DESTINATION MANAGEMENT PLAN 2014-2016 Sunrise over Windermere. Photographer : Stewart Smith 1
Destination Management Plan: The Visitor Economy Action Plan for Cumbria 2014-16 Contents: Page: 3 1. Introduction 2. Process and hip 4 3. Strategic Framework 3.1 VisitEngland: A Strategic Framework for Tourism 2010-2020 3.2 The Tourism Strategy for Cumbria 2008-18, Making The Dream A Reality: 3.3 The Management Plan for the Lake District National Park 3.4 Cumbria LEP s Strategic Economic Plan 7 4. Tourism Volume and Value 4.1 Tourism in the UK 4.2 Tourism Businesses 4.3 Tourism Jobs and Growth 4.4 Tourism in Cumbria 11 5. Industry Performance 5.1 Tourism Business Survey March 2012 5.2 Occupancy Surveys 5.3 Visitor Attractions 14 6. Consumer Trends and Market Forecasts 16 7. Tourism Challenges and Opportunities 17 8. Targets and Performance Indicators 18 9. Future Investments and Plans - Priorities for Action 9.1 Major Tourism Investment Proposals 20 Tourism Investment Proposals - Details 21 1. Barrow and South Lakeland 30 2. Western Lakes 35 3. Eden and North Pennines 40 4. Carlisle and Hadrian s Wall 46 Countywide 49 Appendix 1: Consultees 50 Appendix 2: Criteria for Appraisal and Prioritisation 2
Destination Management Plan: The Visitor Economy Action Plan for Cumbria 2014-16 1. Introduction Although prepared by Cumbria Tourism, The Destination Management Plan [DMP] is an action plan for all the public and private sector organisations involved in delivering the visitor experience in Cumbria [as distinct from the Business Plan of Cumbria Tourism]. Through a comprehensive consultation programme, it sets out at a strategic level the aspirations, spending programmes and key actions of all the stakeholders with a responsibility or interest in the visitor economy. The Destination Management Plan will be used to inform, shape and influence investment plans, and key bodies (such as the Local Enterprise hip and Visit England), as well as provide evidence for private sector that Cumbria is worthy of new investment. This DMP covers the two year period from April 2014 to the end of March 2016. It provides a framework and rationale for investment in one of the major, growing sectors of the regional economy. The visitor economy embraces the total visitor experience on every step of the visitor journey. So it is not just about individual experiences and businesses though these are critical it is also about creating and maintaining a sense of place, delivering good service and customer care, and communicating clear, appealing messages to consumers to stay ahead of competing destinations. The collective efforts of both the public and private sectors, and a joined up approach are essential to deliver a successful visitor economy in Cumbria. Meeting the needs of visitors also brings wider benefits for the local community. If a place is attractive to live in and offers a good quality of life then it will be attractive to visit and invest in too. The visitor economy has a key role to play in helping to strengthen Cumbria s economy, to support the creation of new businesses and jobs in the area, through making the area attractive to new investment and skilled workers and helping to manage economic change. A DMP was last prepared for Cumbria in March 2012 for the period 2012-14. Since this time there have been significant changes in the resources available to public, private and voluntary bodies together with the roles and responsibilities of a number of the organisations involved with the visitor economy in Cumbria. Cutbacks are being made in many of Cumbria s Local Authorities with resulting reductions to the services which they provide for visitors. In some parts of the county these services have been taken on by voluntary organisations or private companies; in other areas visitor facilities have been lost. As the Destination Management for the county we need to make sure that the environment in which the industry is operating is as positive and co-ordinated as possible; not easy to achieve in the face of reduced funding available for key services such as transport, leisure, visitor information, public toilets and footpath management. Already there are signs that several Local Authorities are looking to generate more income from visitors - through car parks and other services to maintain statutory services and reduce the burden on local taxpayers. This could be counter-productive and drive visitors elsewhere; destinations such as Yorkshire and Scotland are working hard to pull them in and with the lure of the Tour de France and Commonwealth Games in 2014 we will need to work even harder to retain our loyal visitors and attract new ones. The good news is that there are some strong campaigns and plans in the pipeline for 2014 and beyond which should help to maintain Cumbria s reputation as one of the leading visitor destinations in the UK. These include the new domestic marketing campaign for Cumbria, #The Place to be, in conjunction with Visit England. Cumbria will be marketed through a range of channels - press adverts, PR, posters and web and digital across the whole of the UK but with a little more focus on the North East and Scottish markets. Cumbria Tourism is also partnering with several other leading destinations in the UK to launch a new Fairbooking campaign aiming to challenge the growing dominance of the online booking agencies and highlight the wider social and ethical benefits of booking holiday accommodation either directly or through destination websites. At the same time the Local Enterprise hip is negotiating with Government over a new Strategic Economic Plan for Cumbria for 2014-21. This will set out priorities for EU and UK Government spending in the county over the next 7 years. Cumbria s visitor economy is a priority sector and the hope is that this will deliver additional funding for overseas marketing, upgrading attractions and sustainable visitor transport in the county. During the DMP period there is also likely to be significant progress towards World Heritage Site designation for the Lake District. The UK Government has selected the Lake District as the UK s nomination for inscription to UNESCO in 2016. If accepted this would mean the that The Lake District - alongside Hadrian s Wall - would be part of an exclusive club of less than 1000 World Heritage Sites across the globe which will fast become must visit destinations. 3
