English Riviera Tourism Monitor

English Riviera Tourism Monitor November 2013 Produced for and on behalf of The English Riviera Tourism Company Ltd by The South West Research Company Ltd January 2014 1

Executive Summary Compared to November 2012 businesses reported that: November 2013 Visitor levels: Increased 29% / Stayed the same 29% / Decreased 42% Estimated actual change in visitors -5.4% November 2013 Turnover levels: Increased 33% / Stayed the same 31% / Decreased 37% Estimated actual change in turnover -0.3% November 2013 Profitability was: Higher 32% / Stayed the same 30% / Decreased 38% December Outlook is: Better 24% / Same as last year 37% / Not as good 39% January 2014 Outlook is: Better 18% / Same as last year 50% / Not as good 33% Optimism Optimism score is 6.38 out of a possible 10 2

Contents Introduction 4 Sample Profile 6 The Month in Context 10 English Riviera Performance 14 Business Type Performance 26 Looking Ahead 30 Business Optimism 35 3

English Riviera Tourism Monitor November 2013 Introduction 4

Background & Rationale The ERTC has committed to undertake a range of research projects on the English Riviera to enable it to monitor its performance in delivering the new tourism strategy as well as the performance of the tourism industry in the area in general. This monthly tourism monitor is part of that process. Each month, an online survey is distributed to ERTC Promotional Partners and other English Riviera businesses asking about business levels in the previous month to enable the ERTC to monitor business performance. Wherever possible, this report will provide comparisons against regional data to enable the ERTC to benchmark its performance. 5

English Riviera Tourism Monitor November 2013 Sample Profile 6

Business Type Business Type Accommodation Type 4% 2% An accommodation establishment A hotel (10 rooms or less) 3% A visitor attraction A hotel (more than 10 rooms) 18% 17% 4% Food and Drink A bed & breakfast / guest house 43% Retail Self catering accommodation 33% 74% Self Catering agency Other 3% Base = 53 Base = 39 Accommodation providers account for 74% of responses, Food & Drink establishments 17% and Visitor Attractions and Retail operators 4% in each case. Serviced accommodation providers account for 64% of accommodation responses. 7

Accommodation Type and Rating 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A hotel (10 rooms or less) 100% A hotel (more than 10 rooms) 14% 43% 29% 14% A bed & breakfast / guest house 6% 71% 6% 18% Self catering accommodation 54% 8% 8% 31% Other type of accommodation 100% Base = 39 1 star 2 stars 3 stars 4 stars 5 stars None The vast majority of businesses responding to this survey have a quality rating, although 31% of self catering accommodation providers are ungraded, along with 18% of B&B/Guest Houses and 14% of Hotels with more than 10 rooms. 8

Business Location and Years Operating Business Location Years Operating 4% 2% 2% 1 year or less 13% 11% Torquay 2-3 years 19% Paignton Brixham Babbacombe 4-5 years 15% 25% 57% Cockington Other 6-10 years 21% More than 10 years 32% Base = 53 Base = 53 Torquay businesses account for 57% of responses with 25% from Paignton. A further 11% of businesses were from Brixham, 4% from Babbacombe and 2% in each case from Cockington and elsewhere in the resort. 9 53% of businesses have been operating for more than 6 years.

