2 Chester Street, London SW1X 7BB Tel: Fax: VisitEngland and VisitBritain Triennial Review

Transcription

1 2 Chester Street, London SW1X 7BB Tel: Fax: VisitEngland and VisitBritain Triennial Review 1. The Historic Houses Association represents Britain s historic houses, castles and gardens in private ownership and there are nearly 1,600 HHA properties throughout the UK. The HHA estimates that approximately two-thirds of the built heritage is privately owned and maintained. Between them HHA members represent, collectively, one of the greatest ownerships of listed buildings in Britain: both I and II* properties as well as of Grade II properties, many being ancillary buildings. Around 60% of HHA properties are open to the public, either as day visitors or by appointment and they welcome 13 million visitors each year. One in five of all HHA properties offers educational visits - there are more than 300,000 such visits annually. 2. The beneficial effect that public visiting to these places has on the wider economy is estimated at an additional 1.6 billion, from inbound tourists alone. Around 26,000 people are directly employed by HHA members or are employed in businesses in their grounds and HHA properties support 52,000 suppliers, many of them local. 3. The costs of maintaining Britain s private houses, castles and gardens are significant and expenditure by private owners in looking after England s historic environment is substantial. HHA owners spend more than 100 million per year but the backlog of urgent repairs at HHA member houses totals over 750 million (HHA survey 2013). Ensuring the economic viability of historic houses is, therefore, of great importance. The ability of private owners to meet the cost of essential repair and refurbishment has been reduced by the adverse effect of the cap on Sideways Loss Relief in 2013, for example. 4. Britain s historic houses are an important resource, benefiting the entire nation. Historic houses provide character, distinctiveness and a sense of place and help create pride in where people live. 87% of British people think that the historic environment plays an important part in the cultural life of the country. 5. The principal stated reason why inbound visitors visit the UK is culture and heritage. Tourism is Britain s fifth largest industry and has been central to the UK s economic recovery. Since 2007, revenue from inbound tourism has increased by 31% from 16bn to 21bn, creating an additional 90,000 jobs. 6. The growth of the tourism industry during the recession has been important to the UK economy. The Office for National Statistics has recently calculated that almost a third of the new jobs generated in the UK over the last three years have been in tourism-related businesses. It is also worth noting that 39% of those employed in tourism businesses are under 30 years old, demonstrating that the tourism industry is disproportionately contributing to the reduction of youth unemployment. 7. The HHA is thus well placed to contribute to this review.

2 1. Key issues VisitEngland and VisitBritain play a valuable role in support of UK tourism To maximize its effectiveness Visit England must have true independence The respective international roles of VisitBritain and VisitEngland must be clarified, with VB working on emerging markets while VE works on nearer, more established markets VisitEngland must have the capacity to drive effective support for Destination Management Organisations, to help promote tourism outside London VisitEngland must have a proper Quality Assurance role Stable funding is essential for VisitEngland after the end of Regional Growth funding. 2. Assessment of the Performance of VisitBritain and VisitEngland The principal performance measures related to VisitBritain and VisitEngland in the Government s Tourism Policy concern inbound tourism and domestic tourism. 2.1 VisitBritain The nature of the HHA s work means that its direct experience of VisitBritain is much less than that of VisitEngland, on a day-to-day basis. However, since the inception of the Government s Tourism Policy, inbound tourism revenue has increased by 4.1bn (24%) and visitor numbers have increased by 3m per annum, creating and estimated 73,000 new jobs, indicating that VB is exceeding its targets. VisitBritain has focused much of its marketing energy on partnerships where private sector brands have offered sizeable matching funding. This has been helpful, but for VB to spread visitor spend away from London the HHA would encourage VB to establish other partnerships too, for example with key heritage organisations, given the magnetic power of heritage to attract inbound visitors, even where it is not money but help in kind that the partner organisation brings to the table. 2.2 VisitEngland There is compelling evidence to suggest that VisitEngland is also achieving the goal set for domestic tourism in the Government s Tourism Policy. The Office for National Statistic s tourism survey indicates that while 42m UK residents undertook overseas trips of more than 4 nights in 2013 (down from 66m in 2010), over the same period the number of British residents taking a domestic holiday of more than 4 nights has stayed relatively static at 20m. So domestic tourism s share of the UK market is effectively increasing. The UK s tourism deficit, which was increasing each year and reached over 20bn in 2008, has now decreased to under 14bn per annum as more UK residents take their holiday in Britain. Moreover, domestic tourism has grown at a cumulative rate of just over 5% per annum since 2010, so VisitEngland are also exceeding the Government s target, set in its Tourism Policy. 2.3 It should be recognised that both VB and VE are exceeding the targets set by Government and thereby making an important contribution to Britain s fifth largest industry, which makes a substantial

