Transport and the Economy - Transport Committee Contents


Written evidence from the Hoseasons Group (TE 42)

INTRODUCTION

1.0  The Hoseasons Group is the award-winning travel company that was established some 70 years ago. Over 1 million people in the UK take holidays through Hoseasons, the leading self catering agency in the UK. It offers holidays in rural cottages, city centre apartments, villas, caravan parks and boats through its brands such as Hoseasons, English Country Cottages, Welcome Cottages and Blakes.

ECONOMIC IMPORTANCE

2.0  Tourism is generally agreed to be the UK's fifth largest industry. A recent study by Deloitte and Oxford Economics, The Economic Contribution of the Visitor Economy, found that the total direct and indirect contribution of tourism to the UK economy in 2009 was £115 billion (8.9% of GDP) and that the tourism sector directly employs over 1.3 million people.

2.1  The study went on to state that total tourism spending in the UK economy in 2009 was £90 billion, with overnight domestic tourism accounting for £22 billion of this amount. This was an increase of £1 billion (4%) over the previous year. However, it is notable that the performance of the self-catering sector of the tourism industry far exceeded the growth rate for the sector with growth of 21% and amounted to a total of some £1.8 billion. There are a number of reasons for this strong performance including the high levels of investment in the sector over recent years, improvements in the quality of self-catering properties and shifting patterns in consumer expenditure on holidays in the UK.

2.2  What this means is that rural and seaside communities, where the vast majority of self- catering businesses are located, gained an additional £375 million which helped retain and increase employment in these areas. Using the calculations in the Deloitte and Oxford Economic study, this additional revenue is sufficient to increase employment in these areas by 7,500 full time equivalent positions.

TOURISM AND TRAVEL

3.0  The most recent UK Tourism Survey shows that around 70% of tourism travel is from urban to rural and seaside destinations. Due to the nature of this travel, private vehicles account for 74% of all tourism trips, with only 21% of trips being undertaken using public transport (4% of which is by air). The figures are very similar for day visitor travel, with 68% of trips being undertaken using private vehicles and only 15% being undertaken using public transport other than aviation.

3.1  Over the last 50 years, tourism-related travel in the UK has changed markedly. Up until the late 1950s, public transport was the main means by which domestic tourism was undertaken. Since then, the use of private vehicles has steadily dominated to the extent that they now comprise over 70% of all leisure travel. Although this figure has been stable over the last 20 years, the total number of trips during this period has increased by over 60%. This increase in private vehicle use has brought great benefits to the tourism businesses and local economies, particularly in rural and seaside areas that are poorly served by buses or trains (while 20% of all tourism trips are to the countryside, only around 2% of these trip are taken using public transport).

3.2  So while Britons undertake around one billion tourism-related trips each year, national transport strategies and local transport plans seldom contain initiatives specifically aimed at facilitating this form of travel. Indeed, closures and maintenance programmes are often specifically targeted to be undertaken during holiday periods and weekends when tourism- related travel is at its peak.

3.3  The main reason for this is that the vast majority of journeys undertaken in the UK are related to commuter travel and intercity business travel. By contrast, tourism-related trips only account for 6% of all journeys undertaken in the UK. Despite this, there is significant evidence to show that it should not be considered a peripheral activity in transport planning.

3.4  "Leisure and other trips" account for 40% of the total distance travelled per person per year in the UK, compared to 29% for commuting and business, 26% for shopping and 4% for the school run. This is because tourism journeys are predominantly long distance journeys whereas the average distance for commuter travel is only seven miles. This is highlighted by "journey purpose by distance" figures which show that tourism accounts for 70% of all journeys over 50 miles.

3.5  As a result, therefore, although tourism accounts for only 6% of all private vehicle journeys, it accounts for 20% of the total mileage undertaken using private vehicles in the UK.

COALITION GOVERNMENT STATEMENTS

4.0  In a speech in June, Jeremy Hunt, the Secretary of State for Culture, Media and Sport said that he wanted to see the proportion of tourism expenditure that UK residents spend in this country increase from the current 36 to 50%. He made clear that this would mean a boost to the UK economy of as much as £7 billion, along with thousands of new job opportunities right across the country.

4.1  Two months later, in a speech on tourism by David Cameron that was welcomed by The Hoseasons Group, he specifically stressed the importance of good transport links to a successful tourist strategy - "we're supporting the ambition to develop a new network of high speed rail across the country. Because when a train to Brussels is as quick as a train to Bournemouth and it's quicker to get from London to Paris than it is to get to Blackpool what chance do our great seaside towns have of drawing people from London?"

TRANSPORT POLICIES

5.0  We support the Coalition Government's view that transport policy is an integral component of its tourism strategy. This strategy must be subject to a joined-up approach across Whitehall to ensure that all relevant departments make a positive contribution to the development of tourism and that no department can implement policies in isolation that have the effect of harming the industry.

5.1  The Hoseasons Group welcomes the development of a new network of high speed rail but hopes that it becomes a reality and does not remain as an "ambition" as a result of the forthcoming Comprehensive Spending Review.

5.2  At the same time, it is vital that the current congestion on Britain's roads, estimated to cost the UK economy as a whole some £7-8 billion a year, is tackled.

5.3  The reality is that private cars vehicles will continue to be the principal mode of transport for tourism-related travel.

5.4  Private cars provide visitors with a number of core benefits that will make it difficult to persuade them to switch to using public transport in significant numbers in the near future. These benefits include the ability to transport loads (essential for stays of longer duration) and travel at the destination (transport around the destination is as important for tourists as transport to it).

5.5  In this regard, we note The Highways Agency's phased introduction of its Managed Motorways scheme which seeks to control traffic flows more effectively through the use of this new technology such as overhead gantries, lane specific signals, and driver information signs. We suggest that this scheme is closely monitored to ensure maximum effectiveness.

5.6  In addition, as a company that seeks to apply good environmental practice in all of the communities in which we operate, The Hoseasons Group supports the Government's promotion of, green and sustainable investment in the UK road network through its promotion of low carbon and electric vehicles and the implementation of a national network of plug-in points for electric and hybrid vehicles.

CONCLUSION

6.0  The Hoseasons Group believes that the domestic tourism industry is on the threshold of an exciting period of growth. However to make the next decade in the words of the Prime Minister "the best ever for tourism in Britain" requires a suite of transport policies that helps the industry exploit the opportunities open to it to the full.

September 2010


 
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