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inside front cover
The Tourism Society Trinity Court, 34 West Street, Sutton, Surrey SM1 1SH T 020 8661 4636 F 020 8661 4637 E journal@tourismsociety.org W www.tourismsociety.org Registered in England No. 01366846. ISSN: 02613700 Designed and produced by Wharncliffe Publishing Contact Tony Barry 47 Church Street Barnsley S70 2AS T 01226 734333 E tb@whpl.net W www. whpl.net
Š Copyright 2010 The Tourism Society Tourism is the journal of the Tourism Society.The views expressed in Tourism are those of individual authors and not necessarily those of the Tourism Society. Whilst unsolicited material is welcomed, neither transparencies nor unpublished articles can be returned. The Tourism Society cannot be held responsible for any services offered by advertisers in Tourism. All correspondence must be addressed to the Editor. Tourism is only available to members of the Tourism Society and on subscription, it is distributed quarterly to 1800 professionals working in national and regional tourist boards, local government, travel agencies, and tour operators, visitor attractions, accommodation and catering, entertainment, information services, guiding, consultancies and education and training.
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Contents
Editorial Look ahead to 2011...
Tourism and Government: Happy New Year? – and an urgent need for “Resolution” 2-3 Ken Robinson CBE FTS MTMI, Chairman,Tourism Alliance
I would like to take this opportunity to thank all of our guest editors and writers this year for their time. It has been a turbulent year with many changes in the political and economical arenas dramatically affecting tourism. Geoffrey Lipman bodes caution on any immediate long-term growth in global tourism with staycations and trading down in price trends continuing to damage revenue growth and yield as well as increasing taxation such as APD and 20% VAT. However, staycations are of course good for the domestic market and in particular the caravanning sector. 2010 appears to have convinced more Brits to holiday across Britain; yet the British weather still looks like it will prevail this winter affecting both domestic and overseas winter vacations. Geoffrey recommends tactical and strategic direction for the sector to push the Travel & Tourism Industry further up the government agenda, in particular as a major global job creator in the face of recession and unemployment. Meanwhile green growth is finally taking a firmer grip on the industry as a whole in response to climate change. And I wonder why the industry can only make itself heard in adverse conditions? Suggested ways of improving competitive advantage in today’s technology led environment looks like “mobile sites” and apps are a must for 2011. As we go to print the government has yet to reveal its much awaited strategy, and aviation is playing a key Christmas Pantomime role and many will doubtless be pleased to start a fresh new year. As we enter 2011 there will be only 574 days to the Olympics, a few months before the disbanding of the RDAs will give way to the rise of the new LEPs and the long awaited royal wedding will be just around the corner. DMO’s will revisit how they fund their marketing campaigns and work more closely with the private sector to maximise on these and other opportunities while consultants strive to be racehorses and the hospitality sector enjoys the growth in the short breaks market. Read on. Happy New Year! Alison Cryer FTS |Chairman,Tourism Society
International Outlook: A unified approach will strengthen the industry Geoffrey Lipman FTS, Director, greenearth.travel Mobile Technology: Give your destination an edge Ben Tagg MTS, Managing Director, New Vision Group Ltd
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Aviation: The Cinderella of the Coalition’s Transport Strategy? Simon Buck, Chief Executive, British Air Transport Association
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The Domestic View: Another year of opportunity for touring Lawrence Bate MTS, Director of Marketing,The Caravan Club
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Travel & Leisure Law: What can we expect in the next 12 to 18 months? Matt Gatenby, Solicitor,Travlaw LLP Solicitors
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Hospitality: Short breaks and a Royal boost are good news 10 Peter Hancock FTS, Chief Executive, Pride of Britain Hotels Consultancy: “Sunlit uplands” or Barren Wasteland? Tom Buncle FTS MTMI, Managing Director,Yellow Railroad
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Destination Management: A time for change Andrew Bateman MTS MTMI,Tourism Manager, Hampshire County Council and Vice-President of TMI
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Membership News
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New Members
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Front cover: ©Britainonview – Eric Nathan
From the President’s Desk As I write, with snow all around, I have no idea whether I will be able to travel. Like millions I am stranded at work. Gatwick is shut; I am hoping to get a sleeper north but have no idea whether or how far it will go. For two years there has been major winter disruption, described by experts as a once in twenty year occurrence! The good news is that David Quarmby, in charge of the enquiry into the whole mess, has just the right pedigree. As a former VisitBritain chair he understands the economic importance of keeping the country moving, and as the former head of the Strategic Rail Authority he understands transport issues. David will without doubt get to the bottom of Network Rail’s frozen points and
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alleged poor maintenance. He will surely look at airports that could not keep runways open and compare their kit with that of overseas operators. He might even take on the environment agency and SEPA in Scotland over the types of salt and de-icing liquids permitted. I look forward to a thorough report and some robust recommendations. However, there is one area he might not think of at first but which I find the most infuriating. Communication. It is almost impossible to find out what is actually happening. A trawl round the various transport operators’ websites is an irritating experience resulting in my being none the wiser. If it was not for my job, and if I was at home, I would certainly take the
advice of the news broadcasters and hunker down till it all blows over. But I am expected to operate at both ends of the country and I would quite like to get home – a sentiment shared by many I am sure.Trying to make a sensible decision without real information is as difficult as it is frustrating. So this is my recommendation to all operators. Work out how the average user is thinking, what information they need, and how to provide it. And while you are at it don’t just do it when it is snowing but for all the other occasions when there is disruption. At least you can help with that one major irritation. And by the way I will never complain about rain again! Lord Thurso MP FTS | President,Tourism Society
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Tourism and Government
