BML313 - TOPIC 2 - SUPPLY AND DEMAND

BML313: Rural Tourism

Topic 2: The Business of Rural Tourism

Supply and Demand

Learning Outcomes Aims § To iden(fy the rural resource base and related stakeholders § To evaluate the role and characteris(cs of SMEs and micro

businesses as part of the rural resource base

§ To iden(fy the demand for the rural tourism product, and the

wider public a=tudes towards the countryside

§ To cri(cally evaluate the factors influencing the demand and

supply of rural tourism

§ To evaluate the ways in which the demand for rural tourism has

been conceptualised, and iden(fy typologies of rural tourist

Rural Tourism Ac9vity 1: 1. What is the rural tourism product? (A to Z) 2. Who are the key stakeholders (providers) and facilitators?

Indica've Providers

The Rural Resource Base Direct Providers: § The private sector (also including Chari(es) § SMEs/Micro-­‐businesses (tourism,

accommoda(on, retail, aLrac(ons, ac(vity centres etc) § Agriculture § Farm tourism/farm diversifica(on

The Rural Resource Base Direct Providers: § English Heritage § Advise government on maLers

concerning the conserva(on of historic buildings and ancient monuments § 400 historic proper(es § Over 11 million visits each year

The Rural Resource Base Direct Providers: § Na'onal Trust § 612,000 acres of land § 600 miles of coastline (1 in

every 6 miles)

§ Over 350 historic

buildings, monuments and gardens § 3.6 million members

The Rural Resource Base Direct Providers: § Canal and River Trust § 50% of popula(on of GB live

within 5 miles of a waterway § 2,200 miles of inland

waterway network

§ 25 canal museums and canal

interpreta(on centres visited by 750,000 people each year § hLp://canalrivertrust.org.uk

The Rural Resource Base

Forestry Commission

Direct Providers:

The Rural Resource Base Direct Providers: § County Councils/Local

Authori'es

§ Planning and economic

development § Provision and maintenance of

Public Rights of Way

§ 300 Country Parks in England

and Wales

The Rural Resource Base Direct Providers: § Na'onal Park Authori'es § 1949 Na(onal Parks and Access

to the Countryside Act § 15 Na(onal Parks including the

South Downs

§ Over £3.6bn visitor spending

into local economies § Responsible for the

management of the Na(onal Park

The Rural Resource Base Direct Providers: § Na'onal Park Authori'es

Visitor management; interpreta9on

Facilitators – Policy, Strategy and Business Support

The Rural Resource Base Facilitators § Central Government

DEFRA

NATURAL ENGLAND

DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT

The Rural Resource Base Facilitators § Central Government

DEFRA

[DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS]

FORMERLY MAFF

[MINISTRY OF AGRICULTURE, FISHERIES AND FOOD]

The Rural Resource Base Facilitators § Central Government

DEFRA

[DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS]

Structural Reform Priori9es: • Support and develop Bri(sh farming and encourage sustainable food produc(on • Help to enhance the environment and biodiversity to improve quality of life • Support a strong and sustainable green economy, resilient to climate change

The Rural Resource Base Facilitators § Central Government

DEFRA

[DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS]

• England Rural Development Programme 2000-­‐2006 • Rural Development Programme for England 2007-­‐2013

The Rural Resource Base Facilitators § Central Government

NATURAL ENGLAND

FORMERLY: ENGLISH NATURE

FORMERLY: THE COUNTRYSIDE AGENCY

FORMERLY: THE COUNTRSIDE COMMISSION

The Rural Resource Base Facilitators

Responsibili9es:

§ Central Government

• Managing England’s green farming schemes • Increasing opportuni(es for everyone to enjoy the wonders of the natural world • Reducing the decline of biodiversity and licensing of protected species across England • Designa(ng Na(onal Parks and Areas of Outstanding Natural Beauty • Managing most Na(onal Nature Reserves and no(fying Sites of Special Scien(fic Interest

NATURAL ENGLAND

The Rural Resource Base Facilitators § Central Government

COUNTRYSIDE AGENCY ARCHIVE

The Rural Resource Base Facilitators § Central Government

DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT

The Rural Resource Base Facilitators § Central Government

DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT

The Rural Resource Base Facilitators [Policy/Strategic Support] § Visit Britain/ Visit England (English Tourism Council)

