20Sport%20sector%20-%20Mapping%20Report%20July%202007

The Outdoor Sport Sector in the North West – Mapping and Action Planning Report, July 2007

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Document control sheet

Client NWDA

Document Title The Outdoor Sport Sector in the North West – Mapping and Action Planning

Version 4

Status Final

Reference nwda/outdoor/final

Author Julie Longden

Date July 2007

Further copies from email: [email protected] quoting reference and author

Quality assurance by: D Smith-Milne

Document history

Version Date Author Comments

1 21st March 2007 Julie Longden

3 13 May 2007 D Smith-Milne Draft

4 04 June 2007 D Smith-Milne Draft Final

5 02 August 2007 D Smith-Milne Final

Contact details

Main point of contact Telephone number Email address Postal address

David Smith-Milne 07771 844 631 [email protected]

Parkway House, Palatine Road, Manchester, M22 4DB

mailto:[email protected]�



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Contents

1 Introduction and background ........................................................................................1 1.1 Introduction..........................................................................................................1

1.2 Background and terms of reference....................................................................1

1.3 Economic focus ...................................................................................................2

1.4 Comments Welcome...........................................................................................2

2 Rationale for the study ..................................................................................................3 2.1 Introduction..........................................................................................................3

2.2 Background .........................................................................................................3

2.3 Rationale .............................................................................................................4

2.4 Study Objectives .................................................................................................4

3 Strategic and Policy Context .........................................................................................5 3.1 Introduction..........................................................................................................5

3.2 Headline issues ...................................................................................................5

3.3 National Literature ...............................................................................................6

3.4 Regional Literature ............................................................................................10

3.5 Local Literature..................................................................................................15

3.6 Towards a policy position ..................................................................................17

4 Defining the outdoor sector.........................................................................................18 4.1 Introduction........................................................................................................18

4.2 The Definition of the Outdoor Sector.................................................................18

4.3 Rationale for the Definition................................................................................18

4.4 National Overview .............................................................................................19

5 The outdoor sector in the North West .........................................................................23 5.1 Introduction and approach.................................................................................23

5.2 Overall regional picture .....................................................................................23

5.3 Sub-regional analysis ........................................................................................27

5.4 Forecasts for the future .....................................................................................29

5.5 Summary points ................................................................................................31

6 The regional asset base..............................................................................................33 6.1 Introduction........................................................................................................33

6.2 A framework for a strong destination ................................................................33

6.3 The natural environment ...................................................................................33

6.4 Products, brand destinations and events ..........................................................36

6.5 Outdoor education and development training ...................................................38

6.6 National Skills Academy....................................................................................38

6.7 Retail and manufacturing ..................................................................................39

6.8 Urban activities..................................................................................................39

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6.9 The importance of clubs, volunteers and networks...........................................40

6.10 How well does the North West compare to competing places?........................40

7 The consumer .............................................................................................................43 7.1 Introduction........................................................................................................43

7.2 Consumer profile – headline issues ..................................................................43

7.3 Consumer characteristics..................................................................................44

7.4 Consumers in the North West ...........................................................................46

7.5 Destination drivers.............................................................................................48

7.6 Participation by NW Consumers –Active People Survey..................................51

8 Growing the market – opportunities within sectors .....................................................54 8.1 Introduction........................................................................................................54

8.2 Overview............................................................................................................54

8.3 Scenarios for a growing market ........................................................................56

8.4 Other market analysis .......................................................................................58

8.5 Being mindful of negative externalities..............................................................61

9 Growing the market – the role of destinations ............................................................62 9.1 Introduction........................................................................................................62

9.2 A growing but fragmented sector ......................................................................62

9.3 The Evolution of Outdoor Destinations .............................................................62

9.4 Outdoor “brands” – placemaking through sport ................................................64

9.5 A framework for growth .....................................................................................64

9.6 Generic options for destination development....................................................66

10 The Challenges and Opportunities for the Outdoor Sector.........................................68 10.1 Introduction........................................................................................................68

10.2 Overall SWOT analysis .....................................................................................68

10.3 Challenges ........................................................................................................69

10.4 Opportunities .....................................................................................................71

11 Conclusions and recommendations............................................................................74 11.1 The brief ............................................................................................................74

11.2 Context and rationale ........................................................................................74

11.3 An important sector? .........................................................................................75

11.4 Some sectoral characteristics ...........................................................................76

11.5 Some consumer characteristics ........................................................................76

11.6 Is the North West an established “outdoor” destination? ..................................77

11.7 Growing the regional market .............................................................................77

11.8 Learning from “world class” destinations...........................................................78

11.9 Options for growing the market .........................................................................79

11.10 Findings from the gathering of stakeholders.....................................................79

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11.11 Suggestions for the way forward.......................................................................79

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Executive summary

Introduction

1. The North West has one of the best outdoor environments in England. From dramatic coastlines through to breathtaking hills and mountains – this wide and expansive region has features and destinations that are of a world class status and are world renowned. Much of this environment lends itself perfectly to outdoor leisure, activity pursuits and provides a backdrop to a sector of economic activity which this report aims to throw light on, specifically in terms of its size, structure, importance and the opportunities it presents for economic development.

2. This report – which is one of the first of its kind on both a national and regional basis – has been commissioned specifically to enable the Northwest Regional Development Agency (NWDA) and the stakeholders with which it works to better understand the role, structure and contribution made by the outdoor sport sector to the regional economy. The underlying purpose of the report is to:

■ Determine the scale of the sector and sub-sectors that make up the outdoor sector;

■ Determine the existence and strength of any supply chain activity in the region;

■ Identify the sub-sectors with the highest growth potential;

■ Determine the existence of existing networking and support structures operating within the outdoor sector;

■ Identify any gaps in provision in terms of key services, especially if these are gaps are in growth markets; and

■ Evaluate the benefits to the North West economy of the NWDA of developing interventions in the outdoor sector.

3. The report maps the outdoor sector in its broadest sense encapsulating a whole range of areas such as skills, education, sports, leisure, tourism, health and social inclusion.

Study context and rationale

4. The outdoor sector brings together two dimensions of economic activity and regional economic development policy that are both prominent in the work of the NWDA. These are tourism – including the day visit economy and that which is supported by overnight visitors – and of course the sport sector. Outdoor recreation is – as this report will demonstrate – an important driver in the regions visitor economy, whilst sport is also an important (and growing) economic sector, into which the NWDA is investing time and resources. Owing to the implicit interrelationship between these two areas, the NWDA has agreed it as being necessary to profile the outdoor sector in order to understand its economic value and potential, its strengths and its weaknesses as well as the sorts of actions that can be taken to strengthen its economic impact.

5. In research terms, the sector is relatively under developed. Much of the research that is available tends to focus on narrow areas of the sector (e.g. particular sports and sub-sectors, such as extreme sports) or is otherwise focused on how the sector can be used for particular policy purposes (e.g. to deliver new mechanisms of education and or training). Very little research is available that comprehensively looks at the sector as an economic entity per se. There is similarly a general paucity of evidence relating to how the entire sector can be developed, strengthened and leveraged for economic development purposes.

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6. This study – which we have already highlighted as being one of the first of its kind – therefore forms an important part of a growing body of research that the NWDA is developing which is helping to understand the dynamic of the regional tourism market at one level and the Agency’s appreciation of the complexity of the regional economy at another.

7. The outdoor sector lacks any comprehensive policy of its own. That policy which does exist is primarily related to training and workforce development and is attributable to SkillsActive, the Sector Skills Council for the Active Learning and Leisure sector. Beyond this (important and up-to-date) policy context, there is actually very little else that lends itself to providing a policy framework for the outdoor sector.

A defining issue

8. No formal – or universally accepted – definition of the outdoor sector exists, other than that developed by Skills Active. The consultant team have spent considerable time examining the definition and agree that used by Skills Active is a useful tool and made particularly so by the huge amount of industry consultation that led to its adoption. Thus, for the purpose of this report, that definition has been adopted. For those familiar with SIC codes, table 4.1 provides an overview and for those less familiar, in simple terms, the definition includes:

■ Outdoor Education;

■ Outdoor Recreation;

■ Development Training;

■ Explorations & Expeditions; and

■ Outdoor Sport Development.

9. However, the authors of this report do highlight that further work is needed in respect of a robust definition for the sector nationally. Our own work revealed some imperfections in the Skills Active definition and in particular, the apportionment of companies belonging to each sub-sector at four digit SIC level (again see table 4.1). Specifically, it became apparent in our research that the apportionment assumptions used by Skills Active (i.e. the percentage estimates of the four digit SICs that actually represent outdoor companies) were inaccurate in the North West. Because of this, the consultant team have had to revert to a substantial amount of primary research to establish reasonably robustly how many companies belonging to the outdoor sector are based in the North West. We feel our approach – whilst far more intensive – is a more accurate method for counting how many companies operate in the sector in any given locality.

An important sector?

10. By standard economic measures (employment, Gross Value Added and so on) the outdoor sector is considerably less important than say others that receive the attention of the NWDA (e.g. business and professional services, biomedical, advanced engineering and metals, creative and digital industries, energy and environmental technologies and food and drink). Indeed, the sector itself is a relatively small one in terms of employment and the level of GVA it generates. In all, we estimate that in the North West the sector is made up of only 484 companies who between them employ slightly more than 2,600 people and generates a GVA of approximately £44 million. Of course, these measures do not mean that the sector is at all unimportant, but they do indicate that its magnitude of economic contribution is considerably smaller than other sectors that the North West’s Regional Economic Strategy (RES) is concerned with.

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11. However, very importantly, the sector produces a set of benefits that are potentially much more significant than straightforward employment and output measures. For example, the research contained within this report demonstrates that the sector has a considerable degree of compatibility with a wide range of strategies and policies that are influencing the planning and management of economic development in the region. Specifically, the analysis reveals how the sector already supports the following policy areas:

■ Sustainability and climate change;

■ Health and fitness;

■ Education;

■ Productivity;

■ Rural development and diversification;

■ Tourism and the visitor economy;

■ Equal opportunities;

■ The environment;

■ Skills and workforce development;

■ ICT; and

■ Small business development and entrepreneurship.

12. Thus, whilst the sector can be seen to lack a policy of its own, it by far from stands in isolation from other important policy areas. It provides an opportunity to link with a wide range of strategic priorities and policies (both national and region) and similarly provides a route through which these can be delivered.

13. The sector similarly plays an important role in what we now commonly refer to as “place making”. The fact that so many people value the outdoor environment of the North West – be it the striking landscapes of the lake District or the impressive coastlines that provide a backdrop to sailing and water-sports – and connect emotionally to its permanent and inherently “public” assets without doubt has an influence on how people perceive the region and the quality of life it offers to its residents, visitors and even investors.

14. Of course, arguably the most important aspect of the outdoor sector is its ability to drive tourism markets. It is a hugely important motivator of visits to and within the region and similarly the visits it generates support a wide range of secondary and tertiary activities – from catering and accommodation through to organisers of events and festivals.

Some sectoral characteristics

15. Not only is the outdoor sector a small one in overall terms, it is also characterised by small companies. The majority of companies employ less than 15 staff and are in those terms ‘micro businesses’. However even here, the tendency is towards particularly small companies: the majority employ less than five people.

16. The most dominant sub-sector is ‘other sporting activities’. Nearly 45% of all companies analysed occupy this sector. This sector includes organisers of sporting activities and events (e.g. cycle tour operators) and it also includes the clubs, marinas, riding academies, stables, hunting and the rental of sporting equipment. This sector is followed by other recreational

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activities not classified elsewhere – a sub-sector represented by 24% of the regions businesses. These are mainly recreational venues (e.g. parks and fishing facilities) and recreational transport facilities (e.g. boat hiring).

17. Geographically, our dataset indicates that 32% of all outdoor businesses are located in Lancashire, 27% in Cumbria, 21% in Cheshire, 13% in Merseyside, and 7% in Greater Manchester.

18. From a forecast standpoint, output growth is anticipated and this rate of growth is forecast to outstrip that for employment. The highest rate of growth is predicted for the Greater Manchester sub-region, with the substantial developments planned for this area.

19. Many sub-sectors of the market are longstanding. Others, especially those of an extreme nature are newer. Both however are generally exhibiting growth. In parts that growth is steady and part of a long term pattern of growth that is correlated with rising disposable incomes, increased awareness of health issues and a growing appetite to want to ‘escape’ from the humdrum of everyday urban lifestyles. Elsewhere, growth is more rapid although in some cases not always sustained. The term ‘here today and gone tomorrow’ is one that is appropriate in the context of some of the more radical extreme sports. Indeed, such evolution is actually a defining factor of many extreme sports and as a new activity comes to the fore, another one disappears from fashion. This emphasises the somewhat fickle, yet dynamic nature of some aspects of the market.

Some consumer characteristics

20. For nearly all outdoor consumers, the consumption of an outdoor pursuit is a “lifestyle thing”. Any serious participant in an outdoor sport or leisure pursuit will tell you that their interest is in more than just a sport. For many, it’s a way of life and state of mind. It is about challenge, adventure and about pushing the boundaries. Sometimes the sports involve competing against others. More often it involves challenging ones own limitations. Participation is also about sharing ones enthusiasm with others – and in particular – with like minded groups who enjoy a challenge, the fun and the excitement of participation. These principles are particularly true for extreme sports enthusiasts, but to an extent they also ring true with those who enjoy taking part in less risky activities, like walking and cycling.

21. Whilst virtually all sector analyses points towards a growing market, certain aspects of commercialisation and outdoor activities present outdoor consumers with an uneasy mix. Large companies will always look to tap into sports markets. Outdoor markets are particularly attractive to companies for a number of reasons. First, they typically involve a consumer group that is a coveted audience – those who are young and those with high levels of disposable income. Today, fashion retailers, drinks manufacturers, even car makers are keen to use outdoor sports to promote their products. Destinations too are also often keen to exploit the growing interest in one pursuit or another. Places like Newquay in Cornwall – or rather businesses in Newquay - have certainly exploited the association with surfing.

22. Although this trend occurs across most markets, the irony is that most who take part in the sports actually resent their commercialisation. Whilst many acknowledge that sponsorship brings money into the sector and can help fund large events and competitions, it does so at a cost. It often challenges the very ethos of the sport which is often either about escaping the increasingly “corporatised” societal system and urban living or a demonstration of rebellion against formal and competitive sports. The commercialisation and growth to mass market of many outdoor sports often therefore mixes uneasily with those who are active, regular and ‘hardcore’ participants.

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Is the North West an established “outdoor” destination?

23. Market research demonstrates that internationally known destinations for the pursuit of sport and outdoor activity have a number of common traits or pre-requisites:

■ A high quality natural environment;

■ A well organised and effectively delivered set of “products”, enabling people to participate in a range of different activities, from high intensity adrenaline sport, to low intensity leisure and cultural pursuits;

■ A powerful destination brand that is recognised locally, domestically and abroad for its associations with outdoor sport, even where the individual activities are not aggressively marketed;

■ A rich calendar of special events, activities, exhibitions and competitions, including televised events; and

■ An ability to cater to a wide range of participants, from beginners to elite competitors.

24. The North West has some of these pre-requisites in place (notably a high quality natural environment) and others developing apace (e.g. a nascent set of products delivering outdoor sport experiences to the public). Indeed, in certain areas, the asset base of the region – particularly the natural environment – is of a world class status. Indeed, so highly regarded are the physical assets in the region that there are more clubs registered outside of the North West with huts and facilities in the region than in any other region. Similarly, the quality of the outdoor infrastructure (e.g. climbing huts, marinas and sailing clubs, cycling clubs, rambling clubs and so on) available in many parts of the North West is amongst the best in the UK.

25. Yet in terms of other assets, particularly in terms of the extent to which the sector comes together to provide well organised, structured and widely communicated events and programmes, substantially more could be done. Whilst the sector has – over the last 3-5 years begun to emerge in a more organised way than ever before – there remains some quite compelling evidence that other destinations – notably Scotland and Wales – are more advanced in infrastructure and marketing terms.

Growing the regional market

26. The report identifies the non-physical ingredients that are typically necessary to generate high levels of consumers of outdoor recreation and activity. For a destination to generate high consumption patterns, it typically requires consumer catchments as follows:

■ First, the destination requires a large resident market – ideally within a maximum of a 2 hour drive time;

■ Second, and most obviously, the population within that drive time must have a high propensity to participate;

■ Third, that population must be well represented by the young and affluent – i.e. capable of supplying young consumers with good levels of disposable income;

■ Fourth, the destination must additionally be capable of generating a large tourist market – both day visits and overnight; and

■ Fifth and related, the destination must regularly benefit from having a large number of people visiting on holiday.

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27. Clearly it has been beyond the scope of this report to analyse every single destination in the North West against these important market measures. However, we have – simply as a way of illustrating how these measures can occur in the region – carried out one “dummy” market appraisal. This has involved analysing a destination in the region that roughly sits at the mid-point of the North West and has a good – although not well established – outdoor environment (Pennine Lancashire). Here, our initial market appraisal indicates that on the positive side, the region benefits from a large young population, whereas on the less positive, that population is generally less affluent and generally has less propensity to participate than national averages. We advise that further analysis of other destinations in the region is necessary in order to meaningfully identify those areas with the strongest prospects for market growth.

Learning from “world class” destinations

28. Our analysis considered two destinations that have established themselves as international tourism locations based on the availability of outdoor sports and activities. These were Queenstown New Zeeland (the home of the Bungee Jump) and Whistler in British Columbia in Canada (famous for its diversification away from a seasonalised ski resort to a world call mountain biking and broader outdoor destination).

29. Based on these case studies and our own market research the analysis has identified a conceptual model for the development of outdoor markets and destinations. That model is described in the main report at Figure 5.1 and in summary, includes four main stages in the ‘evolutionary’ process:

■ Stage 1: this involves the colonisation of a destination by a group of ‘hardcore’ enthusiasts. Attracted by the uniqueness of the location, the newness of the activity and the fact that both are unique and alternatives to the mainstream, hardcore enthusiasts begin to pursue a sport or activity in gradually increasing numbers;

■ Stage 2: this is the point at which the destination begins to become established. However its success could go one of two ways. More often than not the sport or activity becomes shadowed by newer pursuits and the destination never really takes off. However, in some cases (as in the case study examples provided) word of mouth spreads and the locality begins to draw in more and more visitors. This can trigger a range of formal or informal events and generally small scale publicity;

■ Stage 3: for those destinations that ‘take hold’ so to speak, this is a hugely important stage of development. It is part of the critical path towards becoming ‘mass market’. Companies begin to see commercial opportunities. Corporates begin to see sponsorship opportunities. Businesses begin to work together to attract consumers and compete with each other when they are there. The public sector too begins to adopt an involvement. Sometimes this involvement is about managing risks and health and safety issues. Sometimes it is about maximising the economic benefits. In either case, it creates publicity. That publicity helps to grow market appeal;

■ Stage 4: this is the mass market. The point at which this is typically confirmed is the point at which the hardcore enthusiasts begin to move on, in pursuit of something newer and more unique. However for the remaining market the destination becomes established. Visitor numbers begin to stabilise and a sustainable system of organisations – events providers, cafés, restaurants, bars, accommodation providers and so on – begin to establish themselves in the locality and likewise their relationship with the sport.

30. Of course in practice, the evolutionary process will only broadly follow this model: we have simplified the analysis for the purposes of this report. However it does lend itself well to establishing a model for how the outdoor market in the region could be developed and expanded.

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Options for growing the market

31. Based on the case study material – and on the consultant teams’ understanding of the offer in the region, the report identifies a number of options for the development and growth of the outdoor market in the region. These options are:

■ Option 1: “Do Nothing”. As a matter of course, the Do Nothing option must be considered, if only to set a baseline against which other options can be considered. Arguably, the Do Nothing option is a viable solution in this case, if it could be demonstrated that – left to its own devices – the market would respond to demand for the types of activities outlined and the destination would develop on its own. This is highly unlikely, however, and counter-intuitive. As illustrated by the models described above, an initial catalyst is almost certainly needed in the first instance (bungee jumping in Queenstown and the Whistler Mountain Bike Park in the second). Secondly, the destinations only became successful through the concerted effort of a single organisation. Intrawest fulfilled this function at Whistler; even in the seemingly serendipitous Queenstown model, a joint marketing group was formed to corral the various commercial and community interests once the strength of the developing destination was identified. Finally, even if one could be confident that the market would, over time, deliver some of the benefits foreseen for the outdoor sector, it must be recognised that the Steering Group has a number of objectives aimed at benefiting and strengthening the community (e.g. training, employment, environmental protection). The “public good” nature of these objectives implies that they would almost certainly not be delivered under a “do nothing” scenario.

■ Option 2: “Do Minimum”. The Do Minimum option is simply to reinvest in the existing facilities in the North West and to provide a minimum of joint-marketing support for existing businesses throughout the region that service the outdoor market. In includes only the capital cost of refurbishing existing facilities and some ongoing revenue expenditure on promotional material and staff time for providing a common marketing platform for the variety of activities either already underway or in development. Special events and activities originated by others would benefit from this marketing support, but the outdoor sector itself would not be in the events business. In effect, the Do Minimum option is a variation on the Queenstown model in that it recognises the importance of an initial catalyst (or attractor) and the value of joint marketing of various products and services in the area.

■ Option 3: “Outdoor Sector/Activity Brand”. Option 3 focuses more directly on the creation of a powerful outdoor sector/activity brand for the whole of the North West. This too includes the refurbishment of existing facilities as the chief attractor to the area, but also on the services and infrastructure that underpin successful destinations. A bespoke organisation would not only aggressively promote the area as an outdoor “playground”, but would proactively develop product (esp. events) and provide infrastructure (in particular, a car park, transport and Information Point) and services (e.g. information, communication, training, first aid, events planning, etc.). To use the hub-and-spoke terminology, Option 3 would focus on strengthening and supporting the “spokes” and uniting them under a common brand, leaving the “hub” development to some unspecified future date.