Other significant developments include: The accelerated roll out of superfast broadband - an essential tool for the industry if it is to compete on level terms with city based and overseas destinations. The Connecting Cumbria programme which is being delivered by BT should reach much of the county before the end of 2014. A new Cultural Destinations Marketing and Development Programme over the next three years (funded primarily by the Arts and Visit England) in which the potential of county s cultural offer as an economic driver will be fully recognised and arts and culture will take centre stage in promotional activity. This will complement the push for World Heritage Site status for The Lake District. The launch of new landscape conservation and tourism development project around Morecambe Bay. Having attracted funding from Heritage Lottery and the Coastal Communities Fund over the next few years, partners around the Bay will be working closely with the business sector to introduce new marketing and promotional materials, visitor information and orientation, welcome training and leisure trails - including a new Morecambe Bay Cycleway. The delivery of new Management Plans for the three designated Areas of Outstanding Natural Beauty in Cumbria - notably Arnside and Silverdale, North Pennines and the Solway Coast - each with a key emphasis on managing and improving the visitor experience. The Lake District National Park Authority is leading some pioneering work in conjunction with local businesses, residents and organisations in Valley Planning for Ullswater. This is likely to be the first of several 'All Valley Plans' to be prepared in the DMP period and which will form the basis of the World Heritage Site Management Plan.. Taste Cumbria has been awarded a grant from the Prince s Countryside Fund to work with Herdwick farmers in supporting and developing their meat trade, and optimising the benefits of the Herdwick breed to our landscape and tourism economy. A number of new food and drink festivals will take place in Cumbria over the next two years to showcase and enhance the county s growing foodie reputation The opening of new and extended attractions and facilities such as South Lakes Wild Animal Park, Zip Trekking in Grizedale Forest, Cumbria s Museum of Military Life at Carlisle Castle, Keswick Museum and Art Gallery, Lakes Distillery at Bassenthwaite and Aira Force at Ullswater. 2014 will also see new hotel openings at The Halston, Carlisle and The Villa at Brettargh Halt near Kendal together with major investments at Abbey House Hotel, Barrow, the Cranleigh in Bowness and The Samling on Windermere. A major show of Barbara Hepworth s work will take place at Abbot Hall, Kendal and a 20:20 Vision Exhibition is programmed at Barrow and Grange over Sands together with the diverse programme of theatre, music, food festivals, outdoor events and agricultural shows throughout the county. The DMP will try to capture the scale and extent of this potential investment and activity over the next 2-3 years and set out some clear priorities and direction for the industry and its partners. With public sector resources becoming even more scarce it is crucial that there is a clear plan setting out where investment is vital together with the conditions which are needed to enable the county s visitor economy to thrive. 2. Process and hip The DMP has been prepared following consultation and discussions with a wide range of stakeholders and partners across Cumbria. The consultation process began in November 2013 when stakeholders were invited to complete a pro-forma organised around the themes set out in the Tourism Strategy for Cumbria 2008-2018, with details of projects in the pipeline of relevance to the visitor economy. In March 2014 a range of partners met to review the plan s objectives, discuss the current and proposed activity and identify key activities and projects to strengthen the visitor economy in Cumbria. The partners involved in the DMP s preparation are listed in Appendix 1. 3. Strategic Framework The DMP for 2014-2016 has been developed and revised to reflect the strategic priorities for Cumbria in the short to medium term, and to respond to current issues and opportunities. In particular, it is set within the context of both national and regional tourism strategies. 4
3.1 VisitEngland: A Strategic Framework for Tourism 2010-2020 The Strategic Framework for England s Tourism sets out the coordinated approach needed for the public and private sector tourism industry to work together; it highlights four key objectives. These seek to maximise tourism s contribution to the economy, employment and quality of life in England and a target of 5% growth in the value of tourism, year on year, over the next decade. The Objectives: To increase England s share of global visitor markets Marketing must build on the profile of the England brand in the world marketplace. Informed by a thorough understanding of the visitor s motivations across target markets, it will focus on England s most attractive destinations and experiences. To offer compelling destinations of distinction Tourism businesses, alongside destination management organisations, local government and relevant sectors, such as transport, must share responsibility for creating a successful destination experience. To champion a successful, thriving tourism industry A successful tourism industry creates new employment opportunities throughout the country and the success of the industry depends on a skilled workforce. To facilitate greater engagement between the visitor and the experience The tourism industry must ensure that information provision is modernised, integrated nationally, and keeps apace with advances in technology. To achieve the four objectives, a series of Action Plans (including ones covering rural tourism, marketing, accessibility and skills) have been developed by cross industry groups. These focus on the priority actions to be implemented by partners. There is a high degree of consistency between the emerging national strategy and the Tourism Strategy for Cumbria. 