Report To: Scrutiny Committee Date: 1 March Claire Onslow Head of Tourism & Economic Development

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1 Agenda Item No: Report Title: Report No: Benchmarking Tourist Information Centres Report To: Scrutiny Committee Date: 1 March 2012 Lead Councillor: Ward(s) Affected: Report By: Cllr Tony Nicholson All Corporate Head Communities & Enterprise Contact Officer(s)- Name(s): Post Title(s): (s): Tel No(s): Claire Onslow Head of Tourism & Economic Development claire.onslow@lewes.gov.uk Purpose of Report: To consider benchmarking data (comparison with other local authorities) for the Tourist Information Centre service. Officers Recommendation(s): 1. That Scrutiny Committee examines the benchmarking data and considers whether the Lewes District Council (LDC) Tourist Information Centre Service (TIC): (a)offers Value for Money (b) makes a contribution to the local economy in meeting the Council objective Creating Prosperous & Vibrant Communities 2. That Scrutiny Committee identifies any areas for improvement or requiring further analysis, within the TIC service. Reasons for Recommendations: 1. Benchmarking studies can help to identify areas of council service delivery that have the potential to yield additional income or reduce costs, improve services to the public or contribute to the economic vitality of the District. 2. Information Lewes District Tourist Information Centre Service 2.1 The Tourism & Economic Development Service operates the Lewes & Seaford TICs. The provision of TICs is part of the overall delivery of the tourism service which is an important business sector making a significant contribution to the economy of the Lewes District. The latest Page 1 of 8

2 Economic Impact of Tourism Study (2010) produced by Tourism South East, estimates that tourism contributes 155m pa to the local economy and supports 2300 jobs. 2.2 The primary aim of the TIC service is to provide high quality information and support service to visitors, local residents and businesses to support the area as a visitor destination. Each centre delivers this service in a different way to reflect their specific locations but the overriding principles are to support private enterprise in the local economy and meet the national standards of the TIC Network. 2.3 Both TICs offer retail as a secondary function, which has been introduced to make a contribution to offsetting operational costs but the TICs are still fundamentally providing an information service. Lewes TIC 2.4 Lewes TIC is the Districts busiest centre, located in a prime high street position with a high pedestrian footfall. The service operates Monday Friday 9am 5pm, with seasonal opening hours at weekends, April September Saturday 9.30am 5.30pm & Sunday 10am 2pm; October March Saturday 10am 2pm, closed on Sunday. 2.5 Whilst a visitor destination in its own right, Lewes town is also the largest population within the South Downs National Park which is estimated to contribute to the high visitor footfall at the TIC but the service also has a strong patronage from local residents which particularly supports the retail services. 2.6 Lewes TIC offers a wide range of services for visitors & local residents which can be summarised into the following main areas: Free visitor information service for the town, District and surrounding area via leaflets, information and face to face services, meeting National TIC Standards Accommodation booking service for Enjoy Sussex advertisers & NQAS rated accommodation (subject to commission) Large Retail operation Ticket agency service eg. for local events, transport, oyster cards 2.7 In addition to the information service, Lewes TIC operates a large retail operation to offset operating costs. The range of merchandise includes special interest books, gifts and souvenirs but also a wider range of locally produced cards and gifts developed in partnership with local traders. The TIC also acts as an agency to support local event ticket sales and transport tickets taking a commission on sales. The retail operation maximises the location to trade as part of the high street and in the last 3 years income turnover has increased by almost 50%. Page 2 of 8