■ Option 4: “Outdoor Village”. Once again, Option 4 encompasses all of Option 3, but also includes significant capital investment in a major “hub” for the outdoor sector – something to act as a focal point for all of the activities in the North West, to fill gaps in the product and to generate and national and international profile for the destination. The focus of this investment could be on an Outdoor Village. In principle, this builds on the Whistler Model, but expands the scale and scope of the initial investment, and like Whistler builds on the reputation it already has in the outdoor sector. To guarantee its own sustainability as well as generating profit for reinvestment elsewhere in the region, the Outdoor Village would charge admission for participation in key activities or events, although measures would

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be taken through voucher and discount schemes to reduce or eliminate cost barriers for low income households. Equally, retail and catering space within the destination would be carefully managed to ensure a mix of blue-chip tenants on commercial leases, and lower cost flexible terms for locally based entrepreneurs.

32. These are – of course – entirely conceptual options and are included solely to provoke thinking and debate as to how the market can be grown in the region. They can be revisited when further research has been carried out in the region and a policy position for the development of the sector has been agreed.

Findings from the gathering of stakeholders

33. In response to the opportunities and challenges highlighted within our earlier Draft Final Report the NWDA recently convened a group of regional “outdoor sports sector stakeholders”. This group consisted of representatives from public bodies and organisations involved in the development of the sector and a sample of businesses that operate within the sector. An issue highlighted by the event is the appetite and enthusiasm of the stakeholder group to continue the momentum created by this study and as part of this, a desire to continue to work together to develop a stronger policy position for the sector. Our recommendations (below) have been adjusted to reflect these points.

Suggestions for the way forward

34. The focus of this report has ostensibly been on “mapping” the outdoor sector. Through this, the analysis has provided facts, figures, intelligence and information in relation to the sector and how it is configured in the region and elsewhere. We have emphasised the fact that this research is amongst the first of its kind – there are few studies that analyse the outdoor sector as a single economic entity and from a standpoint of regional economic development. Owing to this, the consultant team advise that:

■ The desire of stakeholders working within and representing the sector to continue to work together to develop a stronger regional offer and policy position should be harnessed. There is an active, cooperative and enthusiastic grouping of key people that this study has brought together. Whilst embryonic, its motivation and desire to work in partnership is a “good thing” and should be both encouraged and serviced. We emphasise however that this should – at least initially – be a “light tough” approach and does not as yet necessitate any new structure or formal partnership;

■ There is a need to move towards a policy position for the outdoor sports sector. That policy position is a sensible step forward beyond this detailed mapping exercise. It will need to resolve some important issues. Some of those relate to the definition and measurement of the sector, whilst others relate to the spatial level at which any policy actions should be delivered (e.g. regionally, locally, sub-regionally). The views of the Tourist Boards are important in shaping any future policy actions. However, it is recognised that the role and synergy of the outdoor sport sector with other organisations such as Natural England (in particularly linked to the regional project - Natural Economy), Sport England and SkillsActive need further exploration to ensure that a holistic approach is developed in the future. It is suggested that further consultation is undertaken with these organisations. Similarly further market research on the strength and capacity of destinations within the region will also need to be tested as part of that process;

■ There is a particular opportunity for the regional to maximise future policy actions linked to the development of a Regional Hub for the Outdoors as part of the National Skills Academy (NSA) being development by SkillsActive (the sector skills council for sport and active learning, which incorporates the outdoors). It should be recognised that this national/regional initiative could present the region with a significant opportunity to develop a framework and model for supporting the skill development of the outdoor sport

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sector to achieve improvements in productivity and a positive growth in the sector. Further work should be undertaken to ensure integration of this initiatives into any future policy actions adoptions;

■ Because of the points raised above, further research should be commissioned by the Agency that builds on the mapping exercise. That work should include the development and application of a detailed set of criteria which can be used to rank and score the capacity of destinations in the North West to grow and develop and lend themselves (spatially) to a regional growth programme / strategy. This not an insignificant task and importantly, it should be done with the involvement of regional Tourist Boards to secure their ownership and support of the outcome;

■ The emphasis and rationale for the creation of a stronger policy position is, in our view, a strong one. A policy position is necessary because:

The sector is actually a growing one – with consumption patterns increasing (see subsequent sections). That growth, if left unchecked, is likely to be piecemeal and uncoordinated and the opportunities for harnessing it to support regional priorities could be lost;

The sector has considerable capacity to address a wide range of important national civic issues (health, rural diversification, sustainable tourism). Without a policy to address these interrelationships, opportunities may be lost;

At a regional level there is an increasing amount of both market driven and policy driven initiatives that have a strong focus on “outdoor” (e.g. Adrenaline Gateway, Adventure Capital). The region lacks a policy position from which to guide any investment or major planning policy decisions in respect of these initiatives; and

At a regional level there is a particular opportunity for the regional to maximise future policy actions linked to the development of the NSA – as a result of this initiative happening a joined up approach is needed to ensure benefits are maximised.

35. The above suggestions should be seen as part of a process of continuous development. Of course, it will be important that the process of putting in place the above recommendations should include a wide and representative group of companies that operate in the sector. Fortunately, the database of companies produced as part of this research can be used for these purposes and as a minimum, we advise the NWDA that communication with these companies regarding the Agency’s future intentions should be initiated.

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1 Introduction and background

1.1 Introduction

1.1.1 The North West has one of the best outdoor environments in England. From dramatic coastlines through to breathtaking hills and mountains – this wide and expansive region has features and destinations that are of a world class status and are world renowned. Much of this environment lends itself perfectly to outdoor leisure, activity pursuits and provides a backdrop to a sector of economic activity which for some time now has been left unchecked and to an extent not properly understood.

1.1.2 This report – which is one of the first of its kind on both a national and regional basis – has been commissioned specifically to enable the Northwest Regional Development Agency and the stakeholders with which it works to better understand the role, structure and contribution made by the outdoor sector in the region.

1.1.3 For many, the outdoor sector will be a new term. The term itself conjures many images and relates to a wide range of activities. In the specific context of this study however, the definition adopted includes the following sub-sectors:

■ Outdoor Education;

■ Outdoor Recreation;

■ Development Training;

■ Explorations & Expeditions; and

■ Outdoor Sport Development.

1.1.4 The study team has spent considerable time developing and agreeing this definition. Importantly, it builds on the work done by SkillsActive (the Sector Skills Council for the active leisure and learning industries) and has been subject to considerable consultation with businesses that represent the sector.

1.1.5 Against that definition, this study maps the shape, structure, size and contribution of the Outdoor Sector in the North West. The focus of the analysis is on providing a profile of the sector that will enable a better understanding of its needs as well as the opportunities it presents in a regional economic development context.

1.2 Background and terms of reference

1.2.1 The brief for the study identified a set of aims and objectives. The underlying focus of these has been to undertake a detailed mapping exercise of the outdoor sector within the region. Some of the things that the brief asked the consultant team to consider include:

■ Determine the scale of the sector and sub-sectors;



■ Determine the strength of outdoor provision in HE and FE institutions and extent of HE/FE engagement with businesses;

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1.2.2 Taken together, the above is virtually an outline of a comprehensive cluster mapping and analysis exercise – although for reasons discussed later, the study does not use the “Porter Diamond” model as a way of mapping the sector.

1.3 Economic focus

1.3.1 The focus of the study is an economic one. That is, its main emphasis is on identifying the contribution that the outdoor sector makes to the national and regional economy and on identifying the steps that can be taken to make that contribution – particularly in the North West region – a greater one.

1.3.2 The adoption of an economic focus includes a focus on say mainstream economic drivers (business growth, skills and employment, productivity, visitor numbers and so on). It also includes other – often more difficult to measure – drivers, which can also be important in driving economic growth. These include, for example, visitor perceptions and attitudes towards the region (and how these are influenced and shaped by the outdoor environment and the opportunities economy and offer), as well as the role played by the sector in tackling things like ill-health and obesity, which in effect are spin offs from the core economic outputs. That analytical framework has been agreed to include the following:

■ Examining the activities that directly motivates visitors in their own right (e.g. outdoor activities);

■ Examining activities that do not motivate visitors but are used by visitors themselves (e.g. hotels, restaurants, tourist information centres);

■ Examining activities that service these other activities that are directly dependent on the outdoor sector (e.g. suppliers to outdoor-dependent businesses); and

■ Examining activities that contribute to the outdoor infrastructure.

1.3.3 The analytical process has borne these components in mind throughout and as such enabled us to understand what motivates people to come to the NW, what goods and services people use, and the level and quality of infrastructure available to consumers in the North West.

1.4 Comments Welcome

1.4.1 In being a Draft Report of our findings, comments from the client group are very welcome. These should be directed to David Smith-Milne:

David Smith-Milne

Tel: 0161 902 1100

Email: [email protected]


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2 Rationale for the study

2.1 Introduction

2.1.1 A good place to start this study is to ask why it is being carried out. This section of the report therefore provides a brief summary and background to the project and articulates the underlying rationale for it being commissioned.

2.2 Background

2.2.1 The Northwest Regional Development Agency’s Regional Economic Strategy (RES) sets a framework for economic development in the region. The significance of the outdoor sector is that it has the potential to focus on and address a number of actions identified in the RES. Specifically, the outdoor sector brings together two dimensions of economic activity and regional economic development policy that are both prominent in the work of the NWDA. These are tourism – including the day visit economy and that which is supported by overnight visitors – and of course sports. Outdoor recreation is – as this report will demonstrate – an important driver in the regions visitor economy, whilst sport is also an important (and growing) economic sector in its own right, into which the NWDA is investing time and resources.

2.2.2 Owing to the implicit interrelationship between the two areas of tourism and sport, the NWDA has agreed it as being necessary to profile the outdoor sector in order to understand its economic value and potential, its strengths and its weaknesses as well as the sorts of actions that can be taken to strengthen its economic impact.

2.2.3 Thus an important part of the analysis contained within this report is tourism and specifically a review of the role played by the outdoor sector in bringing more staying and day visits to the North West. The role played by the outdoor sector in influencing peoples perceptions of the North West and the steps that can be taken to further leverage its “place making” benefits is also considered.

2.2.4 A further dimension to the analysis is the businesses that operate within the sector – and that directly deliver good and services that relate to the use of the outdoor environment. In some ways these are businesses that “trade” the outdoor environment (or more specifically goods and services that rely on it) to tourists and enthusiasts of outdoor activities. They include organisers of events, activities and tours, providers of outdoor activity training and accreditation as well as manufacturers and retailers of goods and equipment used by outdoor enthusiasts.

2.2.5 A third dimension to the analysis involves the many businesses in the North West that do not directly “trade” in the outdoor environment but use it as a mechanism for differentiating their goods and services. For example, the outdoors – including the regions natural environment – is being increasingly used as a “classroom” or learning environment. Companies that operate in this area include a wide range of training providers, motivational and team building consultants and other “outward bound” type providers. Whilst this is a well established market, it remains in the ascendancy

2.2.6 Considered collectively, underlying “components” of the outdoor sector aid – and have the potential to further contribute to – strategic objectives in the RES that relate to the development of the visitor economy (which the region places considerable emphasis on tourism and the development of the visitor economy), the growth of the sports sector and the development and ongoing diversification of the rural economy.

2.2.7 Additionally the outdoor sector also has a less obvious – but perhaps similarly important role – in supporting a range of other objective within the RES. These include those relating to productivity and business growth, skills development, dealing with employability

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issues and tackling social and economic exclusion. The outdoor sector can also help with issues like obesity and ill-health. These are issues which affect productivity amongst those that are employed as well as employability amongst those that are out of work.

2.3 Rationale

2.3.1 NWDA acknowledges that whilst the economic potential of the outdoor sector has been recognised (although it is difficult to define in quantitative terms), further work is required to understand the key components of the sector, its economic value, the strengths and areas of future focus in order to grow its relative impact across the region. This is the purpose of this study. It will give the NWDA a better insight into the economic impact of the sector, explore definitions and distribution across the region and look at existing development models and action plan to prioritise actions and maximise the effect.

2.3.2 NWDA now see a co-ordinated approach to the product development, marketing and business development of these sectors as necessary to capture the true potential of these sectors across the region.

2.4 Study Objectives

2.4.1 Given the background to the study, the key objectives of this study are:

■ To assess the importance of the outdoor sector in terms of size, scale, volume and value;

■ To establish the growing sub-sectors within the outdoor sector, and identify what stage of development these are at;

■ To assess the necessity for public sector intervention to support the development of the outdoor sector and grow areas across the North West; and

■ To raise the profile and place-make the region by growing and strengthening the perception of the North West as a dynamic region, with a pristine environment and wide choice of outdoor activities in both its cities and its countryside.

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3 Strategic and Policy Context

3.1 Introduction

3.1.1 Setting the context in which the outdoor sector sits is central to our understanding and assessment of if and how it can contribute to the RES and the regions development more generally. This has involved a comprehensive review of key literature on that relates to or is part of a context that surrounds the outdoor sector.

3.2 Headline issues

A neglected sector?

3.2.1 Our review of literature that is relevant to the outdoor sport sector confirms that the sector is a neglected one in research terms and also one that lacks a distinctive policy for its development. There are very few existing studies that specifically purport to both define the sector and measure its economic significance in its totality. Whilst there is a considerable and growing body of literature that demonstrates a wide range of interest in the outdoor sector, there is considerably less literature that has the sector as its primary focus.

3.2.2 Moreover, the literature review highlights the general dearth of policy documents relating the sector. Such is the paucity of information, the sector can be seen to be one that (currently at least) operates on both national and regional basis in the absence of an overarching strategy or policy. As our literature review will highlight the sector does “connect” with a wide range of other policies and so on – but generally speaking it appears to lack any real policy of its own. It is only really the recent work of SkillsActive – the Sector Skills Council for Active Learning and Leisure – that actually adopts a broad focus that encompasses all of the sub-sectors operating in the outdoor market. Whilst this work is incredibly valuable, it too adopts a specific and therefore narrow focus that reflects the educational / skills objectives that are embedded within that organisation.

Strong cross linkages

3.2.3 Whilst lacking in a policy of its own, the outdoor sector does support a wide range of other policies and strategies. Specifically, the analysis of the literature surrounding the sector reveals how the sector already supports the following policy areas:



■ Education;


■ Tourism and the visitor economy;

■ The Regional Economic Strategy; and


3.2.4 Thus, whilst the sector can be seen to lack a policy of its own, it by far from stands in isolation from other important policy areas. It provides an opportunity to link a wide range of strategic priorities (both national and regional).

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The need for a more research and a stronger policy position

3.2.5 Whilst there is a good body of evidence and research to show the economic and social benefits of the various sub-sectors (i.e. specific outdoor pursuits and sports) that make up the outdoor economy there is generally a dearth of empirical evidence that can be used to define the sector in its entirety. Matters of how the outdoor sector should be measured and its contribution valued are therefore largely unaddressed. Thus some of the findings of this research rely purely on the ability and views of the consultant team – and it will be difficult to cross reference these with other work. There is an argument for more research and perhaps a requirement for a national study that can provide a cohesive and coherent picture of the sector.

3.2.6 In a similar sense, there is also an argument for the creation of a stronger policy for the outdoor sector. A stronger policy could help regional partners to maximise commercial opportunities and potential regenerative benefit of the sector. This is necessary as:

■ The sector is actually a growing one – with consumption patterns increasing (see subsequent sections). That growth if left unchecked is likely to be piecemeal and uncoordinated and the opportunities for harnessing that growth to support regional priorities could be lost;

■ The sector has considerable capacity to address a wide range of important national policy agendas (health, rural diversification, sustainable tourism). Without a policy to address these interrelationships, opportunities may be lost;

■ At a regional level there is an increasing amount of both market driven and policy driven initiatives that have a strong focus on “outdoor” (e.g. Adrenaline Gateway, Adventure Capital UK, National Skills Academy). The region lacks a policy position from which to guide any investment or major planning policy decisions in respect of these initiatives.

3.3 National Literature

Securing the Future – UK Sustainable Development Strategy, HM Government, 2005

3.3.1 This strategy builds on previous sustainable development strategies with an aim to ‘enable all people throughout the world to satisfy their basic needs and enjoy a better quality of life without compromising the quality of life of future generations.’ The strategy is based on five principles, namely:

■ Helping people make better choices;

■ Sustainable consumption and production;

■ Climate change and energy;

■ Protecting our natural resources and enhancing the environment; and

■ Creating sustainable communities and a fairer world.

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3.3.2 The report details key commitments, policies and actions that are feed into each principle, and sets out how the Government purposes to ensure these happen. The strategy sets out the key commitments, for example, producing an integrated policy approach for protecting and enhancing natural resources; developing stronger partnerships with key business sectors e.g. tourism, evaluating environmental taxes, supporting education and training in sustainable development; and helping people to live more sustainable lifestyles. These and others will affect the development of the outdoor sector in the region, and the potential opportunities for and limitations of growth in the sector.

A Report for Natural England’s Outdoor Recreation Strategy, Henley Centre, 2005

3.3.3 This report details the expected remit, role and function of the Natural England in relation to the outdoor recreation in England. The main purpose of the study was to assess ‘what are the main factors which will inform the development of outdoor recreation in England over the next 20 years and what are the implications of these for Natural England’s outdoor recreation strategy between now and 2015?’

3.3.4 The report sets out the difficulties in defining the outdoor sector, and uses a matrix which looks at the sector around the amount of planning involved by the consumer and the distance travelled. The outdoor recreation is found, on the main, in a competitive setting within the demand for leisure, and that the key themes that could potentially impact on provision and “consumption” are affluence, response to climate change and health, as well as any changes to demographics.

3.3.5 The report identifies four areas that Natural England can influence to make the outdoor recreation agenda a more visible cluster, by looking at two public policy areas and two user behaviour areas, namely:

■ Transport and travel

■ Health and social inclusion

■ Leisure activity

■ Recovery activity e.g. well-being.

3.3.6 The key issues that will impact whether this happens include:

■ Evidence exists for the benefits of outdoor recreation but does not appear to be clearly collated or well communicated;

■ There is a lack of visibility and shared approach for outdoor recreation as a proposition to end-users or to policy makers;

■ There is a need to work effectively with a range of organisations with related agendas;

■ There is a need to connect outdoor recreation to the way in which end-users think about leisure and make choices about leisure use; and

■ There is a need to understand the implications of social inclusion for outdoor recreation.

3.3.7 The report assesses the demand for and supply of outdoor recreation across England, taking into account health, planning and the impact of the sector.

Learning outside the Classroom Manifesto

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3.3.8 In February 2005, The Prime Minister and Ruth Kelly announced the Government would work with partners to publish the Learning outside the Classroom Manifesto. The Government is now putting learning outside the classroom in a prominent position within both the national curriculum and also within young people’s personal development objectives. The manifesto was supported with a new £2.7million package for schools through the launch of the Learning outside the Classroom Manifesto. The Government has urged schools to use the wealth of educational opportunities on their doorsteps and further a field, to inspire and motivate every pupil.

3.3.9 It is the first time a Government has committed itself to making learning outside the classroom an integral part of school life, with the Manifesto setting out specific measures to help schools widen access to high quality educational experiences for every young person. Alan Johnson stated “Learning outside the classroom should be at the heart of every school’s curriculum and ethos.”

National Cycling Strategy (NCS) - Delivery of the NCS: A Review

3.3.10 The National Cycling Strategy (NCS) was launched in 1996. It was developed collaboratively by the public, private and NGO sectors. It set a target to quadruple cycle trips by 2012 and a number of targets concerning issues such as land-use planning, safety and security. The NCS also encourages local authorities to establish local targets for increased cycle use.

3.3.11 The National Cycling Forum was set up to oversee the implementation of the National Cycling Strategy, with representatives from central and local Government, business and the voluntary sector. The Forum was established to support the objectives of the strategy and make recommendations on policy, advice government and suggests research and potential publicity opportunities. In 2001, the Forum was a smaller NCS Board, and the strategy is currently under review from the DfT.

Rights of Way Improvement Plans, Defra, 2002

3.3.12 The Rights of Way Improvement Plans provides statutory guidance on the context and scope of rights of way improvement plans for each local highway authority. The authorities are required to:

■ Assess the extent to which local rights of way meet the present and likely future needs of the public;

■ The opportunities provided by local rights of way e.g. cycle tracks, bridleways and footpaths for exercise and enjoyment of an area; and

■ The accessibility of local rights of way to blind or partially sighted persons and others with mobility problems.

3.3.13 Defra recognises that local rights of way are an important part of major recreational resource and of our heritage, and therefore maintenance and improvements is an essential element of local highway authorities’ responsibilities.

Skills Need Assessment for the Outdoors, SkillsActive, March 2006

3.3.14 The Skills Needs Assessment defines the outdoor sector within 5 sub-sectors: Outdoor Education; Outdoor Recreation; Development Training; Exploring and Expeditions; and Outdoor Sports Development.

3.3.15 The key economic highlights from the analysis are:

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■ Gross Value Added (2004) was £430m for the outdoor sector;

■ Employment is estimated at 25,020 employees;

■ The outdoor sector will grow at a rate above that for the whole economy over the next 10 years;

■ The outdoor workforce has a higher proportion of 16 to 24 year olds than England;

■ 84% of the workforce are employees and 16% self-employed (13% self-employment in UK);

■ The outdoor sector has a high proportion of part-time works 41% compared to UK figure of 22%; and

■ Volunteers make a significant contribution to the outdoor sector.

3.3.16 The assessment also provides an overview of the current skills and qualification profile for people working within the outdoor sector and the current skills shortages and skills gaps.

A Review of the Economic Value of Countryside Recreation and Sports, Tourism Leisure and Environmental Change Research, Sheffield Hallam University

3.3.17 The study was commissioned by the Central Council of Physical Recreation to investigate the extent of the evidence available on how sport and recreation in the countryside impact the economy of countryside areas.

3.3.18 The report findings examine the definition and size of the countryside recreation and sports economy. Based on previous research, the key economic highlights from the analysis suggest that:

■ Visitor spending power of around £17 billion per year through countryside leisure activities1;

■ Rural tourism is valued at £12 billion per year2;

■ Sales of outdoor clothing and equipment rose from £25million in 1980 to over £1 billion in 2000;

■ Employment estimates of countryside recreation at over 250,000 full-time jobs; and

■ Estimates the economic value of countryside recreation and sports between £15 billion and £25 billion.

3.3.19 Estimations are made as to the economic impact of a number of key outdoor activities in various locations nationally, including Cumbria. It is estimated that 2,700 - 4,600 full time equivalent jobs were supported by the work of the National Trust in Cumbria, spending £3.5m on direct staff costs and £3.4m on goods and services.