Happy New Year? – And an urgent need for “Resolution” Ring out the old – ring in the new! The new year is traditionally a time for reflection on what has past – and of hope and aspirations for the future. But for many of us in tourism, this year the traditional greeting ends in a question mark: ”Happy New Year?” As we look back on 2011 we see a year when Britain’s tourism industry had not yet really felt the impact of the post-economic-crisis cutbacks. Consumer spending generally held up well. UK residents holi-
dayed at home more, influenced by the exchange rate and APD increasing the costs of holidays abroad, although their average length of stay and spend was down. Inbound tourism was picking up slightly but still only to around the same level as 2000. As a result the totemic Tourism Balance of Payments, that had worsened to a £20billion deficit during Labour’s time, “recovered” somewhat in 2009/10 due to the domestic boost. For Britain’s Tourism businesses however, storm clouds have been appearing, as the post-election Coalition Government confirmed the abolition of the RDAs that had been pumping around £60million into tourism related programmes.They also said that all DCMS sponsored entities would have to “share the pain of cuts in spending”, implemented subsequently in the October CSR as VisitBritain and VisitEngland both suffered a 34% cut, the highest in real terms of all DCMS sponsored bodies. Cumulatively VisitBritain’s funding will have reduced by over two thirds since 2000 – impacting hard on the potential to achieve the hoped-for Olympic Tourism legacy. Back in August, our spirits rose when David Cameron chose to make a speech on the importance and potential of Tourism, stating that he wanted to reverse Labour’s failure to see the opportunities, saying
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“We’re going to be a Government that understands the huge potential of our tourism industry and that gives the industry the backing it needs. A successful tourism policy needs an active and engaged government.” Could this be recognition at last of what tourism can deliver? After all, David Cameron seems like a man who means what he says. But can we ever trust politicians to deliver what they promise (e.g. Clegg and Tuition Fees!). However, the PM also said that he wanted Britain to have the “strongest possible tourism strategy” – which he would personally review and approve. Which brings me, as I write this in December 2010, to my opening question: “Happy New Year?”.The Strategy is due to be issued in early January 2011. My crystal ball leads me to expect that it will reflect the Conservatives big idea, namely that liberating businesses and empowering the “Big Society” will provide the push, as they seek to end “Big Government”.Their agenda is about Localism and LEPs, while “Regional” has become a dirty word. In the Prime Minister’s speech it was notable that whilst he expects that private sector businesses would drive growth, the sole catalyst was to be “… a government that creates the right conditions for entrepreneurship… our tourism industry has been strangled by the endless rise of red tape”. Message to Government: removing red tape and boosting localism, while cutting adequate funding for core functions, is not enough. I expect the new DCMS Tourism Strategy will be heavy on aspiration and vision, but light on specific policies, implementation and funding – apart from focussing their hopes for future delivery on Destination Management Organisations, and the patchwork quilt of LEPs.
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Picture: ©Britain on View
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Cornwall – PM’s holiday destination of choice For many years we in the industry have felt that Government simply hasn’t understood what is needed for Tourism to achieve its potential for sustainable growth.The pre-devolution system of National Tourist Boards with Regional non-statutory Boards in England, achieved a great deal. The RTBs were possibly the original public-private partnerships, bringing Local Authorities and businesses together, with minimal central funding, delivering cohesion and core services. Labour’s Devolution dogma abolished England’s National Board in order to swing the focus to the Regions. The RDAs killed off the Regional Boards, creating various new dependant Regional Delivery Partners. Funding via the RDAs over the last decade has masked the failure of most politicians, and especially the Treasury, to understand Tourism. DCMS could cite the RDAs as “delivering what they decided was needed within their Regions”. However, their funding was targeted to fulfil their remit for supporting small busi-
nesses, regeneration and skills – and the regional allocations were for political reasons, not proportionally to tourism need or opportunity. Eligible Delivery Partners learned how to match their applications to the funding criteria.The resultant investment in tourism was not precisely prioritised or targeted from a national viewpoint, but it has been very valuable.The Coalition decision that the economic crisis requires immediate cuts, and the resultant sudden cessation of RDA programmes, has caused serious problems with organisations dependent on their grants for viability.Visit London (which, with over 50% of inbound tourism, is the engine room of inbound tourism for Britain) is in the unbelievable position of having lost all its funding unless Boris Johnson, who well appreciates the key role of tourism in the economy of the Capital, can find alternative resources. Throughout England, many TMI members and their organisations are in the firing line, for some redundancy and closure is imminent. For others the way forward is extremely uncertain. For many whose jobs remain, on reduced budgets – a
‘I believe the Government’s New Year Resolution must be to live up to the Prime Minister’s promise to “understand the huge potential of our tourism industry and that gives the industry the backing it needs”, and provide adequate further investment for the public benefit, in time to ensure they stimulate recovery that the country so badly needs. Happy New Year! ’
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weak optimism for the brave new world is the best they can muster, not an enthusiastic sense of liberation.VisitEngland is trying to foresee and resolve so-called transition problems….but so far without funds to ease or optimise the changes. Cohesion between tourism businesses is fragile at the best of times. These dislocations will be hard to overcome.VisitEngland must bridge the gap between strategic aspirations and achievable action plans. Shortly after the DCMS Strategy is published,VisitEngland will commence a consultation on a series of around 15 Framework Action Plans, devised with input from industry representatives. These plans will reflect, and must fit with, the national Strategy and there is talk of “Challenge Funding” to oil the wheels, reserved within VisitEngland’s already reduced budget. Building core services and cohesion from the bottom up on reduced resources is a tough challenge. It is hard to see how the currently allocated can possibly be enough. I believe the Government’s New Year Resolution must be to live up to the Prime Minister’s promise to “understand the huge potential of our tourism industry and that gives the industry the backing it needs”, and provide adequate further investment for the public benefit, in time to ensure they stimulate recovery that the country so badly needs. Happy New Year!
