Councillor Tom Buchanan

Convenor of the Economic Development Committee

City of Edinburgh Council

ETAG Conference 2011Edinburgh in Action

25 January 2011

Presentation Structure

• Economic context

• Tourism context

• Opportunities to Build Your Business

• Marketing Edinburgh

An Overview of Tourism in Edinburgh• Principal gateway to Scotland: 52% of all

overseas visitors to Scotland come to Edinburgh - 2nd city in the UK for international tourist arrivals.

• 3.4 million overnight visitors are attracted to the city, spending close to £1Billion p.a.

• Over 5 million people attend Edinburgh’s annual festivals.

• Business tourism in Edinburgh’s City Region is worth more than £300 million p.a.

• Edinburgh is the 2nd most popular location in the UK for holding international congress and convention meetings.

Economic Context Post-Recession

• Unemployment

• GDP

• House prices

• Bank lending to businesses

• Bankruptcies

• National Debt > £2tn ?

• Public Sector cuts now happening

New Business Incorporations New Business Incorporations (Rolling 3 Month Total)

600

700

800

900

1000

1100

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Edinburgh Comparator Cities YTD running total 10/11: 2,429YTD total this time last year: 1,874

Source: FAME

House Prices

£110,000

£130,000

£150,000

£170,000

£190,000

£210,000

£230,000

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Av

era

ge

ho

us

e p

ric

e

Edinburgh Comparator Cities 18 Month Average

Source: Registers of Scotland

Unemployment (Claimant Count)

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

% w

ork

ing

ag

e p

op

ula

tio

n c

laim

ing

Edinburgh Scotland Comparator Cities Glasgow Aberdeen

Source: NOMIS

Average Weekly Footfall (M&S Princes Street counter)

Source: Springboard

160,000

180,000

200,000

220,000

240,000

260,000

280,000

300,000

320,000

340,000

360,000

J ul-09 Aug-09

Sep-09

Oct-09 Nov-09

Dec-09

J an-10 Feb-10 Mar-10 Apr-10 May-10

J un-10 J ul-10 Aug-10 Sep-10 Oct-10 Nov-10

Dec-10

Ave

rag

e w

eekl

y fo

otf

all

Princes Street (Marks & Spencer)

Festivals

Festivals

Christmas

Christmas

Annual Change in Hotel Occupancy & RevPAR

Source: STR

Annual change in hotel occupancy and revenue per available room (RevPAR)

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10

Yea

r o

n Y

ear

Ch

ang

e

Hotel Room Occupancy RevPAR

Economic Context: A Sluggish Recovery

Seasonally-Adjusted GVA Index (Scotland)

88.0

90.0

92.0

94.0

96.0

98.0

100.0

102.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2005 2006 2007 2008 2009 2010

2009 2010 20112008

Tourism in Edinburgh: 2010

3 Source: STEAM visitor model (1 Jan – 30 Sept) Includes day visitors.

1 Provisional figure

Indicator Number % Change on 2009

Airport passengers1 8,595,247 5.0%

Visitors to Castle 1,210,244 1.2%

Fringe attendance 1,955,913 5.2%

Economic Value of ECB Conferences

£70,135,442 19.9%

Hotel occupancy2 78.4% 2.4% points

Hotel RevPAR £62.99 5.4%

Visitor Spend3 £1,571,312,000 3.8%

2 January - November

Edinburgh Visitor Survey 2009/10 –key stats

• Approx half of all visitors came from the UK (50.1%)

• Largest proportion of visitors to Edinburgh aged under 35 (42%)

• The biggest group of visitors from England were those aged 16-34 coming from London (12%) – London visitors increased by 6% v’s 2008-9

• Visitors from Aberdeen and Aberdeenshire accounted for the largest share of visitors from Scotland (20%)

• Overseas visitors– US (18%)– Germany (9%)– Australia (7%)

• Around 55% of all visitors had never been to Edinburgh before

• 53% of groups are made up of 2 people

Edinburgh Visitor Survey 2009/10 –what stands out

• 10% increase in visitors staying in Edinburgh only

• Increase in stays in mid range quality hotels from 17-27%

• High level of agreement with statement "plenty to do in Edinburgh for everyone in the evening"

• Spend and duration of stay higher for conference delegates

• Scots, Europeans and conference delegates seem to have higher standards and thus lower satisfaction scores with various aspects of the visit

• Very slight drop in Value for Money (VFM) scores but bigger drop in VFM of accommodation especially from Europeans and Conference delegates

• Slight drop in expenditure on attractions

Edinburgh Visitor Survey 2009/10 – action points

• Visitor navigation around the city needs to be addressed (possibly using digital solutions)

• Continuing need to communicate value for money e.g. through packages

• Continuing need to respond to and capitalise on the UK staycation trend

• Continuing need to work on our service levels and visitor experience

Economic Action Resilience Network

Edinburgh Town Centres Strategy

• Extensive town centres survey carried out in summer 2010 in all of Edinburgh’s designated nine town centres.

