Memorandum submitted by Tourism Tyne & Wear (NE2-02)

 

 

 

Tourism Tyne and Wear have pulled together/documented the following evidence to be used as part of the submission to the North East Regional Committee.

 

The Committee is interested in receiving evidence on:

1. tourism strategy for the North East Region

2. role and responsibilities of One North East

3. marketing of North East nationally and internationally

4. the long term potential for tourism industry in the North East

 

Tourism Tyne & Wear was formed in November 2006 as Tyne and Wear's response to deliver an Area Tourism Partnership (ATP) which joined three other sub regional ATPs and the regional tourism team to form Tourism Network North East. This structure replaced the Northumbria Tourist Board. The following identifies documents/written evidence that is available for the committee to call upon and examples of activity that may illustrate this.

 

1. Tourism Strategy for North East Region

Written evidence includes:

· Regional Tourism Strategy 2006

· Tourism Tyne & Wear Board responses and minutes on the development of the new 2010 Visitor Economy Strategy that will replace 2006 Regional Tourism Strategy

· Regional Economic Strategy

· Tyne and Wear Area Tourism Management Plan

 

The current Tourism Strategy set a number of ambitious targets, all of which are on target:

− Attracting more domestic visitors:

− 2003 Baseline: 8 million

− 2010 Target: 10 million

− 2007 Progress: 9 million (on target)

− Increase employment

− 2003 Baseline: 53,184

− 2010 Target: 69,106

− 2007 Progress: 60,775 (on target)

− Accelerate investment in the tourism product

− 2003 Baseline: £43 million

− Target: £258 million between 2005-2010

− £139 million between 2005-2007 (on target)

 

The 2006 strategy has created a highly professional and well-connected Network. The new Visitor Economy strategy will build on this base and will be closely linked to the Area Tourism Management Plan. There is a commitment to take greater account of sustainability issues and new focus on working with those businesses that offer the greatest growth potential. There are now clear relationships between the region and VisitEngland/VisitBritain.

 

Place Shaping-There is still much work to be done to fully understand the role of Local Authorities and other agencies in Place Shaping. This is sometimes overlooked as public spending is cut and other more statutory services take priority. Although partners are aware of this responsibility, delivery of a fully integrated place shaping agenda still requires some significant work.

 

2. Role and Responsibilities of One North East

Evidence includes:

· Regional Framework

· Network Operating Plan

· Network Marketing Framework

· Desti.ne Framework

· Independent Network Evaluation

· Network Working Group Minutes ( Marketing, Product Development, Network Management, Desti.ne Operations, Business and Skills, Research, Information Collection, Press and PR, Digital Marketing)

 

Desti.ne-One North East have developed and resourced the Destination Management System for North East England. This is the foundation of the network and provides 1 point of entry for business information that is then fed up and into a variety of websites including the national site. There are very few areas across the country that have taken this strategic approach that means all of the regions data can operate together. The development of a single system has saved funding, time and resource and made a real difference to the region's small to medium accommodation businesses.

Desti.ne has 4 core functions:

− A database of every accommodation, attraction, event, eating out, leisure facility and activity in the region feeding all tourist websites and TICs. Every business able to amend their own details via Desti.ne Extranet. This has resulted an increase in the ability to communicate and engage with Businesses within the sector on issues within the industry and update on training opportunities that they may benefit from. The ability of businesses to edit their own details makes the system incredibly efficient and provides a flexibility and empowerment that gives the business a sense of ownership and belonging to the network.

 

− A customer database that will allow CRM campaigns

 

− Software to produce high-quality, multi-function websites and e-newsletters. This has enabled ATP's to produce bespoke campaign sites and targeted newsletters in-house; reducing the reliance on external consultants and service providers and increasing the control and flexibility to design bespoke materials for markets.

 

− An on-line booking system for every business that wants it via Desti.ne Frontdesk. This has opened up the market place to smaller businesses who can opt to sell there rooms through some big distribution channels such as Expedia where as previously they would not have had a space in the market place. To date this system has generated over 8,000 accommodation bookings to the value of 880,000 in Tyne & Wear alone.

 

Business Support-The network led by One North East has made some huge steps in integrating tourism and hospitality businesses into the main stream business link and business support activity. Specific projects with Business Link have identified and trained BL staff to work with the tourism sector and link into the network whilst the network is currently trialling packages of business support to develop tourism businesses and providing a clear route to funding for that support. Profit through Productivity saw nearly 150 tourism businesses benefit from over £3,000 worth of high quality business coaching.

 

3. Marketing of North East England nationally and internationally

Evidence includes:

· Network Marketing Plan

· Network Working Group Minutes ( Marketing, Press and PR, Digital Marketing, Desti.ne Operations and Information Collection)

· NewcastleGateshead Destination Marketing Plan

· Market materials available on request.

· www.visitnortheastengland.com

 

Within Tyne and Wear, the NewcastleGateshead Initiative have spent over 10 years developing a strong city brand with the cultural regeneration of the area providing some iconic product to attract a growing city break market. The profile of the city has improved dramatically over this period and with this has come many accolades including favourite city break, friendliest city, awards for architecture and design etc.