Ken Robinson CBE FTS| Chairman, Tourism Alliance
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International Outlook
A unified approach will strengthen the industry Despite a return to growth in 2010 there is a solid case for caution in looking at global travel expectations in the coming year.This is a time for measured analysis and tough focused response, taking advantage of unique national selling points and a limited number of international collaborative opportunities. The global economy, which is the main driver of travel and tourism, is shaky.The world is recovering from recession in an uneven way. Emerging economies, particularly in Asia, are growing again at close to double digit levels, but with new inflation tendencies as well as potentially disruptive currency and trade pressures. Industrialised countries in North America and Europe, which account for more than 75 % of global GDP, are expected to grow their economies at some 3%. And here unemployment has reached unacceptably high levels, responses to budget austerity and country bail outs in Europe threaten dramatic disruption in
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economic and particularly social stability; political gridlock in the US makes decisive national intervention more difficult, and hence significant G20 economic adjustment is becoming more complex and less certain. In addition, geopolitical tensions in key hotspots are volatile and natural disasters remain a constant uncertainty, with only negative impact potential. These underlying conditions will affect travel and tourism in ways that increase the challenges but also open new opportunities. Industry prospects for 2011 should be viewed in this broad context. On the negative side of the balance sheet: It's important to put this year's growth into a valid context of the previous steep declines – in fact we are now back to 2008 performance levels. Moreover, the full return of business and consumer confidence will be slower than expected. In hard times companies will continue to look to tight travel controls and with high
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unemployment it's easy to rationalise putting off a vacation, staying closer to home or trading down in price. And revenue generation will be increasingly tough. This was already the case in 2010 where yields grew everywhere at a slower pace than arrivals and there is no basis for expecting change in 2011. There are also significant cost increases looming on the horizon – travel taxes, which have begun to spiral in Europe, are likely to become a bigger issue as governments scramble for fast revenue to plug budget gaps and as carbon pricing spreads. In addition there are strong pressures on fuel prices and security costs which are increasingly important elements for the entire travel and tourism value chain, not just the pivotally important transport sector. The positive side of the balance sheet is the changing recognition of the role of
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Travel and Tourism in key strategic economic areas. The value of investment in travel infrastructure – the modernised airports, high speed trains and superhighways that were at the heart of many stimulus packages – have already created new jobs in construction, design and engineering and will enhance the long term growth and quality of our products. Similarly the intensifying competition to host mega-events is another sign of the same value added, as well as the massive global nation branding and travel export promotion that comes with it. The realisation of the value in trade terms of the booming outbound traffic flows from emerging markets in Asia, where China is on course to become the largest domestic, inbound and outbound travel market in the world during the next decade, as well as the strong tourism flows from Eastern Europe and Russia. So, too, the increased domestic and regional travel has demonstrated how our sector primes local economic development, supports small and medium enterprises and encourages consumer confidence, irrespective of the major long haul traffic flows.
We have also begun to establish our place in the green growth agenda, by the growing commitment of travel and tourism companies and communities to carbon neutral operations in line with the evolving climate and poverty reduction imperatives. Policymakers and financiers are increasingly understanding that travel and tourism – including air transport – can deliver on any package of carbon measures that governments are able and willing to implement themselves. There are many micro ways to strengthen the Travel & Tourism balance sheet in 2011 and beyond – focused marketing, creative product streams, new media and technology integration. These will mostly be played out at the national level where the fight for the new tourist flows from emerging markets will intensify, the competition to host mega events will hot up and the focus on national and regional promotion programs will deepen. But there are two macro areas where we need to develop fast collective and coherent positions as a sector. First – tactically. We must respond to the potential plethora of discriminatory
Travel Taxes, where the UK APD has set a dangerous precedent that was touted as a fair green tax but is in fact an unfair anti trade tax on exports and imports. We should make this a collective public policy issue, establish a game plan for non discriminatory fair travel taxes and demand that all monies collected by any government for so called green taxes be specifically earmarked and used for those purposes with full involvement of the sector stakeholders. Second – strategically. We should solidify our recognised role as the major job creation industry in the world, at a time when unemployment will dominate media headlines and political decisionmaking. And in the related area of incentives for green growth, climate response and poverty reduction we should firmly establish our credentials as the catalytic sector for adaptation, for small business support and for community development. These are areas where Travel and Tourism equals or betters any other area of the economy as a change agent.