The Rural Resource Base Facilitators [Policy/Strategic Support] § Regional Tourist Boards/Des'na'on Management

Organisa'ons §

Welcome Farmer

§

Welcome Walker and Cyclist

§

Rural Tourism Advice Pack [www.ruralways.org.uk]

§

Green Audit Kit/Green Advantage

§

Green Tourism Business Scheme

§

South East AONB Sustainable Tourism Project

The Rural Resource Base Facilitators [Policy /Strategic Support] § Local Authori'es/Tourism Partnerships § New Forest Tourism Partnership [Beacon Status] § South Hams Tourism, Devon [Beacon Status]

The Rural Resource Base Facilitators § Na'onal Park Authori'es & Areas

of Outstanding Natural Beauty

§ Na(onal Park Management Plan § AONB Management Plan § Tourism ini(a(ves (e.g. Dartmoor

Moor Care Less Wear)

The Rural Resource Base Facilitators § Regional Development Agencies (closing March 2012) § Local Economic Partnerships (LEPs) § Local Area Partnerships/Business Groups § European Union – Leader Programme

The Rural Resource Base Facilitators § Market Towns Associa'on § Country Landowners Associa'on § Council for the Protec'on of Rural

England

§ Ramblers’ Associa'on § Regional Food Groups

The Rural Resource Base Providers and Facilitators § The rela9onship between providers and facilitators is

dependent on geography, and changes from locale to locale, region to region

§ Therefore a local understanding is essen9al set against a

regional and na9onal context

Case Study: Rural SMEs and Micro-­‐businesses

The Rural Resource Base SMEs and Sustainable Rural Tourism § Micro-­‐businesses § Constraints on (me, financial resources, and limited

knowledge and experience § Environmental management ac(vi(es are considered ‘messy’,

‘complicated’, accentuated by a ‘lack of adequate support infrastructure’, ‘limited business resources’ and the low availability of sustainable goods and services

The Rural Resource Base SMEs and Sustainable Rural Tourism § Establishment for non-­‐financial reasons, with liLle interest in

developing their business

§ Opera(ng on margins of commercial viability and are more

concerned with day-­‐to-­‐day survival than planning long-­‐term environmental conserva(on

The Rural Resource Base SMEs and Sustainable Rural Tourism § LiLle confidence in the market for sustainable tourism § Limited knowledge of the market that they operate within § Limited IT skills § Limited networking skills and poor knowledge of available

support

§ Yet, SMEs/micro-­‐businesses cons(tute the main providers of

rural tourism products

§ SMEs/micro-­‐businesses provide a high quality visitor,

experience

The Rural Resource Base

The Rural Resource Base Goodall (1995): Adop9on of Sustainable Tourism by Accommoda9on Providers on Guernsey § 5% ‘Green Champions’ -­‐ businesses that regularly reviewed their

environmental performance

§ 30% ‘Worthies’ -­‐ businesses that had reviewed their

environmental performance and made changes as a result

§ 20% ‘Conven9onals’ -­‐ business providing a tradi(onal

hospitality service and adop(ng few sustainable prac(ces other than for economic reasons

§ 45% ‘Under-­‐performers’ -­‐ low technical and environmental

ability, and surviving through the provision of a low-­‐cost service

The Rural Resource Base Vernon and Essex (2001): Adop9on of Sustainable Tourism by Providers in South East Cornwall § Of a sample of 197 businesses, 55% of respondents aged over 50 § Only 13% commenced business to maximise income § Most had a limited understanding of their own impact on the

environment

§ 70% adopted measures that required liLle commitment (e.g.

publicising local events)

§ Only 25% adopted prac(ces requiring more specialist exper(se/

financial outlay

§ Overall low levels of pro-­‐ac(ve innova(on

The Rural Resource Base Vernon and Essex (2001):

“We tend to be so busy trying to actually, you know, making

the beds and cleaning toilets and doing your VAT return, and everything else’

“Because I am running a business, I’m too busy to do anything else’

“I tried to set up a policy of buying locally produced and we

ended up going to a wholesaler at St Agnes who then this year refused to con(nue our account with us. They said ‘oh, we can’t be bothered to deliver up to Looe’, so we had...we nearly went back to a wholesaler that is based in Kent’

The Rural Resource Base Vernon and Essex (2001):

“On your own it is no good thinking, ‘oh well I’d like to do this

this’, because you have not got the resources: it is all stacked against you as a small business. If you’re a big business you’ve got the funds, you’ve got the knowledge, you’ve got the contacts and everything, and you put a person, ‘right well you can do all this’. And one person...’

