Visit Cornwall Tourism Summit

Andrew StokesFebruary 2018

What have we done?

The Discover England Fund

Discover England Fund

Fund Objectives• To grow tourism in the regions of England

• To increase the competitiveness of England’s tourism offer, domestically and internationally

• To develop world-class bookable tourism products in line with market trends and in response to consumer demands

Discover England Fund

High-level criteria• Collaborative – demonstrate that each bid

has the support of a group of public/private partners, DMOs and LEPs

• Integrated transport solutions are key- pricing / passes- local solutions e.g. linking attractions- technology

• Match-funded

• Demonstrate how products meet customer needs - bookable- tangible

• Demonstrate international and domestic tourism benefits

• Year 1• 20 test and learn projects delivered

• Years 2-3• Years 2-3 Large Scale projects (£1

Million +) • Year 2 Pilot projects (£250,000)

• 20 projects have been approved by the Independent Awards Panel and ratified by the BTA Board

- 12 Large-scale (circa £1m)- 2 £500,000 Years 2-3 projects- 6 Year 2 pilots

Status of Grant Funded Projects

Year 1 Pilot Projects

• 14 Projects covering one or more regions

• 6 Projects with nationwide impact• Golf Tourism England – Golf Tourism England • Incentive England – Leopold Marketing• Brit Xplorer – National Express• Britrail England Pass – ATOC• Britain Fix-(ED) – STA Travel• Town and Country - Superbreak

Year 1 Regional Impact

Year 2 Pilot Projects

Connections, led by Destination PlymouthThe Connections project will produce a series of new, immersive, bookable English-themed visitor experiences specifically for the American market, encouraging visitors to explore England beyond London.

Brilliant Science, led by Marketing CheshireThis project will extend the visits of delegates attending scientific conferences in Manchester with regional science tours.

Culture Coasting, led by Visit Kent

Culture Coasting, which is also National Lottery match-funded by the Arts Council England through the Cultural Destinations Programme, will target visitors from Northern France and the Netherlands with bookable art trails along the South East coast of England

England’s Literary Legends, led by Visit NottinghamshireThis project will target the US travel trade with literary-themed bookable itineraries based in three locations, Nottinghamshire, Hampshire and Shakespeare’s England

Royal Racecourses – The Sport of Kings, led by Cheshire West and Chester CouncilCreating experience-led itineraries for visitors from the Middle East, incorporating world-famous race-courses (Ascot, Newmarket, York and Chester) with luxury accommodation offers, in heritage locations.

Limited Access, led by Contikinew packages for 18-35 year olds targeting visitors from Asia, Australia, Canada, Europe, New Zealand, South Africa and USA. These will include iconic landmarks, heritage locations and accommodation.

Creating English City Food Hubs, led by Destination Bristol

Destination Bristol is trialling an urban ‘food and drink hub’ concept to promote the area’s growing reputation as a destination for produce. The template will be rolled out to other urban areas.

All Years 1 and 2 Pilot Projects

Year 2 Large Scale Projects

The Collection, led by England’s Historic CitiesThe Collection tells the stories of 15 of England’s premiere Historic Cities and for the first time presents them as one product for US visitors. The bid focuses on people and events and uses augmented reality to bring the cities and their stories to life.

Make Great Memories in England’s National Parks, led by Peak District National Park AuthorityThis two-year collaboration of the National Parks in England will create a joined up, branded collection of experiences. It will also provide business support and a trade marketing strategy to create bookable tourism product

Growing Manchester as an International Gateway to the North, led by Marketing ManchesterThis project will increase the volume of visitors coming through Manchester Airport by creating itineraries that showcase the city, and excursions that open up the North of England.

Discover England’s Great Walking Trails, led by Marketing Peak District and Derbyshire 3 to 14 night itineraries, will be designed to promote walking holidays in England combining stunning scenery offered by seven of our National walking trails with the warm hospitality offered by English pubs and accommodation providers. These rural and coastal itineraries will either be booked in their entirety or amended to suit individual needs.

The Great West Way, led by VisitWiltshireDevelopinganewtouring120routeBetweenLondonandBristolandlinkapackageoftailoredvisitorexperiences,includingdestinations,accommodation,attractionsandtransportoptions.