English Riviera Tourism Monitor November 2013 The Month in Context 10

November 2013 The Month in Context The UK weather The month opened with some generally unsettled and wet weather. The westerly weather type meant there were relatively few dry days, but also few frosts. From mid-month there was a shift to more settled, but colder weather with plenty of sunshine as high pressure systems dominated. The country experienced the first widespread frosts and some early-season snowfalls in the north. The provisional UK mean temperature was 5.5 C, which is 0.7 C below the 1981-2010 average. The UK received 76% of long-term average rainfall making this provisionally the driest November since 2004; parts of eastern Scotland, Northern Ireland, northern England and Anglesey receiving less than half the average rainfall. Most of the country enjoyed a relatively sunny month, particularly parts of northern England and eastern Scotland. For Scotland overall, this was provisionally the sunniest November in a series from 1929. A maximum temperature of 16.5 C was recorded at Exeter Airport (Devon) on the 6th. Weather impacts On 2nd November there were strong winds across parts of south and west Wales with gusts of 70 to 80 mph, and a peak recorded gust at Mumbles Head (West Glamorgan) of 89 mph. These caused tree damage, and thousands of homes and businesses lost power. The first widespread frosts occurred in the second half of the month, with some snow across higher ground in Scotland and northern parts of England and Wales. 11 Source: Met Office

November 2013 The Month in Context The UK economy Despite what's been going on elsewhere, the growth prospects for the UK have been improving steadily during 2013. The Organisation for Economic Co-operation and Development (OECD) in Paris is the latest body to note that activity will be stronger in 2014 than previously envisaged. Growth of 2.4% next year, if achieved, would be the strongest since 2007. The improvement in the UK outlook is entirely due to a pick-up in the domestic economy, fostered by the Bank of England's cheap money policy, the Help to Buy boost to the housing market, the willingness of consumers to run down their savings to fund spending, and a slowdown in austerity to reflect weaker growth over the last couple of years. If anything, events in the rest of the global economy are hindering rather than helping the UK. The OECD has concerns about policy gridlock in Washington, about the impact on emerging economies of the gradual withdrawal of the Federal Reserve's bond-buying stimulus programme, and of the threat that the euro area could become the new Japan, locked into a vortex of deflation and rocketing public debt. Indeed, the strongest words in the thinktank's half-yearly snapshot of the global economy are reserved for European policymakers. The OECD calls on Germany to do more to help the struggling members of the euro area to grow faster by liberalising its services sector. Even more provocatively, the OECD says the European Central Bank should consider supplementing low interest rates with its own version of quantitative easing buying bonds to drive down long-term interest rates. "Risks of deflation may be slowly increasing," says OECD chief economist Pier Carlo Padoan. "The ECB must be very careful and be prepared to use even non-conventional measures to beat any risk of deflation becoming permanent. 12 Source: The Guardian

November 2013 The Month in Context The UK economy The OECD says stronger investment and exports will help boost UK growth from 1.4% in 2013 to 2.4% in 2014. Some rebound in investment is to be expected given the rebound in consumer and business confidence, but the outlook for exporters remains difficult. It is entirely possible that the OECD is still too pessimistic about the UK's short-term growth prospects and that further upward revisions will be needed over the coming months. That, though, will present its own risks. Quite rightly, the OECD is worried about possible overheating in the housing market, saying there is an urgent need for the supply of new homes to increase in line with rising demand. Rising house prices, it adds, are a double-edged sword: they can make people feel wealthier but they can also leave first-time buyers saddled with heavy debt burdens. Finally, the OECD says the Bank of England needs to be alert to the medium-term threat of rising inflation. For the moment, the bank can justify ultra-low interest rates because the deep recession left a pool of unused and under-used capacity. Only when this slack has been used up will price pressures start to become apparent. The OECD's fear is that there is less slack than the bank thinks. 13 Source: The Guardian

English Riviera Tourism Monitor November 2013 Performance 14

Performance Visitor Numbers (2013-2012) 58% of English Riviera businesses reported that their visitor numbers had increased (29%) or remained level (29%) compared with November 2012 a lower proportion when compared with the region as a whole (68%). 42% of businesses indicated that their visitor numbers had decreased compared with the same time last year (32% regionally). E R Region *Bath *Bristol Cornwall Devon Dorset Gloucs Somerset *Wilts 29% 34% 50% 21% 34% 42% 33% 36% 33% 29% 34% 25% 100% 38% 28% 39% 38% 39% 33% 42% 32% 25% 41% 38% 18% 29% 25% 33% * Sample less than 20 Increased Stayed the same Decreased Visitor numbers ER Region *Bath *B&P *Bristol Cornwall Devon Dorset Gloucs Somerset *Wilts Increased 29% 34% 50% - 100% 21% 34% 42% 33% 36% 33% Stayed the same 29% 34% 25% - - 38% 28% 39% 38% 39% 33% Decreased 42% 32% 25% - - 41% 38% 18% 29% 25% 33% Base 48 203 4-1 29 79 33 21 28 6 15