“But if you look at the payback (me on this sort of thing, you’d be well dead first. You know, it is well down the priority list’

Vernon and Essex (2001)

Rural SMEs

Vernon and Essex (2001)

Rural SMEs

The Demand for Rural Tourism

The Demand for Countryside Recrea9on

The Demand for Countryside Recrea9on

The Demand for Countryside Recrea9on

The Demand for Countryside Recrea9on

Rural Tourism Ac9vity 2: 1. What factors have influenced the demand for rural tourism?

Factors Influencing Demand and Supply § Changing tourist demand/behaviour/mo9va9ons/

expecta9ons

The Demand for Countryside Recrea9on

The Demand for Countryside Recrea9on

The Demand for Countryside Recrea9on Visitor Experience TRI*M Index Location of Holiday

2013-14 BASE: 4279

Understanding Visitor Satisfaction, 2013-14

Touring

City

Countryside

Seaside

83

94

96

97

Low customer retention

High customer retention 40

60

80

100

Countryside 2011-12:

2012-13:

2013-14:

95

97

96

Not too much variation in countryside destination satisfaction – no clear trends

The Demand for Countryside Recrea9on Visitor Experience TRI*M Index Accommodation types

2013-14

Understanding Visitor Satisfaction, 2013-14

Hotel

B&B / guest house

Holiday camp / village

Caravan

Camping

Rented house or flat

91

95

96

99

99

102

BASE: 4279

Low customer retention

High customer retention 70

80

90

100

Camping 2011-12:

2012-13:

2013-14:

92

96

99

Steady increase in satisfaction on camping holidays – from below national average satisfaction to significantly above

The Public’s View of the Countryside The public tend to divide rural destinations into three themes

Dramatic Countryside “Almost iconic” • Hills and lakes • E.g. Lake District, Peak District, inland Cornwall, Yorkshire Dales Positive views…

• Sense of being away from modern life and escaping from the crowds • Dramatic scenery

Market towns & surrounding area “Not too remote” • Countryside with history & heritage • E.g. Matlock, Bath

Appeals to empty nesters • Best of both worlds – town and country • Provides access to shops, museums, architecture, stately homes etc.

…but knowledge limited

“Quaint, picture postcard” • Rolling landscape and picturesque villages • E.g. Cotswolds Strong appeal initially…

• Imagine staying in cottages, farm houses or manor houses • Relaxing …but what is there to do?

• Don’t always have a strong visual image…

• …or even know where they are Opportunity to add depth to people’s images of these places and promote other options

Rural Countryside

• Little to do for more than a couple of days

Talk about day trips to towns and attractions as part of a trip to the country

Reinforce quality time with travel party and simple pleasures in life (e.g. walks, board games)

Factors Influencing Demand and Supply

INTERNA L

Visit Eng

Understa nd

land – En

ing the Co

There are three sub-categories for both English Seaside and Countryside English Coastal

English Countryside

Traditional English Resort/ town • Piers, arcades etc • Blackpool, Skegness

English Coastline • Scenic long stretches • Cornwall • Northumberland

Dramatic Countryside Seaside Towns and nearby coast

Market towns & surrounding area

• Quaint and distinctive • Filey, Salcombe

• Countryside with history & heritage • Matlock, Bath

There is overlap between coastal and countryside

• Hills and lakes • Lack District • Peak District

Rural Countryside • Rolling landscape & picturesque villages • Cotswold

Each has its own merits, but there are differences in appeal by life-stage page 26 © quadrangle,2012

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Research Debrief

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Document prepared for: Jane Darra gh Visit Engla nd Sharon Orrel l Visit Engla nd

Document prepared by: Rob Griffit hs robert.griff iths@quad Graham Brown rangle.com graham.bro Alex Rawl wn@quad ings rangle.com alex.rawlin gs@quadra ngle.com

the butler s wharf buildin g, 36 shad t +44 (0)20 thames, 7357 9919, london se1 f +44 (0)20 wwww.quad 2ye 7357 9773, rangle.com

