House of Commons - Tourism - Culture, Media and Sport

Tourism - Culture, Media and Sport Contents

2 Promoting tourism

Campaigning for GREAT Britain

7. The GREAT Campaign was established by the Government in September 2011, in the run-up to the 2012 London Olympic and Paralympic Games; the aim of this campaign was to get people from around the world to visit the UK and do business here. VisitBritain told us that the Campaign is "succeeding in shifting perceptions of Britain and has measurably increased the intention to visit the UK, potentially delivering an additional £305 million spend, which corresponds to a return on investment of approximately 9:1 (2012/13-2013/2014) … Exposure to the GREAT tactical campaign doubles the likelihood of a visit to both Scotland and Wales." One of the key benefits of the GREAT Campaign has been the close cooperation of the Foreign and Commonwealth Office, UKTI, the British Council and VisitBritain; the chief executive of the last of these, Sally Balcombe, illustrated this by referring to the co-location of VisitBritain and the FCO "all around the world".[13]

8. These points were echoed by Bernard Donoghue of the Association of Leading Visitor Attractions: "There were three great things about the GREAT Campaign. First, it was a great national branding exercise and it was not a tourism exercise—we need to be quite clear about what it was and was not. Secondly, it meant that tourism and the way that Britain was marketed abroad were better understood in central Government, particularly in the Cabinet Office, No. 10 and the Foreign Office. Thirdly, through that it brokered helpful relationships between things such as UKTI, the British Council, the Foreign and Commonwealth Office, and VisitBritain. It formed a sort of glue that brought all those organisations together to work effectively."[14]

9. The Department for Culture, Media and Sport (DCMS) told us: "VisitBritain has reported that its GREAT activities in 2012/13 generated over £200 million of incremental expenditure from its 12 target cities alone. VisitEngland has reported total incremental economic returns of almost £380 million from its 'Holidays at Home are GREAT' campaigns in 2012 and 2013."[15] Despite these clear successes, no-one should be in any doubt about the level of international competition, not least for the traditionally important American tourist dollar. The Sport and Tourism Minister, Helen Grant MP, told us: "The American market is extremely important. We continue to focus on the North American market and France and Germany—not just the newer, emerging markets. That is why the continuous spending on the GREAT Campaign—marketing our country in a very good way at home and abroad to show all the different destinations we have—is very important."[16] We agree. Funding for the GREAT Campaign should continue for a period that is sufficiently long to give certainty to the industry. While all campaigns necessarily have a limited lifetime, the GREAT Campaign shows every sign of adapting to maintain its originality and vitality.

Structural arrangements

REGIONAL DEVELOPMENT AGENCIES AND LOCAL ENTERPRISE PARTNERSHIPS

10. Regional Development Agencies (RDAs) were non-departmental public bodies, charged with driving economic development in their regions; in particular, they had a statutory responsibility for developing tourism.[17] Following a decision by the Government in 2010, they were finally abolished in July 2012. Into the space left behind stepped Local Enterprise Partnerships (LEPs). These partnerships between local authorities and businesses decide what the priorities should be for investment in roads, buildings and facilities in the area. So far, 39 Local Enterprise Partnerships have been created. A small number of tourism projects have so far benefitted from LEP funding via Local Growth Deals.[18]

11. Some background to the current situation was provided to us by British Destinations:

Since the demise of the RDAs we have had no Regional tourism network in England, a network first created as a consequence of the 1969 Tourism Act and the formation of Regional Tourist Boards; boards which were subsequently dismantled by or absorbed into the RDAs. All RDAs had some form of regional tourism body until their demise, each working with the management organisations in each of the individual urban and rural destinations within their region. These local management organisations were either public sector based and led, or more often public private sector partnerships, though often by necessity administratively underpinned by the public sector. The system worked; most business that wanted to could engage at an appropriate level and via that level they could communicate locally, regionally or nationally. The structure also meant that regions could communicate and cooperate together and VisitEngland could also deliver agreed national programmes via or with the assistance of the Regional Tourist Boards and subsequently the RDA network.[19]

12. Ufi Ibrahim of the Tourism Alliance told us that in principle the idea of the Local Enterprise Partnerships helping to drive enterprise in their regions was a good idea: "However, what we found for tourism is that there are few Local Enterprise Partnerships that have embraced tourism and positioned it at the heart of their own economic growth strategies for those regions. I think we need to do much more collectively, not just the industry but also Government, to encourage Local Enterprise Partnerships to see tourism for the important contribution it makes to those local economies."[20]

13. The consequences of the structural changes have been put to us by, among others, the British Hospitality Association: "Funding by Local Authorities for Tourism has been drastically cut and in many cases removed altogether as Councils focus on their statutory duties." Bernard Donoghue of the Association of Leading Visitor Attractions spoke for many witnesses when he said:

It is a completely different landscape. Regional Development Agencies took tourism seriously in different ways. For example, in the South West, the RDA completely understood tourism and invested heavily in it, and saw that not only was tourism an important industry where you create jobs, but where you create and sustain communities. There were other Regional Development Agencies that were less apprised of tourism's benefits. The North West was fantastically good at investing in tourism.