The Green Business Tourism Scheme

1 The Leisure Day Visits Survey for England, Wales and Scotland (2002-03)

2 Working for the Countryside – A Strategy for rural tourism in England 2001-2005

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3.3.20 The Green Tourism Business Scheme has been championing sustainable tourism in the UK since 1997. The aim of the scheme is help businesses to deliver demonstrable environmental benefits, operate efficiencies and cost savings; as well as increase marketing potential, by providing consumers with a clear option to use sustainable products and services.

3.3.21 The scheme’s flexibility allows for inclusion and participation from a wide range of tourism businesses, ranging from accommodation providers to visitor attractions and many others besides, therefore enabling all tourism-related businesses to promote quality and the environment, two themes at the heart of sustainable tourism. There are currently 1,100 members, each of which must follow the scheme’s criteria. There are over 120 measures of sustainability.

3.4 Regional Literature

North West Regional Economic Strategy, NWDA

3.4.1 The Regional Economic Strategy describes 122 separate, actions for delivering the vision, split into the themes of Business, Skills and Education, People and Jobs, Infrastructure, and Quality of Life, each broken down into a number of sub-themes. Table 3.1 relates the theme: Quality of Life, which includes improvements that will contribute to the development and growth of the outdoor sector in the North West.

Table 3.1 - Quality of Life Theme

Priority Action

Culture and Image

Developing Culture and Image

Action 95 – develop and implement marketing programmes to promote a positive image of the benefits and diversity of the Northwest as a location for businesses, visitors, investors and as a place to live

Maximise cultural and major event opportunities:

Action 98 – secure sports, business and cultural events and conferences for the region to host in line with the Major Events Strategy

Action 100 – develop plans to exploit the predicted business opportunities in the growth of sport

Develop the quality of the visitor experience:

Action 101 - Improve the product associated with the region’s tourism ‘attack brands’ and ‘signature projects’ as identified by the Regional Tourism Strategy, in line with market demand

Action 104 - develop and implement a Visitor Information Strategy for the region

Action 105 – support business development for tourism businesses through the region’s five Tourist Boards to grow the market share of domestic, overseas and business visitors.

Environment

Realise and nurture the natural and built heritage assets:

Action 113 - Develop the economic benefit of the region’s natural environment through better alignment of environmental activities and economic gain

Action 114 - Implement The Lake District Economic Futures Policy Statement to secure renaissance of The Lake District’s tourism offer and broaden its economic performance

Action 115 – Deliver sustainable growth through use of the region’s heritage environments and assets – especially World Heritage Sites, the cities of Chester, Lancaster and Carlisle and The Lake District

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3.4.2 The RES sets out the current thinking on the economic development of the North West. This mapping study sets out the platform for the development of the outdoor sector over the next 10 years, and how, with the right mechanisms and support structures in place, can add real value to the region’s economy.

Regional Tourism Strategy for England’s Northwest, 2007

3.4.3 The Regional Tourism Strategy (RTS) is an update to the strategy published in 2003, and builds on experiences to date, changes to the Regional Economic Strategy, and the national consultation associated with the 2012 Olympics. The RTS has six core aims which are strategically linked to the overarching framework of the RES:

■ Improved products and higher quality experiences for all of the tourists and other visitors in the region

■ Enhanced communication with the region’s visitors

■ Higher levels of productivity and performance from the businesses operating in the visitor economy for the people who work in the visitor economy to have, and to be using, higher levels of skills than now

■ An improved infrastructure for the visitor economy

■ For all activity related to tourism and the visitor economy to be based on the principals of sustainable development

3.4.4 The RTS describes a series of strategic objectives to be achieved in order to realise the strategic aims outlined above. These objectives are grouped into two groups:

Table 3.2 – Key themes

Visitor Experience Attracting Visitors

Those dealing with the broad objective of creating the high quality visitor experiences that are essential to achieve the vision of being the best

Those covering the objective of promoting the region effectively so to succeed in attracting the visitors the region wants

Productivity, Performance and Quality - Increase the ability of businesses to operate productively and profitably through the provision of high quality and high value added that visitors want to buy and experience focusing on regional and sub-regional networks and businesses.

The Attack Brand Approach – through destination and thematic marketing (through lead brands such as the Lake District and the natural environment), business tourism and day visits.

Superior Skill - Increasing trained and skilled workforce in tourism businesses in line with National Skills Strategy and to increase levels of GVA in the regional economy.

The Power of Information – implementation of the Visitor Information Strategy with the aim of providing world-class visitor information services.

Sense of place – improve public realm, and the built and natural environment

Signature Projects – include plans for major capital projects that will have a transformational impact on the visitor economy. Current regional signature projects include the Renaissance of the Lake District, Chester Super Zoo, Blackpool Resort of the Future

Signature Events – supported by the Strategy for Major Events in England’s Northwest focus on Global

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Giant events (e.g. Grand National), Organic Excellence (e.g. Manchester international Festival) and Attack Zone (e.g. World Swimming Championships).

3.4.5 3.4.5 Each of the five sub-regions has its own Destination Management Plan (DMP), which are action plans for all those organisations involved in developing these areas as tourist destinations. Each plan details key actions for the development of the outdoor sector.

■ The Liverpool City Region DMP 2006-2009 identifies a number of key proposals for the development of the outdoor sector including the transformation of Sherdley Park into the region’s premier dedicated outdoor events venue as well as the development of other outdoor venues across Merseyside, for example, Knowsley Hall and Estate, Court Hey Park and Stadt Moers Park.

■ Greater Manchester DMP 2007-08 does not focus directly on the outdoor sector however outlines a number of priorities that will support the development of this sector including initiatives such as Irwell City Park, the heritage trail and the enhancement of waterways for potential tourism activities and use – all aimed at enhancing and supporting the tourism product in Greater Manchester.

■ The Lancashire and Blackpool DMP 2007-08 details a number of actions and proposals that are relevant to the outdoor sector, including the development of Forest of Bowland information material including downloadable walks and rides; attendance at shows such as the Great Outdoors Show; improved Forest of Bowland access routes for walking, cycling and horse riding; and mountain biking improvements at Gisburn Forest.

■ Cumbria Tourism DMP 2007-08 provides a whole range of proposals for the outdoor sector. The Natural Economy/Outdoor Experience is one of six priorities for action for Cumbria, and key actions include the promotion of active outdoor holidays, the development and investment in the growing outdoor activity markets, particularly in cycling and equestrian sectors, and the upgrading and re-positioning of the outdoor centre network in Cumbria.

■ Chester and Cheshire DMP 2006/09 sets out its proposals for the outdoor sector, including the enhancement of access/infrastructure for walkers, riders and cyclists; enhanced access to the waterfront and strengthened riverside and family fun. The DMP also states that the niche product opportunities in Chester include the development of the equestrian sector, and the leisure cycling and waling sectors.

Rising to the Challenge: A Climate Change Action Plan for England’s Northwest, 2007-2010

3.4.6 Recent research has indicated that climate change will mean a £30bm opportunity for British business over the next 10 years and that low carbon technologies will be worth around $500bn to the global market by 2050. However, failure to tackle climate change would result in economic costs of $2.5 trillion each year.

3.4.7 In response to this and the Government’s targets for reductions in carbon emissions of 60% by 2050, the Northwest has developed an action plan to either meet or exceed those targets in the region.

3.4.8 The report states that in the short term the key areas to concentrate on include:

■ Reduce green emissions by influencing attitude and behaviour change to increase energy efficiency;

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■ Reduce energy demand and promote low carbon technologies; and

■ Putting the mechanisms in place to adapt to future climate change.

3.4.9 The plan sets a number of actions such as - promoting best practice in personal travel planning to reduce the reliance on cars and make more sustainable travel decisions; assessing the potential climate change impacts on the region’s landscape; assessing the potential markets/sector changes as a result of climate change impacts in the UK and abroad; and assessing the potential for green infrastructure including regional parks to adapt and mitigate for climate change impacts.

3.4.10 These will all impact the outdoor sector in the North West and the potential opportunities and threats that climate change places on the market.

Strategic Mapping of the AFM Sector in the North West, March 2007 (Draft)

3.4.11 The NWDA have recently commissioned NWtexnet to undertake a mapping exercise of the AFM sector in the North West. The aim of which is to produce a 15 year vision for the potential future of the sector, and linkages with other strategies and action plans of the NWDA and other partners. This report is due to feed into the outdoor sector study and the North West Sports Strategy, both currently being conducted by other consultancies.

3.4.12 The North West Sports Clothing, Footwear and Equipment sector consists of five sub-sectors – yarns and fabrics, niche sporting goods suppliers, North West based brands, international brands, and sports retailers.

3.4.13 The study identified 125 companies in the North West region involved in the supply of sports wear goods and services, together with 10 major retail groups and a number of independent sportswear retailers. The most important segments from an AFM prospective are the producers of yarns and fabrics, the niche sporting goods suppliers, and the North West based brands.

3.4.14 The report is still in its early stages and therefore, potential opportunities and areas for future development of the sub-sectors are somewhat underdeveloped. These will be included at a later stage when the report is complete.

Strategy for Major Events in England’s Northwest

3.4.15 The Strategy for Major Events fits strategically into the RES and the Regional Tourism Strategy. The Major Events Strategy represents part of the solution to economic change and offers the chance to significantly enhance the profile of the region:

■ To ensure that the region can take maximum advantage of, and be adequately prepared for staging and bidding for major events; and

■ To maximise the opportunities to secure engagement and funding from the public and private sectors.

3.4.16 Key actions detailed include to:

■ Develop a co-ordinated approach to bidding for, developing, managing and securing events across the Northwest;

■ Engage with the private sector to develop specific major events which provide cluster industries identified within the RES the opportunity to showcase and develop business; and

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■ Explore the opportunity presented by grouping smaller events under an umbrella which gives these events the ability to create a greater impact and benefit from economies of scale and collective promotions.

3.4.17 The strategy provides details on how to make better use of the opportunities that the North West presents, and sets out key recommendations on how to maximise this.

Marketing the Natural Environment Strategy, 2006, Team Tourism

3.4.18 Marketing the Natural Environment of the Northwest was commissioned by the NWDA with support from English Nature. The aim of the study was to ‘map the environmental assets of the Northwest, recommend marketing opportunities and better ways of working together, while ensuring sustainability.’

3.4.19 The study indicates the current market in the Northwest is as follows:

■ The region receives 8.2m holiday trips each year, of which 95% are from within the UK;

■ Holidaymakers spend £1.5b and 24% originate from with the Northwest;

■ Two thirds are from social groupings ABC1 and under 54 years old; and

■ Their average spend is £177 per trip and average stay 3.37 nights.

3.4.20 As well as the holidaymakers there are 195m trips to the region from day visitors, 98% are from with the Northwest and 90% of trips come within a 20 mile radius. 68% of these visitors are in social groups ABC1, 73% have no children and the average age is 47.5. The average spend is £8 per trip and the main attractions are walking, sports and eating out. There is a major opportunity to use the natural environment more effectively to attract new tourism business to the Northwest and change perceptions, and investment in product improvements is required to fulfil this potential opportunity. There is a need to define and package the natural environment products and experiences with other elements of a holiday.

Economic Importance of Sport North West Region (Draft), 2007, Sport Industry Research Centre

3.4.21 The report focuses on the economic importance of sport to the North West region and makes comparisons to other English regions. Key points to be drawn from the report include:

■ Sport related activity adds £1,785m to the North West economy, corresponding to 1.8% of total value added in the region;

■ 58,100 people are employed in sport related employment (1.9% of total employment in the region);

■ The sport economy in the North West is driven by consumer expenditure – sport-related expenditure is 2.5% of total spending, the second highest in England; and

■ The North West is distinguished from other regions by the importance of Premiership football – around 35% of Premiership clubs come from the region.

3.4.22 The report reflects the importance of the sport in the North West, and economic benefits this brings to the regional economy, and future opportunities of growth.

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3.5 Local Literature

Promoting Sustainable Tourism, November 2005, Lake District National Park Authority (LDNPA)

3.5.1 This is a statement that provides details of how the LDNPA intends to address the issue of sustainable tourism reflecting the current needs of visitors, tourism businesses and local people. The statement outlines a number of key challenges that LDNPA is facing, including adapting to changing recreation and leisure pursuits, meeting visitor expectations of better quality provision, implementing legislation such as access rights and taking into account Government agendas e.g. social inclusion.

3.5.2 The report states that there has been a rise in active sport and recreation, and visitors expect better quality infrastructure, accommodation and attractions, and that an image of the tourism industry here is beginning to look tired and visitors are becoming displeased with the facilities available. The LDNPA acknowledges there is a shift to a more proactive approach to outdoor recreation and as such the guide to good practice details a number of good examples from the Lake District National Park where work is being done to meet the needs of different visitor groups and minimise conflicts of interest. Examples include the management of motorised recreational vehicles, and visitor monitoring on the Keswick railway footpath and other routes.

3.5.3 The LDNPA wants to produce a tourism action plan as part of their Corporate Plan 2006-2009 to show its commitment to revitalising the core Lake District product and raise the quality of visitor experience to the National Park.

National Park Management Plan, 2004

3.5.4 This management plan sets out the principles, aims and policies for managing the National Park and is supported by an action plan. Access and recreation is one component of the management plan and a number of long term aims are identified, including:

■ Safeguard and extent opportunities for everyone to enjoy the countryside through land and water-based activities;

■ Develop, improve and promote access to encourage an appreciation of environmental conservation and meet wider goals of health, social and economic well-being;

■ Encourage people to explore and discover the National Park for themselves; and enable them to test their skills and abilities in a challenging environment; and

■ Promote respect for legitimate recreational users and local communities, and for the work of land managers.

3.5.5 The management plan details a number of policies in relation to access and recreation, such as:

■ Collaborate with others to ensure that recreational activities do not have a detrimental impact on local communities and landscape;

■ Develop and apply an integrated approach to the management of access and recreation that will promote innovation and good practice; and

■ Provide, develop and promote access for all people who seek opportunities to enjoy the special qualities of the National Park.

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3.5.6 The policies and management of the National Park has a great impact on the outdoor sector and the potential development opportunities.

Sustainable Cumbria – The Sports Economy Scoping Study and Action Plan 2006-2010, Impact Research Ltd

3.5.7 The Study was commissioned by Cumbria Sports Partnership in collaboration with Sport England, West Lakes Renaissance and Rural Regeneration Cumbria with the main aim of producing ‘an action plan to maximise the economic impact of sport and physical activity in Cumbria between 2006 and 2010.’ The study defines the sport economy as one that includes: sport and recreation, health and fitness, and outdoor education (core); sport tourism; sport manufacturing and retail; and related areas e.g. facility development, professional services, education and media.

3.5.8 The report notes that the sport economy has been growing since 1998 in Cumbria at an employment growth rate higher than the regional and national growth rates, and the sector is expected to grow in employment and GVA terms to 2010 and beyond. The key economic facts for Cumbria are:

■ The sports economy will support 4,000 paid jobs in 814 organisations in 2010;

■ Estimated that sport GVA in Cumbria is £95m and £1.14b across the North West, representing 1.4% of the total GVA for the region; and

■ Specific sub-sectors show true growth potential in Cumbria e.g. the outdoors and adrenaline.

3.5.9 The scoping study advocates the need for investment of £3.81m in the priorities as detailed in the Sports Economy Plan. The potential impact of this investment in Cumbria could mean:

■ 332 new paid sport-related jobs in Cumbria could be created by 2010;

■ GVA growth in sport could increase from £95m to £125m by 2014;

■ 25 new sport businesses and 15 sport social enterprises could be created;

■ Stimulate up to £1m additional investment in the economy through hosting a major world sporting events by 2015 and contribute to a 2% increase in activity tourism per annum; and

■ Stimulate a 5% increase in sports participation by Cumbrian residents by 2010.

3.5.10 The study provides details of the sports economy in Cumbria and the economic importance of this sector to the Cumbrian and the North West economy, highlighting the requirement for investment to grow the sector.

Adventure Capital UK, A Draft Strategy for Adventure Tourism in Cumbria 2007-2010, prepared by FM & AMcC, January 2007

3.5.11 The Adventure Capital UK Strategy for Cumbria Tourism is designed to provide a clear framework for the development and promotion of Adventure Tourism in Cumbria for the next five years up to 2012. The report defines Adventure tourism as: “Overnight and day visits that involved participation in active or adventurous outdoor activities, either as primary or secondary purpose visit.”

3.5.12 The key economic findings from the report include:

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■ The market for Adventure Tourism is growing, and is predicted to grow at 3.5% per annum;

■ Estimated 1.5 million visitors to Cumbria for Adventure Tourism pursuits per annum;

■ The value of ‘activity tourism’ in Cumbria is estimated at £75-100 million;

■ 10% of all holidays in the UK are activity holidays in which activity is the main purpose – this equates to 1.5 million visitors to Cumbria;

■ Employment in the Outdoor Activity Education and Training Sector is forecast to grow by 30% over the period 2001 to 2008; and

■ Outdoor Education is estimated at contributing £100 million per annum to the Cumbrian economy.

3.5.13 This report also identified potential market and product developments that the sector needs to fulfil its potential, grow and market itself as Adventure Capital UK.

3.6 Towards a policy position

3.6.1 Whilst there is a good body of evidence and research to show the economic and social benefits of the various sub-sectors that make up the outdoor economy there is no national strategic policy for the outdoor sector that brings all the partner organisations and related sectors together. We understand from the literature reviewed that:

■ The sector is actually a growing one – with consumption patterns increasing (see subsequent sections). That growth if left unchecked is likely to be piecemeal and uncoordinated and the opportunities for harnessing that growth to support regional priorities could be lost;

■ The sector has considerable capacity to address a wide range of important national civic issues (health, rural diversification, sustainable tourism). Without a policy to address these interrelationships, opportunities may be lost;

■ At a regional level there is an increasing amount of both market driven and policy driven initiatives that have a strong focus on “outdoor” (e.g. Adrenaline Gateway, Adventure Capital). The region lacks a policy position from which to guide any investment or major planning policy decisions in respect of these initiatives.

3.6.2 Given this, there is surely then an argument that this study can be used as the catalyst for the development of a co-ordinated and coherent policy standpoint from the NWDA on the outdoor sector. This is the first time this kind of research has been done for the outdoor sector, and should therefore be used as a building block for the agency to state its policy viewpoint on the outdoor sector. Following this study, it is the ideal time for the NWDA to engage with key partners from the various sub-sectors and related sectors, and put forward the economic importance that this sector brings to the region, whilst highlighting the close linkages it has them. A collective standpoint is needed from all parties to take this sector forward in the coming years to maximise the potential benefits this would bring to the North West region.

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4 Defining the outdoor sector

4.1 Introduction

4.1.1 This section provides the definition of the outdoor sector and sub-sectors, and an overview of the sector at a national level. The national data provided here has been sourced from Skills Active report - Skills Needs Assessment: The Outdoors.

4.2 The Definition of the Outdoor Sector

4.2.1 The outdoor sector covers 5 sub-sectors:

■ Outdoor Education

■ Outdoor Recreation

■ Development Training

■ Explorations & Expeditions

■ Outdoor Sport Development

Outdoor Education

4.2.2 Outdoor education includes physical, environmental and social education providing courses in citizenship and spirituality, key skills and outdoor pursuits skills, personal and social education, field studies and other aspects related to the school curriculum.

Outdoor Recreation

4.2.3 Outdoor recreation includes activity and adventure experiences aimed at an introduction to outdoors activities such as summer camps, ‘having fun’, healthy use of leisure time, making friends, gaining independence, and a full range of activity experience starting with taster sessions for beginners to more specialist activities.

Development Training

4.2.4 Development training includes leadership and team development, management skills, organisation and community development, life skills and preparation for employment.

Exploration and Expeditions

4.2.5 Exploration and expeditions includes national, international and local expeditions and research undertaken for reasons such as scientific, geographical and humanitarian reasons, or tourism/recreation. These can also be personal and social development.

Outdoor Sports Development

4.2.6 Outdoor sports development usually lead to adventure and competition sport and coaching, together with the qualifications for which are pre-requisites for teachers and youth workers in many non-sport activities.

4.3 Rationale for the Definition

4.3.1 Following a detailed process which involved reviewing key literature, in depth discussions with a range of key stakeholders at a national and regional level including SkillsActive

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those at the National Skills Academy Employer workshop, and continuous debate with the steering group and internally, it was agreed that the SkillsActive definition would be used for this study.

4.3.2 The SkillsActive definition has been developed by and accepted by an outdoor employer forum. At a national level data has also been produced and therefore, provides us with an opportunity to build on existing evidence and provide a comparable analysis at a region level. The definition excludes the sport element and includes the educational and leadership development components, which conforms to the general consensus of the steering group. It also ties in with the NWDA’s tourism cluster project, and can be used as a platform to build an evidence base for the proposed National Skills Academy regional hub for the outdoor sector in the region.

4.3.3 The data analysis and assumptions for the national results were provided by Experian, who were commissioned by Skills Active to undertake the Skills Needs Assessment. This is the first time the outdoor sector has been analysed in such detail and as with any such data exercise of this kind there will always been some data issues and limitations. We have highlighted where this is the case.

4.4 National Overview

4.4.1 The definition and corresponding national data relates to the specific SIC codes as shown in Table 4.1 and reflects a ‘standard’ slice of the SIC code.

Table 4.1 – Definition of the Outdoor Sector

SIC Code SIC Description Share of the SIC Code (%)

9272 Other recreational activities 13

5521 Youth hostels and mountain refuges 75

9262 Other sporting activities 4

9261 Operation of sports arenas and stadia 1

5523 Other provision of lodgings n.e.c 6

8042 Adult and other education n.e.c 1

7122 Renting of water transport equipment 20

2932 Manufacture of other agricultural and forestry machinery 3

Source: Skills Needs Assessment: The Outdoors, SkillsActive, 2007

4.4.2 The size of the outdoor sector in the UK in terms of its value is showed in Table 4.2.

Table 4.2 – Output of the Outdoor Sector in the UK, 2004

Total GVA (£ms) Share of Whole Economy (%)

The Outdoors 430 0.1

Active Leisure and Learning 8,590 0.9

Whole Economy 922,060 -

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4.4.3 In 2004, GVA output stood at £430m, contributing to 5.1% of the total Active Leisure and Learning output, and 0.1% of the whole UK output.