Performance Estimated occupancy levels November 2013 The slides to follow show the estimated occupancy for November 2013 for serviced and self-catering accommodation types. It should be noted that the figures provided represent the occupancy rates for those responding to this survey and the results are not weighted to represent regional and county/resort accommodation stocks. ERTM SERVICED ROOM OCCUPANCY Nov-13 % RM OCCUPANCY SAMPLE English Riviera 56.83% 22 All hotels 60.83% 8 Hotel 10 rooms or less Hotel more than 10 rooms 52.08% <5 60.86% 7 B&B 17.88% 7 Guest House 16.12% 7 Torquay 58.40% 14 Paignton 18.32% 6 Brixham 53.48% <5 Babbacombe 0.00% 0 **Cockington 0.00% 0 Other English Riviera 0.00% 0 Devon 56.77% 34 South West 55.76% 66 **Cockington data added to Torquay due to small sample English Riviera serviced room occupancy was calculated at 56.83% for November 2013 compared with an average of 55.76% for the South West region as a whole during the same period. Self-catering unit occupancy for the English Riviera for November 2013 was calculated at 28.01% compared with 26.61% for the region as a whole. 13 ERTM SELF-CATERING UNIT OCCUPANCY Nov-13 % UNIT OCC SAMPLE English Riviera 28.01% 11 Self-catering accommodation 28.01% 11 Holiday Park 0.00% 0 Torquay 15.90% <5 Paignton 34.90% 5 Brixham 50.00% <5 Babbacombe 0.00% <5 Cockington 0.00% 0 Other English Riviera 0.00% 0 Devon 29.92% 21 South West 26.61% 59 16

Performance English Riviera estimated serviced accommodation occupancy levels 2013 by area 100% 80% 60% 40% 20% 0% Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 English Riviera Torquay Paignton SERVICED ROOM OCCUPANCY Jan-13 Feb-13 Mar-13 Apr-13 May-13 June-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 English Riviera 13.01% 55.01% 54.95% 30.50% 66.73% 75.79% 78.61% 87.34% 77.96% 60.75% 56.83% Torquay 16.05% 49.24% 60.20% 20.32% 67.83% 80.50% 80.10% 86.56% 78.96% 63.34% 58.40% Paignton 7.28% 49.79% 30.99% 33.32% 63.60% 61.06% 75.31% 93.28% 65.84% 48.34% 18.32% Brixham * * * * * * * 82.19% * * * Babbacombe 10.38% * * * * * * * * * * Cockington * * * * * * * * * * * Other English Riviera * * * * * * * * * * * * Sample size less than 5 15 17