3.2 The Tourism Strategy for Cumbria 2008-18, Making The Dream A Reality: The Vision In 2018 Cumbria, as well as being known for world-class landscapes, will have an unrivalled reputation for outdoor adventure, heritage and culture with a year-round programme of events. Our accommodation, our food, our public realm and our customer service will reinforce our reputation as the number one rural destination in the UK. The aims in the regional strategy are about making improvements in marketing, business performance, quality, skills, infrastructure and sustainability. The strategy focuses around four key themes, underpinned by quality and sustainability. Priorities for Action Landscape - the core Firstly, we need to develop the tourism industry in ways which do not detract from Cumbria s special landscapes. Outdoor adventure, heritage and culture, food & drink and events - the visitor experiences. Secondly, we need to develop those experiences that sit well in our landscape and will attract visitors to Cumbria and give them opportunities to spend money. Accommodation, public realm and customer service - the basics Thirdly, we need to invest in those parts of the visitor experience that (while they are not the main reasons for people to come here) will, if we do them well, make sure our visitors have a great time. And vitally we need to make sure that people are able to get to, and around, the county easily by road, rail and air. Marketing - the means to an end Fourthly, we need distinctive marketing, to re-establish Cumbria s leading tourism brands as appealing, modern destinations. We need to focus on the right people with a strong offer and persuade them to come here for the first time or time and again never forgetting they could so easily choose somewhere else. 5
3.3 The Management Plan for the Lake District National Park Another plan which will have a significant influence on Cumbria as a visitor destination is the Lake District National Park hip s Plan The Management Plan for the Lake District National Park 2010-2015. The hip brings together a wide range of organisations with an interest and responsibility for the National Park and sets out the vision for its future development and management. The Vision for the Lake District National Park is that it will be an inspirational example of sustainable development in action. It will be a place where a prosperous economy, world class visitor experiences and vibrant communities all come together to sustain the spectacular landscape, its wildlife and cultural heritage. Local people, visitors, and the many organisations working in the National Park or have a contribution to make to it, must be united in achieving this. The plan includes a number of actions which will help to sustain a prosperous economy and create world class visitor experiences. These include 1. Developing initiatives which strengthen the market for premium farm products- focussing particularly on visitor markets 2. Improving the mobile phone infrastructure and creating open wi-fi in the Lake District s most visited settlements 3. Developing a project plan to improve skills in the hospitality sector 4. Developing a Cultural Tourism Strategy and Action Plan for The Lake District to improve its attractiveness as a cultural destination 5. Securing funding for an International Marketing Campaign- particularly featuring the cultural and adventure offer of the Lake District 6. Continuation of the vital Fix the Fells programme 7. Co-ordinating and improving the car parking offer across the Lake District 8. Improving sustainable transport to, from and around the Lake District for visitors. Other key strategies and plans which will help to shape the county s visitor economy over the next 2-3 years include the statutory Local Plans of each District (and the two National Park Authorities), the Management Plans of the three Areas of Outstanding Natural Beauty (2014-19), together with the corporate and investment plans of key agencies such as the Environment Agency, Forestry Commission and Natural England. Some of the county s major companies such as United Utilities, BAE Systems, the Stobart Group and BNFL also have major investment proposals which will have repercussions (both positive and negative) for the tourism industry. 3.4 Perhaps the most crucial influence of all will be the Local Enterprise hip s Strategic Economic Plan for Cumbria. This emerging plan will set out the priority sectors and investment projects which it believes are necessary to create economic growth and new jobs for Cumbria over the next 7 years. Although not yet formally agreed by the UK Government the draft plan highlights the visitor economy as one of four key sectors with scope for further growth and proposes a programme of activity which will capitalise on growing international visitor markets. It will set out to improve Cumbria s international recognition and appeal by using the Lake District (and its bid for World Heritage status) and the already established Hadrian s Wall World Heritage Site as attack brands for international visitors. To achieve the full potential of this growth market, investment is required to ensure visitor experiences are of a standard consistent with the strength of the brand and visitor expectations. Key activities proposed in the draft plan include Investment in destinations and attractions to compete on the international stage, including early investment in Roman Maryport and the Windermere Waterfront Programme Delivering sustainable transport infrastructure and interventions making it easier for visitors to arrive and move between destinations. Significantly raising the international awareness appeal and identity of Cumbria by hosting major, world class events and targeted marketing by Cumbria Tourism Developing home-grown talent in hospitality and leadership skills through dedicated quality training. Elsewhere in the plan there are proposals to deliver superfast broadband and 4G mobile network coverage in rural areas, improving leisure and cultural facilities in town centres and working with the agri-food sector to establish strong Cumbrian identity through marketing and branding activities. 6