4.4.4 In 2004, there were 25,021 people employed in the outdoor sector, as detailed in Table 4.3, representing 0.1% to the total UK employment figures.

Table 4.3 – Employment in the Outdoor Sector in the UK, 2004

Total Share of Total Active Leisure and Learning

(%)

Share of Whole Economy (%)

The Outdoors 25,090 4.3 0.1

Active Leisure and Learning 575,990 - 1.9

Whole Economy 30,134,250 -


4.4.5 A Workforce Development Plan by SPRITO however stated that the number of people employed in the outdoor sector is more like 50,000 employees.

4.4.6 According the Skills Needs Assessment, the outdoor sector employed more females than males in 2004, with a ratio of 55 females to 45 males. This can in part be explained by the range of occupations involved in the outdoor sector such as support staff like cleaners and catering staff, while core occupations such as instructors tend to be predominantly male. Given the seasonal nature of employment and the type of activities involved, the outdoor sector also tends to employ a significant proportion of 16 to 24 year olds.

4.4.7 Table 4.4 shows the employment profile of employees in the outdoor sector.

Table 4.4 – Employment Profile of the Outdoor Sector in the UK, 2004

Full-time (%) Part-time (%) Self-employed (%)

Outdoors Sector 43 41 16

UK 65 22 13


4.4.8 Self-employment in the outdoor sector is relatively high, 16% compared to 13% at a UK level. The full-time and part-time employee split is 43% compared to 41% in the outdoor, somewhat different to the national figures of 65% and 22% respectively - again reflecting the nature of the work. Table 4.5 illustrates the occupation breakdown of the outdoor sector compared to the UK as a whole.

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Table 4.5 – Occupational Profile of the Outdoor Sector in the UK, 2004

The Outdoor Sector (%)

The UK Economy (%)

Managers and Senior Officials 24 15

Professional Occupations 4 11

Associate Professional and Technical Occupations 14 13

Administrative and Secretarial Occupations 13 14

Skilled Trade Occupations 9 11

Personal Service Occupations 12 7

Sales and Customer Service Occupations 6 8

Process, Plant and Machine Operatives 2 8

Elementary Occupations 17 12

Weighted Base 25,020 30,134,250


4.4.9 Managers and senior officials represent 24% of all occupations in the outdoor sector compared to 15% in the UK, this could relate to the number of self-employed people in the industry, working as sole traders or in micro-businesses. Of the 14% of people working as associate professional and technical occupations, 7% of these are classified as being in sports and fitness occupations. 17% of all employees in the outdoor sector are in elementary occupations such as personal and cleaning occupations, above the national rate of 12%. Volunteers are also an important component of the outdoor sector with eight out of ten sports coaches being volunteers.3

Forecast Patterns in the Outdoor Sector

4.4.10 Table 4.6 shows the estimated forecast growth in GVA output in the outdoor sector in the UK.

Table 4.6 – Forecast Growth in GVA in the Outdoor Sector

1999 to 2004 (%) 2004 to 2009 (%) 2009 to 2014 (%)

Outdoors Sector 6.6 3.8 2.7

Active Leisure and Learning 5.3 3.6 2.8

Whole Economy 2.7 2.8 2.6


3 Sports Coaching in the UK, Mori, 2004

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4.4.11 The outdoor sector is expected to grow at an annual rate of 3.8% up to 2009, which is above that of the whole UK economy. There has been a downturn in the annual rate of growth in the outdoor sector since 1999 however significant growth is still estimated annually to 2014, and will outperform the whole economy. Table 4.7 illustrates the estimated growth rate in employment.

Table 4.7 – Forecast Growth in Employment in the Outdoor Sector

1999 to 2004 (%) 2004 to 2009 (%) 2009 to 2014 (%)

Outdoors Sector 4.5 1.8 1.5

Active Leisure and Learning 3.9 2.1 1.4

Whole Economy 1.0 0.6 0.4


4.4.12 Employment in the outdoor sector grew by 4.5%, compared to 1.0% for the whole economy between 1999 and 2004. This growth is expected to continue but at a slower annual rate of 1.8% to 2009, however, this still compares favourable with the whole economy.

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5 The outdoor sector in the North West

5.1 Introduction and approach

5.1.1 The outdoor sector – as discussed earlier – does not correspond comfortably with existing SIC Codes. Specifically, only a small number of companies belonging to 8 four digit SIC codes that Skills Active have concluded best represent activity within the sector are actually outdoor businesses in the truest sense. Table 4.1 in the previous section of the report provides the estimates used by Skills Active as to what percentage of companies within the 8 SICs are actually outdoor companies.

5.1.2 Owing to the primary nature of this report, the consultant team have elected not to rely on the Skills Active Up estimate apportionments and have instead spent considerable time preparing and then analysing a database of every single company that trades or is based in the region and belongs to one of the sectors that forms part of our agreed sector definition. This we must emphasise is not to question the validity of the Skills Active work. Rather the intention was to add to this and further the debate whilst at the same time enabling the creation of a specific database to every company in the region belonging to the outdoor sector.

5.1.3 There are approximately 3,000 companies belonging to the 8 four digit SIC codes provided at table 4.1. The consultant team have purchased a database of these companies and analysed the nature of each company to determine whether or not they are genuinely “outdoor”. A limited number of these companies were easily recognisable as either being included in the outdoor sector or not. However, for the majority of companies in the database it was impossible to distinguish whether they should be included in the outdoor sector. Therefore, the consultant team made direct contact every company on the database to confirm their involvement in the outdoor sector.

5.1.4 The analysis contained hereon therefore provides – at least based on current definitions – a comprehensive database of companies in the region. It is not, in these terms a piece of theoretical or modelled analysis.

5.2 Overall regional picture

5.2.1 Table 5.1 shows the number and proportion of businesses in the North West in the outdoor sector and by sub-sector.

Table 5.1 – Number and Percentage of Businesses in the North West in the Outdoor Sector

Sector Breakdown Number of Businesses % of Businesses

Manufacture of other agricultural and forestry machinery 0 -

Youth Hostels and mountain refuges 15 3%

Other provision of lodgings not elsewhere 66 14%

Renting of water transport equipment 0 -

Adult and other education not elsewhere classified 56 12%

Operation of sports arenas and stadiums 16 3%

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Sector Breakdown Number of Businesses % of Businesses

Other sporting activities4 214 44%

Other recreational activities not elsewhere 117 24%

Outdoor Sector 484 100%

Source: Location Prospect, 2007, analysed by Tribal Consulting

5.2.2 In all there are 484 businesses in the outdoor sector in the North West. Of these, 12% are businesses in adult and other education, 44% are businesses in other sporting activities, and 24% are in other recreational activities.

5.2.3 Figures 5.1 through to 5.3 provide a visual display of the geographic location of the companies contained within the “outdoor database”.

4 ‘Other sporting activities and other recreational activities not elsewhere includes organisation and operation of sports events, outdoor or indoor, for professionals or amateurs by organisations with or without own facilities; clubs e.g. bowling clubs, swimming clubs, winter sport clubs, shooting clubs; activities of individual own-account sportsmen and athletes, judges, timekeepers, instructors, teachers, coaches, etc; activities of sport and game schools; activities of racing stables, kennels and garages; activities of riding academies; activities of marinas; hunting for sport or recreation; activities of recreation parks and beaches including renting of facilities such as bath houses, lockers, chairs, etc; activities related to recreational fishing; and recreational transport facilities such pedalos, riding stables.

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Figure 5.1 GIS Plan of Outdoor Companies

5.2.4 Table 5.2 shows the size of the businesses in the outdoor sector in the North West.

Table 5.2 – Size of Businesses in the North West

Size Breakdown No of Businesses Percent

1 – 2 202 42%

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3 – 5 152 31%

6 – 15 85 18%

16 – 25 12 2%

26 – 50 17 4%

51 – 100 3 1%

101 – 250 5 1%

251 – 500 6 1%

501 – 1000 2 0%

Total 484 100%


5.2.5 As is consistent with national patterns, the majority of the businesses in the outdoor sector are micro-businesses, with 91% of them having less than 15 employees. 42% of businesses in the region have between 1 and 2 employees, and therefore tend to be either sole traders and or otherwise registered as self-employed.

5.2.6 Table 5.3 illustrates the turnover range for businesses in the outdoor sector for the region.

Table 5.3 – Turnover Range for Businesses in the North West

Turnover Bracket Number of Businesses % of Businesses

0 70 14%

1 – 5,000 14 3%

5,001 – 10,000 8 2%

10,001 – 25,000 65 13%

25,001 – 50,000 84 17%

50,001 – 100,000 97 20%

100,001 – 250,000 106 22%

250,001 – 500,000 20 4%

500,001 – 1,000,000 7 1%

1,000,001 – 10,000,000 6 1%

10,000,001 – 50,000,000 7 1%

Total 484 100%


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5.2.7 It should be noted that out of the 484 businesses, 14% (70) of these do not state which turnover bracket they fall within. Of the 414 businesses that did state their turnover bracket, the overwhelming majority turn over less than £250,000. Only 7% of all regional companies have a turnover greater than £250,000.

5.2.8 Interestingly there are 7 companies within the region that quote a turnover of greater than £10 million. These companies include HF Holidays Ltd, a North West based company that specialises in arranging walking holidays. The reminder are all specialist lodging companies that provide web-portal access to Country Cottages for rent. We accept that it is debateable as to whether or not these companies are “outdoor” in the purist sense. However, our interviews with a selection of the companies concerned did confirm their reliance on walkers, cyclists and a wide range of other outdoor consumers for a significant amount of their business. Their continued inclusion within the definition should be a matter discussed more widely in the future.

5.3 Sub-regional analysis

5.3.1 This section examines the business data at a sub-regional level. Table 5.4 shows the number and proportion of businesses within the outdoor sector and by sub-sectors.

Table 5.4 – Number and proportion of Businesses in the Outdoor Sector by Sub-region

Sector Cheshire Cumbria Grt Manc Lancashire Merseyside

No % No % No % No % No %

Youth Hostels And Mountain Refuges 1 0% 5 1% 1 0% 6 1% 2 0%

Other Provision Of Lodgings Not Elsewhere Classified 6 1% 33 7% 2 0% 18 4% 7 1%

Adult And Other Education Not Elsewhere Classified 9 2% 12 2% 5 1% 20 4% 10 2%

Operation Of Sports Arenas And Stadiums 4 1% 3 1% 2 0% 4 1% 3 1%

Other Sporting Activities 60 12% 40 8% 17 4% 70 14% 27 6%

Other Recreational Activities Not Elsewhere Classified 24 5% 39 8% 5 1% 37 8% 12 2%

Outdoor sector 104 21% 132 27% 32 7% 155 32% 61 13%

5.3.2 It can be seen that 32% of all outdoor businesses are located in Lancashire, 21% in Cheshire, 13% in Merseyside, 27% in Cumbria and 7% in Greater Manchester. In Cheshire, the key sub-sectors are adult education and other sporting activities. Cheshire is home to many equestrian businesses, and is well-known among individuals and businesses working within the equestrian industry across the region.

5.3.3 Adult education, lodgings, recreational and other sporting activities are all prominent sub-sectors in Cumbria, illustrating the range of providers and facilities that Cumbria offers, for example, management training, outdoor education for school children, outdoor activities for the general public and accommodation ranging from youth hostels to residential centres.

5.3.4 In Greater Manchester the key sub-sectors are in adult education, other sporting activities and recreational activities. Cycling and walking trails are an important component of the outdoor provision in Greater Manchester.

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5.3.5 Lancashire has the largest proportion of adult education and education businesses in the region, and this is evident by the range and number of outdoor education centres mainly for school pupils, but also for an increasing number of corporate clients.

5.3.6 The key sub-sectors in Merseyside are in adult education, other sporting activities and recreational activities. Sailing and watersports are an particularly important component of the outdoor sector in Merseyside,

Table 5.5 – Size of Businesses in the Outdoor Sector by Sub-region

Size Cheshire Cumbria Greater Manchester Lancashire Merseyside


1 – 2 44 9% 62 13% 11 2% 65 13% 20 4%

3 – 5 36 7% 40 8% 14 3% 43 9% 19 4%

6 – 15 21 4% 19 4% 5 1% 27 6% 13 3%

6 – 25 1 0% 2 0% 2 0% 6 1% 1 0%

26 - 50 1 0% 5 1% - 0% 4 1% 7 1%

51 - 100 - 0% 1 0% - 0% 2 0% - 0%

101 - 250 1 0% 1 0% - 0% 3 1% - 0%

251 - 500 - 0% 2 0% - 0% 4 1% - 0%

501 - 1000 - 0% 0% - 0% 1 0% 1 0%

Total 104 21% 132 27% 32 7% 155 32% 61 13%

5.3.7 As one would expect and as with the regional data a significant proportion of businesses within each sub-region has less than 25 employees. In Cheshire, 4% of all businesses in the outdoor sector have less than 15 employees, 4% in Cumbria, 1% in Greater Manchester, 6% in Lancashire and 3% in Merseyside. Table 5.6 shows the turnover bracket businesses in the outdoor sector in the sub-regions.

Table 5.6 – Turnover of Businesses in the Outdoor Sector by Sub-region

Turnover Bracket Cheshire Cumbria Greater

Manchester Lancashire Merseysid

e


0 11 2% 16 3% 4 1% 27 6% 12 2%

1,001 - 5,000 6 1% 1 0% 2 0% 4 1% 1 0%

5,001 - 10,000 1 0% 3 1% - 0% 3 1% 1 0%

10,001 - 25,000 12 2% 21 4% 4 1% 23 5% 5 1%

25,001 - 50,000 16 3% 27 6% 3 1% 27 6% 11 2%

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Turnover Bracket Cheshire Cumbria Greater

Manchester Lancashire Merseysid

e


50,001 - 100,000 24 5% 20 4% 11 2% 30 6% 12 2%

100,001 - 250,000 30 6% 34 7% 6 1% 23 5% 13 3%

250,001 - 500,000 3 1% 5 1% 1 0% 8 2% 3 1%

500,001 - 1,000,000 - 0% 2 0% 1 0% 1 0% 3 1%

1,000,001 - 10,000,000 1 0% 1 0% - 0% 4 1% - 0%

10,000,001 - 50,000,000 - 0% 2 0% - 0% 5 1% - 0%

Total 104 21% 132 27% 32 7% 155 32% 61 13%

5.3.8 For each sub-region it can be seen that a significant proportion of businesses in the outdoor sector have a turnover that lies with the £10,001 to £100,000 brackets. In Cheshire, 10% fall within this bracket, 14% do in Cumbria, 4% in Greater Manchester, 17% in Lancashire and 5% in Merseyside. As detailed in Section 5 this is reflective for the region as a whole.

5.4 Forecasts for the future

5.4.1 The study also involved the development of forecast information relating to the sector. Specifically, further additional research was commissioned by the study team which seeks to examine and estimate how the sector might perform over the next ten years. The forecast data uses the same sector definition as that developed for the regional analysis presented above (5.1 to 5.3), but uses different base data. We understand that the base data has been modelled, based on an estimation of the proportion of all companies that occupy the SIC codes relating to the outdoor sector, that genuinely provide goods and services for the outdoor market. Whilst this does mean that the two data sets are not comparable, it des not detract from its usefulness. The forecast information provides an indication of how trends in the sector may play out over the next ten years. It is the trends that we are primarily concerned with, rather than the numbers in absolute terms.

Table 5.7 Overall forecast summary; North West Outdoor Sector

North West 1996 2006 2016 Average Annual Growth 1996 – 2006

Average Annual Growth 2006 –

2016

Total Employment 2,098 2,665 2,695 2.4% 0.1%

Employees 1,718 2,276 2,336 2.9% 0.3%

PT 761 1,086 1,210 3.6% 1.1%

FT 957 1,189 1,125 2.2% -0.6%

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North West 1996 2006 2016 Average Annual Growth 1996 – 2006

Average Annual Growth 2006 –

2016

Self Employed 381 387 360 0.2% -0.7%

Output (£) 28,572 44,164 49,862 4.5% 1.2%

Source: Skills Active, Experian Business Strategies Limited © Copyright 2007

5.4.2 Interestingly output growth is forecast to outstrip employment growth. So, whilst productivity in the sector may rise in the future, its relationship with employment may not be one that is positively correlated. That trend reflects the fact that the industry is forecast to continue to be one characterised by small business with small numbers of employees.

Figure 5.2: Total Employment (000’s) 1996 – 2016

0

100

200

300

400

500

600

700

800

900

1,000

1995

1996

1997

1998

1999

2000

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2011

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2015

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Tot

al E

mpl

oym

ent

Cheshire Cumbria Greater Manchester Lancashire Merseyside


5.4.3 Figure 5.2, illustrates the levels of forecast output growth on a sub-regional basis. Interestingly it is Greater Manchester that is forecast to witness the strongest level of growth – and not the sub-regional destinations that are currently home to most of the outdoor businesses. This is partly attributable to the forecast economic growth across all sectors. The Greater Manchester economy is one of the fastest growing in the UK at the moment – and indeed the second fastest outside of London and the South East. It is growth in the wider economy that would appear to be driving growth in the outdoor sector in our forecast model and not the performance of the sector per se.

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Figure 5.3 Output Forecast (£) 1996 – 2016

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1995

1996

1997

1998

1999

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2011

2012

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£

Cheshire Cumbria Greater Manchester Lancashire Merseyside


5.5 Summary points

5.5.1 Whilst the production of a dataset for the North West outdoor sector has been a time consuming exercise, it has produced a reliable and importantly updatable information resource. That resource can be used to communicate with companies and similarly to update the analysis in this report.

5.5.2 The analysis reveals a sector with a number of particular characteristics:

■ It is a small sector – both in terms of the overall number of businesses that occupy it and in terms of the scale of those businesses. The overwhelming majority of companies employ less than 15 staff and are in those terms ‘micro businesses’. However even here, the tendency is towards particularly small companies: the majority employ less than five people;

■ The most dominant sub-sector is ‘other sporting activities’. Nearly 45% of all companies analysed occupy this sector. This sector includes organisers of sporting activities and events (e.g. cycle tour operators) and it also includes the clubs, marinas, riding academies, stables, hunting and the rental of sporting equipment. This sector is followed by other recreational activities not classified elsewhere – a sub-sector represented by 24% of the regions businesses. These are mainly recreational venues (e.g. parks and fishing facilities) and recreational transport facilities (e.g. boat hiring);

■ Geographically, our dataset indicates that 32% of all outdoor businesses are located in Lancashire, 21% in Cheshire, 13% in Merseyside, 27% in Cumbria and 7% in Greater Manchester; and

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■ From a forecast standpoint, output growth is anticipated and this rate of growth is forecast to outstrip that for employment. The highest rate of growth is predicted for the Greater Manchester sub-region.

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6 The regional asset base

6.1 Introduction

6.1.1 This section of the report provides an analysis of the asset base that underpins the North West’s outdoor sector. Much of the analysis draws on findings of recent and related research (commissioned by the NWDA) that looks at quality of the region’s outdoor environment.

6.2 A framework for a strong destination

6.2.1 Market research demonstrates that internationally known destinations for the pursuit of sport and outdoor activity have a number of common traits or pre-requisites.






6.2.2 The North West has some of these pre-requisites in place (notably a high quality natural environment) and others developing apace (e.g. a nascent set of products delivering outdoor sport experiences to the public).

6.3 The natural environment

6.3.1 A hugely important driver in the outdoor market – and importantly the consumer perception of it – is the quality of the natural environment. Marketing the Natural Environment in the North West, study commissioned by the NWDA and English Heritage identifies areas in the North West where the environmental quality and natural assets are of the highest scale. The study illustrates the breadth and quality of the regions natural environment and described parts of it as amongst the best in England.

6.3.2 The study also draws together information relating to the regions environment and mapped those which were of demonstrable regional significance. Marketing the Natural Environment in the North West Study sets out examples of significant assets in the region - these are presented in the table below.

Table 6.1 Regionally significant environmental assets

NATURAL ASSET NOTES EXAMPLES

1. Landscape character (with significant natural distinctiveness)

High quality environment which attracts visitors and defines positive image

Arnside-Silverdale AONB

Central Lake District

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NATURAL ASSET NOTES EXAMPLES

2. Key natural habitat sites

Remnants, sometimes small, very important for wildlife and special interest visitors

Cheshire meres

Heather moorland on Bowland

3. Notable species of plants and animals

Species with wide popular appeal

Red squirrels at Formby

Osprey at Bassenthwaite

4. Inland water (lakes, reservoirs, rivers and canals)

Natural attraction of inland water and major angling resources

Lake Windermere

Cheshire ring canal

5. Viewpoints with easy access (near car parks)

Important popular viewpoints Shutlingsloe Arnside Knott

Alderley Edge (car)

6. Notable mountains and hills

Walking and climbing appeal as well as landscape significance

Pendle Hill

Hellvelyn

Shutlingsloe

7. Significant woodlands and forests

Important for recreation Delamare Forest, Cheshire

Grizedale Forest, Cumbria

8. Geological interest/mines

Prominent rocks and geological exposures

Whitbarrow limestone pavement

Sandstone ridges (Cheshire)

9. Major landscaped parklands (often with historic houses)

Historic and recreational importance

Tatton Park, Cheshire

Haigh Country Park, Wigan

10. Coastal landforms -dunes, cliffs, estuaries, saltmarshes

Attractive and important for natural processes

Sefton Coast

St Bees Head

Ribble Estuary

Dee estuary marshes

11. Remoteness and tranquility

Rare commodity in England North Pennine moors

Western Lakes

Source: Marketing the Natural Environment in the North West (NWDA)

6.3.3 The study also physically mapped the main locations for outdoor activities in the region. A summary of this exercise is provided in Figure 6.1, overleaf.

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Figure 6.1 Main Outdoor Activity Destinations

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6.3.4 An important finding of the study related to the distribution of ‘consumption’ of the regional landscape assets. In particular it concluded that a number of important regional assets are being underutilised and under promoted for tourism and recreation. Only popular ‘honey pots’ the Central Lake District, sites along the Sefton Coast, Delamere Forest and some of the country parks are widely appreciated by the consumer audience and to an extent can at times suffer from over-subscription. Elsewhere, the natural assets of the region could provide an attraction for more visitors than is currently happening, so long as appropriate visitor management is put in place to ensure the natural assets are not damaged through recreational activities.