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Geoffrey Lipman FTS| Director, greenearth.travel
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Mobile Technology
Give your destination an edge The mobile website is now an essential part of a destination’s proactive marketing strategy. In the United Kingdom there is very strong competition between destinations, many of whom are competing for the same markets within a close geographical proximity. All destinations have the same prime directive: entice visitors to come and enjoy the attractions, events and accommodation in their area, or in other words, improve the visitor economy. Getting an edge over the competition is key and the use of mobile technology provides access to a new young audience segment. Furthermore, because the device knows where the user is located, a well designed mobile solution will ensure high relevance, visibility and immediacy, placing your destination in the best position to benefit through all market conditions and become a more robust brand leader. The most popular form of this technology is a bespoke mobile website that caters to the specific browsing needs of Smartphone users and provides visitors with exactly the kind of information they need on the move. Although Smartphones can access your existing destination website they are likely to be hard to use because they were designed to work with much larger screens and better pointing devices, for example, a PC.Visitors on the move require fast access to local information (maps, addresses, directions), accommodation information (booking information, address, contact number) and event or attraction details (dates & times, location, contact number). There are undeniable advantages afforded to a destination by a mobile site, and these are set to become even more substantial as the number of page views continues to grow at an unprecedented rate. The number of iPhones in the UK is forecast to rise 195% from 2.17 million at the end of 2009 to 6.4 million by the end of 2010, according to the latest data announced by mobileSQUARED.The Ben Tagg MTS| Managing Director, New Vision Group Ltd
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total number of iPhones in the market will top 9.4 million by the end of 2015 constituting 11% of the total devices used in the UK. Graeme Whitehead,Tourism and Marketing Group Manager at Destination Staffordshire, said: "The mobile site is our visitors' travelling companion, offering access to the latest information on events, availability and special offers, right at the time when they need it. And by inspiring our guests to do more, see more and enjoy more of all that Staffordshire has to offer, we can further boost revenue generated by fully exploiting all of our opportunities." Great mobile sites are fully integrated with your destination’s management system, enabling you to use data already collected and updated to instantly populate mobile pages with rich data. Mobile-specific Key Performance Indicators need to be made available to destinations and providers, with data broken down and presented in a variety of ways, for use in forward planning.
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Features such as prioritising links by activity or popularity, also known as “deck placement”, ensure that the most soughtafter content appears first in a search. A mobile site that is quick and easy to navigate will quickly become your visitors’ trusted information source, exposing even more opportunities to inspire and encourage them to stay longer. Another exciting area of opportunity lies with the development of tourism applications – otherwise known as “apps”.These are downloaded onto the Smartphone and generally do not require a live connection to the web and are more typically focussed on a very specific function or content type. Apps can be downloaded for free or for a small fee, with the possibility of a new revenue opportunity for popular services. In the future we envisage a number of subscription based and transactional apps that could have significant application for DMO’s. Currently, the focus is more on ‘fun to use’ apps - like Cumbria Tourism’s Stone-Skimming app – that generate memorable and valuable PR and exposure.
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Aviation
The Cinderella of the Coalition’s Transport Strategy Following publication of the October Spending Review, we witnessed a stream of spending announcements from the Department of Transport.These include over £2bn on railway station upgrades, £750m on a national high speed rail network and commitments to 24 road and public transport schemes.These spending commitments are to be welcomed and it is noteworthy that the Government sees transport investment as a key driver of economic growth, both nationally and in the regions, despite the inevitable environmental cost in terms of land use, noise and increased carbon emissions where around 90% of UK domestic transport emissions are already from road transport. But what about aviation? As a sector, aviation plays a key economic role for our island trading nation, representing around 1.5% of the UK economy, providing jobs for a quarter of a million people and transporting most of our manufactured goods by value to countries beyond the EU. Surely the Government is investing in that, too? The simple answer is ‘no’. Unlike other modes of transport which receive public subsidies of many billions of pounds per year, aviation infrastructure is not funded by the Government but by the industry itself. Perhaps more surprisingly, the Coalition Government has yet to develop any tangible aviation policy
‘In the meantime, however, Government dramatically increased the tax on flying from 1st November this year with increases of up to 50%. After one of the most challenging years on record for aviation, with further security threats not to mention a grumbling volcano, this was a kick in the undercarriage that the industry could ill afford. ’
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and is unlikely to have one finalised within the next two years. In the meantime, however, Government dramatically increased the tax on flying from 1st November this year with increases of up to 50%. After one of the most challenging years on record for aviation, with further security threats not to mention a grumbling volcano, this was a kick in the undercarriage that the industry could ill afford. Aviation already more than pays for the environmental costs of the 6% of total UK CO2 emissions it produces through the imposition of Air Passenger Duty (APD) and Britain now suffers from the heaviest tax on flying in the world with as much as £170 on a single ticket. Indeed, the Treasury now makes more money from the tax on flying than it does from the Bank Levy or from duties on alcoholic spirits, intending to raise over £15 billion in the next five years. This level of taxation is especially damaging to regional airports where routes have been lost over the last few years to our near continental competitors who impose little or no similar tax on flying. Instead, they are actively building new
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runways to accommodate new traffic and the anticipated growth in tourism from the Far East. The only significant policy announcement the Government has made to date was to cancel plans for the construction of a new runway at Heathrow, Britain’s principal hub airport that is full to bursting point for much of the day. It is estimated that a new runway at Heathrow would yield around £30 billion of benefits to Britain’s depressed economy and that around £1 billion of benefit is foregone by every year construction of the new runway is delayed. Tourism is currently Britain’s third highest export earner. But 75% of tourists visit Britain by air and in one of the most important growth markets, Heathrow serves only two destinations in China compared to the six now served by Frankfurt.The Prime Minister rightly wants to boost the number of visitors to Britain and increase the valuable earnings from tourism. But with high taxes on flying and limited runway capacity in the most visited region of the UK, the Government’s strategy seems less than joined up and aviation remains the Cinderella that has yet to go to the ball. Simon Buck | Chief Executive, British Air Transport Association
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The Domestic View
Another year of opportunity for touring These are undeniably harsh economic times, but as we look forward to 2011 and beyond, the prospects for domestic tourism, and the caravanning sector as an integral part of that, continue to look bright. Firmly placed as the bedrock of touring caravanning in all its forms,The Caravan Club represents the interests of one million caravanners, motor caravanners and trailer tent owners. It operates the largest privately-owned network of quality sites in the UK, offering members a choice of some 3,000 Caravan Club-badged locations, with 200 full size sites and over 2,500 smaller Certificated Locations (known as CLs).