4. Tourism Volume and Value 4.1 Tourism in the UK Tourism is one of the largest industries in the UK. Tourism is the UK s sixth largest industry, with revenue from tourism contributing 134bn to the UK economy in 2012. It is also the UK s sixth largest export earner, generating 22bn per annum in foreign exchange, and the UK s third largest employer, with 2.72m people working in tourism-related employment (9.1% of the total employment). Despite the economic downturn over the last few years tourism is one of the fastest growing sectors of the UK economy. The UN World Tourism (UNWTO) predicts that global tourism will increase by 60% between now and 2020, driven by rapid growth in outbound visitors from BRIC countries. The UK has the potential to significantly benefit from this growth as it is currently the 7th most popular international destination for tourists. 4.2 Tourism Businesses The ONS and Skills Sector, People 1st, estimate that there are 249,000 tourism-related businesses in the UK, making up just under 10% of all UK businesses. While the UK has a number of very large and internationally successful tourism businesses, including the world s largest hotel group and the world s second largest leisure entertainment group, the industry is characterised by a very high proportion of Small and Medium Enterprises (SMEs). This is partly due to the fact that there are relatively low barriers to entry for starting a tourism business. For example, people owning a property with spare rooms can easily become a B&B without requiring significant investment to alter the property or having to employ staff. These low barriers to entry also mean that the sector is a significant incubator for entrepreneurs, especially where people have been made redundant in existing businesses. The low barriers to entry and the high percentage of SMEs in tourism is reflected in the high proportion of selfemployment in the tourism industry, with 20% of the people being self-employed compared to the average of 14% for all industries. In addition, tourism businesses also have 18% of employees classified as managers, directors or senior officials compared to 10% across all industries. Tourism businesses have a vital role in reducing youth unemployment. Almost 40% of all people who work in the tourism industry (1.1m) are aged under 30, compared to just 22% of workers in other sectors of the economy. There are two main reasons for this. First, tourism has a large number of jobs that are part-time and occur in the evenings, thereby providing students with employment opportunities that they can fit around studying. It is therefore no surprise that tourism industry accounts for 30% of all student employment. Second, tourism businesses provide many school-leavers, especially those with few qualifications, with stepping-stone employment where they can learn valuable skills that can be used to gain further employment. Source: Tourism Alliance Briefing June 2013 4.3 Tourism: Jobs and Growth VisitBritain recently published a report by Deloitte highlighting tourism s central role in creating new jobs across Britain. Findings include: The tourism economy is set to grow 3.8% per annum, faster than manufacturing, construction and retail. Direct tourism spend in 2013 is expected to reach 113bn, a 6% increase on 2012. The tourism economy as a whole is currently worth 127bn and is predicted to grow to 257bn by 2025, which would be 10% of UK GDP. It has supported 3.1m jobs throughout the UK in 2013 (9.6% of UK employment) It accounted for one third of the net increase in UK jobs between 2010 and 2012 (175,000 additional jobs) - and is forecast to support 3.8m jobs by 2025. 54,000 of spending is required to support a full time tourism job. Forecasts are for international tourism to grow by 6% per annum, and domestic tourism by 3% each year (in real terms, adjusted for inflation). Source: VisitBritain, Tourism Jobs and Growth: The Economic Contribution of the Tourism Economy in the UK, November 2013 7
4.4 Tourism in Cumbria This map shows clearly the concentration of tourism related employment in Cumbria and in particular for Eden and South Lakeland. (Source: ONS and Deloitte analysis). Tourism Volume and Value 2012 Tourism volume and value are measured annually through the STEAM model. This compiles and analyses data from a range of sources including bed stock, occupancy, attractions, Information Centres and visitor surveys. STEAM data for 2013 is not yet available so the most recent analysis is based on 2012 statistics. In 2012 Cumbria - the Lake District received 38 million visitors, made up of 32.8m million day trippers and 5.2 million overnight visitors. Between them, day and staying visitors combined to produce 51m tourist days. These visitors brought in 2.1 billion to the region's economy and provided employment for 31,235 full time equivalent (FTE) posts. As many tourism jobs are actually part time, or seasonal, the total number of people in tourism jobs is estimated at 53,710 1. 2012 proved to be a difficult year for the visitor economy in Cumbria. The county experienced poor weather for much of the year saw many London-focused events such as the Diamond Jubilee and the Olympics, along with a continuing squeeze on people s finances and levels of disposable income. 1 This is estimated at 19% of all employment in the county. Figures are supported by estimates from Business Link of 21% of employees in Cumbria in the tourist industry equivalent to 50,111 employees (data as at Oct 2009). 8
VisitEngland research during 2012 and early 2013 suggested that 9 in 10 households were cutting back on spend - and 4 in 10 report spending less on holidays. Where people were cutting back on holidays this was primarily by taking fewer, or no breaks at all, or by spending less on trips and entertainment. It is no surprise then, that between 2011 and 2012, Cumbria suffered a drop of -4% in tourist days, and -8% in tourism revenue. Much of the decrease was as a result of changes in the day visitor market. Day visitors account for 65% of the county s visitor days, and in 2012 there were -6% fewer day visitors - a fall of 2.2m people on the ground. Spend by day visitors also fell, by a more drastic -15%, equivalent to 193m. In contrast, the staying visitor market grew, with visitors up 2% in 2012, (an extra 90,000), and staying visitor nights up by 1%, equivalent to 120,000 nights (mainly down to visitors using non-serviced accommodation - self catering, caravans or camping). Looking at sectors of expenditure, biggest reductions were in transport (-19%) and food and drink (-12%). The choices people make in terms of how far and how often they travel is heavily influenced by fuel prices and the costs of motoring. The overall trend of an -8% decrease in tourism revenue, and -4% in tourist days is also evidenced by a number of other sources, including Cumbria Tourism s visitor attraction monitor, which reported a drop of -9% in visitor numbers over the course of the year, and car park receipts in South Lakeland and the Lake District National Park, which were typically down by between 5-10% in 2012. District Level Analysis The following table shows tourism revenue, tourist days, tourist numbers and tourism employment during 2012 for each of Cumbria