourist appeal of 38 developed and developing
countries. This provides a clear index of national brand power,
a unique barometer of global opinion. Back
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