14. Graham Wason of the Cut Tourism VAT Campaign explained why organised tourism promotion is important: "There are some local areas that are extremely effective in marketing and developing tourism, but others where tourism has fallen off the agenda. Bear in mind that with 80% of the tourism industry made up of small and medium sized enterprises, often those businesses in local areas do not have the capacity or the ability to begin to market a whole area."[22]

15. The Sport and Tourism Minister, Helen Grant, suggested to us that the RDAs had not been "not local enough." She added: "We are now in a position where we have 39 LEPs and they are working very well. They are new and evolving. We believe that if those LEPs can work in partnership and collaboration with local authorities, the private sector and the DMOs [Destination Management Organisations], that will be a good thing for tourism and will provide a good structure for tourism up and down the country."[23] As the Local Government Association (among others) put to us, central government funding and influence over the visitor economy used to be "tightly controlled" through Regional Development Agencies. The LGA adds: "With the demise of regional economic structures, and a challenging fiscal climate, VisitEngland has adapted to operating in a localist world where there are a variety of sub-regional and local economic bodies working together to greater or lesser degrees to grow the visitor economy. The LGA has a very positive partnership with VisitEngland, who recognise the leadership role of councillors and the value of different approaches to destination management, often with strong private sector engagement."[24] We are concerned that, while the LEPs undergo their period of evolution, valuable ground is being lost in promoting tourism and securing all the necessary improvements to enable destinations to regain a competitive edge. The abolition of the Regional Development Agencies without putting in place adequate arrangements for tourism promotion was a mistake.

DESTINATION MANAGEMENT

16. At a local level, there are Destination Management Organisations, which come in a variety of shapes and sizes; one example is Shakespeare's England, the official Destination Management Organisation (DMO) for Stratford-on-Avon and Warwick Districts. It is a private sector led, not-for-profit organisation that has been created by local businesses and the local authorities to manage sustainable tourism growth to the area. Destination Management Organisations were envisaged as local tourist bodies which reflected local realities and would not be centrally determined. We were told by the British Hospitality Association, that some DMOs are doing well—with great leadership, a good balance between public and private sectors and a clear strategy. However, too many are "ineffectual."[25]

17. Legacies of the older system do continue. An example is Cumbria Tourism (originally Cumbria Tourist Board), formed over 40 years ago. Cumbria Tourism was established as one of 10 English Regional Tourist Boards in 1974 and evolved and continued under the Regional Development Agency framework. Cumbria Tourism told us it is one of approximately 20 "primary" Destination Management Organisations (DMOs) in England: "Cumbria Tourism challenges the notion that there are 200+ DMOs, most of these organisations do not perform a strategic management role for the destination they serve, and often are restricted to local information provision and the public sector subsidy of local businesses."[26]

18. When we visited Exeter, we were told that tourism received little attention from the LEP and that the DMOs had "imploded" due to a lack of funding. We were also told that Exmouth could not fund a tourist centre for want of available funding from the District Council (although a voluntary tourist information service exists). There were some more positive messages coming from Devon and Cornwall, though: tourism is the main focus of the Plymouth business improvement district and, in Cornwall, the LEP did at least have tourism as an integral part of its strategy. At the Eden Project, it was put to us that Cornwall had a better chance of promoting tourism with its own LEP than it had had with the former Regional Development Agency based in Exeter. The contrasting messages we received in Devon and Cornwall suggest a lack of co-ordination in tourism promotion and destination management. The Tourism Alliance "strongly believes that the sub-national tourism structure in England is effectively broken and that this will increasingly affect regional tourism economies. It will also adversely impact on the success of the Government's Tourism Policy, which is predicated on there being a strong, effective DMO network throughout England."[27]