Blackshaw Moor Caravan Club site, Staffordshire 2010 was another favourable year for domestic tourism. Research undertaken for the English market revealed that 46% said that they expect to ‘take more domestic holidays in future’, with 86% of those rating their experience of English holidays as ‘excellent’ or ‘very good’.The feedback from around the UK is also positive with VisitScotland calling tourism the ‘tonic for recession’, in the wake of the success of its recent marketing campaign, and Wales reporting occupancy levels up on the previous year.The picture in Northern Ireland appears to be less rosy with overall bednight volumes down. However the caravan and camping sector there is demonstrating its resilience with overall demand up year-on-year. Caravanning is the most popular ‘paid for’ leisure accommodation choice, accounting for 19% of holiday nights. Site booking statistics from The Caravan Club reveal that the 2009 record-breaking activity level was sustained for summer 2010, with growth on top of that. Bookings remained at a healthy level throughout the peak season and well into the autumn and winter months, as many Club members chose to tour outside the main school holiday periods. All this bodes well for 2011, as research shows that a holiday is one of the very last things to be sacriLawrence Bate MTS | Director of Marketing, The Caravan Club
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ficed when cuts are made in the average household budget. According to the caravanning sector trade body, the National Caravan Council (NCC), new touring caravan sales were up 15% in 2010 and the second-hand market remains buoyant.The level of activity on caravan sites around the UK shows that caravan and motor caravan use and enjoyment is continuing apace. Turning to the economic contribution made by the sector, caravanning is a £6 billion a year (largely domestic) industry, employing some 90,000 people. In total, the UK’s 1.7 million caravanners contribute more than £1 billion a year to the local economies where they choose to holiday, and through their VAT and motoring taxes for the Exchequer.The Club itself invests heavily in its own sites network, spending some £100 million over the past nine years on site acquisition and development in the UK, using local traders and contractors wherever possible. A recent awareness campaign conducted by The Caravan Club successfully caught the attention of MPs and the media by
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focusing on some key numbers – namely the national off site spend (in local shops, pubs, restaurants, attractions etc) made by Caravan Club members in local economies – to the tune of over £400 million pa, and the local constituency spend for those MPs with Club sites or CLs in their area (around half of the Westminster MPs). MPs around the country including Secretary of State for Culture, Olympics, Media & Sport, Jeremy Hunt, and Minister for Tourism and Heritage, John Penrose, requested site visits in their constituencies, and these resulted in further publicity for tourism, caravanning and The Club. The UK-wide initiative was complemented by a campaign in Wales where the £114 million contribution to the tourism economy there over the last five years was brought to the attention of Assembly Members and the media. 2011 presents even more opportunities for lobbying and profile raising by the tourism industry in the devolved governments as their respective members face the national electorates in May, and The Caravan Club stands ready to play its part in beating the drum for this cornerstone of the economy.
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Travel and Leisure Law
What can we expect in the next 12 to 18 months? The law relating to travel, holidays & leisure has always been a quick mover, and the last couple of years have been no exception. Predictions about any aspect of our industry are tough, never mind those relating to law. However, crystal ball at hand and tuned-in as best it can be, here are a few things to look out for: A change of approach to damages for enjoyment in consumer contracts It has been around 40 years since the Court of Appeal last showed an interest in claims which involve enjoyment arising from a contract.The likelihood is that it will be a long time in doing so again, so in the meantime Milner v Carnival Plc t/a Cunard, [2010] EWCA Civ 389 20/04/2010 is a case that anyone dealing with claims from consumers against the leisure industry should know about – it confirmed that damages for loss of enjoyment and distress should be modest, and other forms of damages should be calculated mathematically wherever possible. The Jackson/Young reforms Staying on the subject of consumer claims against the industry, recommendations to both the last and current government are likely to be implemented, which will change the face of personal injury claims in particular. Expect, amongst other things, an increase in overall damages for claimants, but also the removal of “No Win, No Fee” arrangements, an end to recoverable After The Event insurance policies and potentially qualified costs shifting to offset that. The new Package Travel Directive The well-known, existing Regulations have been in play since 1992, but the very nature of the industry has changed since then.The EU recognises this, and consultation on a revised regulation has just closed. With consumer protection being one of the key considerations at European level, it is entirely possible that
this is another game changer, especially as such concepts as strict liability for accidents abroad have already been mooted. Early days, but watch this space. Fallout from the CAA v Travel Republic case (CAA v Travel Republic & 1 other [2010] EWHC 1151 (Admin)) This was probably the most high profile case of recent years on how holidays are sold, although there was some cross over with the slightly less well known case of Secret Hotels2 Ltd v Revenue & Customs [2010] UKFTT 120 (TC). In a nutshell, holiday companies must now ensure that all documents, systems etc... must clearly confirm they are an agent if that is what they are, and crucially the practical reality must match that as well! Either way, the clamour for a better system of protection will surely reach a head soon. A re-visitation of the Corfu holiday representatives case As terrible as this was it is hard to find anyone in the industry who considers that the two Thomas Cook employees that went on trial in Greece could be culpable for the deaths of tragic Christi & Bobby Shepherd. Given the immediate appeal after the decision to exonerate them, this case is still going on and so we wait for the Greek court to re-examine the issues. Whatever the outcome, the way holiday companies and their suppliers operate will never be the same again. The Olympics The Olympics is already the talk of the town, and there will be many opportunities for the industry to really show what it can do. With many short term agreements coming into existence, focus on properly drafted contracts will be essential. One of the things that most of us love about the industry is that no day is the same, and given the above only really scratches the surface – it is more than likely that the biggest issues are ones we don’t even know about yet. Matt Gatenby | Solicitor, Travlaw LLP Solicitors
