BMF Tourism Executive Summary

The British Marine Federation (BMF) commissioned ICF GHK to undertake a study to assess the size, importance and economic contribution of boating-related tourism in the UK. The study was funded by BMF Tourism and supported by the Association of Pleasure Craft Operators (APCO), two of BMF’s subsidiary groups.

Boating activities make a significant contribution to the UK economy through two discrete categories: ■

Expenditures on boating goods and services provided by boating tourism sectors (i.e. marinas and moorings, boat hire, charter, rental, sailing schools / training, and passenger boats); and

■

Expenditures on non-boating goods and services, which occur during trips to participate in boating and watersports activities.

The study therefore aimed to provide a robust, credible and evidence-based assessment of: ■

the economic contribution of activities in the boating tourism sectors; and

■

the impact of wider leisure and tourism expenditures of boating and watersports participants.

The assessment was based on a review of existing data and information relating to the size, performance and economic contribution of the boating tourism sectors, and levels of participation in watersports activities in the UK. This was supplemented by additional data on expenditures captured through an online survey of watersports participants, which was undertaken specifically to inform this study.

Overview In total, the expenditures associated with the boating tourism industry and participation in boating and watersports are estimated to have totalled £3.6 billion in 2012/13, accounting for 3.2% of all tourism 1 expenditure in the UK . These expenditures are estimated to support: ■

approximately 96,000 FTE jobs in the UK economy, through direct and indirect effects.

■

more than £3.7 billion of GVA in the UK economy, taking account of all direct and indirect effects.

Table 1

Total boating tourism expenditures and associated GVA and employment impacts Boating tourism industry

Wider tourism expenditures

Total boating tourism

Total sales / expenditures (£m)

609

2,994

3,603

Direct GVA (£m)

264

1,497

1,761

Indirect GVA (£m)

170

1,796

1,966

Total direct and indirect GVA (£m)

434

3.293

3,727

Direct employment (FTE jobs)

9.088

44,904

53,992

Indirect employment (FTE jobs)

5,842

35,923

41,765

Total direct and indirect employment (FTE jobs)

14,930

80,827

95,757

Source: ICF GHK estimate, 2013

The overall economic contribution is therefore many times larger than the core boating tourism sector: ■

For every job directly employed in the core boating tourism sector, there are an additional 10 jobs supported in the wider economy through the direct and indirect effects of expenditures of boaters and boating tourism businesses.

■

Similarly, the overall GVA contribution of UK boating tourism is 14 times larger than the core boating tourism industry, when all direct and indirect effects are included.

1

Deloitte and Oxford Economics (2013) Tourism: jobs and growth - The economic contribution of the tourism economy in the UK

UK boating tourism therefore delivers a significant economic contribution and is estimated to be larger than: ■

the recreational boating industry in Canada;

■

the total recreational and light commercial marine industry in Australia; and

■

the total tourism impact of the 2012 Olympic and Paralympic Games between 2005 and 2017, including pre-event visits, the Games themselves and the ongoing legacy effect.

Industrial and economic context The marine industry has experienced challenging times in recent years as a result of the global financial crisis and the subsequent recessions and slow recovery of the UK economy. Real disposable incomes have also been falling over time, which has affected participation in watersports activities. This report is based on watersports participation in the 12 months to October 2012, which was a particularly poor year in terms of summer weather.

We expect overall participation to increase in 2013 given the better summer weather and the ongoing legacy effects of the 2012 Olympics. Furthermore, a recovery now appears to have commenced in the marine industry following two consecutive years of positive growth, whilst the UK tourism industry has also recovered well and the prospects for future tourism growth look good.

Assessment of boating tourism sectors The study assessed the economic contribution of core activities in boating tourism sectors: ■

marinas and moorings – the provision of moorings and marina berths is closely associated with tourism activity as it enables and facilitates participation in boating and watersports activities.

Marinas and mooring sites provide safe storage for vessels, access to coastal waters and the inland waterways, and facilitate the movement of vessels along the coast and around inland networks.

■

boat hire, charter, rental and sailing schools and training – businesses in this sector provide services to UK residents and visitors who want to hire leisure boats, rent watersports equipment or undertake training activities . The sector therefore provides a means for people to participate in, and improve their competence in, boating and watersports activities. It comprises a wide range of services for many different activities (e.g. canoeing, canal boating and yachting), and for people with different levels of expertise and competence.

■

passenger boats – the passenger boat sector provides a wide range of leisure boating experiences on rivers, lakes and coastal waters across the UK and is therefore a key provider of boating tourism services. The sector is very diverse, comprising very small businesses offering day trips as well as much larger businesses owning fleets of boats offering a range of boat trips and ferry services. For the purposes of this study, we have defined the passenger boat sector as the provision of passenger transport services to ‘leisure’ passengers and have excluded activities associated with the provision of commuter services as these do not relate to tourism.

It is estimated that the overall economic contribution of these boating tourism sectors includes: ■

a total turnover of £600 million generated directly by more than 2,000 boating tourism businesses;

■

a total GVA of £434 million generated directly by boating tourism businesses (£264 million) and indirectly supported amongst suppliers (£170 million); and

■

a total of 14,900 FTE jobs directly employed by boating tourism businesses (9,100 FTE jobs) and indirectly supported amongst suppliers (5,800 FTE jobs).

How to order your copy of the full report Online: www.britishmarine.co.uk/ecbens Email: research@britishmarine.co.uk Call: 01784 223615 Fax form to: 01784 475887 Post form to: British Marine Federation, Marine House, Thorpe Lea Road, Egham, Surrey, TW20 8BF

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