6.3.5 The report identifies a number of areas that have the potential with appropriate support and management to be opened up to the more visitors and be of interest to the market, these include:

■ Solway Firth – coastline & birdlife;

■ Eden Valley and North Pennine fringes – river valley, woodland, moorlands;

■ Walney Island/Duddon Estuary to St Bees Head – coastline & wildlife;

■ Forest of Bowland – heather moorland, river valleys & woodland;

■ Orton and Howgill Fells – grasslands, moorland birds, spectacular views;

■ Sefton Coast – coastline, dunes & birdlife; and

■ Peak District Fringe – varied & dramatic landscape, views, canal, birdlife and related heritage interest.

6.4 Products, brand destinations and events

6.4.1 Identifying a product – or indeed series of products – with which the region is synonymous is probably not appropriate. The North West covers a land mass of nearly 14,000 Sq KM and a population of more than 6.8 million. It is difficult to conceive of any one product or even a series of products that characterise an area of this scale. It is more appropriate to consider particular products, attractions and features that exist in the region, but have a much stronger local identity and role.

6.4.2 Without doubt the Lake District is one of the strongest regional outdoor assets. It is a world renowned location and offers a breadth of experiences that cater for the hardened outdoor enthusiasts through to the more occasional and casual participant. Rock Climbing was invented in the area and today, the Lake District, Cumbria can fairly claim to be of national importance in walking, rock climbing, caving, mountain biking, road biking, caving, sailing, canoeing, paragliding, orienteering, fell running, road running, horse and pony trekking. It can offer many other activities.

6.4.3 Recent improved facilities include Grizedale Forest, Sustrans national bike routes, and many other cycle ways. Proposals include a mountain bike trail in Whinlatter Forest, and the upgrading of Wainwright’s Coast to Coast Walk to a National Trail all add to the quality of the offer and the diversity of the experiences available.

6.4.4 In addition to this hugely important physical asset, the region also benefits from a wide range of events, activities and an increasing number of outdoor festivals. Listing all of the major events and festivals would be a considerable task, however, amongst the examples that we have discovered a widespread awareness of are:

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■ The Manchester to Blackpool annual cycle ride. Now in its 19th year, the ride is the biggest mass cycling event in the North West and one of attracts one of the largest crowds nationally;

■ Held in May, the Garstang Walking festival is also growing considerably in its popularity. It provides a series of walks – for a wide range of levels – that allow participants to enjoy the “hidden secret” of Bowland. It also showcases local producers and amenities;

■ This year will see a trio of outdoor festivals in the lake lands. Bike Fest will be the first cycling festival in the areas; the Ullswater walking festival will celebrate its second anniversary; and the Keswick Mountain festival will include walking, climbing, mountaineering, talks and presentations and a wide array of other events for those that take part;

■ Whitehaven’s International Maritime Festival and Barrow’s International Festival of the Sea. This is in addition to the Mersey River festival which attracts visitors from across the UK and beyond.

6.4.5 The region is also host to a wide range of other nationally important outdoor festivals, competitions, challenges and events, whose number and importance is growing. Examples include the Fred Whitton Challenge in road biking, and the Bob Graham Round in fell running plus many others. The National Mountaineering Exhibition is based at Rheged, near Penrith. Similarly the British Mountaineering Council has their headquarters in Manchester.

6.4.6 Interestingly, the British Mountaineering Council has some 32 affiliated clubs registered in the North West. This is the third highest number in any of their designated regions. Yet despite places like the Midlands and London having more registered clubs, the North West actually has the second highest number of club owned huts – many of which are owned by clubs that are registered outside of the region. This in itself is an indication of the strength of national interest in the regions climbing and mountaineering offer.

6.4.7 The North West also has 136 registered cycling clubs. This is roughly 12% of all clubs that are registered in the UK. Annually the region hosts more than 300 British Cycling registered races.

6.4.8 There are some 47 sailing clubs in the North West. This makes the region the sixth biggest in the UK – although using a definition that includes some 13 overall regions.

6.4.9 There are similarly some 36 clubs for those who like to canoe and kayak. These are based across the region and cluster as much in urban areas as they do in rural ones.

6.4.10 The mountain biking fraternity is catered for and the Forestry Commission has created 11 specialist facilities across the North West that have rides for all riding abilities. Recent research from Cumbria Tourism does however show that the ‘biking offer’ is actually tired and bikers are actually travelling to the centres such as those developed by the 7 Stanes project in Southern Scotland.

6.4.11 In terms of emerging markets and products, the region is also hosting more and more “Adventure Racing” events. Whilst these combine extreme sports and are for those who like a serious challenge, their popularity is growing and events in the region are becoming increasingly frequent.

6.4.12 For those who enjoy more leisurely activities, the National Trust offers 37 significant regional attractions in the North West. Although not strictly “pure” outdoor attractions, the

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stately homes, historic settlements and parks are often quite synonymous with how people think about an area.

6.4.13 These are just some of the headlines that our research has revealed. They demonstrate that the region has a diversity of provision as well as well organised network of providers. However, we must stress that much of this information has been challenging to obtain. At a national level, details of outdoor events and activities taking place in the region is very sparse (see www.enjoyengland.com). Regionally, there is limited information relating to the sector as a whole and indeed individual sub-sectors. Much of what we have prepared has involved laborious ‘trails’ through membership web sites and so on.

6.4.14 This situation compares particularly unfavourably with Wales and Scotland. Here details of events, attractions, natural environments and clubs are far more straightforward to obtain. Whilst this does not indicate that the experience there is any better – it without doubt highlights an infrastructure that is somewhat better organised.

6.5 Outdoor education and development training

6.5.1 Outdoor Education and Development Training is a key component to the outdoor sector in the North West, and this extends from outdoor activities for school children and young disadvantaged individuals to workforce development for corporate organisations. The North West is home to many major national and international outdoor education and development training organisations such as Outward Bound, Brathay and Impact to name but a few. The importance of the outdoor education and development sectors in terms of economic, social and other benefits e.g. skills development, personal development, improved physical and mental well-being are of great significance to the region. Many businesses in the outdoors survive and prosper on the unique overlap between the sub-sectors in recreation, education and development training.

6.5.2 The Government’s recent Learning outside the Classroom Manifesto is also putting learning outside the classroom in a prominent position within both the national curriculum and also within young people’s personal development objectives. This is helping to drive forward the importance of outdoor education and learning. Linked to this is the Institute of Outdoor Learning based in Cumbria, which is also central to the promotion of the outdoor learning. The Institute encourages outdoor learning by developing quality, safety and opportunity to experience outdoor activity provision and by supporting and enhancing the good practice of those who work in the outdoors.

6.5.3 The Higher Education Institutions (HEIs) across the North West are also playing a key role in the development of the outdoor sector, each having its own specialism. The University of Central Lancashire has a division of outdoor education and runs many sport, outdoor education, tourism and leisure programmes. The campus in Penrith is now part of the University of Cumbria and provides the University’s School of Outdoor Studies. It will also be home to the regional hub for the National Skills Academy (see below for further details). Manchester Metropolitain University and Liverpool John Moores University both have Departments for Sport and Exercise Sciences, and provide a range of courses e.g. sports science, coaching science and sports psychology in exercise and health. UMIST is recognised as a having a high performance sportswear research group and textile department focussing on sportswear design and production. These are central to the continual growth and development of the outdoor sector, and the skills base that is required to compete with other regions and globally in this sector.

6.6 National Skills Academy

6.6.1 The National Skills Academy for Sport and Active Leisure will be an employer-led, network of world class centres of excellence delivering the training required to upskill the sector’s workforce in each region. The plan is to have a national hub in London which will open in 2008 at the Crystal Palace National Sports Centre. To complement this, regional

http://www.enjoyengland.com/�

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centres will be opened in phases. In phase 1, two further centres in Sheffield and Penrith will be opened. In Penrith this will be based at COMET – the Centre for Outdoor Management, Education and Training. The North West Regional Hub will focus on the outdoor component of the sector. The regional hub will be based on a ‘hub and spokes’ approach. COMET will operate as the hub and the spokes will be centres of excellence across the North West. These facilities will provide a whole range of services including careers and learning information for employers and individuals; links to training providers, schools and colleges in the region; and working closely with employers to understand their needs.

6.7 Retail and manufacturing

6.7.1 Research recently commissioned by the NWDA looks at the role, structure and contribution of the Advanced Flexible Materials (AFM) sector to the regional economy. AFM is relevant to the outdoor sector as many companies are involved in the manufacture of goods for outdoor sports / activities.

6.7.2 The AFM study identified around 125 companies in the North West region involved in the supply of sportswear products, in product development, design and brand marketing activities as well as 10 major retail groups and a large number of independent sportswear retailers. Key sub-sectors in the North West include:

■ the coated fabrics, for example, Gorix Ltd, Outdoor and Sports Equipment and Henri Lloyd;

■ activity in fabrics for first layer garments such as Umbro and Cloverbrook;

■ textile production, for example, New Balance Atheletic Shoes and Camtext Fabrics Ltd;

■ the production of composites for sports applications such as Fibreforce Composites Ltd; and

■ artificial turf producers, for example, Support in Sport Ltd and Verde Sports Ltd.

6.7.3 The report states that ‘a key development of the region’s clothing, footwear and equipment sector lies in an integrated approach to: textile technology, product development, design management, sourcing of materials and finished products, branding, marketing, selling to various types of retailer and internet selling.’

6.8 Urban activities

6.8.1 Whilst many associate the outdoors with rural areas such as the Cumbria or Lancashire, the urban areas in the North West do provide people with a whole range of opportunities to participate in and enjoy the outdoors. There are also new developments and improvements proposed for the outdoor sector in urban areas across the region. In Liverpool, for example, you have the regional coastal park signature project - Mersey Waterfront, aimed at regenerating the 120km’s of coastline and investments have already taken place in the Wirral Way between West Kirby and Thurstaston and the cycle way between West Kirkby and Holylake - linking the network of walking and cycle ways around the coastline. There are also proposals for the transformation of Sherdley Park into the region’s premier outdoor events venue; and enhanced countryside trails in St Helens.

6.8.2 In Greater Manchester there are a number of outdoor opportunities such as the Salford Watersports Centre offering rowing, canoeing, sailing and windsurfing courses. Haigh Country Park in Wigan offers 40 miles of woodland trails and canal towpaths for people to use; the South and West Pennine Moors offer cycleways and bridleways for walkers and

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zzriders, and North Manchester is characterised by a number of canals, many of which provide people with cycling routes, heritage trials and walking routes.

6.8.3 The outdoor sector is clearly one that encapsulates both the rural and urban areas of the region, and is seen by many as an area for potential urban development.

6.9 The importance of clubs, volunteers and networks

6.9.1 It is hugely important to recognise the vital role played by clubs and less formal networks in many outdoor markets. For many participants, outdoor activities are more than just a sport – they are a way of life and an important part of their social circle. Clubs are especially important in publicising events, activities and organising get together. Yet many clubs are small. Most are also quite informal, often organised and operated by volunteers and run with very limited resource. It is partly because of this issue that information relating to the sector as a whole is so difficult to obtain. It is also partly due to the attitudes of clubs that information is hard to obtain: many resist the colonisation of their activities or areas by new consumers. For the hardcore enthusiasts especially, the idea that a study like this is being commissioned has been clearly an area of contention.

6.9.2 The Active People Survey does however provide further context to the number of volunteers in the region and those in club membership, receiving tuition and/or taken part in organised competition. The key findings from the 2006 Active People Survey includes:

■ 4.6% (250,955) of the adult population contribute at least one hour a week volunteering to sport, compare to 4.7% nationally;

■ Volunteering levels ranged from 7.1% in South Lakeland and 2.7% in Knowsley;

■ 24.9% of the adult population are members of a club where they take part in sport, compared to 25.1% nationally

■ 16.4% of adults have received tuition from an instructor or coach over the last 12 months, the national figure is 18%;

■ 14.5% of adults have taken part in organised competitive sport in the last 12 months compared to 15% nationally; and

■ 70.1% of adults are fairly or very satisfied with sports provision in their local area, above the national figure of 69.5%.

6.9.3 If the region is to think seriously about growing its outdoor market, it must work with the clubs that represent so much of the sector and find ways through which their networks can be strengthened and developed.

6.10 How well does the North West compare to competing places?

6.10.1 The North West region is competing not only with international destinations but with other regions closer to home for day visits, weekend breaks, and longer, traditional holidays. On an increasingly regular basis advertisements are being shown on television promoting Scotland and Wales, as places to go not just for a holiday or short break, but for outdoor activities. These two areas have deliberately sought to step up in terms of promoting themselves as outdoor destinations, and in particular, ones that appeal to a wide consumer market including families, couples, extremists and outdoor enthusiasts, as well as the international market.

6.10.2 Visit Scotland, the official Tourist Board for Scotland provides a comprehensive source of information for visitors to Scotland. Anyone; whether you are a family going to Scotland

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for the first time and have no idea where to go or what to do or a participant in the 2007 Mountain Bike Championships can go to www.visitscotland.com and find what they need. It clearly sets out all the information about various locations providing, for example, a full and detailed list of the outdoor activities, a business directory of all the providers including accommodation and training facilities, an area guide of where to stay and eating out provision, and travel routes. For example if you want to plan a family holiday which includes participating in cycling you simple go onto the website, and it provides you with details on how to plan for your break, family cycling routes, accommodation, safety tips and approved cycling operators. You do not need to look any further than that for your trip. If on the other hand you want to go mountain biking there is a whole section that provides information on 59 routes, bike centres and accommodation, events and links to other web sites.

6.10.3 Scotland in recent yeas has been re-establishing itself as a place to visit for outdoor pursuits, and has been taking the necessary steps to ensure that it appeals to not only the mass market but to the outdoor enthusiasts. Hosting the Mountain Bike World Championships 2007 has helped to promote Scotland to the more extreme end of the market. Scotland has now established itself as one of the best competition venues in the world for mountain biking, and is recognised by the UCI as a venue for all mountain bike events. In doing so it attracts people from the UK and the rest of the world, and has put Scotland on the global stage competing with the likes of New Zealand.

6.10.4 Scotland is also promoting itself as the ‘Outdoor Capital of the UK’ and by 2015 aims to make itself a major events destination, collectively putting itself on the world map as a top destination for adventure tourism.

6.10.5 Wales is doing a similar kind of PR campaign to Scotland and like Scotland has been heavily promoting itself as a great tourist destination - using TV adverts to push the idea of Wales to the wider consumer. North Wales is being earmarked as the ‘outdoor zone’ of Wales, and marketed as such. If you go on the North Wales Tourist Board website you find a truly comprehensive resource which provides the consumer with information on all the outdoor activities available in North Wales including information on the location and specific activity on offer, places to go, maps of trails and walks, and accommodation. The website, whilst not so advanced as the VisitScotland website, is easy to use, and provides the level of detail the mass market audience would want when planning a trip to North Wales.

6.10.6 The North West appears to be somewhat behind the Scotland and Wales in promoting itself as an outdoor destination. When you look for the North West tourist board on the internet the first thing you notice is there are a million and one different websites so which one do you use at? Having looked at these websites in more detail, the information available to any consumer where it is a single person, family or extremist is very limited, difficult to find (if at all) and time-consuming. When searching for information on outdoor activities in the North West, one of the website’s just had information on football clubs, another had no information on outdoor activities at all, and another only provided strategic information on areas such as skills development and business support – something one would not associate as being useful or relevant to any consumer looking to visit the North West, and do outdoor activities. Whilst, it was a frustrating exercise to search for the most useful websites in the North West, there are however some good websites that cater for the outdoors e.g. www.lakedistrictoutdoors.co.uk and www.cumbriabikefest.co.uk but these are difficult to find and limited to a specific location in the North West.

6.10.7 The North West, in our view, a region in which there is scope for further developing the infrastructure necessary to support and growth the sector and the tourism benefits that derive from it. The analysis reveals that consumers look for easily accessed and comprehensive information tools that can be searched for information on an area and the outdoor activities available. The North West has a whole host of useful web sites and information points but these are not presented in a simplistic style, unlike its competing

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counterparts Scotland and North Wales, who are catering for the whole spectrum of consumers that fall within the outdoor sector (including extremists). It would make more sense to have one very comprehensive website for the North West, which includes all the outdoor activities available in the region.

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7 The consumer

7.1 Introduction

7.1.1 The outdoor market is a consumer driven one. The consumer is the most important stakeholder in it and it is therefore only fitting that this report provides a profile of the consumer characteristics and consumption patterns.

7.1.2 As the outdoor sector is so new as a single entity, there is little existing research available that defines the consumer for the entire sector. Instead, that which is available focuses on individual sub-sectors. Thus, the findings set out hereon are built upon a range of sources of information.

7.2 Consumer profile – headline issues

7.2.1 The outdoor consumer group is made up of a wide and diverse population. It includes extreme sports enthusiasts, who are typically young and most often male, through to those who prefer more leisurely and inherently less dangerous pursuits, like walking and so on. Developing a particular consumer profile in this context is then problematic. Yet there are a number of characteristics that are often consistent to consumers of different activities.

The ingredients of a market

7.2.2 Section 6 looked at the physical assets that generally combine to make a successful outdoor destination. The bullet points below add to these and highlight what the authors of the report consider the ingredients that are typically necessary to generate high levels of consumers of outdoor recreation and activity. For a destination to generate high consumption patterns, it typically requires consumer catchments as follows:


■ Second, the population within that drive time must have a high propensity to participate;




It’s a lifestyle thing

7.2.3 Any serious participant in an outdoor sport or leisure pursuit will tell you that their interest is in more than just a sport. For many, it’s a way of life and state of mind. It’s about challenge, adventure and about pushing the boundaries. Sometimes the sports involve competing against others. More often it involves challenging your own limitations. Participation is also about sharing your enthusiasm with others – and in particular, with like minded groups who enjoy a challenge, the fun and the excitement of participation. These principles are particularly true for extreme sports enthusiasts, but to an extent they also ring true with those who enjoy taking part in less risky activities, like walking and cycling.

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A steady and dynamic market

7.2.4 Many sub-sectors of the market are longstanding. Others, especially those of an extreme nature are newer. Both however are generally exhibiting growth. In parts that growth is steady and part of a long term pattern of growth that is correlated with rising disposable incomes, increased awareness of health issues and a growing appetite to want to ‘escape’ from the humdrum of everyday urban lifestyles. Elsewhere, growth is more rapid although in some cases not always sustained. The term ‘here today and gone tomorrow’ is one that is appropriate in the context of some of the more radical extreme sports. Indeed, such evolution is actually a defining factor of many extreme sports and as a new activity comes to the fore, another one disappears from fashion. This emphasises the somewhat fickle, yet dynamic nature of some aspects of the market.

Commercialisation and outdoor sports – an uneasy mix

7.2.5 Large companies will always look to tap into sports markets. Outdoor markets are particularly attractive to companies for a number of reasons. First, they typically involve a consumer group that is a coveted audience – those who are young and those with high levels of disposable income. Today, fashion retailers, drinks manufacturers, even car makers are keen to use outdoor sports to promote their products. Destinations too are also often keen to exploit the growing interest in one pursuit or another. Places like Newquay in Cornwall – or rather businesses in Newquay - have certainly exploited the association with surfing.

7.2.6 Although this trend occurs across most markets, the irony is that most who tale part in the sports actually resent their commercialisation. Whilst many acknowledge that sponsorship brings money into the sector and can help fund large events and competitions, it does so at a cost. It often challenges the very ethos of the sport which is often either about escaping the increasingly “corporatised” societal system of a demonstration of rebellion against formal and competitive sports. The commercialisation and growth to mass market of many outdoor sports often therefore mixes uneasily with those who are active, regular and ‘hardcore’ participants.

7.3 Consumer characteristics

7.3.1 One of the most reliable – albeit rapidly dating – pieces of research relating to the outdoor consumer is that prepared by Mintel in 2001. This used a national sample of 2,042 adults aged 15+ and was specifically commissioned to better understand the consumer profile and behaviour of people into extreme sports specifically and outdoor activities more generally. We have quoted some of the headlines from the research below, although we would caution that it is now nearly 6 years old and did have a strong extreme sports bias. Thus the analysis should be considered in that context. This was completed before the Active People Survey – although many of the themes considered are similar.

General propensity issues

7.3.2 Figure 7.1 examines the general propensity of consumers to participate in outdoor activities, based on their age and the factors that drive their propensity.

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Figure 7.1 Outdoor activity participation propensities

0% 10% 20% 30% 40% 50% 60% 70%

Unsafe

Excit ing

Expensive

Satisfying

Good for holidays

Time-consuming

Not easily available tome

For the f it

Adventurous

Just for young people

Good for older people

15-24

25-4445+

Source: Mintel, analysed by Tribal

7.3.3 The report highlighted that twice as many men as women said they were likely to take part in certain outdoor activities, particularly those of an extreme nature, such as white water rafting, bungee jumping, BMX/mountain biking and parakarting. This figure is even higher for participation in snowboarding, motocross, mountaineering and sky diving, highlighting the fact that at the extreme end of the outdoor market appeals more to men than women. More recently this trend might have changed given the growing popularity in certain outdoor activities such as snow boarding.

7.3.4 For the 25-44 age group, the most popular outdoor activities were mountain biking, white water rafting and snowboarding. These are all activities that can be done as a one-off on holiday and can be done together as a family or group. They are 'turn up and play' activities, which can be done by the whole family. Given, the expense of equipment, lessons to get started and improve technique, and sometimes overseas travel, it is not surprising that those expressing an interest and participating in many of these activities are predominantly drawn from the ABC1 socio-economic group. This is particularly the case in relation to snowboarding, which requires overseas travel to find good places to participate.

7.3.5 This trend is however less evident in some activities for example skateboarding and BMX/mountain biking as these are as popular with those from C2DE socio-economic groups as those from ABC1 groups.

7.3.6 The majority of extreme sports enthusiasts fall into the ABC1 socio-economic group and are very much the 15-24 year olds, who have fewer commitments and more disposable income to spend on these activities. The most popular extreme sports were snowboarding

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and BMX/mountain biking. Certain adrenaline sports - bungee jumping and sky diving – were also popular among this age group.

7.3.7 This section of the survey looked at participation, and how interested respondents were in taking part in activities, or if they already take part, how likely it is they would continue to do so in the future.