3 annual contribution to the UK s annual tax revenues. As a consequence, both organisations appear to provide very good value for money. 2.4 One of the key requirements of UK tourism organisations is accurate, relevant and current intelligence on the state of the market, future trends and challenges. The research carried out and published by VisitEngland, like that of VisitBritain, is an important resource which the HHA and other tourism bodies are able to make good use of. 3. UK Tourism Structures Given its importance to the UK economy, tourism deserves a stronger and more influential structure than it already has. While it is desirable that VisitEngland and VisitBritain should remain responsible to the DCMS, tourism has impacts upon many Government departments and requires a structure which would enable it to have a strong voice across government departments. 3.1 Independence of VisitEngland and VisitBritian There are considerable economies of scale and synergies which can be achieved by VE and VB being co-located and sharing administrative functions. Such a situation also assists in information-sharing and joint-working. However, each organisation must be given a clear remit and the resources with which to deliver on that specific remit. For example, the respective international roles of VisitBritain and and VisitEngland must be clarified, with VB working on emerging markets while VE works on nearer, more established markets. There should be no return to the previous situation whereby the Chief Executive of VisitBritain is the Chief Accounting Officer for VisitEngland, ultimately responsible for the actions of a separate Board over which they do not have control. Each organisation should be separately accountable to the Government and the tourism industry. 3.2 Location of Tourism within Government There may be some benefits in relocating responsibility for tourism to BIS rather than DCMS. Moving to BIS would see tourism recognised as a leading industry and export earner, while retaining tourism within DCMS means that tourism recognises the key importance of culture and heritage in the UK s tourism offer. However, this debate between the relative merits of BIS and DCMS misses the central point. It is more important that there should be a coherent cross-governmental approach to tourism. Many Government departments responsibilities impact on the tourism industry, including the Home Office, DfT, HM Treasury and DEFRA. It may be that the new Tourism Industry Council might be given formal powers which enable it to address effectively tourism issues across Government departments and offer clear guidance to local government to support tourism as an economic development partner rather than move resources to other critical areas. This could be more valuable than its current, largely symbolic role. However, it is essential that any such expanded role must involve close working with VisitBritain and VisitEngland and actively support their ability to provide growth and employment for the UK economy.

4 3.3 Regional Destination Management While post-olympic tourism in London is in robust health, the picture in the regions is more mixed. Indeed, only a small proportion of inbound visitors leave the capital in order to explore England s regions. It is essential to put in place a practical strategy to stimulate visits to the regions as well as the capital. For VisitEngland to be effective in its role of maximising tourism benefits for England, it needs to work in partnership with effective Destination Management Organisations (DMOs) and extend its support for the expansion of regional tourism. For example, an increased role in Quality Assurance would be valuable given diverse quality standards in a competitive market. However, the abolition of the Regional Development Agencies in 2010 saw around 65m per annum removed from sub-national tourism development and promotion, while council funding of tourism activity has declined significantly, from 122m in 2007/8 to 85m in 2014/15. While the number of Destination Management Organisations has grown to well over 200 as the regional tourism structures put in place by the RDAs have fragmented, while public funding of tourism development and promotion at the sub-national level has decreased by 55% since 2007/8. Consequently, as the number of DMOs has increased, their viability has decreased. The HHA member survey of 2013 revealed that, while there is a demonstrable value to having an effective local DMO, only 7% of HHA members valued their relationship with their DMO. VisitEngland must be enabled to provide support and co-ordination to a strong and healthy network of DMOs across the English regions. It has been argued that funding should in future be focused on promoting the whole of England, or "England +", through match funded partnerships with private sector brands. However, sometimes the destination itself is the brand. London is now a "brand", but so are the Cotswolds or Yorkshire. Without support, the relatively small businesses that attract visitors and provide the distinctive experience to be found in such destinations cannot provide the promotional effort needed alone, and the case for support from VE, through DMOs, or equivalent ventures, remains strong. The HHA is also very interested in the possibility of VisitBritain "curating" a coherent digital platform for the promotion of Britain to overseas markets. In the past it has not been easy for inbound visitors to put together a package of travel, accommodation and things to do, as is the case when organising a holiday elsewhere, using websites/apps etc. VB should be encouraged to develop this work to provide a platform which others can use, with mediated standards, and in co-operation with VE. 4 Funding Funding for VisitScotland and VisitWales has increased significantly since devolution, with the current budget in Scotland being 50.3m. Meanwhile, funding for VisitBritain and VisitEngland has decreased, particularly over the past seven years. VB and VE s combined funding has fallen by 47% over the same period, from 55.1m in 2007/8 to 29m in 2014/15. VE's own budget of 7m compares, therefore, with VS's of more than 50m. The year-on-year reductions in budgets have had a real impact on VisitBritain and VisitEngland s capacity to promote the UK in general and England in particular, in an effective manner, not least because successful tourism development and promotion work in overseas and domestic markets requires long-term funding. Short-term funding subject to a competitive process is no substitute for core funding which enables sustainable development of tourism markets.

5 Historic Houses Association 30 October 2014