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Memorandum
from Gateshead Council and
Introduction
1. This submission to the North East Regional Committee is presented from Gateshead Council and Newcastle City Council with support from NewcastleGateshead Initiative (NGI) on the role of Tourism in the North East of England.
2. The Committee has requested views on: Role and Responsibilities of One North East Tourism Strategy for the North East Marketing of North East Nationally and Internationally The long term potential for the tourism industry in the North East
3. Key recommendations: The submission concludes with our key messages for the Committee, which emphasise the importance of a collaborative and co-ordinated approach to Regional Tourism, with clearly defined roles to develop a strategic approach led by local priorities.
4. There is a recognition that tourism involves
both public and private sectors working together. Local Authorities as 'place
shapers' have a unique role in communicating local priorities and ensuring that
area needs are represented at a
regional level. It is therefore essential that a partnership approach is taken,
and there is a need to identify innovative and efficient ways for their
involvement and influence. The Gateshead
and
Role and Responsibilities of One North East
5. The Regional Development Agency for North East England-One North East, has taken a strategic business led approach to manage tourism in the North East.
6. An example of this approach is the Desti.ne Framework, which has been developed and resourced as the Destination Management System for the North East. This provides one point of entry for business information that is then fed into a variety of websites, including the national site. There are very few areas across the country that have taken this strategic approach, which means that all of the region's 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 four core functions: 1) Database of every accommodation, attraction, event, eating out, leisure facility and activity in the region feeding all tourist websites and Tourist Information Centres 2) A customer database that will allow Customer Relationship Management campaigns 3) Software to produce high-quality, multi-function websites and e- newsletters, enabling Sub-Regional partnerships to produce bespoke campaign sites and targeted newsletters in-house, reducing reliance on consultants and external providers 4) 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 rooms through some big distribution channels such as Expedia where as previously they would not have had a space in the market place.
7. Through the Tourism Strategy for the North East, the culture, roles and responsibilities of One North East, the four sub-regional Area Tourism Partnerships (ATPs) and their relationship to local areas is defined.
8. One North East has a strategic role, forming key relationships with Central Government, national tourism bodies and other major regional agencies. ATPs provide a sub-regional focus, and provide a delivery arm for the Regional Strategy. Their work is driven by the Area Tourism Management Plans (ATMaPs), and they are highlighted as the main point of contact for tourism businesses, Local Authorities, community groups and tourism associations.
9. In addition to the ATPs, other bodies with an interest in tourism development at the sub-regional and local levels in Tyne and Wear include NGI (NewcastleGateshead Initiative) which manages the ATP, Business Improvement District, 1NG (1 NewcastleGateshead) and Local Authorities.
10. One North East has pursued a business led approach to regional tourism development in the North East, and has encouraged private sector partnerships and Business Improvement Districts to destination manage. It has led the development of a Business Support Network, which has made some significant steps in integrating tourism and hospitality businesses into mainstream Business Link and business support activity. Specific projects with Business Link have identified and trained staff to work with the tourism sector and link into the network. The network is also trialling packages of support to develop tourism businesses and providing a clear route to funding. Profit through productivity has seen nearly 150 tourism businesses benefit from over £3,000 worth of high quality business coaching.
11. Whilst this can benefit larger businesses, small and medium size enterprises (SMEs) may not to benefit in the same way. As SMEs are more likely to be locally based, this can have implications for the sustainability of the approach taken, and its impact on local economic development.
12. The role of Local Authorities has changed over the last four years as a result of One North East refocusing its funding allocations, as a result: · The support to Tourism Information Centres has been reduced, an area traditionally led by Local Authorities. The majority of tourism information is now delivered through the Desti.ne website. Whilst there are numerous benefits to this web-based approach, using it as a sole focus has led to fewer face to face approaches delivered through Tourism Information Centres. · Local Authorities deliver excellent public services as part of their core business, and opportunities to maximise the benefits of this in relation to tourism may not be realised. · Local Authorities have the potential to deliver positive outcomes through product development, however a reliance on regional funding and a need to align with regional priorities can over shadow the potential for benefit in this area.
13. To illustrate activity relating to the role of One North East, the following can be accessed: · Regional Framework · Network Operating Plan · Network Marketing Framework · Desti.ne Framework · Independent Network Evaluation · Network Working Group Minutes
Tourism Strategy for the North East
14. The
North East Tourism Strategy 2005-2010 sets out the tourism priorities for the
region. To ensure successful implementation, Tourism Network North East was
established under the auspices of One North East. This is a highly
professional, well connected network comprising One North East Tourism and the
four ATPs for the region. The
15. The Strategy set a number of ambitious targets, all of which are on target to be achieved. For example: · Attracting more domestic visitors, against a 2003 baseline of 8 million, the target for 2010 is 10 million-in 2007 we were on target to achieve this with 9 million visitors. · Increase employment, the 2003 baseline was 53,184. The 2010 target of 69,106 was on target to be achieved in 2007 with 60,775. · Accelerate investment in the tourism product-the 2005-2010 target of £258million is on target to be achieved with £139m between 2005-2007.