s districts, and the county as a whole. Allerdale Barrow Carlisle Copeland Eden South Lakeland Cumbria Tourism Revenue ( m) 348.7 88.2 332.7 140.8 240.0 955.1 2105.5 Tourist Days (m) 9.10 2.92 7.71 3.97 6.41 20.54 50.64 Tourist Numbers (m) 6.33 2.57 7.05 3.00 4.13 14.89 37.97 Employment (FTEs) 5,674 1,354 4,756 2,106 3,760 13,585 31,235 South Lakeland district accounts for the greatest share of tourism revenue at 45%, followed by Allerdale at 17% and Carlisle with 16%. Visitor Type 86% of trips to Cumbria were just for the day. These visits accounted for 65% of tourist days, and exactly half (50%) of the county s tourism revenue in 2012. Visitor Type Trips 2012 Days 2012 Revenue % % (m) (m) 2012 ( m) % Serviced Accommodation 2.59 6.8% 4.97 9.8% 503.3 23.9% Non Serviced Accommodation 1.84 4.9% 11.00 21.7% 498.1 23.7% Staying with Friends and Relatives 0.76 2.0% 1.89 3.7% 44.6 2.1% Day 32.78 86.3% 32.78 64.7% 1059.6 50.3% TOTAL 37.97 100% 50.64 100% 2105.5 100% In contrast, staying visitors accounted for just 14% of trips, but 50% of the county s tourism revenue. Visitors staying in serviced accommodation accounted for 7% of trips, 10% of nights and 24% of revenue, while those staying in self catering accommodation accounted for 5% of trips, but 22% of nights and also 24% of tourism revenue. This is shown graphically below. 9
Value and Volume by Visitor Type % 90 80 70 60 50 40 30 20 10 0 Serviced Non Serviced SFR Day Trips % Days % Revenue % Seasonality Tourism activity and the consequent tourism revenue is subject to seasonal variations. The table below shows the differences in tourism revenue generated between the summer months and other parts of the year. There has been very little variation in revenue by quarter over the last few years. Tourism Revenue by Quarter Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec 2012 16.0% 27.8% 35.0% 21.2% The six months between April and September generate 63% of tourism revenue for the year. July to September is the most lucrative quarter of the year, generating 35% of tourism revenue for Cumbria in 2012. July and August together account for around a quarter of the annual revenue. Weather during these important months for tourism activity plays a huge part in overall revenue volumes. Tourism Revenue by Sector Visitors spend money on a variety of things during their trip. Accommodation and food and drink are significant revenue-generators. Food and drink outstrips accommodation spend, worth an estimated 394m in 2012 almost a fifth of all revenue from the visitor economy. Tourism Revenue by Visitor Type There is significant variation between visitor types in terms of sectors of spend. The majority of spend by serviced accommodation visitors lies in their accommodation (45%). 12% of their spending was on food and drink. In contrast, self-catering visitors spend more than serviced accommodation visitors on sectors other than accommodation - partly a feature of their trip type, and length of stay. Just 23% is on accommodation, and 16% is on food and drink. They spend almost three times as much as serviced accommodation visitors on shopping ( 46m) and recreation ( 27m). Revenue from visitors staying with friends and relatives is much lower as there are far fewer trips overall, and no accommodation spend. Shopping and food and drink are the most significant sectors for spend by these visitors. Spend on transport for these visitors has increased since 2011, from 9.2% of overall spend, to 16.1%, and shopping has fallen from 24.1% to 18.2%. Perhaps tight family finances and spend on fuel and travel translate to reductions in spend on shopping and other less essential items. 23% of revenue from day visitors is spent on food and drink ( 248m). More is spent on transport than on shopping or recreational activities. 10
m Long Term Trends Between 2000 and 2011 tourism revenue had grown by 8% in real terms, averaging 1% growth each year. However, the 2012 decrease takes tourism revenue back to levels last seen in the year 2000. If the figures were not adjusted for inflation, growth would be 43% since the year 2000, an average yearly increase of 4%. Tourism Revenue (indexed to 2012) 2000 1500 1000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Over the same time period of thirteen years, visitor numbers have grown by 6% (trips), and tourist days/nights also by 6%. Employment supported by tourism has also seen a 5% growth since the year 2000. 5. Cumbria Industry Performance 2013 The following section contains an analysis of the key trends in Cumbria s tourism industry over the last year or so, together with forecasts about likely patterns of investment over the short and medium term. In 2013 the UK experienced the warmest, driest and sunniest summer since 2006, with 588 hours of sunshine; this has certainly been reflected in performance for many tourism businesses. At a national level, overseas visitors were up by 6%, and Visit England s September Tourism Business Monitor survey showed that the summer holidays were good for many, with 54% of accommodation providers and 66% of attractions reporting visitor numbers up. The Association of ing Visitor Attractions (ALVA) also reported visitor numbers up at Britain s 50 most popular sites - between May and August visitor numbers rose by 22% year on year. Serviced accommodation occupancy across England hotels, guesthouses, and b&bs was about 3% up on 2012 figures. Despite these positive figures, domestic overnight trips as recorded by the Great Britain Tourism Monitor (GBTS) show a -2% fall in 2013 compared to 2012, and provisional figures for England day trips are -7% down on 2012 figures in terms of volume, and -5% down in value. 5.1 Cumbria Tourism Business Survey March 2014 For the first time in several years the latest Tourism Business Performance Surveys (September 2013 and March 2014) are revealing more positive trends. There is continued improvement following the good summer weather of 2013 and the positive effect this has had on the visitor economy. Business performance has improved, confidence and expectations are up, and some of the trends that have been of concern to businesses are gradually on the way down. In summary: 19% report profits up for the last 6 months, 34% report turnover up, and 32% report visitor numbers up. 11