• Joint town centre strategy has been devised and will be delivered through local action plans.

• Additionally three town centre ambassadors will be appointed by the City Collaboration Group who will help to deliver low cost/ high impact solutions.

Coming to the High Street Soon

Six Priority Cities

London MumbaiDoha

Munich Tianjin Toronto

Coming Soon

Festivals• Working on maximising

opportunities for 2012-2014

• Festivals fall between the Olympics and Paralympics

• How can we benefit?

Events• Let’s Get Lyrical Feb• Rugby 6 Nations Feb-Mar• Ceilidh Culture 25 Mar-16 Apr• Marathon 21 May• Ruby 7’s 28-29 May• Moonwalk 11-12 June• UK National Armed Forces Day 25 June• Gardening Scotland 3-5 June• Swamp Soccer World Cup 24-25 June• Touch World Cup 22-26 June• Royal Highland Show 23-26 June• Golden Oldies World Hockey Festival 17-24 July• Bupa 10K Run 2 Oct

Accommodation Stock Investment

Enhancing the Visitor Experience

EICC – Additional Function Space

New Tattoo Stands

Usher Hall

National Museum Refurbishment

Portrait Gallery Refurbishment

City Arts Centre

Council Investment

Connectivity

Haymarket station revampWaverley station

revamp

High-speed rail

Route developmentCruise liner terminal

A Targeted Approach to Development: 4 Zones

• 4 new zone managers• Each will develop an action plan for their zone by summer 2011.

West Edinburgh (International Gateway)

Waterfront (Residential and Leisure)

Edinburgh’s TIF: Key Assets for Delivery

• A public esplanade outside the Ocean Terminal shopping centre

• New road link between Seafield Road and Constitution Street

• New finger pier for the Royal Yacht Britannia and visiting cruise liners

• New lock gates at the entrance to Leith Docks to facilitate cross-Forth ferry traffic

City Centre (Retail)

City Centre (Retail)

St James Quarter

South Edinburgh (Knowledge and

Technology)

Partnership and Leverage

• True partnership and real integration is the direction of travel

• It’s not about money, it’s about better value

DEMA Campaigns

Digital and Social Media• Edinburgh-inspiringcapital.com

relaunched Sept 2010• Events updated daily• Google maps• Video content• About section expanded• Complimentary social media• Coming soon

– New itineraries

Benefit of Business Tourism

• Business tourism is worth £300m p.a. to the city

• Edinburgh Convention Bureau has so far delivered £74.2m this year – their best return ever

Benefit of being a filming location

• Edinburgh Film Focus is the film office for Edinburgh, the Lothians and Scottish Borders

• The definitive source of information and advice about on location production in these areas

• Remit to attract productions to the area and maximise the economic benefits

• Deals with approx 450 enquiries a year

• Direct economic benefit to the city region is £4.2m

• Highlights this year include

– Burke and Hare– One Day starring Anne Hathaway– Mausam – Bollywood film– John Lewis Christmas Commercial– Oprah Winfrey Show – JK Rowling interview

The Future: Marketing Edinburgh Ltd

• The official lead city promotion body raising Edinburgh’s global profile as a premier destination in which to invest, live, work, study and visit

• Building on strong business public sector partnership – a commercially driven organisation focused on adding value

• Co-ordination and alignment of city partner activities maximising synergies and cross sell opportunities

• Custodian of the Edinburgh Inspiring Capital Brand

Marketing Edinburgh Ltdwww.marketing-edinburgh.co.uk

• Integration of DEMA, ECB, EFF - an evolutionary journey operational from April 2011

• Business case unanimously approved by all partners

• Representative & accountable Board of Directors now being formed - chaired by Alan Johnston / vice chair Cllr Tom Buchanan & now recruiting a Chief Executive

• 2011/12 core £ 2m budget - City funding £1.3m (£0.3m ‘in-kind’ ) / target for generated funding £0.7m – ambitious to grow

Questions