Performance South West estimated serviced accommodation occupancy levels 2013 by area During the month of November 2013 English Riviera serviced room occupancy was higher than Cornwall, Devon, Dorset, Somerset and the South West region as a whole. Key comparisons; South West ER performance was higher than the regional average in all months except January and April. Cornwall ER performance was higher than Cornwall during the months of February, May, June, August and November. Devon ER performance was higher Devon in all months except January and April. SERVICED ROOM OCCUPANCY Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 South West 29.72% 51.54% 52.80% 41.24% 62.37% 72.13% 75.81% 84.70% 76.32% 59.75% 55.76% BANES * 62.11% * * * * * * * * * Bristol * * * * * * * * * * * Cornwall 36.37% 42.88% 55.72% 32.77% 50.07% 75.38% 82.76% 85.31% 85.31% 63.56% 48.68% Devon 15.46% 53.57% 53.99% 37.95% 64.11% 73.00% 76.16% 86.02% 74.88% 54.20% 56.77% English Riviera 13.01% 55.01% 54.95% 30.50% 66.73% 75.79% 78.61% 87.34% 77.96% 60.75% 56.83% Dorset 30.76% 21.47% 21.20% 32.68% 29.72% 54.03% 59.43% 84.25% 84.25% 45.23% 38.99% Gloucestershire 51.54% * 54.12% * 68.75% 65.52% 70.83% * * * * Somerset 44.18% 52.64% 42.72% 77.25% 80.12% * 68.39% 72.20% 72.20% 73.33% 37.34% Wiltshire 33.78% * * 65.28% * * * * 84.91% 67.34% * * Sample size less than 5 15 18

Performance Estimated serviced accommodation occupancy levels 2013 by type Key comparisons; All ER Hotels Higher than the regional average in all months except January and April. ER Hotels (10 rooms or less) Higher than the regional average in June, July, September and October. ER Hotels (more than 10 rooms) - Higher than the regional average in all months except January, April and November. ER B&B/Guest House Higher than the regional average in May, June and July. Within the English Riviera All Hotels display higher occupancy levels than B&B/Guest Houses, with Hotels with more than 10 rooms having the highest room occupancy levels across all months. SERVICED ROOM OCCUPANCY Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 All ER hotels 15.16% 61.60% 60.14% 35.33% 70.61% 79.21% 81.90% 90.92% 80.85% 65.59% 60.83% All SW hotels 34.11% 57.66% 59.05% 47.67% 67.55% 76.41% 79.58% 87.01% 77.98% 62.86% 60.52% ER Hotel 10 rooms or less SW Hotel 10 rooms or less ER Hotel more than 10 rooms SW Hotel more than 10 rooms ER B&B/Guest House SW B&B/Guest House * Sample size less than 5 9.00% * 26.88% * 29.11% 53.75% 81.30% 76.41% 77.5% 60.54% * 30.78% 33.43% 31.47% 42.79% 48.44% 52.80% 77.21% 80.79% 61.71% 59.49% 31.31% 16.11% 62.85% 61.46% 34.63% 72.75% 80.07% 81.93% 91.72% 80.95% 66.81% 60.86% 34.61% 60.29% 61.20% 49.10% 68.91% 78.52% 79.79% 87.44% 79.25% 62.29% 61.40% 9.71% 20.17% 22.93% 21.45% 45.18% 56.56% 64.87% 74.11% 65.77% 27.41% 16.80% 21.29% 25.98% 25.16% 29.26% 42.32% 55.01% 64.43% 76.99% 68.74% 38.19% 28.39% 15 19

Performance English Riviera estimated self catering unit occupancy levels 2013 by area 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 SELF-CATERING UNIT OCCUPANCY All ER Selfcatering English Riviera Torquay Paignton Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 14.23% 18.19% 61.52% 40.88% 42.86% 60.65% 69.57% 91.68% 79.96% 26.37% 28.01% Torquay 7.76% 12.64% * * * 54.34% * 93.62% 66.74% 34.79% * Paignton 19.86% 18.06% 65.76% * * 61.05% 69.66% 89.78% 95.12% * 34.90% Brixham * * * * * * * * * * * Babbacombe * * * * * * * * * * * Cockington * * * * * * * * * * * Other English Riviera * * * * * * * * * * * * Sample size less than 5 15 20