 

On a regional level, the image campaign has been hugely successful in not only raising profile of the region but also in engaging local pride among residents and businesses. The large number of businesses that have adopted the Passionate People, Passionate Places identifiers as part of their promotion and branding emphasises the resonance of the campaign.

 

Like many areas of the country, the North East' market led approach is hampered by regional politics. Marketing messages can be watered down by political boundaries and the promotion of key product to an untargeted audience rather than being market led / focussed. The development of the Marketing Framework has clarified the roles and responsibilities of the marketers amongst regional partners and the network and Local Authorities need to work to ensure the markets and lead brands identified are allowed to work together to bring more visitors to North East England. The framework has identified that it is lead destinations ( NewcastleGateshead, Durham and Northumberland) within the North East that should be promoted to attract domestic and international visitors.

 

4. The long term potential for tourism industry in the North East

Tourism Tyne & Wear monitors trends and evaluates relevant tourism figures that help express the potential for long term potential for the Tourism Industry. We have also commissioned research to help us to better understand this. Evidence includes:

 

Hotel Growth Studies

Accommodation Futures Studies have been carried out within each of the key visitor markets within Tyne & Wear to assess potential of, and requirements for, growth in accommodation Markets. The reports produced many positive findings for potential growth within the sector including:

 

· Within NerwcastleGateshead, despite having nationally competitive occupancy and revenue rates there is still market potential for new hotel development in the city centre. There is potential for new 4 star, boutique, 3 star, upper-tier budget and budget hotels. There may also be potential for 5 star and luxury hotel offers to develop in the city centre

· Potential corporate and leisure demand for 3/4 Star accommodation as the City grows its business and retail offer through development of key sites in Sunderland ARC sites.

· The development of Upper budget/3 star accommodation in line with the developments on the South Shields Riverside site.

· Development of Boutique Hotel Accommodation in Tynemouth

· Demand for touring and Static caravan camping is currently exceeding supply across the Tyne & Wear coast

 

STEAM research identifies consistent growth.

Despite the recession of the last 18 months the value of tourism has risen consistently over the last 6 six years. Since 2003 Revenue generated by the sector has risen by 9.2% and is worth around 1.9billion towards the local economy. We now attract an estimated 720,000 leisure visits a year and employment has grown by 19%, be over 37,000 FTE jobs

 

Growth of Business Tourism

Business Tourism is a key contributor to the revenue generated by visitors into Tyne & Wear. Work is currently taking place to understand the true value of this but an initial study by KPMG has indicated that there is demand for the development of a regional convention centre to be housed in NewcastleGateshead.

 

Tourism Attractions visitor figures are growing

The sub regions attractions offer has developed significantly over the last decade wit the Baltic Centre for Contemporary Art attracting around 350,000 visitors annually and the Sage Gateshead 600,000. The newest addition to the regions offer, the Great North Museum, opened in May 2009 and received 174,994 visitors in its first 5 weeks of business. Our established attractions are also continuing to grow attract visitors, Newcastle's Discovery Museum saw a 5% increase in visitors in 2008 and in the first half of 2009 has grown a further 2%. In Sunderland the Empire Theatre has seen great success since its refurbishment and now hosts many West End productions, in he first half of 2009 saw a 55% increase in visitor numbers.

 

Numbers of inbound ferry passengers are increasing

The development of the ferry route between Newcastle/Port of Tyne and the Netherlands has made big progress in recent years with the route going from strength to strength. The recent strength of the euro against the pound has raised awareness of the route with the Dutch Market and the numbers of visitors are continuing to grow. Visitors on the route in the first half of 2009 were up by 27% on 2008 and sales taken for October, November and December in 09 were up on 08 by 213%, 145% and 202% respectively.

 

New ferry route

Work is currently being undertaken to reinstate a Norwegian ferry route. A feasibility study by Price Waterhouse Coopers commissioned by NewcastleGateshead Initiative, the Port of Tyne and the Bergen Tourist Board identifies enough potential in this route to commence negotiations with some major ferry operators.

 

Growth of cruise tourism-economic impact study

Developments to the Northumbria Quay at the Port of Tyne have opened up a new market for Tourism Development within the Sub Region in recent years. In 2009 the Port welcomed 23 Cruise ships into the port. An economic impact assessment of Cruise Tourism on the North East's economy suggested that cruise was worth £2.9million of direct net expenditure in the Regions economy.

 

Growth of Newcastle International airport

While rising fuel process, the doubling of air passenger duty and the effects of the recession upon business and leisure spending has had an undeniable effect upon the aviation industry in terms of passenger numbers, Newcastle International Airport has shown considerable growth in recent years and has ambitious plans for future growth. It is estimated that in 2003, 208,000 inbound visitors used the airport and in 2008 this number was 523,000, and increase of 151%.

 

 

25 September 2009