3 2.8 In 2010/11 Lewes TIC welcomed 99,091 visitors and responded to 62,812 specific enquiries. Retail turnover was 125,650 with an estimated spend per head of The operational budget for Lewes TIC in 2010/11 is 140,150, which includes a 13,500 annual contribution to the Peacehaven Information Point. Seaford TIC 2.10 In 2008, Seaford TIC relocated to 37 Church Street, Seaford to become part of the multi agency facility with Sussex Police, CAB and Seaford Town Centre. The service operates Monday Friday 9am 4.45pm with additional Saturday opening between April September 9am 4,45pm. Seaford TIC has a high year round community patronage with a more noticeable seasonal visitor usage Seaford TIC offers a wide range of services for users which can be summarised into the following main areas: Free community & visitor information service for the town, District and surrounding area via leaflets and face to face service meeting National TIC Standards Accommodation booking service for Enjoy Sussex advertisers & NQAS rated accommodation (subject to commission) Limited book & souvenir retail sales Ticket agency service eg for local events, transport, oyster cards Reception service for Seaford Town Council and the other represented agencies Supporting LDC services including Housing Benefit Verification service Seaford TIC is unable to offer a large scale retail operation due to the limitations of space and operating restrictions within the Police Station. Thus income generation activities are restricted to a small line of souvenirs and commissionable items such as local event and transport tickets In 2010/11 Seaford TIC welcomed 30,739 visitors and responded to 22,987 specific enquiries. Retail turnover was 75,333 with an estimated spend per head of The operational budget for Seaford TIC in 2010/11 is 80, In addition to the specific services highlighted above, the TICs play an important role in supporting specific aspects of the local economy. As part of the service, our staff are required to have a detailed knowledge of the local environment, businesses and activities that take place in the local area and wider District. An interaction with the TIC service should inspire a visitor to widen the perspective of a visit which has a direct impact on local businesses from direct tourism providers (such as visitor attractions & accommodation) to ancillary services such as retail, Page 3 of 8

4 hospitality and entertainment businesses which all contribute to a buoyant visitor economy In 2010, Lewes TIC participated in a pilot study (carried out by Tourism South East) to assess the economic impact of the TIC service to the local area. The indicative results showed that as a direct result of visiting the TIC and having activities suggested, visitors went on to directly contribute 992,013 into the local economy. At the time this equated to a 9 spend per head per visitor and for every 1 invested by Lewes District Council in Lewes TIC, 6 was spent in the local economy. 3.0 Background to benchmarking studies 3.1 TIC services are not statutory, and services vary some are included in the budgets of Museums or other shared services, and some LAs offer a grant towards operation costs to a third party and thus the range of costs and TIC services varies significantly. Even our own TIC services vary significantly in service provision due to their location and operating circumstances which makes it difficult to benchmark. 3.2 To assist the Council in benchmarking of the TIC service, we have tried to compare our services with our nearest geographic neighbours providing a TIC service. Unfortunately not all neighbours were able to provide the range of data we required to benchmark our services so we have tried to review our services in the most comparable way with the data we were able to gather. 4.0 The Review Process 4.1 A breakdown of the following statistics (shown in the Appendices): Appendix 1: Visitors to TICs Appendix 2: TIC Operating Costs Appendix 3: Net Cost per visitor Appendix 4: Income Generation Appendix 5: LDC expenditure & Visitor Activity in TIC services over the past 3 years. The figures provided can be summarised as follows: Review of Lewes & Seaford TIC Services 4.2 Lewes TIC was the third busiest TIC in the area after Brighton and Battle Abbey both of which are located in prime tourist locations and in shared service buildings. It was also the second highest income generator after Guildford, and where data was available significantly out performed other TIC retail operations offsetting costs. 4.3 The cost per visitor of both our TICs is considerably higher than that of other authorities. However as highlighted above there is no set standard for a TIC service and neighbouring authorities have different Page 4 of 8