Room occupancy % 63% feel confident about the rest of 2014; and 71% believe their business performance in 2014 will be the same or better than 2013 (significant as 2013 was a good year). 29% had felt the effects directly or indirectly of flooding events that occurred across the country during February 2014. Repeat customers, investment in facilities, and website developments were the factors most affecting trade in a positive way; increased costs, poor weather and people spending less were cited most frequently as negative factors affecting business. Trends that have been gaining momentum over the last few years as a result of the economic downturn, such as visitors staying for less time, taking fewer holidays, spending less, and choosing budget options are slowly starting to decline. 63% of businesses say that forward bookings for April to July are level or up on this time last year - despite the increase in last minute bookings that characterises today s visitor market. Businesses were asked about confidence for the next six months (April to September 2014). 12% feel very confident and 52% fairly confident - 64% confident to some degree. Confidence - Next Six Months Not at all confident 13% Very confident 12% Not very confident 23% Fairly confident 52% 5.2 Occupancy Surveys Serviced accommodation in Cumbria and the Lake District was strong throughout 2013. July and August occupancy rates were the highest recorded for a number of years. Summer (July/August) Performance Serviced Accommodation 75 74 73 72 71 70 69 68 67 66 65 64 2006 2007 2008 2009 2010 2011 2012 2013 12
The year has ended up 2.5 percentage points on 2012 - the last time annual room occupancy reached 59% was in 2008, pre-recession. Serviced Accommodation Room occupancy 2012 Room occupancy 2013 Change (percentage points) January 34.8% 34.3% -0.5 February 42.6% 45.8% +3.2 March 52.1% 53.2% +1.1 April 56.4% 54.8% -1.6 May 59.5% 66.2% +6.7 June 69.2% 68.6% -0.6 July 67.1% 73.5% +6.4 August 69.8% 75.6% +5.8 September 70.8% 69.5% -1.3 October 59.5% 61.5% +2.0 November 47.9% 51.8% +3.9 December 41.5% 46.3% +4.8 Year to date 56.7% 59.2% +2.5 Unit occupancy rates for self catering accommodation in 2013 were almost one percentage point down on 2012 figures. Self Catering Accommodation Unit occupancy 2012 Unit Occupancy 2013 Change (percentage points) January 20.2% 22.3% +2.1 February 32.4% 33.2% +0.8 March 39.0% 43.1% +4.1 April 53.4% 46.2% -7.2 May 52.7% 56.4% +3.7 June 65.9% 59.3% -6.6 July 65.9% 65.4% -0.5 August 79.0% 78.4% -0.6 September 63.3% 62.5% -0.8 October 58.9% 56.7% -2.2 November 35.0% 38.6% +3.6 December 34.3% 33.1% -1.2 Year to date 51.1% 50.3% -0.8 13
Good weather during July saw figures for the touring caravan and camping sector rise by 11 percentage points on July 2012, and this strong performance continued into August, September, and October. Despite this, a poor start to the year leaves the sector on a par with 2012 occupancy rates. Caravan and Camping Pitch occupancy 2012 Pitch occupancy 2013 Change (percentage points) January 15.6% 12.0% -3.6 February 21.4% 11.7% -9.7 March 37.8% 16.6% -21.2 April 40.7% 29.8% -10.9 May 44.7% 46.7% +2.9 June 53.1% 49.8% -3.3 July 53.5% 64.6% +11.1 August 60.7% 65.7% +5.0 September 39.9% 45.2% +5.3 October 27.9% 32.2% +4.3 November 25.7% 25.3% -0.4 December 14.9% 17.0% +2.1 Year to date 40.8% 40.5% -0.3 5.3 Visitor Attractions In 2013, 69 attractions provided information about their 5.1m visitors. 61 attractions provided figures for both 2012 and 2013, revealing an increase on average of +7.4% of visitors in 2012 - an extra 340,000 visitors through the doors. 6. Consumer Trends and Market Forecasts Visit England recently published a report identifying trends that will influence domestic tourism over the coming years. Population and Social Change Changes in the composition of society will have a profound effect on the future of domestic leisure tourism. Understanding how demographic trends will develop and how they interact with other trends is crucial in widening our understanding of the future tourism market in England. Key trends are: An ageing society - growth in the number of older people and rise in the average age of the country. A baby boom - a rise in the medium term of younger people as a result of sustained fertility rates since the mid-1990s. The squeezed middle - as people aged 35-49 will actually decline over the next few years. A change in the shape of families from a horizontal one to a vertical one - a family with more tiers (grandparents and great-grandparents) but fewer people in each generation, fewer cousins and siblings. More diverse family groups, with gay and lesbian parents, and extended families linked by divorce or separation. As grandparents become increasingly involved in childcare and family life, the tourism market will need to adapt to cater for an increasing number of inter-generational holidays. Increased ethnic diversity as people from ethnic minorities and those born outside of the UK continue to grow - but their needs in relation to leisure tourism are poorly understood. Multispeed demography - as different regions and areas experience different changes in demography, with a rapid ageing of rural areas while cities remain fairly youthful. 14
Economics and Recession-Led Trends Against a backdrop of economic stagnation, and a tight funding climate, consumers continue to look for good value. The length and depth of the downturn ensures that the impact of it on consumer behaviour will last long into recovery. However, there is no single recessionary experience: individuals experiences and the habits they ve formed vary widely. The desire for value is evident at all sections of the market including the luxury end. Holidays are not immune to cost cutting but people do prioritise their leisure time and are extremely reluctant to cut back. Discretionary thrift - an increased willingness to save money and find bargains - even when the consumer doesn t need to. Value hunters - consumers increasingly willing to go to extra lengths in search of cheaper products and better value. Self-preservation society - consumer s ethical concerns have drifted closer to home as they deal with the economic downturn s effect on their own lives. The appetite for domestic leisure experiences is increasing partly driven by the self-preservation society trend and the appetite for staycations is likely to be maintained during recovery. Consumer confidence will be a key barometer of when pre-recession holiday trends might return. Technology and Information Wider technology use is changing how people research and book their holidays and what they expect whilst there. Mobile first - the shift