7.3.8 Mountain biking, snowboarding and white water rafting were the most popular sports that respondents were most likely to take part in. These can be – and often are – done on holiday. Mountain biking for example is not as expensive as other sports and is therefore likely to have a higher participation base. Some of the most popular activities respondents stated that they may consider taking part in were white water rafting, snowboarding, sky-diving, mountaineering, and mountain biking.

7.3.9 Interest and participation for all activities including more traditional mainstream activities dropped through each age group as people pass through different life-stages, and priorities and commitments change.

7.4 Consumers in the North West

7.4.1 Using a randomly selected destination that sits at the mid point of the North West, the analysis below profiles the consumer market in the region.

Figure 7.2 Relative affluence by drive time

0

100

200

300

Wealthy Achievers Urban Prosperity Comfortably Off Moderate Means Hard Pressed Unclassif ied

Ind

ex (

UK

ave

rag

e =

100)

0-30 mins

30-60 mins

60-120 mins

7.4.2 Accepting that relative affluence is an important determinant to demand for outdoor activities, this destination in the North West performs relatively poorly. Moderate means is

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the affluence category that dominates the immediate population and the incidences of wealthy achievers and urban prosperity categories are low.

Figure 7.3 Age profile by drive time

50

75

100

125

1500

- 4

5 -

9

10

- 1

4

15

- 1

9

20

- 2

4

25

- 2

9

30

- 3

4

35

- 3

9

40

- 4

4

45

- 4

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50

- 5

4

55

- 5

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60

- 6

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65

+

Ind

ex

(U

K a

ve

rag

e =

10

0)

0-30 mins

30-60 mins

60-120 mins

7.4.3 Accepting also that the young are important drivers of demand for outdoor activities, the destination performs very well. In all drive times there is a higher than national incidence of people aged under 20. This age group is a major driver of demand, particularly in extreme sports and the region benefits from having such a young population.

7.4.4 Figure 7.4, below, profiles the types of outdoor activities that consumers living within 30, 60 and 120 minutes drive times generally participate in. Participation rates are indexed, with England averages being 100. In all but camping, participation rates in this cohort are below those for the English average. The most popular activities are camping, sailing, walking followed by wind surfing – although these do vary according the drive time in question.

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Figure 7.4 Sub-sector participation by drive time

50 75 100 125 150

Horse Riding

Wind Surfing

Water Skiing

Camping

Climbing/Mountaineering

Sailing/Yachting

Skiing

Walking/Rambling

Running

Cycling

60-120 mins

30-60 mins

0-30 mins

7.5 Destination drivers

7.5.1 Tourism and leisure research specialist Arkenford recently undertook a Day Visitor piece of research, that involved a survey of 2000 residents of the North West. Survey participants were asked to provide information about their previous 3 day trips. The survey examined destination drivers, destination ratings and a breakdown of the main physical activities involved in these trips.

7.5.2 The following table shows the main areas in the North West the respondents have gone to do a physical challenge.

Table 7.1 - % of people who said that a Physical Challenge was the main reason for a visit to a specific NW destination

Destination For a Physical Challenge


Peak District 7 Burnley 3

Eden Valley 7 Liverpool 3

Hadrians 7 Blackburn 3

Keswick 6 Lancaster 3

Delamere 5 Chester 3

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Lake District 5 Morecambe 3

Kendal 5 Warrington 3

Kirkby 5 Lytham 3

Forest of Bowland 5 Birkenhead 3

Hoylake 4 Southport 3

Carlisle 4 Stockport 3

Grange Over Sands 4 Oldham 3

Barrow in Furness 4 Fleetwood 2

Blackpool 4 Wigan 2

Clitheroe 4 Rochdale 2

Nantwich 4 Bolton 2

Knutsford 4 Preston 2

Manchester 4 St Helens 2

Source: Arkenford, 2007

7.5.3 The Peak District, Eden Valley and Hadrians have experienced a greater proportion than elsewhere in the region for people visiting to do some form of physical activity. The least popular areas are the urban locations in the North West including Rochdale, Bolton, Preston and St Helens.

Destination Ratings

7.5.4 Table 7.2 shows how the respondents rated these destinations. The mean ratings given by individuals show how destinations met expectations, a figure of 0 = very disappointing, and 10 = Well above what I expected.

Table 7.2 – Meaning ratings of a Destination



Forest of Bowlnad 8.4 Lake District 7.9

Fleetwood 8.4 Lytham 7.8

Wigan 8.2 Blackpool 7.7

Preston 8.1 Kendal 7.7

Peak District 8.0 Liverpool 7.7

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Blackburn 8.0 Hadrians 7.7

Lancaster 8.0 Southport 7.7

Nantwich 8.0 Eden Valley 7.7

Clitheroe 8.0 Morecambe 7.6

Kirkby 8.0 Bolton 7.6

Stockport 7.9 Grange Over Sands 7.4

Warrington 7.9 Carlise 7.4

Keswick 7.9 Delamere 7.4

Chester 7.9 Birkenhead 7.1

Manchester 7.9 Knutsford 7.0

Rochdale 7.9 St Helens 6.6

Hoylake 7.9 Oldham 6.6

Barrow in Furness 7.9 Burnley 6.2

Source: Arkenford, 2007

7.5.5 The Forest of Bowland, Fleetwood, Wigan and Preston all have a mean rating of 8.1 and above, St Helens, Oldham and Burnley all have the lowest ratings, below 6.6. The mean ratings range from 6.2 to 8.4 – this clearly are dependant on the type of physical activity undertaken.

7.5.6 Table 7.3 shows the physical activity breakdown of those who visited the NW to undertake some form of activity. Overall, 5% of respondents of the survey took a day trip to a destination in the NW and undertook some form of physical activity. A break down of that 5% cohort is provided below.

Table 7.3 – Sports & Fitness Activities Undertaken on a Day Visit to the NW

Sports & Fitness Activity %

% Watched a sporting event (e.g. football, rugby, cricket, etc.) 50

% Played sport (e.g. swimming / tennis / bowling) 18

% Went cycling or mountain biking 13

% Played golf 10

% Used spa / leisure / beauty & relaxation facilities 9

% Participated in team sport (e.g. football, rugby, cricket) 9

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Sports & Fitness Activity %

% Undertook active / adventurous outdoor pursuits e.g. hang-gliding, motorised sport 8

% Went rock climbing 7

% Participated in watersports (dinghy sailing / windsurfing / surfing / canoeing/ jetskiing / etc… 5

% Went sailing or yachting 4

% Went horse-riding or pony-trekking 3

% Went motor boating or power boating 2

7.5.7 What is clear is that the majority of these people watched or played some form of sports. Of those who took part in outdoor activities, 8% undertook active/adventurous outdoor pursuits e.g. hang-gliding, motorised sport, 7% went rock climbing, 5% participated in water-sports and 3% in horse-riding and/or pony trekking.

7.5.8 In addition to the analysis provided above the NWDA is currently in the process of undertaking a regional Day Visit Survey. That survey is focused on collecting volume and value data relating to the day visit economy in the NW. The survey is at a relatively early stage although the preliminary results should be made available in the next month or so. We advise that the Client Group for this study liaise with their colleagues at the point at which results are made available.

7.6 Participation by NW Consumers –Active People Survey

7.6.1 The Active People Survey is a survey of adults aged 16+ living in England. The Survey collects data on the type, duration and intensity of people's participation in different types of sport and active recreation. It also provides information on volunteering, club membership, tuition from an instructor or coach, participation in competitive sport and satisfaction with local sports provision.

7.6.2 The latest survey (December 2006) provides some further analysis on the participation of NW consumers in sports. Table xx shows participation in sport by region. Participation in each sport is defined as the proportion of the adult population participating in a sport, once in the last four weeks. The table is colour coded from green to amber to red, where green indicates the top three regions for participation in that sport, amber the middle three, and red the lowest three regions for participation in that sport.

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Figure 7.5 Participation in Sport by Region

SPORT ENGLAND REGION England South East

South West

London East Mids

North West

North East

East Yorkshire

West Mids

RECREATIONAL WALKING 20.0 21.9 22.5 19.5 20.2 18.8 17.7 20.0 19.2 18.4

SWIMMING / DIVING [INDOORS] 12.2 12.8 12.6 11.5 12.2 12.2 11.3 12.4 12.3 11.7

GYM 10.5 10.5 8.3 13.5 9.4 10.8 10.2 9.9 9.9 10.0

RECREATIONAL CYCLING 7.8 9.4 8.9 6.6 8.1 6.7 6.6 8.6 7.2 6.7

FOOTBALL [OUTDOORS]* 5.8 5.8 5.2 6.0 5.7 5.9 5.9 5.8 6.0 5.5

GOLF / PITCH AND PUTT / PUTTING 3.6 4.5 3.8 2.4 3.8 3.5 3.4 4.2 3.3 3.3

RUNNING - ROAD 2.5 2.7 2.7 3.4 2.4 2.4 2.2 2.3 2.1 2.0

BADMINTON 2.2 2.6 2.3 1.9 2.6 2.0 1.6 2.6 1.9 2.3

TENNIS 2.1 2.7 2.2 3.0 1.7 1.6 1.2 2.2 1.8 1.6

SWIMMING / DIVING [OUTDOORS] 2.0 2.6 2.8 2.1 1.6 1.6 1.6 2.2 1.4 1.5

FOOTBALL [INDOORS]* 2.0 1.8 1.9 1.6 2.0 2.7 3.4 1.6 2.2 1.8

AEROBICS 1.5 1.6 1.5 1.4 1.6 1.5 1.4 1.5 1.5 1.4

YOGA 1.4 1.6 1.4 2.3 1.2 1.0 0.9 1.4 1.0 1.0

SQUASH 1.2 1.5 1.4 1.1 1.2 1.1 1.1 1.3 1.0 1.1

EXERCISE BIKE / EXERCISE MACHINE ** 1.2 1.2 1.3 1.3 1.3 1.0 1.3 1.3 1.3 1.2

RUNNING - CROSS COUNTRY / BEACH 1.1 1.5 1.4 1.0 1.0 0.9 1.0 1.2 1.1 0.8

JOGGING 1.1 1.1 0.9 2.0 0.9 1.0 1.2 1.0 0.9 0.9

KEEPFIT / KEEP FIT / SIT UPS 1.1 1.0 0.9 1.1 1.0 1.0 1.2 1.2 1.2 1.2

WEIGHT TRAINING 1.0 0.9 0.9 0.9 0.9 1.0 1.0 1.0 1.0 1.1

CRICKET 0.9 1.0 1.0 0.9 0.9 0.8 0.7 0.9 1.0 0.9

HORSE RIDING 0.8 1.1 1.3 0.3 0.9 0.6 0.7 0.9 0.8 0.7

BASKETBALL 0.7 0.7 0.7 1.1 0.6 0.6 0.5 0.6 0.6 0.6

PILATES 0.7 0.8 0.8 0.9 0.6 0.5 0.5 0.7 0.6 0.4

RUGBY UNION 0.7 0.8 1.0 0.5 0.7 0.4 0.6 0.6 0.7 0.7

BOWLS [INDOORS] 0.6 0.7 0.8 0.3 0.9 0.3 0.8 1.1 0.4 0.4

FISHING 0.6 0.5 0.5 0.3 0.7 0.6 0.5 0.8 0.7 0.8

DANCE EXERCISE 0.5 0.5 0.5 0.6 0.4 0.5 0.4 0.5 0.4 0.5

BOWLS (LAWN) [OUTDOORS] 0.5 0.5 0.5 0.2 0.6 0.7 0.4 0.6 0.5 0.4

RUNNING - TRACK 0.4 0.4 0.4 0.7 0.4 0.3 0.3 0.4 0.4 0.4

NETBALL 0.4 0.4 0.5 0.3 0.4 0.4 0.3 0.5 0.3 0.4

SNOOKER 0.4 0.3 0.3 0.3 0.4 0.5 0.4 0.4 0.5 0.5

TABLE TENNIS 0.4 0.5 0.4 0.5 0.4 0.3 0.2 0.5 0.3 0.3

WEIGHTLIFTING 0.4 0.3 0.4 0.4 0.3 0.4 0.4 0.4 0.4 0.2

BOXING 0.4 0.3 0.2 0.4 0.4 0.4 0.5 0.3 0.4 0.5

AQUAFIT / AQUACISE / AQUA AEROBICS 0.4 0.4 0.4 0.3 0.4 0.4 0.3 0.4 0.3 0.3

HOCKEY - FIELD 0.3 0.4 0.5 0.3 0.4 0.3 0.3 0.4 0.3 0.3

MARTIAL ARTS 0.3 0.4 0.4 0.4 0.4 0.3 0.3 0.4 0.3 0.3

CONDITIONING ACTIVITIES *** 0.3 0.4 0.4 0.2 0.3 0.4 0.3 0.4 0.3 0.3

TENPIN BOWLING 0.3 0.4 0.3 0.2 0.4 0.3 0.3 0.4 0.4 0.3

SKIING 0.3 0.4 0.3 0.4 0.2 0.3 0.2 0.3 0.3 0.3

Source: The Active People Survey, 2007

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7.6.3 Out of the activities identified above six would be classified as outdoor activity, namely recreational walking, recreational cycling, running (road), swimming/diving (outdoors), running (cross country/beach), horse riding and sking. Recreational walking and cycling are the most participated activities of adults in the North West in the last four weeks. Figure 7.6 shows the top 12 participant sports in the North West.

Figure 7.6: sport participation in the North West region

Top 12 participant sports in the North West region (% of adults participating once in the last four weeks)

18.8

12.2

10.8

6.7

5.9

3.5

2.7

2.4

2.0

1.6

1.6

1.5

0.0 5.0 10.0 15.0 20.0

RECREATIONAL WALKING

SWIMMING / DIVING [ INDOORS]

GYM

RECREATIONAL CYCLING

FOOTBALL ( INCLUDE 5 AND 6-A-SIDE) [ OUTDOORS]

GOLF / PITCH AND PUTT / PUTTING

FOOTBALL (INCLUDE 5 AND 6-A-SIDE) [ INDOORS]

RUNNING - ROAD

BADMINTON

TENNIS

SWIMMING / DIVING [ OUTDOORS]

AEROBICS

7.6.4 For those sports that are classified as ‘outdoor’ walking and cycling are among the top 12

participant sports in the North West. For typical sports e.g. swimming, the gym, football and golf are the most participant sports in the region.

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8 Growing the market – opportunities within sectors

8.1 Introduction

8.1.1 This section provides an overview of recent outdoor sports participation patterns and forecasts (where these exist). The section also provides a summary of literature relevant to different market segments for outdoor sports – owing to the fact that different sporting types attract different participant types.

8.2 Overview

8.2.1 In general the public is keener than ever to participate in outdoor sports. This is good news for operators, destinations, retailers and manufacturers and outdoor sports is now “big business”. The growth in the marketplace can also provide opportunities for organisations like the NWDA. Growing participation rates can result in more people visiting destinations, taking part in events, spending money on good and services and purchasing goods and equipment. Of course, these things support growth and employment in local economies and opportunities for businesses to develop, innovate and grow. Thus, increased participation can generally be seen as a “good thing” and a sensible objective for economic development.

General expenditure patterns

8.2.2 There is a variable level of information and data relating to recent trends in the outdoor sports market. That which is most reliable is either focused on a particular sport / sub-sector or otherwise focused on a particular market segment (e.g. clothing, footwear, equipment and so on).

8.2.3 Research carried out by Mintel (Sports Goods Retailing Report, Leisure Intelligence, January 2001) found that despite recent growth in participation rates, year-on-year growth of sports clothing, footwear and equipment was – in 2001 at least – slowing in comparison to the buoyant mid-1990s. Manufacturers and retailers reported that trading conditions during 2000 were tough, with the market remaining relatively flat. Whilst the analysis is now somewhat outdated, it is reasonably comprehensive and worthy of being referenced here.

8.2.4 Mintel also estimated that consumers spent £3.6 billion on sports goods in 2000, with annual growth in value having dropped from a high of 8.7% in 1996 to an estimated 1.4% in 2000. Figure 8.1 breaks down this market into its three main product categories, excluding sales to institutions such as educational establishments and health and fitness clubs.

Figure 8.1 Main sectors of the consumer and extreme sports goods market, 2001

Consumer sports goods Outdoor sports goods

£m % £m %

Outdoor as % of Consumer market

Clothing 1,947.0 51 56.3 72 2.9

Footwear 1,145.0 30 13.9 17 1.2

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Equipment 726.0 19 8.5 11 1.2

Total 3,818.0 100 78.7 100 2.1

Source: Mintel

8.2.5 For outdoor sports goods clothing, footwear and equipment fall into two categories - that which is highly specialist with very low demand, such as sports goods for parakarting, sky diving and bungy jumping; and that which is bought as much for fashion as for function, such as clothing associated with skateboarding and snowboarding. For outdoor sports spend generally follows that for general consumer sports goods – with clothing accounting for 72% of spend, footwear 17% and equipment 19%.

8.2.6 The higher levels of spend on clothing within the outdoor sector is in part attributable to casual clothing spend, particularly sutfing brands and outdoor / ski brands for coats and winter clothing.

Changing participation patterns

8.2.7 Section 7 of the report outlined current participation patterns in outdoor sports – both in the region and in the UK. In order to get an indication of the likely future participation in outdoor sports, we have analysed further data from previous Mintel surveys. The surveys concern people who stated that they are likely to take part in a range of outdoor sports and also people who stated that they may consider taking part in any of the extreme sports. Figure 8.2 shows the results of this by gender, age, socio-economic group and lifestage.

Figure 8.2 Consumers likely to take part or considering taking part in outdoor sports

Likely to

%

May consider

%

All 27 45

Men 34 52

Women 19 38

15-19 81 86

20-24 62 81

25-34 41 68

35-44 25 57

45-54 14 32

55-64 7 24

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65+ 2 5

Socio Economic Group

AB 28 49

C1 32 51

C2 26 44

D 26 45

E 17 31

Pre-family 69 82

Family 28 58

Empty nesters/no family 18 40

Post-family 4 13

8.2.8 From the analysis it must be noted that the 27% of people who stated that they are likely to take part in extreme sports may not all necessarily do so. Nevertheless, it is a promising sign for the outdoor sports industry that just over a quarter are likely to participate in at least one of the sports and 45% may consider taking part.

8.2.9 Far more men are either likely to or would consider taking part in outdoor sports, while in terms of age group the older people get the less likely they are to be interested in outdoor sports, especially those of an extreme nature. Therefore the key target market for most outdoor sports would appear to be young men in the pre-family lifestage group.

8.3 Scenarios for a growing market

8.3.1 Three scenarios of the number of people falling within the two groups in Figure 8.2 have been forecast, based on socio-demographic changes up to 2008.

8.3.2 Scenario 1 takes responses by socio-economic group and lifestage. It is assumed that the number of people who are either likely to or are considering taking part in outdoor sports will remain the same among the socio-economic groups over the next few years. Although age is incorporated into lifestage group, it has also been used here because, as Figure 8.2 shows, it is a major determinant in relation to possible participation in many outdoor sports.

8.3.3 Scenario 2 also takes responses by socio-economic group, lifestage and age. However, here it is assumed that there will be a 1% increase in the number of people who are either likely to or are considering taking part in outdoor sports, within each of the socio-demographic groups. This is a more optimistic scenario, with outdoor sports increasing in popularity.

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8.3.4 Scenario 3 is a pessimistic forecast, where it is assumed that there will be a 1% decrease in the number of people in the two groups, within each of the three socio-demographic groups (socio-economic group, lifestage and age).

Scenario 1

8.3.5 In this first scenario, there will only be a 1.3% increase in those who are likely to participate in extreme sports and a 1.4% increase in people who may consider taking part in extreme sports, both less than that of the total adult population.

Figure 8.3 Forecast of people who are likely to or considering participating in extreme sports

2004 2008 % change 2001-05

Likely to 13.11 13.28 +1.3

May consider

22.05 22.35 +1.4

All adults 48.66 49.69 +2.1

8.3.6 The slower rate of growth in people who are likely to or are considering participating in outdoor sports than the total population is largely down to the fact that there is a very strong youth bias in interest to most outdoor sports. With an ageing population and the decline in 15-34-year-olds over the next four years, the main target group appears to be shrinking.

Scenario 2

8.3.7 Here the number of people who are likely to take part in at least one extreme sport is set to grow faster (+5.1%) than people who may consider it (+3.6).

Figure 8.4 Forecast of people who are likely to or considering participating in outdoor sports

2004 2008 % change 2001-05

Likely to 13.11 13.78 +5.1

May consider

22.05 22.84 +3.6

All adults 48.66 49.69 +2.1

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8.3.8 Here it is assumed that the popularity of outdoor sports will increase, as more people consider taking part in at least one of the sports. It is important for these sports to be seen as more accessible to a wider range of the population as most of the sports require specialist equipment and take place out of town, often in remote places. Although many are wary of bringing some outdoor sports more into the mainstream, this will boost the number of people who will participate.

8.3.9 Awareness of outdoor sports is also key to the development of competitions and events. Media coverage will raise this awareness and help boost numbers, even though at present they are relatively small scale in comparison to mainstream sports.

Scenario 3

8.3.10 This is a pessimistic scenario, in which the number of people who are likely to take part in outdoor sports is set for a decline of 2.5% and people who may consider taking part will fall by 0.9%.

Figure 8.5 Forecast of people who are likely to or considering participating in outdoor sports

2004 2008 % change 2001-05

Likely to 13.11 12.78 -2.5

May consider

22.05 21.85 -0.0

All adults 48.66 49.69 +2.1

8.3.11 The fear for outdoor sports is that many will be seen as passing fads that will not make any significant inroads into mainstream sport. This is particularly the case for those of an extreme nature. Commercialisation may, therefore, be seen as a necessary evil, not only to boost participation but also to gain greater credibility and encourage more people to take part.

8.4 Other market analysis

8.4.1 A further and helpful way of looking at future participation patterns involves segmenting the market for outdoor sports. Market segmentation is a useful way of understanding how markets break down into different groups. Outdoor sports have often been segmented using he following definitions:

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■ Samplers:

those trying out an outdoor activity for the first time or that undertake the activity on a very occasional basis;

■ Learners:

those who are learning an outdoor activity or seeking to improve their skills;

■ Dabblers:

people who participate occasionally, often as part of a holiday activity or as part of their leisure time;

those who have already learned their activity (where a degree of skill is needed) and will have some knowledge

■ Enthusiasts:

People who regularly take part;

They will be experts;

They will often compete.