Performance Estimated self-catering unit occupancy levels 2013 by area During the month of November 2013 English Riviera self-catering unit occupancy was higher than Cornwall, Dorset and the South West region as a whole. Key comparisons; South West ER performance was higher than the regional average in all months except January, June and October. Cornwall ER performance was higher than Cornwall during all months except August and September. Devon ER performance was higher than Devon during February, March, April, August and September. SELF-CATERING UNIT OCCUPANCY Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 South West 20.87% 17.64% 39.62% 32.88% 40.08% 64.79% 68.66% 91.52% 69.69% 38.18% 26.61% BANES * * * * * * * * * * * Bristol * * * * * * * * * * * Cornwall 9.51% 12.15% 15.21% 30.57% 31.18% 65.74% 60.76% 94.70% 80.50% 19.18% 15.53% Devon 15.63% 16.42% 53.71% 29.16% 43.42% 64.22% 70.83% 91.09% 62.44% 30.24% 29.92% English Riviera 14.23% 18.19% 61.52% 40.88% 42.86% 60.65% 69.57% 91.68% 79.96% 26.37% 28.01% Dorset 53.79% 18.54% 24.84% 47.26% 17.36% 67.37% 44.14% 79.26% 91.33% 67.95% 22.73% Gloucestershire 25.06% 45.72% 32.05% 68.10% 79.68% * 97.49% 86.39% 69.17% 52.65% 48.57% Somerset 42.73% 20.60% 44.75% 55.26% 66.90% 59.58% 70.88% 94.42% 59.44% 58.19% 33.22% Wiltshire * * * * * * * * * * * * Sample size less than 5 15 21

Performance Estimated self-catering unit occupancy levels 2013 by type Key comparisons; All ER Self-catering Higher than the regional average in all months except January, June and October. ER Self-catering (not including Holiday Parks) Higher than the regional average in March, July, August, September and November. SELF-CATERING UNIT OCCUPANCY Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 All ER Self-catering 14.23% 18.19% 61.52% 40.88% 42.86% 60.65% 69.57% 91.68% 79.96% 26.37% 28.01% All SW Self-catering 20.87% 17.64% 39.62% 32.88% 40.08% 64.79% 68.66% 91.52% 69.69% 38.18% 26.61% ER Self-catering 14.23% 18.19% 36.93% 40.88% 42.86% 63.78% 78.15% 91.68% 79.12% 26.37% 28.01% SW Self-catering 17.69% 19.87% 31.29% 48.99% 48.11% 65.25% 72.95% 91.09% 70.93% 36.94% 27.13% ER Holiday Park * * * * * * * * * * * SW Holiday Park * * 47.23% 23.14% 34.25% 64.60% 67.38% 92.54% 68.47% * 25.05% * Sample size less than 5 15 22

Performance Turnover (2013-2012) 64% of English Riviera businesses reported increased (33%) or level turnover (31%) during November 2013 compared with November 2012, a slightly lower proportion when compared with the region as a whole during the same period (67%). E R Region *Bath *Bristol Cornwall Devon Dorset Gloucs Somerset *Wilts 14% 33% 31% 35% 28% 30% 32% 33% 50% 41% 17% 31% 36% 100% 28% 53% 45% 36% 25% 37% 33% 25% 45% 37% 25% 32% 50% 19% * Sample less than 20 Increased Stayed the same Decreased Turnover ER Region *Bath *B&P *Bristol Cornwall Devon Dorset Gloucs Somerset *Wilts Increased 33% 31% 50% - 100% 14% 35% 28% 30% 32% 33% Stayed the same 31% 36% 25% - - 41% 28% 53% 45% 36% 17% Decreased 37% 33% 25% - - 45% 37% 19% 25% 32% 50% Base 49 203 4-1 29 81 32 20 28 6 23