5 business models to share costs with other services or offer grants which reduce the net cost of their TIC service. 4.4 In terms of Lewes TIC, it is a stand alone service in a prime high street location and therefore does record one of the highest operating costs at 1.67 per visitor. Significant efforts have been made over the last 3 years to maximise the location to generate income to offset the costs by almost doubling retail turnover and spend per head from 0.51 to 1.27 over the last 3 years. 4.5 However, the intrinsic value of the TIC to the local economy also needs to be considered. As highlighted above for every 1 invested by LDC in the Lewes TIC service visitors went on to spend 6 in the local economy and supports the 155million local tourism economy. This highlights the important role the TIC plays in supporting local businesses. 4.6 In recognition of the need to continue to reduce overheads without compromising service delivery or the impacts on the local economy, the TED team are currently drafting a proposal for the SDNPA to consider a shared visitor service provision at 187 High Street for an annual contribution. 4.7 At Seaford TIC, premises costs were significantly reduced with the relocation to Church Street in 2008, but the cost of the service to the Council still remains high at 2.45 per visitor. However these costs are on par with those of Burgess Hill TIC which is the nearest comparable business model. However it is recognised that Seaford TIC does offer a wider range of services over and above that of a TIC to the local community, economy and the partners of 37 Church Street in exchange for a subsidised premise rental. 4.8 In the 2010 efficiency savings process, it was suggested that consideration be given to the devolution of Seaford TIC to Seaford Town Council which would reduce the Councils expenditure over an agreed devolution period but this was rejected and no further consideration was given to this. 5. Summary 5.1 The figures shown in the Appendices below do show that the net service costs have been variable over the last three years some of which relates to year end carry forward stock. The combined budget for the TIC service (2010/11) was 220,670 which translated into an overall cost per visitor of Whilst costs of the Lewes TIC service are appearing to be quite high, it is one of the few stand alone services providing a high quality TIC service and generating high retail turnover. Many comparable services are showing a lower cost per service as their budgets do not include recharges and building costs so it is not a true reflect of service costs. Page 5 of 8

6 5.3 The cost per visitor at Lewes TIC has increased over the last 3 years and whilst positive efforts have been made to increase retail turnover, the Tourism & Economic Development team are looking at future delivery partners and business models to reduce the cost to the Council. 5.4 The cost per user for Seaford TIC has reduced over the last 3 years as community patronage increases. However the services provided by the TIC are recognised to provide a wider community support role for the town. 5.5 Having scrutinised the data provided, the Committee is requested to consider the following criteria: Is the service providing value for money? Is the service high performing? Are there any identified areas for improvement or further analysis? 6. Financial Implications There is provision in the base budget each year for a number of detailed benchmarking studies. However, this particular report has not incurred any external costs. 7. Environmental Implications I have completed the Environmental Implications Questionnaire and there are additional significant effects as a result of these recommendations. no 8. Risk Management Implications Risk Service Managers may not deliver high performing, high satisfaction, and low cost services. Mitigation Chief Officers should benchmark their service areas, understand the market for their services, and the provider market for delivering those services. 9. Background Papers None 10. Appendices Appendix 1: Visitors to TICs Appendix 2: TIC Operating Costs Appendix 3: Net Cost per visitor Appendix 4: Income Generation Appendix 5: LDC Expenditure & Visitor Activity in TIC services over the past 3 years. Page 6 of 8

7 Appendix 1: Visitors to TICs (2010/11) Lewes Seaford Brighton Battle Rye Horsham Burgess Hill Guildford Visitors 99,091 30, , ,000* 55,034 68,756 34,828 69,405 Notes: To the building *To the whole site not just TIC To the building Appendix 2: TIC Operating Costs (2010/11) Lewes Seaford Brighton Battle Rye Horsham Burgess Hill Guildford Operating Costs 165,898 75, ,120 30,000 75, ,411 72,427 n/a Location & Notes: *inc contribution to Peacehaven Info Centre Within 37 Church Street shared services Within Brighton Pavilion. Costs do not include any building costs / recharges etc Within English Heritage reception area. Costs shown are just the LA grant given to TIC and don t include other costs Within Horsham Museum combined budget Within BH Town Centre Info Points shared service. Total costs Appendix 3: Net Cost per visitor (based on information provided) Lewes Seaford Brighton Battle Rye Horsham Burgess Hill Guildford Cost per visitor p n/a n/a Page 7 of 5.21* n/a

8 Appendix 4: Income Generation (2010/11) Lewes Seaford Brighton Battle Rye Horsham Guildford Income / Turnover 116,632 70,804 33,000* n/a n/a 30, ,676 Commission Sales only Appendix 5: Net cost per visitor Lewes & Seaford TIC Over 3 years Seaford Visitors Turnover Spend per head Budget Cost per visitor 2010/11 30,739 70, , /10 29,641 40, ,530** /09 27,641 21, , Lewes TIC Visitors Turnover Spend per head Budget Cost per visitor 2010/11* 99, , , /10 111,935 98, ,428** /09 122,797 62, , * 2010/11 budget includes extra budget for renovation works and visitor numbers impacted by closure for renovation works and severe weather. ** Higher costs reflect year end stock. Page 8 of 8

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