The Public’s View of the Countryside

The Public’s View of the Countryside

Factors Influencing Demand and Supply § Television/media -­‐ ‘TV Tourism’ § Sense and Sensibility §

Saltram House, Plymouth Devon -­‐ 39% increase in visitor numbers

§ Four Weddings and a Funeral §

The Crown Hotel, Amersham, England -­‐ fully booked for at least 3yrs

Factors Influencing Demand and Supply

Factors Influencing Demand and Supply

Factors Influencing Demand § Price and importance of other goods § Countryside is free/price is regarded as inelas(c as

admission charges are only a small part of the total cost of the visit

§ Growth of leisure (me has had an impact on the residual

(me and money available for countryside recrea(on

Factors Influencing Demand and Supply § Income and wealth distribu9on § Those with higher levels of wealth are the principal

consumers of the countryside

§ Therefore do the less well off not have the means to

undertake countryside recrea(on or do they simply prefer not to § Stayca(on – growth in camping and caravanning

§ Increased demands for access to the countryside § 1932 Kinderscout Mass Trespass, Derbyshire

Factors Influencing Demand and Supply § Health consciousness § Clothing technology § Improvement of all weather clothing § Light-­‐weight breathable fabrics, Gore-­‐Tex § Sales of outdoor clothing rose from £25m in 1980 to over

£1.426bn in 2013 (Ramblers Associa(on, 2015; Outdoor Industries Associa(on, 2015)

Factors Influencing Demand and Supply § Green issues -­‐ embodiment in the countryside § Conserva9on work § Bri(sh Trust for Conserva(on Volunteers

Factors Influencing Demand and Supply § Government Policy § Emphasis on providing recrea(onal opportuni(es in the

countryside

§ Response to Foot and Mouth Disease § Countryside and Rights of Way Act 2000 § Greater emphasis on demand-­‐led approaches to planning

recrea(on provision § Rural Growth Programme / Leader

Understanding the Demand for Rural Tourism § Planning and Economic Development § A move away from planning-­‐led

approaches that have typified approaches to recrea(on provision, with a shiq to evidence-­‐based policy development

§ The influence of demand and

consump(on on policy and management

§ Greater emphasis on working with people

than working for people -­‐ ‘local governance’ / ‘Big Society’

Factors Influencing Demand and Supply § Des9na9on Management / Visitor Economy § Informa(on/awareness about the local area § Local Dis(nc(veness/Sense of Place § Tourism Strategy – Rural Ac(on Plan

Factors Influencing Demand and Supply The ‘local’ to the area angle is appealing across segments and life-stage.

INTERNA L

Visit Eng

Understa nd

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Document prepared for: Jane Darra gh Visit Engla nd Sharon Orrel l Visit Engla nd

Local activities and events things you can’t or wouldn’t do closer to home

•

everything from fêtes to country shows through to local traditions

Local produce, food and drink (specialties)

“Local butchers and bakers and little artisan shops.”

•

especially seafood for coastal

•

enjoying good produce and food is increasingly key to holidaymakers and England is felt to be improving

(Derby: Empty Nester)

Mixing with the friendly locals •

without the language barrier

Independent shops, pubs etc

page 15 © quadrangle,2012

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Creating destination distinctiveness •

land – En

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Document prepared by: Rob Griffit hs robert.griff iths@quad Graham Brown rangle.com graham.bro Alex Rawl wn@quad ings rangle.com alex.rawlin gs@quadra ngle.com

the butler s wharf buildin g, 36 shad t +44 (0)20 thames, 7357 9919, london se1 f +44 (0)20 wwww.quad 2ye 7357 9773, rangle.com

Factors Influencing Demand and Supply § Marke9ng, Branding and Segmenta9on § Increasing emphasis on market segmentaWon to support

product development and markeWng strategies

§ Countryside as a backdrop for events § Increasing emphasis on market segmentaWon to support

product development and markeWng strategies

The Demand for Countryside Recrea9on Addi9onal Characteris9cs § Domes(c day visitors account for a large propor(on of the

demand for rural tourism, with the majority of visits being made by a rela(vely small sec(on of the popula(on

