Partners for England British Tourism Framework Review

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Partners for England British Tourism Framework
Review

• 20 June 2008

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Agenda

• Review process
• Key insights
• The future England

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Summary of Submissions

• The structure of tourism
• VisitBritains International Role
• VisitBritains funding
• England
• The legacy from the London 2012 Olympic and
  Paralympic Games

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Stakeholder Engagement Consultation Timeline
Feb
May
July
October
Stakeholder engagement collecting inputs
Solution development refinement Discuss
proposed recommendations with key stakeholders
e.g. VB VE Board, DCMS, Ministers Strat.
Partners, RDAs, CoI, Tourism Alliance,
FCO/BC (One to one meetings with TW, CJR or DG)
Comments on draft report Report put out for
response with staff, industry, broader
stakeholders
Final report
Review Panel 28 Jan 2008
Review Panel 3 June 2008
Review Panel 18 April 2008
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The 85.6bn pie
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Global picture share of international arrivals
in 2007
4 in 5 are intra-Europe trips
9 in 10 are intra-AP trips
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UKs global market share of international tourism
6th most visited destination and earner from
international tourism
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Trends in inbound and outbound tourism
1991 Gulf War 1994 Channel Tunnel 1997 Asia
finance crisis 2001 FMD and 9/11 2003 Gulf
War/SARS 2004 EU expands
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The UKs International Tourism Balance of Payments
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Contrasting trends in number of inbound visits
2000-07
1.3 million from Spain 1.1 million from
Poland 900,000 from Ireland 640,000 from
Italy 630,000 from Germany
-510,000 from USA -243,000 from Japan -79,000
from Israel -62,000 from Greece -43,000 from Hong
Kong
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Shorter length of stay drives down spend per visit
43 inbound visits are 1-3 nights
Outbound length of stay down from13.3 to 10.0
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Over the past few years...

• UK population is more diverse (550,000 A12
  nationals live in the UK)
• More UK residents own a second home abroad
  (around 250,000)
• More Brits live permanently abroad (IPPR estimate
  is 5.6 million)
• More foreign students study at UK universities
  (49,000 entered in 2007)
• More UK based multi-nationals
• Competition for holiday visitors is more intense
  (Krakow, Dubai, Marrakech)

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Leading to a shift in the purpose mix of
inbound trips
19792007
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Relative contribution to growth in visits,
1993-2007
Short-haul mature 58 Holiday 16 Short-haul
emerging 21 Business 32 Long-haul mature
13 VFR 42 Long-haul emerging 8 Study/other 10
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Spend on overnight domestic trips and outbound
trips by UK residents
For ever 1 spent on domestic holiday trips,
2.11 spent on foreign holidays
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Regional spread challenge inbound shares
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Regional spread challenge domestic overnight
shares
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Challenges and opportunities

• Access challenge getting to, from, and around,
  Britain
• Socio demographic challenges opportunities
• Internet
• Accommodation sector productivity challenge

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Challenges real and perceived

• Heritage and culture remains a core UK strength
  (Ranked 3rd in NBI behind France and Italy)
• Expectations of welcome are poor (UK ranked
  16th by NBI, Canada top)
• Value for money rated poorly by Brits strongly
  correlated with visitor retention and destination
  choice (TNS visitor satisfaction research)
• Potential inbound visitors have poor perception
  of weather and food but neither is a major
  deterrent
• Challenge of the more demanding and unpredictable
  consumer

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How Britons describe a holiday in Britain
53 choose negative adjective
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The future (1)

• Economic cycles will ensure good years and bad
  years but
• has the era of rising discretionary spending
  power and falling travel costs ended?
• New global hubs for business set to challenge
  London (Mumbai, Shanghai)
• Socio-demographic change will impact why we
  travel and who we travel with

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The future (2)

• Geo-politics matters (China wont have a
  significant balance of payments deficit)
• Fashions will come and go
• Technology will alter how we research, book,
  experience and recount travel
• Climate change will shape government, business
  and consumer behaviour
• Competition for the tourist , and potential
  tourists attention will intensify
• There will always be shocks

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Summing up

• Brits love to travel, but increasingly this
  involves going abroad
• Much of the recent inbound growth has been driven
  by non tourism factors
• New global tourism flows will emerge, but
  predominantly intra-regional
• Britain has renowned tourism assets, but is a
  high-cost option offering a mediocre welcome

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Deloittes

• Direct contribution
• Indirect
• Spillover benefits
• Economic social inclusion
• Enterprise/ business formation
• Sustainable development impacts
• Regeneration

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The future purpose for a National Tourism
Organisation for England

• The England division within VB has achieved
  much but needs to evolve to fully reflect
  devolution, adding value to the industry, RDAs
  and their delivery partners in developing a
  shared strategy, appropriate marketing campaigns
  in domestic near haul markets driving the
  product improvement agenda.

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The requirements to achieve the purpose

• The England Division should evolve more into a
  stand-alone entity
• Accountable to key stakeholders and investor in
  English tourism and have KPIs which reflect this
• Provide strategic leadership by working with the
  RDAs, P4E and other key stakeholders to develop a
  national strategy
• Secure the full engagement of the private sector
  to maximise collective investment in Englands
  visitor economy
• The national strategy should include marketing
  England as a gateway to the regions product
  development which would encompass championing
  initiatives such as the Destination Charter
  market insights and intelligence
• Build on Londons brand strength for the benefit
  of London England
• Sit alongside VisitScotland, Visit Wales and
  Visit London in working with VB

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New England
Destination Management Organisations
Regional Economic Strategies (DBERR/ DCMS)