to mobile devices intensifies the requirement for businesses to customise their offer to different platforms and utilise apps. Wider access has broadened the range of information consumers have access to traditional sources now compete with recommendations from peers (often via social media). Fear of missing out - social media gives us unprecedented access to the social lives of our peers - meaning we want to do more in our free time. Last minute - not just a recession-led trend but driven by other factors (like technology) that will see it endure into the long term. Increasing, immediate communication will heighten the fear of missing out and catalyse desire for broader leisure portfolios and new experiences. Digital downtime - a short term trend that sees people logging out of digital devices and leaving their smartphones behind on leisure trips. Tourism Trends Time poor and cash strapped consumers will look to maximise their leisure spend increasing short breaks (at the expense of longer ones) and turning VFR trips into leisure ones. Broader leisure portfolios will encourage people to try new types of holiday whether at destination level or activity type, such as skills tourism, and health tourism. Demographic trends will heighten the importance of family trips and traditional destinations can benefit if they adapt. Nostalgia tourism driven by consumers uncertainty about the future will play a role. People s interest in the past and heritage, and events such as the Royal Wedding fuelling a sense of Britishness. Active tourism is growing as a reaction to more sedentary lifestyles, with a desire to be active and healthy people also de-stress through adventure experiences. Rural destinations should benefit from the desire for both health tourism (wellbeing), and active tourism. Source: VisitEngland, Domestic Leisure Tourism Trends for the Next Decade, December 2013 15
Implications There is apparently a re-ignited affection for UK destinations - however with an ongoing squeeze on disposable incomes, spending on travel and tourism is unlikely to increase dramatically in real terms, driving fiercer competition among holiday suppliers. Businesses will increasingly need to meet the needs of guests who expect to be able to book and confirm trips online, often via mobile devices. The appeal of discounts seems to be more and more crucial as consumers go all out to locating the absolutely best deal. At the same time, consumers are better equipped to manage choice, and this invites them to shop around and be more disloyal to established brands. The amount of pre-decision preparation invested in the holiday buying process is substantial, and crucial to purchasing decision. Holidays are a low frequency, high spend product. People will continue to compare prices, gather information, check consumer reviews, seek referrals, special offers and discounts. At the same time, quality at low prices is changing consumer perceptions of value. Domestic competition will remain cutthroat. Key Implications A Summary Increasing competition continues Brand loyalty is under pressure Discount forever? A downward pressure on pricing and increase in expectations of value for money time to create added value packages rather than take money off Appeal of all-inclusive options, and packages Reductions in available consumer spend Shorter and shorter lead in time to decisions and bookings - here to stay Operating in a constantly changing digital marketplace More time spent planning/researching, multiple information sources, new forms of communication; social media; review sites; online forums, real time bartering Customer care is more important than ever Focus on the value of retaining existing customers, and innovative ways to find new ones A Positive Outlook The typical Cumbria visitor is less affected by financial stress. To succeed in these difficult times we need to emphasise the huge range of free experiences that the county has to offer getting away from the rat race, rest and relaxation, beautiful scenery, culture and heritage, pretty villages, all weather attractions, and free, healthy activities such as walking and cycling in the great outdoors. In addition businesses need to offer a consistently great quality, good value, unique product with excellent customer service, to be flexible and willing to adapt quickly to changing circumstances and consumer needs and to continue to offer deals, reductions, special offers, added value, and packages where cost is contained. Tourism has a key role to play in helping to strengthen Cumbria s economy, providing a significant contribution to GVA, creating local employment, and benefiting local communities through the support of facilities and services. 7. Tourism Challenges and Opportunities The previous section identified some of the trends and challenges which are likely to influence the future growth and improvement of the visitor economy in Cumbria. These range from a need to cater for digital and technological advances through to investment in better transport and visitor facilities. Set against the current economic climate, the resources to address many of these issues will not be available in the immediate future and it will therefore be necessary for the various partners in the DMP to make a strong case for increased private and public sector investment both in the industry and the supporting visitor infrastructure. As well as major investment proposals and projects detailed later in this document, a range of supporting initiatives and programmes are required to transform the visitor economy in Cumbria and contribute more fully to economic growth and regeneration in the region Further improvements to accommodation and attractions to raise standards throughout the county. This should take place with a view to attracting overseas markets particularly given the prospects for WHS designation. 16
