Coastal Tourism The End of the Line or a Renaissance Waiting to Happen? Jason Freezer Associate Director National Coastal Tourism Academy

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1 Coastal Tourism The End of the Line or a Renaissance Waiting to Happen? Jason Freezer Associate Director National Coastal Tourism Academy

2 Coastal Tourism Big Business at a critical point Visits to the Seaside generated 9.2bn (2014 combined day and overnight visits) 210,000 jobs Average length of stay is just over 4nights (longer than all other trip types) but! AVERAGE SPEND Spend per trip spend per night N A T I O N A L S E A S I D E U R B A N R U R A L

3 Largest market share of all domestic holiday trips but 17 Number of Domestic Holidays (millions) Seaside Urban Rural

4 National Coastal Tourism Academy Set up in 2013, funded by the Coastal Communities Fund to understand the nature of coastal tourism. The Academy is unique in England with a defined purpose to develop tourism and learning for the benefit of growth on the coast Improving the visitor experience Supporting industry Bridging gaps in research for coastal tourism development. Job creation Economic Growth Model Knowledge bank The NCTA brings industry, academia and the public sector together Based in Bournemouth but working nationally

5 The Challenges of Business on the Coast (1) High volumes of MSEs with poor product quality Contributes to challenge for Destination Organisations Seasonality harder to address Capacity for strategic and considered development/ investment limited Very low brand presence circa 2.3% of all corporate stock on the coast Poor levels of investment into DO activity Free Rider Effect exacerbated

6 The Challenges of Business on the Coast (2) There is a lack of skilled and engaged workforce The capacity of the businesses to invest in training and strategic development is restricted.

7 Development Challenges in Coast Communities (1) Pressures on local government funding in particular are a key concern due to the social make-up of coastal communities as emphasised in a recent ONS publication. Coastal communities have a higher than average population with a long-term health problem, as well as some of the most elderly populations in the country (20% over 65, compared to 16% national average). Circa 31% of coastal communities residents work part-time and there are more residents of working age than jobs, resulting in a net outflow for commuters. Increased pressure on council funding of statutory resources such as social care, and detracts from non-statutory obligations such as tourism.

8 Development Challenges in Coast Communities (2) Perceptions of the Coast The Information Gaps are significant Limited good practice and lessons shared for benefit of all Lack of applied research and understanding

9 Key challenges facing majority of DMOs: Reduction in public sector funding Coordinating a large number of SMEs on limited resources Encouraging engagement and focussing on the private sector for more than marketing and events Retaining and improving the quality of the visitor offer Encouraging investment that is in-line with changing consumer expectations

10 Priorities for many destinations included: Reducing seasonality seen as an opportunity for growth and reduction in employment issues Improving the Visitor Experience (especially product knowledge and customer service). Collaborative working within the destination, and nationally

11 There is a reason to smile though

12 First a word about demographics Under 18s +10% 18-34s +1.2% UK population change More younger people 35-49s -3.4% Fewer squeezed middle 50-64s +10.5% 65-79s +11.2% % More older people (NB baby boomers are now retiring a different mindset than previous generations!) Source: ONS Population prospects

13 Coastal Tourism Visitor Profile Baby Boomers (Empty Nesters) the most significant Families the next more important for the coast Young people are a perceived challenge

14 Market Opportunities Empty Nesters Empty Nesters Represents a real opportunity with soft adventure (Cycling, walking) but also in the shoulder season.

15 Worth 9.5bn in the UK currently

16 Coastal Tourism What is a Wellness Break? Six Pillars of Wellness

17 Market Opportunity the Millennials

18 Market Opportunity The Millennials Under 35 s: Pre-family Lack Knowledge Poor Perception Tacky & Dated Micro booking times Offer based society

19 Coastal Tourism How NCTA helps Research & Insights

20 So how do we achieve Coastal Tourism s potential?

21 Public Sector Intervention National government and agencies have supported significant capital investment often delivered in partnership with local authorities and destinations. Providing new sea defences that double as attractive promenades and walkways Restoration of historic buildings as conference and other facilities Improving road infrastructure creating cultural attractions and events

22 An example of Public Funding Coastal Communities Fund Not a Tourism Fund Crown Estates The introduction of the Coastal Communities Fund as a dedicated funding stream for development on the coast, has led to significant coastal investment. Across the UK, 33.3million has been invested in 64 tourism related projects, more than 60% of the fund. Opportunities Investment into product and other coastal challenges, i.e. its not promotion Challenges Better collaboration needed to ensure investment focused Greater sharing of good practice so all can learn Getting the product to market!

23 Importance of collaboration Our research shows that with the right co-ordination and support coastal destinations can provide a more authentic and diverse product that is being sought be potential visitors Public private partnerships Focus on more than just marketing (promotion)

24 Focus on the visitor experience It leads to greater return visits, higher levels of recommendations and higher spend short term investment for long term returns! The Ambassador platform just one example of NCTA work Online, free to access, easy to use customer care and product knowledge suite

25 Conclusions Coastal tourism is a fragmented and mixed picture at a local level, and often undervalued and misunderstood Dominance of SMEs can also lead to reduced resilience of the tourism industry Increased pressure on local authority spending, made worse by the social make up of coastal towns, means that tourism is under threat in coastal communities. Strong leadership and collaboration are essential.

26 Key recommendations for growth on the coast Research and development to attract new and emerging markets, ensure suitable product market fit and delivery of quality visitor experiences in line with changing consumer needs. Strong collaborative partnerships across and within destinations to measure performance, share best practice and deliver sustainable growth for the benefit of the whole destination. This must be supported by a more coordinated approach to funding of coastal development from central government. Changing the perceptions of non-visitors, the media and government to reduce the gap between the perceptions and reality of the coastal tourism offer and its importance to the UK economy. Provision at local and national level to measure performance, share best practice and deliver sustainable growth for the benefit of all destinations. Continuing to build understanding of coastal tourism and key growth areas.

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28 THANK YOU! Jason Freezer Associate Director National Coastal Tourism Academy