16. The Network is currently overseeing the production of a new Visitor Economy Strategy, which will build upon the 2005 Strategy, and will also link closely to the Area Tourism Management Plans.
17. Through the new Strategy, which is currently being consulted upon, there is a commitment to take greater account of sustainability issues and to give added focus to working with those businesses that offer the greatest growth potential. It will also ensure greater alignment between the region and Visit England/Visit Britain campaigns.
18. Consultation on development of the Strategy is led at a regional level, and takes a predominantly business led approach. However, more could be done to ensure that Local Authorities are able to influence the Regional Strategy to enable delivery of a fully integrated place shaping agenda.
19. As a result of the partnership between
Gateshead Council and Newcastle
City Council, the destination marketing company NGI was created. This has been successful in working with the
Councils to firmly put
NewcastleGateshead on the map as a tourist destination. We had 9 million visitors in 2007 and are on target
to reach 10 million by 2010. Tourism
is a major part of our economy with over 60,000 people employed in the industry, which is worth £1.9billion to
our economy. Even in the current
economic climate tourism continues to perform well - a recent analysis by Deloitte shows that hotels in Gateshead and
20. To illustrate activity relating to the Tourism Strategy for the North East, the following can be accessed: · Regional Tourism Strategy 2005-2010 · Tourism Tyne and Wear Board responses and minutes on the development of the new 2010 Visitor Economy Strategy · Regional Economic Strategy · Tyne and Wear Area Tourism Management Plan
Marketing of North East Nationally and Internationally
21. The
regional image campaign led by One North East has been hugely successful in not
only raising the 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 plays testament to the leadership shown by One North East in this
area. However research by the tourism network has shown that the key to future
marketing is to concentrate on specific destination brands such as
NewcastleGateshead,
22. Like many areas in the country, the North East's regional market led approach can be hampered by competing local interests and brands. Marketing messages can be watered down by Local Authority boundaries and the promotion of key product to an un-targeted market, rather than being market led and focused.
23. The development of the Marketing Framework has clarified the roles and responsibilities to market the North East among regional partners, and it is for the Network and Local Authorities to work together to ensure the markets and lead brands identified complement one another and are appropriately targeted to bring more visitors to North East England.
24. To illustrate this point, regional products, such as pocket guides, reflect the diversity of the region. This diverse approach is deemed necessary to manage local interests, and enable all areas to feel they are getting equal representation. More creative and innovative approaches may be needed to address this.
25. Similarly, there is a requirement that marketing through Visit England is done as part of North East campaign. The draw back of this approach is that people can fail to identify with the region, and there may be more benefits of focusing on recognised brands, such as NewcastleGateshead. PR and press activity has been most successful when focused at a destination level.
26. To illustrate activity relating to the marketing of the North East Nationally and Internationally, the following can be accessed: Network marketing plan Network working group minutes NewcastleGateshead Destination marketing plan www.visitnortheastengland.com
The long term potential for the tourism industry in the North East
27. Tourism
28. Evidence includes: · Hotel Growth Studies: Accommodation Future Studies have
been carried out within each of the key visitor markets within Positive findings for potential growth in the sector include: Within
NewcastleGateshead, despite having nationally competitive
occupancy rates, there is still market potential for a new hotel development in the city centre, including
potential for new 4*, boutique, 3*,
upper-tier budget and budget hotels. There may
also be potential for 5* and luxury hotel offers to develop in · Scarborough Tourism Economic Activity Monitor (STEAM) research identifies consistent growth. Despite the recession of the last 18 months the value of tourism has risen consistently over the last 6 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%, over 37,000 FTE jobs. · Growth of business tourism is a key contributor to the revenue generated by visitors into NewcastleGateshead. 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 an International Convention Centre to be housed in NewcastleGateshead. Detailed feasibility work in now underway through 1NG into the potential for an International Convention Centre on Gateshead Quays. · Tourism Attractions visitor figures are growing. The sub
region's 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 region's offer, the · Numbers of inbound ferry passengers are increasing. The
development of the ferry route between However the loss of the Norwegian ferry route in 2007 has
had an adverse impact on international visitors. A study is currently underway
looking at the potential for a new operator for a ferry route to · Growth of cruise tourism-Economic Impact Study. Developments
to the Northumbria Quay at the · Growth of Newcastle International airport. While
rising fuel prices, 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,
29. Taking into consideration the current
financial climate, national trends indicate
that people are still taking holidays, but are reducing their time away from the traditional 2 weeks to
3-4 nights in the
30. It is likely that public sector intervention will always be necessary for tourism development. The approach taken needs to adapt to the financial climate, and resources directed accordingly.
Conclusion
31. Local areas have benefitted significantly from the regional approach to tourism development in the North East, as borne out in the evidence from regional studies highlighted above.
32. However, to ensure benefits are maximised, clearly defined regional roles and funding arrangements must reflect the needs of all stakeholders, and be led by local priorities. Where there may be limitations to Local Authority influence, innovative solutions are required for effective engagement.
33. From a Local Authority perspective, there is a recognised need to work collaboratively. The tourism industry requires a partnership of both the public and private sectors, and the role of Local Authorities is particularly relevant in relation to place shaping.
34.
7 October 2009 |