8.4.2 Within each segment the amount of time that people spend on their activity will vary, as obviously will their level of enthusiasm. The segmentation approach applies equally to day visitors and those on holiday.

8.4.3 Figure 8.6 illustrates the sorts facilities, services and infrastructure that different market segments look for across different types of outdoor activity.

Figure 8.6 Key product requirements

Activity Samplers Dabblers Enthusiasts Learners

Walking Short Walks (2-3 miles)

Way Marked Paths

Leaflets

Accessible for disabled

Short Guided Walks

Day and Half Day Walks (7 miles)

Walk Books and Leaflets

Walks Accessible by Public Transport

Guided Walks

Walker Friendly Accommodation

Well Maintained and Long Distance Footpaths

Guided Walks

Walker Friendly Accommodation

Cycling Traffic Free Cycle Paths

Cycle Hire

Promoted Cycle Rides (25 miles) on Country Lanes

“Packs” of day cycle rides built around

Limited Promoted Routes (most plan their own)

Cycle Carriage on trains and buses

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accommodation

Cycle Friendly Accommodation


Mountain Biking Purpose Built Trails

Mountain Bike Hire

Purpose Built Trails

Guided Mountain Bike Rides

Mountain Bike Hire


Purpose Built Trails

Purpose Built Downhill Trails

Promoted Cross County Trails / Challenges


Horse Riding Accredited Pony Trekking and Riding Centres

Promoted Horse Riding Trails

Accredited Riding Centres

Group Rides and Hacks

Accredited Pony Trekking and Riding Centres

Fishing Access to Rivers, Lakes and Sea

Sea Fishing Trips

Fishing Guides

Tackle and Bait Shops

Access to Rivers, Lakes and Sea

Charter Boats

Fishing Guides

Tackle and Bait Shops

Accommodation

Fishing Guides

Adventure Sports Accredited Activity Centres, Operators and Instructors

Accredited Activity Centres, Operators and Instructors

Equipment Hire

Access to Crags

Access to Caves and Gorges

Take Off and Landing Points

4x4 Trails

Accredited Activity Centres, Operators and Instructors

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Canoeing Accredited Canoeing Centres, Operators and Instructors


Accredited Canoeing Centres


Accredited Canoeing Centres, Operators and Instructors

Sailing Accredited Sailing Operators and Charter Boats

Accredited Sailing Operators and Charter Boats

Marinas, Harbours, Moorings

Chandleries

Boat Repair

Accredited Sailing Schools

Other Water Sport Accredited Water Sports Centres

Access to Beaches and the Sea

Beach Showers and Changing Equipment

Equipment Hire

Accredited Water Sports Centres

Access to Beaches and the Sea

Beach Showers and Changing Equipment

Dive Charter Boats

Accredited Water Sports Centres

8.5 Being mindful of negative externalities

8.5.1 However, it is important to also remember that for so many outdoor activity pursuits participation can also produce negative externalities. An externality is the impact (positive or negative) of someone or something doing something. A negative externality is a negative impact that is not solely absorbed or felt by the individual or organisation that creates it. A very good example – often used across economic theory – is the negative externality created by walkers / rambling. Negative externalities include soil and landscape erosion, congestion and even pollution – caused as a consequence of people using cars to access the countryside. In the context of outdoor activities and sports, the effects of negative externalities can be exacerbated by the fact that their occurrence is not always “offset” by spending on local goods and services equivalent to or greater than the value / impact of any negative externality. Hence a rambler may spend only a few pounds on food and drink when visiting an area of the countryside yet could cause environmental damage.

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9 Growing the market – the role of destinations

9.1 Introduction

9.1.1 This section of the report provides an outline overview of how the marketplace for outdoor activities typically evolve. It includes a short overview of the marketplace as it is currently configured and the issues that tend to determine its growth and performance. The analysis relates to the national and international markets and is, in these terms, not regionally specific. The purpose of the analysis is to outline how growth in the outdoor sector (and sub-sectors of it) has occurred elsewhere with a view to identifying if and how growth strategies could be replicated in the North West.

9.2 A growing but fragmented sector

9.2.1 The supply structure for outdoor activities is highly fragmented, diverse and frequently changes. This is especially true of new and emerging sectors. Generally the supply system is made up of small operators – from clothing manufacturers through to activity organisers. Retailers tend to be small – although in the walking market a number of national chains have emerged. Larger retailers do exist, but tend to carry well established market brands (e.g. Karrimor, Berghaus, O’Neill, Quicksilver and so on). In the main, enthusiasts prefer to shop at specialist retailers who carry expensive and higher quality equipment and kit. All sub-sectors are thought to be growing on a national basis. Data relating to the specific orientation / scale of growth on a sub-sectoral basis is largely constrained to the 2001 Mintel Report, which is now obviously too old for a current market assessment.

9.2.2 Websites are becoming increasingly important in the sector. Clubs and network associations are increasingly using the web to communicate with their members, but these are generally unsophisticated and resistant to sponsorship / advertising. Increasingly a number of advanced discussion forums have emerged that communicate weather reports, the pros and cons of destinations, who is planning to be where and so on. These are becoming an increasingly important part of the sector. There are however no dominant websites and users tend to skip between sources quite often.

9.2.3 The NWDA had requested that the consultants analyse growth in particular markets using data made available from the Active People Survey (2006). Whilst that survey does show that in the North West the popular outdoor activities are walking, cycling and running. Unfortunately, caution must be had for sport specific participation in terms of Local Authority or County Council Level data as the base sizes are too small for analysis apart from the larger participant sports like swimming. Therefore, this level of analysis is not statistical viable and not presented here.

9.3 The Evolution of Outdoor Destinations

9.3.1 Section four of our analysis highlighted the fact that market research demonstrates that internationally known destinations for the pursuit of sport and outdoor activity have a number of common traits or pre-requisites. Amongst the main ingredients of success are high quality natural environment; a well organised and effectively delivered set of “products”, enabling people to participate in a range of different activities, from high intensity adrenaline sport, to low intensity leisure and cultural pursuits; a powerful destination brand that is recognised locally, domestically and abroad for its associations with outdoor sport, even where the individual activities are not aggressively marketed; a rich calendar of special events, activities, exhibitions and competitions, including televised events; and an ability to cater to a wide range of participants, from beginners to elite competitors.

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9.3.2 The North West has some of these pre-requisites in place (notably a high quality natural environment) and others developing apace (e.g. a nascent set of products delivering outdoor sport experiences to the public). Cumbria is an example of an area in the North West that has developed an outdoor cluster on the back of a major crisis - Foot and Mouth, and one that is continuing to gain momentum as we speak. Foot and mouth meant that the countryside in Cumbria was closed, and this had a major impact on outdoor activity providers and visitors to the area. Outdoor companies lobbied hard with Cumbria Tourism and a marketing recovery team was set up. This led to the creation of an outdoor cluster group, and funding was ring-fenced for the promotion of the outdoor sector in Cumbria. This cluster group is still running, meets up quarterly, and involves a broad range of partners including outdoor accommodation providers, retail, funders, activity providers and the Park Authority.

9.3.3 At these quarterly meetings, Cumbria Tourism and the cluster group talk through key developments and current marketing tools to promote the outdoor sector in Cumbria. In the early days, ,marketing was originally done to generate leads and in doing so helped to identify the profile of the outdoor market – a younger, more urban professional profile than the typical core Cumbria visitor. At the same-time a website was already established for the outdoors in the Lake District, www.lakedistrictoutdoors.co.uk. Cumbria Tourism, through its work with the outdoor cluster and as part of its drive to market the outdoor sector, took responsibility for this website and has recently re-vamped it. The website provides consumers with information on all the activities available in Cumbria, accommodation, key events, news and provides member organisations with advertising opportunities. The number of hits for this website has grown year on year by 30%. Recently, www.cyclingcumbria.co.uk has been set up and provides more content to the cycle market in Cumbria, which is an area the county see as a real growth opportunity.

9.3.4 As well as the cluster group and website, and as part of the continuous development of the outdoor market, the ROAM (Recognised Outdoor Activity Member) scheme was set up for businesses within the county to get accreditation. This was also developed to make sure the correct message was being put forward to consumers that outdoor businesses across the county are of a high quality and comply with all safety regulations.

9.3.5 In recent months, marketing for the outdoor sector, through Cumbria Tourism, has been gathering momentum. Cumbria Tourism recently put forward a successful funding bid to the NWDA for a stand at the outdoor show in Birmingham. They were successful in this bid and this has been an important exercise and one that helps Cumbria Tourism to get in front of potential consumers. May 2007 is ‘month of adventure’ for Cumbria. Local companies have provided the funding to enable this project to happen, and be a show piece for people wanting to try different outdoor activities. In conjunction with Liverpool Capital of Culture 2008, each of the sub-region’s are supporting Liverpool by having a theme year – for Cumbria is it the ‘Year of Adventure’. This is being seen by many as an important stepping stone and will promote the county as the ‘Adventure Capital UK’. The current Adventure Capital Strategy has been developed and has key stakeholder support. Steps are now been taken to consider the delivery process needed to take this strategy forward by 2009/10. The aim is to set up a team of two, one who will deal with marketing and one the development of the outdoor sector – this will be the first time a team is 100% focussed on the outdoor sector in Cumbria.

9.3.6 The question still remains however is how should the region’s assets be built upon? Below we outline some case study examples that show how other destinations have managed to reinvent themselves through growing outdoor markets and in particular, through leveraging growth in extreme sports. The intention is to identify the key steps in the evolution of outdoor markets and to test their potential for replication.

http://www.cyclingcumbria.co.uk/�

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9.4 Outdoor “brands” – placemaking through sport

Queenstown New Zealand

9.4.1 Perhaps the best known example of a destination reinventing itself through adrenaline sport and outdoor activity, Queenstown famously developed organically (even serendipitously) following the invention and popularisation of bungee jumping in the 1980s. This was the catalyst that attracted a wave of new visitors and enabled complementary leisure development, beginning with white-water rafting and extending into hang-gliding, mountain biking, parasailing, etc.

9.4.2 The aggressive marketing of Queenstown as an adrenaline sports Mecca followed rather than initiated this process and began simply to facilitate the visitor experience which was being adversely affected by conflicting promotional messages coming from the plethora of different service providers emerging in the area.

9.4.3 The creation of an overarching brand and the self-imposed discipline of local firms (who struck a balance between co-operation on destination development, on one hand, with aggressive competition for local custom on the other), was so successful that the principle of selling New Zealand itself on the strength of its natural landscape emerged as a consequence. This strategy led directly to the New Zealand Way campaign, which remains an international benchmark in successful place-marketing.

Whistler Model

9.4.4 Whistler in British Columbia amply demonstrates that this “organic” process of destination developed can be initiated, managed and steered.

9.4.5 Already a successful ski resort, Whistler sought to improve its summer offering to stabilise income streams throughout the year. In the 1990s, resort owner Intrawest established the Whistler Mountain Bike Park, using parts of the mountain infrequently used by skiers to carve out a series of new and challenging trails for enthusiasts. This created a “buzz” about Whistler within the well-connected and widespread mountain biking fraternity, which led to a surge in interest from practiced riders. In parallel to this, however, Intrawest continued to invest in progressively shorter and technically simpler trails, as well as a “challenge park” where riders of different skill levels could work on technique in a controlled and supervised environment.

9.4.6 The company also focussed on bringing first regional and then international events to the mountain with a view to cementing its reputation as a premiere mountain biking destination. As interest in the destination increased from a progressively more leisure-oriented rather than competitive market, the company expanded into other activities and outdoor pursuits. The Whistler model was extraordinarily successful – leading to a 700% increase in riders alone over a 5 year period (75,000 in 2004) – and has now been proven over a number of destinations. Intrawest repeated the process at Mont Tremblant in Quebec and the management at Snowshoe Mountain, West Virginia, followed the exact same approach to successful effect.

9.5 A framework for growth

9.5.1 Based on the case studies, our own market research and building on our understanding of the market in the North West, we have identified a conceptual model for the development of outdoor markets. That model is described in Figure 5.1. It illustrates four main stages in the ‘evolutionary’ process:

■ Stage 1: this involves the colonisation of a destination by a group of ‘hardcore’ enthusiasts. Attracted by the uniqueness of the location, the newness of the activity and the fact that both are unique and alternatives to the mainstream,

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hardcore enthusiasts begin to pursue a sport or activity in gradually increasing numbers;


■ Stage 3: for those destinations that ‘take hold’ so to speak, this is a hugely important stage of development It is part of the critical path towards becoming ‘mass market’. Companies begin to see commercial opportunities. Corporates begin to see sponsorship opportunities. Businesses begin to work together to attract consumers and compete with each other when they are there. The public sector too begins to adopt an involvement. Sometimes this involvement is about managing risks and health and safety issues. Sometimes it is about maximising the economic benefits. In either case, it creates publicity. That publicity helps to grow market appeal;


9.5.2 Of course in practice, the evolutionary process will only broadly follow this model: we have simplified the analysis for the purposes of this report. However it does lend itself well to establishing a model for how the outdoor market in the region could be developed and expanded.

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Figure 9.1 – Evolution of the Outdoor Sector

Evolution of the Outdoor Sector

Visits

time

Colonisation by hard core enthusiasts

Word spreads through social networks and some

marketing / events

Capital investment / televised events / complementary development

Stabilisation / Mass market appeal

9.6 Generic options for destination development

Option 1: “Do Nothing”.

9.6.1 As a matter of course, the Do Nothing option must be considered, if only to set a baseline against which other options can be considered. Arguably, the Do Nothing option is a viable solution in this case, if it could be demonstrated that – left to its own devices – the market would respond to demand for the types of activities outlined and the destination would develop on its own. This is highly unlikely, however, and counter-intuitive. As illustrated by the models described above, an initial catalyst is almost certainly needed in the first instance (bungee jumping in Queenstown and the Whistler Mountain Bike Park in the second). Secondly, the destinations only became successful through the concerted effort of a single organisation. Intrawest fulfilled this function at Whistler; even in the seemingly serendipitous Queenstown model, a joint marketing group was formed to corral the various commercial and community interests once the strength of the developing destination was identified. Finally, even if one could be confident that the market would, over time, deliver some of the benefits foreseen for the outdoor sector, it must be recognised that the Steering Group has a number of objectives aimed at benefiting and strengthening the community (e.g. training, employment, environmental protection). The “public good” nature of these objectives implies that they would almost certainly not be delivered under a “do nothing” scenario.

Option 2: “Do Minimum”.

9.6.2 The Do Minimum option is simply to reinvest in the existing facilities in the North West and to provide a minimum of joint-marketing support for existing businesses throughout the region that service the outdoor market. In includes only the capital cost of refurbishing existing facilities and some ongoing revenue expenditure on promotional material and staff time for providing a common marketing platform for the variety of activities either

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already underway or in development. Special events and activities originated by others would benefit from this marketing support, but the outdoor sector itself would not be in the events business. In effect, the Do Minimum option is a variation on the Queenstown model in that it recognises the importance of an initial catalyst (or attractor) and the value of joint marketing of various products and services in the area.

Option 3: “Outdoor Sector/Activity Brand”.

9.6.3 Option 3 focuses more directly on the creation of a powerful outdoor sector/activity brand for the whole of the North West. This too includes the refurbishment of existing facilities as the chief attractor to the area, but also on the services and infrastructure that underpin successful destinations. A bespoke organisation would not only aggressively promote the area as an outdoor “playground”, but would proactively develop product (esp. events) and provide infrastructure (in particular, a car park, transport and Information Point) and services (e.g. information, communication, training, first aid, events planning, etc.). To use the hub-and-spoke terminology, Option 3 would focus on strengthening and supporting the “spokes” and uniting them under a common brand, leaving the “hub” development to some unspecified future date.

Option 4: “Outdoor Village”

9.6.4 Once again, Option 4 encompasses all of Option 3, but also includes significant capital investment in a major “hub” for the outdoor sector – something to act as a focal point for all of the activities in the North West, to fill gaps in the product and to generate and national and international profile for the destination. The focus of this investment would be on an Outdoor Village. In principle, this builds on the Whistler Model, but expands the scale and scope of the initial investment, and like Whistler builds on the reputation it already has in the outdoor sector. To guarantee its own sustainability as well as generating profit for reinvestment elsewhere in the region, the Outdoor Village would charge admission for participation in key activities or events, although measures would be taken through voucher and discount schemes to reduce or eliminate cost barriers for low income households. Equally, retail and catering space within the destination would be carefully managed to ensure a mix of blue-chip tenants on commercial leases, and lower cost flexible terms for locally based entrepreneurs.

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10 The Challenges and Opportunities for the Outdoor Sector

10.1 Introduction

10.1.1 This section considers the challenges and opportunities facing the outdoor sector in the North West. The challenges and opportunities detailed here are reflective of the consultations undertaken with outdoor related businesses and clubs as well as literature sources. They are related to the whole sector rather than specific sub-sectors across the region.

10.2 Overall SWOT analysis

10.2.1 The consultant team conducted 20 business consultations with different organisations across the North West. Businesses from each of the 5 sub-regions and from a range of different sub-sectors were consulted with to gain a true understanding of the outdoor sector across the region, and the key opportunities, weaknesses, strengths and challenges faced by the industry. These form the basis of the SWOT diagram.

Figure 9.1 - SWOT diagram

Strengths

The Lake District National Park is iconic

Good concentration of outdoor activities to suit consumer needs

Easily accessible and has good transport links

Diverse nature/landscape

Good range of accommodation for different consumers and different budgets

Largest concentration of professional outdoor, experienced staff

Greatest concentration of providers in the UK

Large catchment population within 2 hours drive

Weaknesses

Limited capacity, range and quality infrastructure to meet different consumer requirements

Marketing not good enough for the outdoor sector and extreme sports

Limited innovative approaches to attracting visitors to the North West compared to Scotland and Wales

Lack of co-ordination between the Lake District and the National Park

Transferrable skills of people working in the whole leisure/tourism industry is limited

Lack of organisation and support for the outdoor sector across the region

No co-ordinated approach to promoting the region for outdoors – it is managed as a single entity

Opportunities

Jointed up marketing venture for the North West

Education outside the Classroom Manifesto

Environmental and Sustainability Agendas

Threats

Restrictive use of the National Park

Increased price of fuel

Road charging

Restrictions from land owners and

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Internal/domestic tourists

Climate Change Agenda

A change in the planning system

Develop corporate sponsorship to grow activities

Take advantage of this growing sector

Improve the quality standards of goods and services

Every Child Matters Agenda

Unique characteristics of the North West

planners

Lack of funding e.g. for outdoor education centres and watersports centre

Competition from other areas e.g. Wales and Scotland

Changes in the National Curriculum for outdoor education

Accidents and negative media coverage

Increased regulations, licensing of all providers, growing legal requirements, cost of public liability insurance and red tape

External threats e.g. foot and mouth

10.3 Challenges

10.3.1 Through this research a number of important challenges were identified that could have a major impact on the development of the outdoor sector in the North West.

The Environmental and Sustainability Agenda

10.3.2 The development of many adventure activities is currently constrained because of limited access to suitable water, countryside and coastal sites. Limitations in suitable water, countryside and coastal sites may give rise to increasing pressure on available sites. As demand increases there is a need to look at widening access to alleviate such pressure and increase opportunities for adventure activities.

10.3.3 Farmers, for example, are being urged by Central Government to diversify and many see renting out land for other uses including outdoor activities is an area that is becoming increasingly attractive to them. The problem many are facing is that the current planning system is not structured in a way that will always allow this to happen. Therefore it is becoming increasingly difficult for farmers to get planning permission, adding to the already limited access to suitable land, water for the outdoor sector.

10.3.4 Adventure sports also take place in some of the most sensitive landscapes and areas of wildlife importance in the UK. Ensuring that participation does not damage the natural environment or disturb wildlife habitats is very important, and regulations are in place to protect these areas and habitats.

10.3.5 Conflicts between different sporting and recreational interests in the countryside can sometimes occur, e.g. conflicts between surfers and bathers, jet skiers and canoeists, canoeists and anglers. Adventure activities need to be managed to avoid such conflicts, and to ensure a balance between the interests of all sporting and recreational users of the countryside.

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Lack of a Co-ordinated Approach to Marketing the Outdoor Sector

10.3.6 Only a small number of tourist boards in England are undertaking any sort of collaborative outdoor sector marketing. However, South West Tourism is promoting watersports through its SWH2O marketing campaign, and the Cumbria Tourism has its www.lakedistrictoutdoors.co.uk website to cover adventure activities. This is more fully developed in Scotland with a range of outdoor sports web portals.

10.3.7 The issue with Scotland is that on a regional basis operators have come together to market a “Scotland Adventure” experience – this makes the marketing message far more powerful than small disparate marketing efforts by independent operators.

10.3.8 The adventure tourism industry is highly fragmented and comprises mainly small, often isolated, activity businesses. This makes collaborative marketing between activity operators difficult but necessary in order to create a more effective impact. Activity operator networks have, however, begun to develop in some destinations and there are opportunities to extend these activities.

10.3.9 More work is needed between partner organisations across the region to promote and market the unique characteristics of the North West as a great destination to do outdoor activities, and one that is attractive to the broad customer spectrum that comprises the outdoor market. There needs to be a single entity that is managed in a co-ordinated and collaborative matter. This research has clearly shown that this is not the case for the North West - there are too many organisations and information points, and this causes confusion and frustration for consumers when looking at the region as a potential destination to come and visit.

The Business Environment in the Outdoor Sector

10.3.10 The outdoor industry comprises many small businesses that could lack business skills. The adventure tourism industry comprises many self-employed individuals working on a freelance basis, or running very small businesses. These people are highly skilled and knowledgeable about their activities, but may lack business management and marketing skills. As micro businesses, activity operators will often have only limited funds to invest in developing their business operations. There is a need, therefore, for business advice and support services, managed and delivered by people who fully understand the sector. The rapidly rising costs of insurance are a particular concern.