§ ‘Tourists’ (i.e. those visitors who spend at least one night in the

countryside) represent a minority of the total demand for rural tourism, yet spend rela(vely more per visit

§ Day visitors account for the majority of visits, yet individually

spend less

The Demand for Countryside Recrea9on Addi9onal Characteris9cs § Most visitors arrive by car § Day visitors have a much greater cumula(ve impact than longer

stay visitors

§ The majority of visitors to the countryside bring rela(vely liLle

economic benefit to rural communi(es, whilst causing most of the problems

§ Managed, formal sites and des(na(ons, though popular in

terms of visitor numbers, aLract a rela(vely small propor(on of total countryside visits

Understanding the Demand for Rural Tourism § The Con9ngent Use of the Countryside [Shaw and Williams, 1994]

§ Rural Opportunity Spectrum §

Different rural areas are appropriate se^ngs for different tourism acWviWes

§ Accessibility §

Dependent on spaWal variaWon, social factors and poliWcal ownership of the countryside

Understanding the Demand for Rural Tourism § Space-­‐Time Budget Constraints § The enjoyment of some types of determining the loca(on

and nature of tourism ac(vi(es in the countryside

§ This approach relates demand to the ability of tourists to

exploit or consume the countryside for any variety of ac(vi(es thereby reinforcing the role of the countryside as a des(na(on

§ This approach relates demand to the ability of tourists to

exploit or consume the countryside for any variety of acWviWes thereby reinforcing the role of the countryside as a desWnaWon

Understanding the Demand for Rural Tourism

Understanding the Demand for Rural Tourism

Understanding the Demand for Rural Tourism

Developing Typologies § Frochot (2005): Rural SegmentaWon in Scotland § ‘The Ac9ves’ § Seek all benefits, with a preference for ac(ve

sports

§ Young visitors (62% under 44yrs), few re(red

visitors and slightly higher social classes

§ They take longer holidays (8.18 days) and have

a higher propor(on of families with children

§ Slightly higher preference for camping but a

lower preference for self-­‐catering

Developing Typologies § Frochot (2005): Rural SegmentaWon in Scotland § ‘The Relaxers’ § Seeking relaxa(on and have a lower

par(cipa(on rate in most ac(vi(es apart from golf and fishing

§ They take shorter holidays but have a higher

recurrence of countryside holidays, and have slightly more Sco=sh visitors than average

§ Slightly higher preference for camping but a

lower preference for self-­‐catering

Developing Typologies § Frochot (2005): Rural SegmentaWon in Scotland § ‘The Gazers’ § Interest in the outdoors mixed with an

aspira(on to relax and enjoy the countryside (driving around, short walks, picnics and nature study)

§ High propor(on of domes(c visitors, above

average use of hotels and self-­‐catering but are less interested in B&B

§ They take longer holidays (8.08 days) and have

a higher propor(on of families with children and are from higher social classes

Developing Typologies § Frochot (2005): Rural SegmentaWon in Scotland § ‘The Rurals’ § Mostly interested in the rural dimension of

their holiday, they are older visitors and the lower classes of all clusters

§ They do not dis(nguish themselves through

their ac(vi(es apart from a higher visi(ng rate of historic sites

Developing Typologies § Frochot (2005): Rural SegmentaWon in Scotland § Overview § The no(on of the ‘rural tourist’ hides several

sub-­‐segments of customers, based on ac(vity and socio-­‐economic and behavioural variables

§ The term ‘rural tourist’, sugges(ng that tourists

are recep(ve to rural issues’ is not appropriate as only a small segment has a clear interest in rural/ agricultural life

§ For most the aLrac(on was the broader

aLrac(ve features including naturalness, scenery, culture and ac(vi(es

Learning Outcomes By the end of this session, you should be able to: § To iden(fy the rural resource base and related stakeholders § Evaluate the role and characteris(cs of SMEs and micro businesses

as part of the rural resource base

§ Iden(fy the demand for the rural tourism product, and the wider

public a=tudes towards the countryside

§ Cri(cally evaluate the factors influencing the demand and supply

of rural tourism

§ Evaluate the ways in which the demand for rural tourism has been

conceptualised, and iden(fy typologies of rural tourist