19. Bernard Donoghue of the Association of Leading Visitor Attractions told us that Visit Kent is a "very good example" of the private sector and public sector working together.[28] That is certainly the impression we were left with after our visit to the Historic Dockyard, Chatham. Though clearly a leading Destination Management Organisation, Visit Kent told us that it could not perform on its own many of the functions delivered by VisitEngland (VE) and VisitBritain (VB) including major market research, overseas marketing (particularly long haul) and strategic support. Visit Kent gave us an outline of what it does, which should serve as an exhortation for others to follow:

We collect and contribute data to market research; we create the local conditions to allow VE and VB to do their job properly e.g. host journalists and travel trade and act as the direct conduit to and from businesses that would be impossible for national organisations. We have extensive European and domestic marketing campaigns. We help connect local networks and business in a way that helps to deliver on the strategic framework for tourism and support the national objectives while also achieving our local goals.[29]

BUSINESS IMPROVEMENT DISTRICTS

20. Business Improvement Districts (BIDs) are partnerships between local authorities and local businesses which are intended to provide additional services or improvements to a specified area. A BID must be agreed by ballot and is funded in whole or in part by a levy additional to the non-domestic rates.[30] The British Beer and Pub Association (BBPA) told us it has long supported the establishment of Business Improvement Districts as a partnership between local businesses and local authorities: "The night time economy BID in Nottingham was particularly successful with taxi marshals, upgrading of the facia on empty shops, a street pastors scheme and the organisations of events like food festivals in the city centre. Other city BIDs fund street cleaning and help and advice for tourists on the street. BBPA is supportive of Tourism BIDs, but so far none have been established and the opportunity to work cross local authority seems to have stalled."[31]

21. Councillor John Beesley, Leader of Bournemouth Borough Council, said: "We have also begun to benefit from the success of two Business Improvement Districts. We did two at the same time; I think we were the first destination in the whole country to do so. One was the town centre, as you would expect. The other one is a coastal BID, and that coastal BID is focused on tourism along the coastal part of the town. Between the two of them they are generating around £1 million of additional revenue per annum. They are both going very well."[32]

VISITENGLAND AND VISITBRITAIN

22. VisitBritain is the agency responsible for international inbound tourism and a non-departmental public body, funded by the Department for Culture, Media and Sport. It is responsible for promoting Britain worldwide and developing its visitor economy. VisitEngland is responsible for domestic (English) tourism and marketing England. It is an Advisory NDPB which sits within VisitBritain (Executive NDPB) although it has its own board, Chair and Chief Executive. VisitEngland is in receipt of grant in aid from the DCMS, along with a small allocation of GREAT funding for domestic marketing. Up to the end of the current financial year Visit England will also receive Regional Growth Funding from the Department for Business, Innovation and Skills and the Department for Communities and Local Government.[33]

23. The DCMS has conducted a Triennial Review of VisitEngland and VisitBritain. The Review was set up to examine whether there is a continuing public need for all the functions performed by VisitBritain and VisitEngland and if so, to determine if they should continue to deliver them or if there is an alternative delivery model; and to look at the control and governance of each organisation to make sure they are complying with recognised governance principles and delivering their functions effectively and efficiently. The Review's findings were published on 12 March 2015. The importance of VisitBritain and VisitEngland was put to us by, among others, Ufi Ibrahim of the Tourism Alliance:

On the Visit agencies and their role, tourism affects every business. The economy affects retail. It affects construction. It affects everyone. Therefore, we feel that Government absolutely must play a role in protecting an industry that represents 10% of employment and 10% of GDP in this country. It is a major industry. There is absolutely a role there for Government to complement in terms of driving our visibility internationally. Also, tourism should not be forgotten for the role it plays in presenting the reputation, the branding, for the nation in the world, and a big role in terms of public diplomacy and our positioning internationally.

24. The British Hospitality Association told us: "We would like to see VisitBritain have responsibility for all international Tourism marketing. Presently, it is shared with VisitEngland and this causes unnecessary confusion and duplication."[35] The Government's Triennial Review of VisitEngland and VisitBritain accepted this. We support the Government's conclusion that there should be a clearer delineation in the roles of VisitBritain and VisitEngland, with the two agencies focusing respectively on international and domestic marketing and promotion.