10.3.11 At present, all commercial activity providers and local authority outdoor education centres that cater for people under the age of 18 are required by law to be licensed by the Adventure Activities Licensing Authority (AALA). A number of national sports governing bodies (e.g. the Royal Yachting Association, Mountain Leader Training UK, and the British Surfing Association) run registration and inspection schemes for teaching schools and freelance instructors. These schemes, however, primarily focus on safety. Only the Wales Tourist Board currently operates a voluntary quality assurance accreditation scheme for activity operators. Negative publicity from the media regarding accidents can also dampen interest in outdoor sports. It can also lead to increased legislation regarding safety which makes the environment for outdoor sports businesses more difficult in which to operate. However, participation in such initiatives as ROAM can help businesses to address these points.

10.3.12 The outdoor sector also faces labour market challenges as low wages are endemic in the outdoor sector and the wider tourism industry, and there are limited career prospects. This can lead to high staff turnover especially in businesses where the staff have not chosen the profession for the love of the sport – the employee has no real commitment to stay with the organisation therefore the strength lies with the employee not the employer. The industry also faces gaps in qualified instructors and managers.

http://www.lakedistrictoutdoors.co.uk/�

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Threats to the levels of participation in outdoor sports

10.3.13 Certain socio –economic groups are unlikely to take part in outdoor sports. Indeed, social classes A, B and C are those most likely to participate. Additionally, participation in certain types of outdoor activities, namely women and ethnic minorities is less likely for extreme sports.

10.3.14 Outdoor sports – especially extreme sports are often considered to be dangerous and participation requires being young and fit. However, outdoor sports can be enjoyed at any level. They are fun and anyone can participate. It is important to offer a variety of outdoor activities, that groups as well as individuals can take part in, and there are activities available irrespective of an individual’s ability. Families want to take part in activities that all the family members can take part in.

10.3.15 Issues were raised among some organisations that certain groups, for example, families have been deterred from visiting certain areas of the region due to changes in the outdoor activities available. There is concern among some providers that the region is losing the next generation of consumers to other competing areas such as Wales and Scotland.

10.4 Opportunities

10.4.1 This section looks at the main opportunities that have been identified through this piece of research in the outdoor sector.

Growth in the Outdoor Sector

10.4.2 The literature review provided evidence that there is growth in the market for adventure sport activities. There is strong anecdotal evidence from both consultations and the literature review that the numbers involved in outdoor sports are growing.

■ Outdoor businesses surveyed as part of the research reported a growth in the market; and

■ There is a growing interest in holidays that emphasise activity – as evidenced by a range of overnight visit studies (e.g. Visit Britain and Visit Scotland surveys, both of which emphasise the growing importance of activity based breaks).

10.4.3 Prospects for the growth of the market vary considerably. From the literature review evidence indicated that consumer groups can fall into a series of separate groups5, largely based on their expertise and frequency of participation:

■ The Dabblers and Enthusiasts markets are likely to experience the strongest growth;

■ The Learners market should experience some growth but this is unlikely to become more significant;

■ The samplers market is likely to be constrained by supply;

■ Any growth in corporate groups will depend on the economic climate; and

5 The groups are: samplers (those who are trying an outdoor activity for the first time); learners (those that are learning an outdoor activity); dabblers (those who occasionally take part as part of their leisure time or whilst on holiday); enthusiasts (those who regularly take part).

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■ The special Occasion Buyers market which has grown extensively in recent years, will continue to grow.

10.4.4 The North West has a large concentration of professional people – the group who are most likely to take part in outdoor sports. The region also has a large number of natural assets that are attractive to outdoor sports participants.

10.4.5 An additional recent trend has been the growth in the sale of outdoor style clothing for street wear. This reflects a growing interest in the imagery of outdoor adventure sports and the styles that are popular with those who participate in these activities. Many specialist outdoor clothing shops are now also producing “fashion” versions of outdoor clothes.

Potential Growth in the Internal and Domestic Tourist Markets

10.4.6 The consultations highlighted that many see the internal (North West) market and the domestic market as the largest opportunity the outdoor sector holds over the coming. The reasons for this being people are becoming increasingly sceptical about flying, and the fear of terrorism are real issues among some consumers. As well as this the environmental agenda is becoming a everyday part of people’s life with the Government’s push on making people more aware of the environmental issues, and the impact flying has on the environment. This may affect the number of people choosing the stay in the UK and take their weekend breaks and/or holidays. Climate change is also another issue that in the coming years may again make people think twice about going abroad.

Unique Characteristics of the North West

10.4.7 The North West is one the most diverse regions across the UK, and has the opportunity to utilise these assets so that the region appeals to a broad range of consumers. The region is capable of offering something to everyone if the infrastructure, support mechanisms and marketing of the region is done in a co-ordinated approach. The region has for example the Lake District which is somewhat iconic having both mountains and lakes, Liverpool with its historic maritime history and being chosen as the 2008 Capital of Culture City, and Manchester which has hosted the 2002 Commonwealth Games, and offers an array of urban activities. There are other assets, including the developing Mountain Bike trail at Rivington – which is a legacy of the 2002 games now being developed as a high quality facility. The key is to promote the diverse nature of the North West, and the tourism and activity offer. The North West should not market itself just as the North West, but as a region with many different yet intertwined opportunities that can cater for the whole spectrum of consumers from a single person to a family of four to an outdoor enthusiasts as well as the international market.

Linkages with other Government Initiatives and Policy Agendas

10.4.8 The outdoor sector, as discussed on detail in Section 3, is closely linked with a whole range of Government Initiatives and Agendas. The Government is currently advertising and promoting it’s Healthy Living Agenda and has a range of initiatives and pilots schemes in place, for example, the widely publicised Jamie Oliver’s School Dinner’s Initiative aimed at encouraging school children to not only eat healthier but also learn about the food they eat.

10.4.9 The Government is now including learning outside the classroom within the national curriculum and has worked with partners to publish the Learning Outside the Classroom Manifesto. This is a £2.7 million package for schools to launch outside the classroom learning for pupils to enable their personal development. This is particularly timely, given the growing interest in the sector that the work of Skills Active has helped to stimulate.

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10.4.10 The Government is also keen to widen the participation in outdoor activities to all including those from disadvantaged backgrounds and lower income families, and ensure that those previously excluded from outdoor activities are given the chance to participate in activities.

10.4.11 There is a real opportunity here for the outdoor sector to be ‘connecting’ component with all these initiatives – the missing link in the chain. This will ensure that partners and organisations involved in these initiatives engage with each other and the outdoor sector to ensure a collective approach is taken that will encourage more people to be active and healthy, get kids into the countryside, and widen the socio-economic groups that access the outdoor environment in the North West.

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11 Conclusions and recommendations

11.1 The brief

11.1.1 This report – which is one of the first of its kind on both a national and regional basis – has been commissioned specifically to enable the North West Development Agency and the stakeholders with which it works to better understand the role, structure and contribution made by the outdoor sector in the region. The underlying purpose of the report is to:

■ Determine the scale of the sector and sub-sectors that make up the outdoor sector;






11.2 Context and rationale

11.2.1 The outdoor sector brings together two dimensions of economic activity and regional economic development policy that are both prominent in the work of the North West Regional Development Agency. These are tourism – including the day visit economy and that which is supported by overnight visitors – and of course sports. Outdoor recreation is – as this report will demonstrate – an important driver in the regions visitor economy, whilst sport is also an important (and growing) economic sector, into which the NWDA is investing time and resources. Owing to the implicit interrelationship between these two areas, the NWDA has agreed it as being necessary to profile the outdoor sector in order to understand its economic value and potential, its strengths and its weaknesses as well as the sorts of actions that can be taken to strengthen its economic impact.

11.2.2 In research terms, the sector is relatively under developed. Much of the research that is available tends to focus on narrow areas of the sector (e.g. particular sports and sub-sectors, such as extreme sports) or is otherwise focused on how the sector can be used for particular policy purposes (e.g. to deliver new mechanisms of education and or training). Very little research is available that comprehensively looks at the sector as an economic entity per se. There is similarly a general paucity of evidence relating to how the entire sector can be developed, strengthened and leveraged for economic development purposes.

11.2.3 This study – which we have already highlighted as being one of the first of its kind – therefore forms an important part of a growing body of research that the NWDA is developing which is helping to understand the dynamic of the regional tourism market at one level and the Agency’s appreciation of the complexity of the regional economy at another.

11.2.4 The outdoor sector lacks any comprehensive policy of its own. That policy which does exist is primarily related to training and workforce development and is attributable to SkillsActive, the Sector Skills Council for the Active Learning and Leisure sector. Beyond

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this (important and up-to-date) policy context, there is actually very little else that lends itself to providing a policy framework for the outdoor sector.

11.3 An important sector?

11.3.1 By standard economic measures (employment, Gross Value Added and so on) the outdoor sector is considerably less important than say others that receive the attention of the NWDA (e.g. business and professional services, biomedical, advanced engineering and metals, creative and digital industries, energy and environmental technologies and food and drink). Indeed, the sector itself is a relatively small one in terms of employment and the level of GVA it generates. In all, we estimate that in the North West the sector is made up of only 484 companies who between them employ slightly more than 2,600 people and generates a GVA of approximately £44 million. Of course, these measures do not mean that the sector is at all unimportant, but they do indicate that its magnitude of economic contribution is considerably smaller than other sectors that the North West’s Regional Economic Strategy (RES) is concerned with.

11.3.2 However, very importantly, the sector produces a set of benefits that are potentially much more significant than straightforward employment and output measures. For example, the research contained within this report demonstrates that the sector has a considerable degree of compatibility with a wide range of strategies and policies that are influencing the planning and management of economic development in the region. Specifically, the analysis reveals how the sector already supports the following policy areas:



■ Education;

■ Productivity;


■ Tourism and the visitor economy; and


11.3.3 Thus, whilst the sector can be seen to lack a policy of its own, it by far from stands in isolation from other important policy areas. It provides an opportunity to link with a wide range of strategic priorities and policies (both national and region) and similarly provides a route through which these can be delivered.

11.3.4 The sector similarly plays an important role in what we now commonly refer to as “place making”. The fact that so many people value the outdoor environment of the North West – be it the striking landscapes of the lake District or the impressive coastlines that provide a backdrop to sailing and water-sports – and connect emotionally to its permanent and inherently “public” assets without doubt has an influence on how people perceive the region and the quality of life it offers to its residents, visitors and even investors.

11.3.5 Of course, arguably the most important aspect of the outdoor sector is its ability to drive tourism markets. It is a hugely important motivator of visits to and within the region and similarly the visits it generates support a wide range of secondary and tertiary activities – from catering and accommodation through to organisers of events and festivals.

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11.4 Some sectoral characteristics

11.4.1 Not only is the outdoor sector a small one in overall terms, it is also characterised by small companies. The overwhelming majority of companies employ less than 15 staff and are in those terms ‘micro businesses’. However even here, the tendency is towards particularly small companies: the majority employ less than five people.

11.4.2 The most dominant sub-sector is ‘other sporting activities’. Nearly 45% of all companies analysed occupy this sector. This sector includes organisers of sporting activities and events (e.g. cycle tour operators) and it also includes the clubs, marinas, riding academies, stables, hunting and the rental of sporting equipment. This sector is followed by other recreational activities not classified elsewhere – a sub-sector represented by 24% of the regions businesses. These are mainly recreational venues (e.g. parks and fishing facilities) and recreational transport facilities (e.g. boat hiring).

11.4.3 Geographically, our dataset indicates that 32% of all outdoor businesses are located in Lancashire, 21% in Cheshire, 13% in Merseyside, 27% in Cumbria and 7% in Greater Manchester.

11.4.4 From a forecast standpoint, output growth is anticipated and this rate of growth is forecast to outstrip that for employment. The highest rate of growth is predicted for the Greater Manchester sub-region.

11.4.5 Many sub-sectors of the market are longstanding. Others, especially those of an extreme nature are newer. Both however are generally exhibiting growth. In parts that growth is steady and part of a long term pattern of growth that is correlated with rising disposable incomes, increased awareness of health issues and a growing appetite to want to ‘escape’ from the humdrum of everyday urban lifestyles. Elsewhere, growth is more rapid although in some cases not always sustained. The term ‘here today and gone tomorrow’ is one that is appropriate in the context of some of the more radical extreme sports. Indeed, such evolution is actually a defining factor of many extreme sports and as a new activity comes to the fore, another one disappears from fashion. This emphasises the somewhat fickle, yet dynamic nature of some aspects of the market.

11.5 Some consumer characteristics

11.5.1 For nearly all outdoor consumers, the consumption of an outdoor pursuit is a “lifestyle thing”. Any serious participant in an outdoor sport or leisure pursuit will tell you that their interest is in more than just a sport. For many, it’s a way of life and state of mind. It is about challenge, adventure and about pushing the boundaries. Sometimes the sports involve competing against others. More often it involves challenging ones own limitations. Participation is also about sharing ones enthusiasm with others – and in particular – with like minded groups who enjoy a challenge, the fun and the excitement of participation. These principles are particularly true for extreme sports enthusiasts, but to an extent they also ring true with those who enjoy taking part in less risky activities, like walking and cycling.

11.5.2 Whilst virtually all sector analyses point towards a growing market, commercialisation and outdoor activities present outdoor consumers with an uneasy mix. Large companies will always look to tap into sports markets. Outdoor markets are particularly attractive to companies for a number of reasons. First, they typically involve a consumer group that is a coveted audience – those who are young and those with high levels of disposable income. Today, fashion retailers, drinks manufacturers, even car makers are keen to use outdoor sports to promote their products. Destinations too are also often keen to exploit the growing interest in one pursuit or another. Places like Newquay in Cornwall – or rather businesses in Newquay - have certainly exploited the association with surfing.

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11.5.3 Although this trend occurs across most markets, the irony is that most who take part in the sports actually resent their commercialisation. Whilst many acknowledge that sponsorship brings money into the sector and can help fund large events and competitions, it does so at a cost. It often challenges the very ethos of the sport which is often either about escaping the increasingly “corporatised” societal system and urban living or a demonstration of rebellion against formal and competitive sports. The commercialisation and growth to mass market of many outdoor sports often therefore mixes uneasily with those who are active, regular and ‘hardcore’ participants.

11.6 Is the North West an established “outdoor” destination?

11.6.1 Market research demonstrates that internationally known destinations for the pursuit of sport and outdoor activity have a number of common traits or pre-requisites:






11.6.2 The North West has some of these pre-requisites in place (notably a high quality natural environment) and others developing apace (e.g. a nascent set of products delivering outdoor sport experiences to the public). Indeed, in certain areas, the asset base of the region – particularly the natural environment – is of a world class status. Indeed, so highly regarded are the physical assets in the region that there are more clubs registered outside of the North West with huts and facilities in the region than in any other region. Similarly, the quality of the outdoor infrastructure (e.g. climbing huts, marinas and sailing clubs, cycling clubs, rambling clubs and so on) available in many parts of the North West is amongst the best in the UK.

11.6.3 Yet in terms of other assets, particularly in terms of the extent to which the sector comes together to provide well organised, structured and widely communicated events and programmes, substantially more could be done. Whilst the sector has – over the last 3-5 years begun to emerge in a more organised way than ever before – there remains some quite compelling evidence that other destinations – notably Scotland and Wales – are more advanced in infrastructure and marketing terms.

11.7 Growing the regional market

11.7.1 The report identifies the non-physical ingredients that are typically necessary to generate high levels of consumers of outdoor recreation and activity. For a destination to generate high consumption patterns, it typically requires consumer catchments as follows:


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■ Second, and most obviously, the population within that drive time must have a high propensity to participate;




11.7.2 Clearly it has been beyond the scope of this report to analyse every single destination in the North West against these important market measures. However, we have – simply as a way of illustrating how these measures can occur in the region – carried out one “dummy” market appraisal. This has involved analysing a destination in the region that roughly sits at the mid-point of the North West and has a good – although not well established – outdoor environment (Pennine Lancashire). Here, our initial market appraisal indicates that on the positive side, the region benefits from a large young population, whereas on the less positive, that population is generally less affluent and generally has less propensity to participate than national averages. We advise that further analysis of other destinations in the region is necessary in order to meaningfully identify those areas with the strongest prospects for market growth.

11.8 Learning from “world class” destinations

11.8.1 Our analysis considered two destinations that have established themselves as international tourism locations based on the availability of outdoor sports and activities. These were Queenstown New Zeeland (the home of the Bungee Jump) and Whistler in British Columbia in Canada (famous for its diversification away from a seasonalised ski resort to a world call mountain biking and broader outdoor destination).

11.8.2 Based on these case studies and our own market research the analysis has identified a conceptual model for the development of outdoor markets and destinations. That model is described in the main report at Figure 5.1 and in summary, includes four main stages in the ‘evolutionary’ process:

■ Stage 1: this involves the colonisation of a destination by a group of ‘hardcore’ enthusiasts. Attracted by the uniqueness of the location, the newness of the activity and the fact that both are unique and alternatives to the mainstream, hardcore enthusiasts begin to pursue a sport or activity in gradually increasing numbers;


■ Stage 3: for those destinations that ‘take hold’ so to speak, this is a hugely important stage of development It is part of the critical path towards becoming ‘mass market’. Companies begin to see commercial opportunities. Corporates begin to see sponsorship opportunities. Businesses begin to work together to attract consumers and compete with each other when they are there. The public sector too begins to adopt an involvement. Sometimes this involvement is about managing risks and health and safety issues. Sometimes it is about maximising the

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economic benefits. In either case, it creates publicity. That publicity helps to grow market appeal;


11.8.3 Of course in practice, the evolutionary process will only broadly follow this model: we have simplified the analysis for the purposes of this report. However it does lend itself well to establishing a model for how the outdoor market in the region could be developed and expanded.

11.9 Options for growing the market

11.9.1 Based on the case study material – and on the consultant teams’ understanding of the offer in the region, the report identifies a number of options for the development and growth of the outdoor market in the region. These options were “do nothing”; “do minimum”; “Outdoor Sector Activity Brand”; and “Outdoor Village”. These were – of course – entirely conceptual options and are included solely to provoke thinking and debate as to how the market can be grown in the region. They should be revisited when further research has been carried out in the region and considered in further detail as part of the process of developing a policy position for the development of the sector.

11.10 Findings from the gathering of stakeholders

11.10.1 In response to the opportunities and challenges highlighted within our earlier Draft Final Report the NWDA recently convened a group of regional “outdoor sports sector stakeholders”. This group consisted of representatives from public bodies and organisations involved in the development of the sector and a sample of businesses that operate within the sector. An issue highlighted by the event is the appetite and enthusiasm of the stakeholder group to continue the momentum created by this study and as part of this, a desire to continue to work together to develop a stronger policy position for the sector. Our recommendations (below) have been adjusted to reflect these points.

11.11 Suggestions for the way forward

11.11.1 The focus of this report has ostensibly been on “mapping” the outdoor sector. Through this, the analysis has provided facts, figures, intelligence and information in relation to the sector and how it is configured in the region and elsewhere. We have emphasised the fact that this research is amongst the first of its kind – there are few studies that analyse the outdoor sector as a single economic entity and from a standpoint of regional economic development. Owing to this, the consultant team advise that:

■ The desire of stakeholders working within and representing the sector to continue to work together to develop a stronger regional offer and policy position should be harnessed. There is an active, cooperative and enthusiastic grouping of key people that this study has brought together. Whilst embryonic, its motivation and desire to work in partnership is a “good thing” and should be both encouraged and serviced. We emphasise however that this should – at least initially – be a “light tough” approach and does not as yet necessitate any new structure or formal partnership;

■ There is a need to move towards a policy position for the outdoor sports sector. That policy position is a sensible step forward beyond this detailed mapping

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exercise. It will need to resolve some important issues. Some of those relate to the definition and measurement of the sector, whilst others relate to the spatial level at which and policy actions should be delivered (e.g. regionally, locally, sub-regionally). The views of the Tourist Boards are important in shaping any future policy actions. However, it is recognised that the role and synergy of the outdoor sport sector with other organisations such as Natural England (in particularly linked to the regional project - Natural Economy), Sport England and SkillsActive need further exploration to ensure that a holistic approach is developed in the future. It is suggested that further consultation is undertaken with these organisations. Similarly further market research on the strength and capacity of destinations within the region will also need to be tested as part of that process;

■ There is a particular opportunity for the regional to maximise future policy actions linked to the development of a Regional Hub for the Outdoors as part of the National Skills Academy (NSA) being development by SkillsActive (the sector skills council for sport and active learning, which incorporates the outdoors). It should be recognised that this national/regional initiative could present the region with a significant opportunity to develop a framework and model for supporting the skill development of the outdoor sport sector to achieve improvements in productivity and a positive growth in the sector. Further work should be undertaken to ensure integration of this initiatives into any future policy actions adoptions;

■ Because of the points raised above, further research should be commissioned by the Agency that builds on the mapping exercise. That work should include the development and application of a detailed set of criteria which can be used to rank and score the capacity of destinations in the North West to grow and develop and lend themselves (spatially) to a regional growth programme / strategy. This not an insignificant task and importantly, it should be done with the involvement of regional Tourist Boards to secure their ownership and support of the outcome;

■ The emphasis and rationale for the creation of a stronger policy position is, in our view, a strong one. A policy position is necessary because:

The sector is actually a growing one – with consumption patterns increasing (see subsequent sections). That growth, if left unchecked, is likely to be piecemeal and uncoordinated and the opportunities for harnessing it to support regional priorities could be lost;

The sector has considerable capacity to address a wide range of important national civic issues (health, rural diversification, sustainable tourism). Without a policy to address these interrelationships, opportunities may be lost;

At a regional level there is an increasing amount of both market driven and policy driven initiatives that have a strong focus on “outdoor” (e.g. Adrenaline Gateway, Adventure Capital). The region lacks a policy position from which to guide any investment or major planning policy decisions in respect of these initiatives; and

At a regional level there is a particular opportunity for the regional to maximise future policy actions linked to the development of the NSA – as a result of this initiative happening a joined up approach is needed to ensure benefits are maximised.

11.11.2 The above suggestions should be seen as part of a process of continuous development. Of course, it will be important that the process of putting in place the above recommendations should include a wide and representative group of companies that operate in the sector. Fortunately, the database of companies produced as part of this research can be used for these purposes and as a minimum, we advise the NWDA that

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communication with these companies regarding the Agency’s future intentions should be initiated

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