Performance Estimated Actual Change To Previous Year The chart below shows the ERTC and regional trend for the estimated actual change in visitors and turnover. For November 2013 English Riviera businesses reported decreases of -5.4% in terms of visitors and -0.3% in terms of turnover compared with November 2012. Whilst the decrease in visitor volume was slightly higher than the regional average of -2.6%, the decrease in turnover was lower than the -3.0% decrease for region as a whole during the same period. ERTC Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 Visitors -3.7% 2.8% -2.2% 0.0% -4.1% -12.6% 2.6% -5.5% -9.1% 13.9% -1.5% 13.5% 14.6% 7.3% -7.0% -5.4% Turnover -3.0% 0.2% -6.3% 0.0% -6.7% -13.5% -3.9% -8.0% -9.3% 13.2% -1.0% 11.2% 15.2% 7.8% -4.2% -0.3% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% SW Visitors SW Turnover ERTC Visitors ERTC Turnover Region Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 Visitors -8.8% -2.3% -11.3% 0.0% -0.1% -3.0% -0.6% -8.2% -12.2% 12.0% -2.0% 8.5% 10.5% 6.6% -0.7% -2.6% Turnover -7.4% -3.2% -20.8% -0.1% -0.1% -8.3% -6.0% -5.8% -11.7% 10.6% -2.9% 9.4% 10.4% 6.9% 0.3% -3.0% 24

Performance Profitability (2013-2012) 62% of all English Riviera businesses reported increased (32%) or level profitability (30%) for the month, compared with 61% of businesses in the SW region as a whole during the same period. 38% of businesses reported theirs as being lower than during November 2012 (39% of SW businesses). E R Region *Bath *Bristol Cornwall Devon Dorset Gloucs Somerset *Wilts 32% 25% 10% 32% 21% 24% 23% 33% 30% 36% 25% 100% 41% 31% 45% 38% 38% 17% 38% 39% 50% 48% 37% 34% 38% 38% 50% * Sample less than 20 Increased Stayed the same Decreased Profitability ER Region *Bath *B&P *Bristol Cornwall Devon Dorset Gloucs Somerset *Wilts Increased 32% 25% 25% - - 10% 32% 21% 24% 23% 33% Stayed the same 30% 36% 25% - 100% 41% 31% 45% 38% 38% 17% Decreased 38% 39% 50% - - 48% 37% 34% 38% 38% 50% Base 47 193 4-1 29 75 29 21 26 6 25

English Riviera Tourism Monitor November 2013 Business Type Performance 26

Business Type Performance Visitor numbers (2013-2012) 52% of all accommodation providers reported increased (26%) or level visitor numbers (26%) for November 2013 including 67% of Self Catering operators. 57% of B&B/Guest Houses reported decreased visitor numbers compared with the same time last year. Self Catering B&B/Guest House *Hotel *Retail *Food & Drink *Attraction All Accomm E R 29% 26% 29% 26% 50% 44% 50% 38% 13% 21% 25% 21% 42% 33% 42% 47% 50% 22% 50% 50% 57% 33% * Sample less than 10 Increased Stayed the same Decreased Visitor numbers ER Accomm *Attraction *Sports/ Activities *Food & Drink *Retail *Travel/ Transport *SC Agency *Other *Hotel B&B/ Guest House Self Catering *Holiday Park Increased 29% 26% 50% - 44% - - - - 38% 21% 25% - - Stayed the same 29% 26% - - 33% 50% - 100% - 13% 21% 42% - - Decreased 42% 47% 50% - 22% 50% - - - 50% 57% 33% - - Base 48 34 2-9 2-1 - 8 14 12 - - *Caravan/ campsite 27

Business Type Performance Turnover (2013-2012) 60% of all accommodation providers reported increased (26%) or level turnover (34%) for November 2013 including 75% of Self Catering operators. Half of all B&B/Guest Houses reported decreased turnover compared with November 2012. Self Catering B&B/Guest House *Hotel *Retail *Food & Drink *Attraction All Accomm E R 33% 31% 26% 34% 50% 56% 50% 38% 13% 21% 25% 29% 50% 37% 40% 50% 22% 22% 50% 50% 50% 25% * Sample less than 10 Turnover ER Accomm *Attraction *Sports/ Activities Increased Stayed the same Decreased *Food & Drink *Retail *Travel/ Transport *SC Agency *Other *Hotel B&B/ Guest House *Self Catering *Holiday Park Increased 33% 26% 50% - 56% - - 100% - 38% 21% 25% - - Stayed the same 31% 34% - - 22% 50% - - - 13% 29% 50% - - Decreased 37% 40% 50% - 22% 50% - - - 50% 50% 25% - - Base 49 35 2-9 2-1 - 8 14 12 - - *Caravan/ campsite 28