25. It goes without saying that the range and scope of the work undertaken by VisitBritain and VisitEngland will be constrained by their budgets. Dermot King of Bourne Leisure provided some general context: "To give you the size of the problem, our marketing campaign within Bourne Leisure is in the order of £30 million. You have just heard VisitBritain's is £8 million, so private marketing dwarfs what Government can do."[36] One of the things that has been lost under the current system is VisitEngland's ability to network effectively, both regionally and locally. Samantha Richardson of the National Coastal Tourism Academy attributed this to the removal of the (nine) RDAs. She told us that previously VisitEngland worked with the RDAs and Regional Tourist Boards and via them with local authorities. Now it has to work with over 200 DMOs, which means a weaker relationship.[37] During our visit to the Eden Project it was suggested to us that VisitEngland ought to prioritise its promotional work, focusing on working with a smaller number of established DMOs. While this would mean some places would lose out, it was put to us that focusing marketing campaigns where customer demand was likely to be greater would be a more effective approach.

26. ABTA told us they believe that "VisitBritain and VisitEngland perform an important and valuable service for the British tourism industry to a very high standard within the constraints of their mandates and resources. Their activities have been fundamental to the growth of tourism in the UK … However, successful tourism development and promotion work in overseas and domestic markets requires long-term funding. While the budgets for VisitScotland (£50.3 million) and Visit Wales (estimated £20 million) have increased since the Committee's last inquiry the combined budget for VisitBritain and VisitEngland has fallen by 47% over this period—from £55.1 million in 2007/8 to £29 million in 2014/15."[38]

27. Brigid Simmonds told us: "VisitEngland have a role of national tourism co-ordinator. They should be used, whether it is with that or working with LEPs or with DMOs, that is a role."[39] Whether VisitEngland has sufficient resources to rise to this task is another matter. Its chief executive, James Berresford, bemoaned the lack of available funding:

I think the level of Government commitment is reflected, at the risk of sounding like a cracked record, in the Regional Growth Fund money and the domestic GREAT money. That is the extent of the funding. We have a core fund budget, but outwith that, we are unable to do a great deal more for destinations. There is an expectation that we, as the National Tourist Board for England, should do more. My core budget next year is just over £7 million. I cannot do more for destinations.[40]

28. VisitEngland's core budget of £7 million is dwarfed by VisitScotland's annual operating budget of £58 million.[41] The Sport and Tourism Minister, Helen Grant, did argue that such a comparison was not like for like, adding that the VisitScotland figure includes retail and commercial income, money from local authorities and some European money.[42] A more like for like comparison was given to us by the British Beer and Pub Association: "Visit Scotland receives £50 million a year from the Scottish Government, Visit Wales £20 million from the Welsh Executive and Visit England only £7 million from DCMS."[43]

29. Other sources of funding have included DEFRA's Rural Tourism Fund, aimed at attracting more people to rural areas and encouraging them to stay longer when they visit. According to DEFRA, £12 million has been invested in Visit England's marketing campaigns such as the Holidays at Home are Great. The Department has stated: "We also invested £6 million in projects under the Rural Development Programme for England to make rural destinations more attractive and accessible. This includes support for rural communities in creating local path networks and for iconic landscapes in developing sustainable tourism."[44] Kurt Janson of the Tourism Alliance also referred to the LEADER[45] programme, which also has funds for rural tourism development. He added: "The problem is there are those pots of money around the place—Coastal Communities Fund and the Regional Growth Fund—but they are not co-ordinated across Government. There is money there. If we could co-ordinate it and use it in an effective and efficient manner then we would be going somewhere."[46] The Regional Growth Fund, administered by the Department for Business, Innovation and Skills, was referred to in a number of submissions we received. Among these was the following from the British Beer and Pub Association: "Whilst the Regional Growth Fund money for tourism has been vital, it will soon finish. There is a real danger that only the largest destinations will have funds and people to promote tourism. Examples might be York, Manchester, Liverpool, Kent and Cornwall, but not Devon or Cumbria. If we are to attract tourists to visit destinations outside London then it is essential core funding is provided to Visit England to do this."[47]

30. After reciting a range of funding available from different sources, the Tourism and Sport Minister, Helen Grant, said: "There is an awful lot of public money being spent—rightly in my opinion—in marketing the sector. I think we do need to do that, because the sector is made up of a very large number of SMEs that typically compete with one another; many of them do not always have the money spare for joint collaborative marketing campaigns. Because of that Government money, we are able to bring in others, so collaboration is strong and there is the wider benefit to the Government spending this money as well, which is inward investment."[48]

31. VisitBritain will continue to need adequate funding if it is to compete on the international stage to attract more visitors to the UK. The disparity between VisitEngland's funding and that of VisitScotland and also Visit Wales is pronounced. With sufficient resources, we believe VisitEngland is well placed to move more decisively into the organisational vacuum left by the abolition of the Regional Development Agencies and the Regional Tourist Boards. We also believe there is scope for the Government to better coordinate the variety of funding sources it has established.