Marketing, image building and brand strengthening to enable the Lake District and Cumbria to compete with high profile campaigns from rival destinations such as Scotland, Wales and Yorkshire and to capitalise on recent accolades such as the Best UK Rural Break Destination and Top UK Destination in the 2014 Wanderlust Travel Awards Sustainable transport connections into and around the county with a particular emphasis on West Coast Rail and public transport services around the county. Investment in the public realm and access infrastructure - targeted towards town centres and popular visitor destinations and key footpath networks. Enhanced co-ordination and promotion of Cumbria s rich arts and cultural offer and quality accredited food and drink, [via Taste]. Continued development and investment in growing outdoor activity markets particularly the adventure walking, water sports and cycling sectors, [via Adventure Capital]. A targeted approach to skills and business development within the tourism sector. Rapid introduction of superfast broadband and mobile phone /4G technology into the county Raising environmental standards and resource efficiency within Cumbria s visitor economy particularly in terms of accommodation and transport services. More robust support and financial underpinning of the Destination Management from public sector bodies Progress on many or all of these fronts will require funding support from both the public and private sector. Much of this will in future be channelled through the Cumbria Local Enterprise hip (LEP) and its Strategic Economic Plan together with other potential funding sources such as the Arts, Visit England, DEFRA and the National Lottery. During the preparation of the plan partners were asked to rank the importance of each of these supporting initiatives (above) in terms of their likely positive impact on the county s visitor economy. All of the participants acknowledged the importance of maintaining the Destination Management (DMO) to provide the necessary leadership and co-ordination of the tourism industry. The three other programmes considered to be of most importance in driving the visitor economy forward are: 1. Destination and thematic marketing 2. Improved broadband and mobile connections 3. Public Realm and access infrastructure 8. Targets and Performance Indicators It is not always possible to measure everything that we need to do but if we can we should. Here are a few of the top line targets that we are seeking to achieve over the period of the plan: Increase visitor spend from 2.1bn by 2% per annum in real terms Increase the numbers of visitors from 38 million by 1% per annum Increase the number of staying visitors from 5.2million by 2% per annum Increase the number of tourism related jobs from 31,235 (FTEs) by 2% per annum Increase the number of visitor journeys made by public transport by 1% per annum Increase occupancy levels in serviced accommodation and self- catering by 1% per annum 17
While the Destination Management Plan needs to be supported and delivered by all those involved in tourism, directly or indirectly, Cumbria Tourism will lead its implementation and will monitor and publish regular progress reports. Much of the data to monitor these various trends and indicators is collected by Cumbria Tourism and its partners through a regular series of occupancy, business performance and visitor surveys. This data is in turn used to prepare regular volume and value statistics using the STEAM (Scarborough Tourism Economic Activity Monitor methodology. The performance targets set out for the next few years are based on an increase in the number of visitors to the county [1% per annum] but a more ambitious annual increase in visitor spend of 2% in real terms. Given the anticipated investment programmes [with the potential for significant investment in the visitor infrastructure] across Cumbria this sort of growth should be achievable. The DMP seeks to reinforce the strategy of increasing visitor numbers beyond the obvious tourism destinations and attractions and increasing visitor spend throughout the county. This will involve CT and its partners in focussing efforts on attracting more staying visitors (from the UK and overseas) in high quality accommodation, raising occupancy levels across the stock and generating higher levels of spend throughout the year. 9. Future Investments and Plans - Priorities for Action The various investment projects and plans for developing the visitor economy across Cumbria over the next 2-3 years have been identified by Destination and set out in detail in the extensive tables from page 22 onwards in this document. They are broken down both by Delivery Area and by type Accommodation Visitor Attractions Heritage, landscape, public realm and transport Marketing and Events Each project or programme listed also identifies the lead body, partner organisations and the stage of development which each schemes has reached (where known). Inevitably the list is very long and to some extent aspirational. Some of the projects require a substantial amount of public or gap funding before they can be taken forward or become viable in the longer term. For this reason the Destination Management Plan attempts to identify and prioritise some of the larger scale projects which are seeking public funding support. The prioritisation process has taken place in two ways: a light touch review by Destination Management partners at the Cumbria Tourism hip meeting in March 2014 and a more in depth appraisal of major projects ( 1m+) using criteria set out in appendix 2 of this document. 9.1 Twelve Major Tourism Investment Proposals for Cumbria The following table identifies 12 larger scale capital projects which will, to varying degrees, require public sector funding. Each of these flagship projects has the capacity to attract new visitors into the county, create new jobs and stimulate the visitor economy. Based on an assessment against the criteria listed in Appendix 2 (factors such as strategic fit, attraction of new and younger markets, deliverability, value for money, job creation and sustainability) these are the schemes which are capable of a transformational impact for the county s visitor economy Project Location m Description/projected completion Bowness Bay and the Glebe redevelopment and Enhancement Brockhole Visitor and Water sports Centre Fell Foot Country Park Round Thirlmere Cycle Route Bowness on Windermere N/K An enhancement and redevelopment programme to lift the quality of the public realm and common land around The Glebe and provide opportunities for new private sector hotel and retail investment Windermere N/K Development of master plan proposals for development of a new visitor centre, events arena and water sports facilities Windermere/Newby Bridge 3.2m Development of new water sports and visitor facilities on National Trust site in the southern basin of Windermere. Master plan prepared. Seeking HLF, LEP and Sports funds. Thirlmere 1.8m Completion of round lake cycle route with safe A591 road crossings for family audience 18