Business Type Performance Profitability (2013-2012) 58% of all accommodation providers reported increased (29%) or level profitability (29%) for November 2013 compared with the same time last year including 67% of Self Catering operators. Half of all B&B/Guest Houses reported decreased profitability compared with the same time last year. Self Catering B&B/Guest House *Hotel *Retail *Food & Drink *Attraction All Accomm E R 32% 29% 50% 38% 50% 43% 36% 17% 30% 29% 38% 14% 14% 50% 38% 41% 50% 25% 50% 43% 50% 33% * Sample less than 10 Increased Stayed the same Decreased Profitability ER Accomm *Attraction *Sports/ Activities *Food & Drink *Retail *Travel/ Transport *SC Agency *Other Hotel B&B/ Guest House Self Catering *Holiday Park Increased 32% 29% 50% - 38% - - 100% - 43% 36% 17% - - Stayed the same 30% 29% - - 38% 50% - - - 14% 14% 50% - - Decreased 38% 41% 50% - 25% 50% - - - 43% 50% 33% - - Base 47 34 2-8 2-1 - 7 14 12 - - *Caravan/ campsite 29

English Riviera Tourism Monitor November 2013 Looking Ahead 30

Area Outlook Booking Levels December (2013 v 2012) 61% of English Riviera businesses reported that their booking levels for December 2013 were looking better than (24%) or the same (37%) as this time last year, compared with 63% of businesses within the region as a whole and 61% in Devon. E R Region *Bath *Bristol Cornwall Devon Dorset *Gloucs Somerset *Wilts 24% 24% 35% 24% 24% 12% 24% 33% 37% 39% 75% 37% 47% 24% 100% 30% 59% 33% 39% 37% 25% 35% 39% 17% 41% 52% 33% * Sample less than 20 Better The same Not as good Booking levels ER Region *Bath *B&P *Bristol Cornwall Devon Dorset *Gloucs Somerset *Wilts Better 24% 24% - - - 35% 24% 24% 12% 24% 33% The same 37% 39% 75% - - 30% 37% 59% 47% 24% 33% Not as good 39% 37% 25% - 100% 35% 39% 17% 41% 52% 33% Base 46 183 4-1 23 76 29 17 25 6 31

Business Type Outlook Booking Levels December (2013 v 2012) 60% of all accommodation providers were anticipating their booking levels for December to be better than (22%) or the same (38%) as this time last year, including 75% of Self Catering operators and 67% of B&B/Guest Houses. 41% of accommodation providers were anticipating decreases in their bookings compared with December 2012 including a third of B&B/Guest Houses and a quarter of Self Catering operators. Self Catering B&B/Guest House *Hotel *Attractions All Accomm E R 24% 22% 25% 25% 50% 33% 37% 38% 75% 42% 42% 39% 41% 50% 33% 25% * Sample less than 10 Better Same Not as good Booking levels ER Accomm *Attractions *Hotel B&B/Guest *Caravan/ Self Catering *Holiday Park House Camping Better 24% 22% - - 25% 33% - - Same 37% 38% 50% 25% 42% 42% - - Not as good 39% 41% 50% 75% 33% 25% - - Base 46 32 2 8 12 12 - - 32