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Hospitality
Short breaks and a Royal boost are good news
Many of the negative factors that will have an impact on trading next year are completely outside our control: the rise in VAT to 20% which should add 2.14% to the cost of applicable goods and services; departmental budget cuts in the public sector; inflation exceeding the Chancellor’s target; recessionary conditions in other countries; depressed bank lending; tax increases; house price stagnation; floods and diseases. I don’t underestimate the effect all of these may have on tourism businesses but since we can’t change them there is little point in analysing them too deeply. So instead let’s think about all the drivers of growth on which to build our survival plans for 2011. I work in the luxury hotel sector running a small but perfectly formed marketing consortium which has seen the value of recorded bookings rise each year whatever the conditions. UK residents’ demand for short breaks has been our saviour and shows no sign of slowing. Short breaks have become integral to the lifestyle of our regular customers, along with a second car, a dishwasher or Sky Plus.These brief stays are not instead of a foreign holiday – they are in addition to it, often arranged at just a couple of days’ notice. Value for money matters greatly to these individuals but that doesn’t equate to the Peter Hancock FTS | Chief Executive, Pride of Britain Hotels
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cheapest room. Granted, the effect of online travel wholesalers such as lastminute.com and laterooms.com has been to intensify rate competition and customers are now able to search the best deals with ease. However, when a rare window of opportunity to spend quality time together allows couples to stay away from home they need to be absolutely sure they’ll have a good time and that means going for a trusted brand or at least somewhere with superb ratings – at prices to match.The savvy traveller can often obtain the best available rate by dealing directly with a hotel or group and we’ve seen the average booking value this year climb well above £400. At the other end of the spectrum the big brand budget hotels are coining it in. With their economies of scale and ruthless attention to costs they offer almost unbeatable value and have the marketing muscle to overwhelm their local competition. It may not delight the struggling B&B owner next door but it’s still hospitality and it represents an amazing success story. The impending royal wedding can’t be overlooked. It is a gift to UK tourism of incalculable value. Overseas visitors already favour sites with important historical connections and the wedding guarantees our country a massive amount of
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extra exposure in foreign media.This, on top of the success of ITV’s Downton Abbey, could inspire millions more to travel to Britain and get a taste of the country house life themselves. It worked nearly 30 years ago – Brideshead Revisited achieved top ratings worldwide and played a large part in encouraging entrepreneurs to acquire lovely manor houses and turn them into outstanding luxury hotels. Britain is particularly well placed to capitalise on all this.The National Trust, for example, has taken a fresh look at how it caters to visitors and has become much more family-friendly, allowing greater access within many of the houses under its care. Heritage is one of our trump cards and I am pleased to see VisitBritain playing it to the full, too. My final reason for optimism is based on what I have personally witnessed within the hotel and catering trade. Standards are rising.The UK has a growing share of the world’s Michelin stars. With other industries in trouble, recruiting good staff into hospitality may at last become easier. We now have a government that understands business and wants us to succeed. Perhaps the good old days for UK tourism are just about to start.
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Consultancy
“Sunlit Uplands” or Barren Wasteland? After western economies’ unfettered behaviour, payback time has come. So what does this mean for tourism consultants? A Mixed Bag Which sector you’re in and which countries you’re targeting will determine your outlook. If markets behave reasonably rationally, which Keynes observed they regularly don’t, the 2011 landscape might look thus: UK – Destinations: Consultants who advise destinations and publicly run attractions in the UK are likely to see fewer tenders for their services in 2011. Public sector funding is shrinking, with the abolition of RDAs in England and uncertainty over commitment to tourism and funding by the new local economic partnerships (LEPs). Scotland and Wales have retained their economic development functions, but they are obviously facing similar pressures on public finances.
knees, and that many are recipients of economic aid which they are investing in tourism development, indicates furtherflung opportunities. Future Trends
UK – Commercial Products: Economic circumstances do not initially appear favourable, but opportunities may arise, counter-intutitively, from “fire sales” and investors buying businesses and hotel properties at the bottom of the market. This may generate some scraps for hotel and business development consultants.
Like surfers scanning the horizon for the next big wave, tourism consultants need to spot opportunities as they emerge. Some predictions:
Mainland Europe:This is a story of two halves: old “western” Europe and emerging new Europe. Both are struggling. But the difference is that the latter will remain recipients of western economic aid (one of the few sectors of the British budget to be increased), and invest in tourism as a low-cost route to economic development with few barriers to entry.The main barrier is limited skills – an opportunity for experienced tourism consultants.
Place-making, which is more focused on lower-cost human “software” and changing mindsets than physical regeneration, will grow.
Long-Haul Markets: Mature tourism economies generally stick to their own home-grown experts. But developing tourism economies in Africa, Asia, the Middle East, South Pacific and Caribbean, are more prone to trawling the globe for expertise.The fact that most did not expose themselves to the profligate banking behaviour that brought others to their
City regeneration has peaked. With successful developments in place, few cities can afford to fund further development on the scale of recent years.
Destination branding will increasingly morph into place branding – i.e. a holistic approach to nation, region, and city branding that encompasses all sectors in attracting people to live, work, study, invest in, buy from, and visit, a place. Tourism development projects will generally be smaller, because funding is tighter. Market research and economic impact analysis will still be needed, but less frequently. Competition amongst consultants will become tougher, as redundancy inspires more to enter the field.