Encouraging tourism throughout the UK

32. Nearly half of all inbound visitors to the UK visit only London, which received over 17 million visitors last year. According to UKinbound, 77% of foreign visitors said that they would be interested in visiting other parts of the UK if they had more knowledge about itineraries, destinations and transport.[49] This lack of information is in part due to failures in the structure of tourism promotion.[50] While knowledge of what is available is clearly a key consideration, some areas with great tourism offers nevertheless suffer due to shortcomings in actual transport infrastructure; Cumbria and Blackpool were two of the examples given to us.[51]

33. Ufi Ibrahim of the Tourism Alliance admitted: "it is fair to say that perhaps more effort needs to be placed upon understanding how London can be used to push out more visitors, beyond London, to other areas of the United Kingdom in order to share more of that wealth. Less of that seems to be happening at the moment."[52] Sally Balcome of VisitBritain told us: "We work with lots of the regional areas such as Yorkshire, Liverpool, Birmingham and Scotland. Yes, London is very important, but there are a couple of things to say about that point. International tourism grew in the regions faster than in London last year. That point has not really been registered. London grew by 6%, Scotland by 12%, Yorkshire by 12%, and the rest of England by 6%, so we have seen good growth."[53] Her colleague, James Berresford of VisitEngland, injected the following cautionary note: "Regrettably, the regions of England lag behind London quite considerably and that gap is getting wider. We have seen some welcome growth, but that gap is getting wider and the rest of the England industry is largely dependent on domestic tourism."[54] He also drew attention to the Regional Growth Fund which was not about taking business from London, but growing business in the regions.[55] The Sport and Tourism Minister, Helen Grant, was upbeat about the prospects for regional tourism: "A lot is happening on regional tourism and getting visitors out of London. VB and VE market the nation and the regions—VB through the GREAT and the tactical campaigns, VE through the holidays-at-home GREAT Campaign. It has run three very successful campaigns where we are seeing a return on investment in the region of 20:1."[56]

34. We were encouraged to learn from Chris Gottlieb of London & Partners of a joint marketing campaign his organisation is conducting with Visit Wales. This is one way in which London's undoubted attractions can be exploited to bring in more visitors to more parts of the UK. Chris Gottlieb also argued that the real source of competition lies beyond our shores: "We did a survey on visitlondon.com with a sample size of 7,000 people, so it was statistically robust. We found that 88% of people who came to London would have travelled internationally if they had not come to London. So the key message here is one of collaboration and partnership. London is not a competitor with the rest of the UK."[57]

35. A note of caution came from Capital Region Tourism and the Wales Chapter of the Tourism Society: "Clearly Wales, Scotland and Northern Ireland will cry 'foul' if the relationship between VB and VE gets any closer in terms of governance, remit or activities. Shared premises and back office services are one thing—operational integration quite another. While the remits for the home country 'Visits' are nominally the same we must also be mindful that England remains the key source market for all of them, so in simple terms Visit Wales is seeking to entice English visitors across Offa's Dyke while Visit England is encouraging the same people to stay within England."[58]

36. Ultimately, it is the distinctive destinations themselves that must step up to the bar when it comes to attracting tourists; as James Berresford of VisitEngland put it: "My organisation is there but to provide a platform, information, support and guidance, not to do the job of destinations. Destinations are best placed to do the jobs themselves."[59] Yorkshire's successful Grand Départ for the Tour de France and Newcastle's Great North Run (the world's biggest half marathon) provide examples of how major events can be leveraged to encourage more visitors to more parts of the UK. And while everyone cites the London Olympic and Paralympic Games, it should not be forgotten that the Commonwealth Games more recently provided an international stage for Glasgow and the rest of Scotland.

37. We believe there is scope for further cooperation between VisitBritain and all four organisations charged with promoting different parts of the United Kingdom. It is in everyone's interest that both domestic and international visitors gain a positive experience from everything our country has to offer tourists, be it culture, countryside, cities or sport.

13 Q 368 Back

14 Q 304 Back

15 Department for Culture, Media and Sport (TOU0061) Back

16 Q 404 Back

17 British Marine Federation (TOU0042), para 4.2 Back

18 Department for Culture, Media and Sport (TOU0061) Back

19 British Destinations (TOU0092), para 14.2 Back

20 Q 34 Back

22 Q 116 Back

23 Q 416 Back

24 Local Government Association (TOU0030), para 14 Back

25 British Hospitality Association (TOU0043), para 9.2 Back