Area Outlook Booking Levels January 2014 (2014 v 2013) 68% of English Riviera businesses reported that their booking levels for January 2014 were looking better than (18%) or similar to (50%) the same time last year, compared with 56% of businesses within the region as a whole and 64% of businesses within Devon. E R Region *Bath Cornwall Devon Dorset *Gloucs Somerset *Wilts 18% 18% 25% 17% 23% 17% 7% 14% 17% 50% 38% 25% 38% 41% 30% 47% 41% 83% 33% 44% 50% 46% 36% 52% 47% 45% * Sample less than 20 Better The same Not as good Booking levels ER Region *Bath *B&P *Bristol Cornwall Devon Dorset *Gloucs Somerset *Wilts Better 18% 18% 25% - 100% 17% 23% 17% 7% 14% - The same 50% 38% 25% - - 38% 41% 30% 47% 41% 17% Not as good 33% 44% 50% - - 46% 36% 52% 47% 45% 83% Base 40 163 4-1 24 66 23 15 22 6 33

Business Type Outlook Booking Levels January 2014 (2014 v 2013) 69% of all accommodation providers were anticipating their booking levels for January 2014 to be better than (16%) or similar to (53%) the same time last year (2013), including 82% of Self Catering operators and 77% of B&B/Guest Houses. 31% of accommodation providers were anticipating decreases in their bookings compared with January 2013. Self Catering B&B/Guest House *Hotel *Attractions All Accomm E R 18% 16% 13% 25% 8% 27% 50% 53% 100% 69% 55% 63% 33% 31% 23% 18% * Sample less than 10 Better Same Not as good Booking levels ER Accomm *Attractions *Hotel B&B/Guest *Caravan/ Self Catering *Holiday Park House Camping Better 18% 16% - 13% 8% 27% - - Same 50% 53% - 25% 69% 55% - - Not as good 33% 31% 100% 63% 23% 18% - - Base 40 32 1 8 13 11 - - 34

English Riviera Tourism Monitor November 2013 Business Optimism 35

Business Optimism Businesses on the English Riviera recorded an optimism score of 6.38 for November 2013 (from a possible maximum of 10) for the future prospects of tourism in their area. This is slightly lower than the level of optimism recorded amongst businesses last month (6.44) but it remains higher than the South West regional score for November 2013 of 5.98. 7.00 6.50 6.00 5.50 5.00 4.50 Region English Riviera 4.00 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Optimism Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept-13 Oct-13 Nov-13 English Riviera 5.68 5.74 5.38 5.19 5.21 5.73 5.44 5.32 5.53 5.96 6.23 6.92 6.64 6.53 6.44 6.38 Region 5.11 5.12 5.06 4.94 5.00 5.25 5.14 5.05 5.18 5.49 5.84 6.24 6.34 6.06 6.02 5.98 36

Business Optimism A sample of comments from businesses regarding factors affecting their business is shown below. 36% of all respondents provided additional comments this month with funding issues, the weather and parking issues featuring most heavily. Excellent regarding car park charge reduction. Extremely positive comments from guests and great advert for area when they return - comments like so much better that Swanage or Brighton where we come from. But problem in marketing when only trial to March which is before start of Easter and main season and would like it still open beyond to advertise to prospective guests. My future bookings for 2014 are not looking too bad, but unless the council finds funds to invest in tourism it is slowly going to wither away from The Bay! Absolutely disgusted with the existing Mayors attempts to derail the tourism initiatives in Torbay with threats of future promised and contracted tourism budgets being removed, he cannot be removed from office soon enough! Keep up the good work! The budget cuts to the ERTC will have a negative impact on the whole industry. 37 Parking prices has a direct effect on town centres. Torbay has gone down in recent years, more weeds about and lots of shops closed down. Tourist info has closed on the sea front. Money for you is tight and we know there isn't a bottomless pit of cash. Our business from 2012 to 2013 has grown by 12%. Which is down to a lot of hard work on our management side and customer service and quality, that's the clear message our customers are giving us. Service and quality pay every time. My view is that it is difficult to make the Bay an All Year Round resort if Hotels and B&B's close down. One reason could be because of the VAT threshold, so until this annual shut down is tackled the pursuance of this objective will be hindered.

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