This will drive consultancy rates down. “Co-opetition” and consolidation will increase, whereby competitors collaborate to bid for projects or merge with one another. There will be a growth in outsourced implementation, because the public agencies responsible for tourism will have had to let most of their discretionary functions – and many of the experts in these areas – go. Tourism Consultants – Dinosaurs or Racehorses? Economic Darwinism suggests that, while some may become extinct, there will still be a demand for tourism consultants, although jobs will be scarcer and probably less well-remunerated. Less work and more competition means that consultants will have to be prepared to bid more and win less, travel further afield, and combine with others to win bids. And procurement processes will become no less labyrinthine. But the good news is that tourism is resilient and likely to bounce back sooner than other sectors.Those who survive should emerge fitter, even if not more prosperous.To misquote Keynes, the challenge will be to remain solvent for longer than the market remains irrational.
Tom Buncle FTS| Managing Director, Yellow Railroad
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Destination Management
A time for change Liam Byrne, former Chief Secretary to the Treasury’s note to his successor 'Dear Chief Secretary, I'm afraid to tell you there's no money left', is pretty much dictating the agenda for destination management at the moment and for the foreseeable future. Abolition of the RDAs, a 34% cut to Visit Britain and Visit England’s budget, and 25-30% squeeze on local authority budgets is requiring a rapid and radical overhaul of tourism structures. All publically funded bodies know that they’re going to have to play their part in debt reduction and destination managers, with their ability to drive and foster collaboration between the private and public sector, are in a better place than many to weather the storm. However, there will undoubtedly be job losses and any change will need to be achieved in an increasingly chaotic environment where there’s much more competition for diminishing resources. The result will be a re-building of the tourism support infrastructure from the bottom-up which will inevitably result in some Destination Management Organisations (DMO) that are stronger than others, and some that may not be readily identifiable as marketable destination brands. However, as John Penrose MP stated, “The landscape will be a bit messy but tidy is only good if you’re an accountant or a bureaucrat. There could be gaps, DMOs grouping together and overlaps – this is fine if it is right for industry and business and helps them to do their job properly.” The emphasis here on DMOs helping business success is important and it could be argued that this has not been enough of a priority recently.There will need to be an increased focus on delivering activities that can be delivered in partnership with tourism businesses that want to see results on their bottom line. It will be more about ‘show me the money’, not ‘show me your SMART targets!’ But whether businesses will also accept the organisational chaos that will undoubtedly
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Andrew Bateman MTS MTMI | Tourism Manager, Hampshire County Council and Vice President, TMI
Picture: ©Britain on View/Rod Edwards
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How will the landscape look in 2011? be with us for the next year or so remains to be seen.The real worry in places like London is that with 2012 only 20 months away the focus will be on trying to get the support structures right, rather than exploiting the potential that the Games can deliver.
vide opportunities for tourism related projects, especially in the Midlands and North, but it will be a tall-order for any projects in the South East to qualify. So, only time will tell whether the analogy of ‘a bunch of bald men fighting over a comb’ is ultimately borne out.
The North will see the greatest impact on its tourism infrastructure as its RDAs have been the largest investors. Marketing campaigns for 2011 are yet to be confirmed in many areas, meaning that much of this season could be missed, which could seriously impact on the government’s target to grow domestic tourism.
Whilst we await the John Penrose strategy with interest, we recognise that this government is keen to ensure that there’s cross government support for using tourism to grow the economy.This could, for example, provide destination managers with opportunities to work much more closely with bodies such as National Parks and the Forestry Commission. We may find the door is open to a much broader set of relationships rather than the traditional ones we are used to. And TMI has an important role to play here, offering destination managers networking, representation, a voice, and professional development opportunities. All from a bottom-up rather than a top-down approach. And at limited cost to the Treasury...
The whole Local Enterprise Partnership application process was a fairly unedifying spectacle that pitted local authorities and business support organisations against one another, leading to fractured relationships. Core funding for LEPs failed to materialise, which will mean hard-pressed local authorities and businesses will be asked to fund them initially.The £1.4 billion Regional Growth Fund may well pro-
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Membership News I am delighted to say how well the integration with TMI has gone and how much we are looking forward to future developments.TMI has added positively to the Society’s membership not just in numbers but also in the breadth of experience represented. I would encourage you to have a close look at the CPD programme and post-graduate qualifications to see how they can benefit you and your business. I would like to thank our Corporate Partners (Stena Line, Carrier Group and Lloyds TSB) and all our Corporate
Members for their continuing and valued support throughout the year. Thank you, too, to all the sponsors and participants that have helped make our events a success. 2011 is set to be a busy year and we will continue to improve the Society’s offerings to its members with developments planned for our website and the opportunity to join our events online through webinars. On a sadder note, I am sorry to report that Harold Naylor FTS passed away in the autumn. In 1969 Harold became
the first Chief Executive of the Wales Tourist Board and significantly improved the status and credibility of the industry there. He helped establish the Tourism Society in 1977 and became a founding Fellow. In July this year Harold’s contribution to tourism in Wales was acknowledged by the presentation of the Lifetime Achievement Award of Tourism Society in Wales. Gregory Yeoman MTS| Executive Director gregory@tourismsociety.org
From the Chairman’s Desk 2010 kicked off with the amalgamation of the TMI and ended with a debate on government’s role in Tourism. Due to the recession the Tourism Society reduced monthly event costs to £15 per member, but still had to cancel a couple. Networking and continued professional development during a recession is important for career
development, the promotion of products and services and keeping in touch with the market place and our events cover all three aspects. We are looking into webinars to enable those further afield to participate and with TMI hope to encourage more regional events. If you would like to get more involved in regional events or have ideas
for event topics please contact the Secretariat. Also recommend membership to your colleagues and friends so that they too can benefit – if you are not yet a member, put membership on your New Year’s Resolution list. Wishing you a successful 2011! Alison Cryer FTS | Chairman, The Tourism Society
Calendar of Events 2011 JANUARY 25th Prospects for 2011 The Middle East Association, London In association with The UNWTO FEBRUARY 5th Regeneration Plymouth University Chairman’s Lunch London MARCH 5th Regeneration Wetland and Wildfowl Trust, Gloucester
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16th and 17th Best of Britain & Ireland NEC, Birmingham 24th Tourism Society Annual Dinner House of Commons, London Sponsored by Stena Line 30th T.H.E. Careers Day The University of Surrey, Guildford APRIL 2nd Regeneration University of East Anglia
MAY 9th Marketing in a Downturn London
NOVEMBER 7-10th World Travel Market Excel Centre, London
JULY 3-5th The Tourism Society Annual Conference Bournemouth
Backpacking Unpacked The University of Surrey, Guildford
The Tourism Society Wales Summer Lunch & Awards Wales SEPTEMBER Tourism & Social Media London OCTOBER Media Masterclass London In association with TravMedia
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DECEMBER The Tourism Society President’s Debate London Chairman’s Lunch London Fellows’ Day London The Tourism Society Wales Christmas Lunch Wales
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Membership News Welcome New Corporate Members Freetobook 0141 270 2173 www.freetobook.com
Sergi Jarques MTS East of England Tourism 01284727480 sjarques@eet.org.uk
Caroline Dawson MTS caroline@freetobook.com
Carol Farley MTS Farley Partnership 01797253668 carol.farley@farleypart.com
Iain Stewart MTS iain@freetobook.com Craig Stewart MTS craig@freetobook.com Welcome New Members Denise Williams MTS Guildford College of FHE 01483 448 500 denwills1@aol.com
Estelle Rahman Guildford College samshab1970@yahoo.co.uk Richard Wood University of Birmingham rricardow1@aol.com Sally Hutchinson University of Glasgow sally_hutchinson@yahoo.co.uk
Tolene van der Merwe MTS Boutique Travel Marketing 07983 956 739 tolene@boutiquetravelmarketing.com
Claudia Sult Liverpool John Moores University claudia_sult@gmx.de
Jim Roberts MTS Locum Consulting 0207 344 6571 jroberts@locumconsulting.com
Peter Harmath MTS Faculty of Economy in Subotica + 38 124 62 80 57 harmatp@ef.uns.ac.rs
Kathrin Simon Leeds Metropolitan, Bournemouth University kathrinsimon@gmx.net
Chris Melia MTS Locum Consulting 0161 831 3330 cmelia@locumconsulting.com
Lawrence Bate MTS The Caravan Club 01342 336 799 lawrence.bate@caravanclub.co.uk www.caravanclub.co.uk
Mark Holroyd Leeds Metropolitan University mark@southcopelandtourism.org.uk
Paj Valley MTS Scott Wilson 07917 804 896 paj.valley@scottwilson.com Emma Fernandes-Lopes MTS RSPB 01767693509 emma.fernandes-lopes@rspb.org.uk Pat Boadu-Darko MTS Capita Education Resourcing 0800 316 1332 pbdtravel@yahoo.co.uk Sandra Matthews-Marsh MTS Visit Kent Ltd 01227 812900 sandra.matthewsmarsh@visitkent.co.uk Dave Catling MTS JPCS Signs Ltd 01948 820 696 dave.catling@jpcs.co.uk Nancy Kordouli MTS CorfuEscape 07734 470 624 nkordouli@yahoo.co.uk David Bishop MTS VisitBritain 0207 578 1142 david.bishop@visitbritain.org Louisa Myers MTS Visit London 0207 234 5821 lmyers@visitlondon.com
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Alice Will MTS Line Digital 0131 524 3260 alice@line.uk.com
Sara Wells London Metropolitan University sara_wells@hotmail.com
Antony Train MTS Neal, Gerber, Eisenberg +1 847 269 8000 antonytrain1975@aol.com
Fay Fallows University of Derby fay.fallows@sky.com Sayuki Tanaka University of Westminster sayuki.luv23uk@gmail.com
Carl Cater MTS Aberystwyth University 01970 621615 cic@aber.ac.uk
Daniela Carl Leeds Metropolitan University danielacarl@hotmail.com
Ernest William Edusei MTS Aims Ltd/Nomad Africa +233 0302 501 533 ernest_edusei@yahoo.co.uk
Maria Valge University of Westminster mariavalge@hotmail.com
Welcome New Students Susann Kruegel Kings College London susannkruegel@hotmail.com
Caroline Littlewood Bournemouth University carolinelittlewood913@hotmail.com Alice Glaze Oxford Brookes University aliceaglaze@aol.com
Edna A.Woname University of Derby, Buxton ewoname@yahoo.co.uk
Yuka Tanaka Bournemouth University yuka.tanaka1@gmail.com
Helen Adams Edinburgh Napier University h.m.adams502@googlemail.com
Jennifer Lansdowne Bournemouth University pilotjenni@googlemail.com
Calvin Hewitt Coventry University hewittc@coventry.ac.uk
Alexandra Schwartz Bournemouth University a.schwartz@hotmail.de
Violet Cuffy University of Surrey cuffyviolet@gmail.com
Chiara Bossi Hertfordshire University chia_b@hotmail.it
Kate Ebohon University of Benin kateebohon@yahoo.com
Laura Exton Birmingham University lauranicoleexton@live.co.uk
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