England’s Coast, led by National Coastal Tourism Academy

The'England'sCoast'projectwillpromotethecoastlineusinginteractivevideotechnologywhichallowsholidaymakerstocreatetheirowncoastalitineraries.

Year1PilotProjects Applicant

TellingtheStoriesofEngland:DevelopingCulturalTourismProductsacrossEnglandfortheUSAlumniMarket

UKCountrysideTours

GrowingManchesterasanInternationalGateway:CreatingNewBookableandCommissionableVisitorProducts

MarketingManchester

SouthWestCoast– AmazingExperiencesandMakingExperiences SouthWestCoastalPathAssociationGardensandGourmet VisitKentGolfTourismEngland GolfTourismEngland

GreatWestWay VisitWiltshirePass(port)totheCoast NationalCoastalTourismAcademyLondon+Manchester:TheGatewaysofEngland London&PartnersGrowingNewInternationalAudiencesforEngland’sHeritageProduct MarketingCheshireTownandCountry– YourWay SuperbreakBritainFix(-ed):STATravel(carriedforwardfromTranche1) STATravelDiscovertheMightyRiversandMajesticCanalsofEngland(re-submission) MarketingBirminghamBritRailEnglandPassM-Ticket ATOCIncentiveEngland LeopoldMarketingSupportingEngland’sRegionalVisitorEconomiesthroughtheDevelopmentofBritXplorer NationalExpressEngland’sSeafoodCoast EnglishRivieraTourismCompanyEnablingthelastmilejourneytotouristlocationswithintegratedtravelsolutionsandbookingoffers

E-CarClub

TheFriendlyInvasion VisitEastAngliaHullUKCityofCulture– CreativeGatewaytotheNorthofEngland VisitHullandEastYorkshireSelf-GuidedActivityApp CompassHolidaysYear2PilotProjects Applicant

Royal Racecourses - The Sport of Kings Cheshire West & Chester CouncilContiki's Limited Access ContikiStrategy and Experience Development in Food & Drink Tourism Destination BristolBrilliant Science Marketing CheshireCreating Literary Legends Nottingham UNESCO City of LiteratureCulture Coasting Visit Kent

Year2-3LargeScaleProjects Applicant

GreatWestWay VisitWiltshireDiscoverEngland'sGreatWalkingTrails MarketingPeakDistrictTheCollection England'sHeritageCitiesGrowingManchesterasaninternationalgatewaytothenorth MarketingManchesterLondonandCulturalEngland London&PartnersMakegreatmemoriesinEngland’sNationalParksandCountryside NationalParksEnglandTourismOfficersGroupEngland’sCoast NationalTourismCoastalAcademyCONNECTIONS DestinationPlymouth

All Discover England Fund Projects

• Delivery Timescales• Projects have had to deliver on tight timescales• Incorporated a high level of flexibility in our ability to

re-profile• Worked with projects to set realistic project

milestones

• Proliferation• Consolidation not fragmentation• Digital and web platforms a key element of this.

Challenges, Lessons and Learnings

• Getting Product Development right

• What is Product Development?• How to reach the international consumer.• Products must be bookable!• Working closely with project leads and

wider industry to align strategic vision.• Substantial calendar of industry

engagement including workshops.• VisitBritain Product Development and

Distribution team leading on dissemination of learnings in this area.

Challenges, Lessons and Learnings

• Encouraging Innovation• 26 projects in 2 rounds

of Pilot projects to trial innovative concepts.

• Mangrove, Innovation Consultants created an innovation framework and worked with applicants.

• Challenging the industry• Bidder support from across

VisitEngland/VisitBritain teams.• Consultancy support.• Seed Funding at application stage.

Challenges, Lessons and Learnings

Building New Partnerships

• A key criteria for all Discover England Fund projects.

• Collaboration and Partnerships essential in providing the international visitor with a world class joined-up experience.

• DMO Collaboration has enabled product consistency across geographies and efficient knowledge sharing.

• Private Sector Partnerships have been key to delivery attractive bookable product.

• Successful partnerships have drawn together:• Transport providers• Accommodation providers• DMCs• Ground Handlers

What is bookable product?A bookable tourism product for the international consumer is:

• a specific offering which has been developed in line with insights of the target market and consumer i.e. language, interests, cultural considerations, dwell time

• available for sale and commissionable for the travel trade so it can be included in packages or through trade platforms such as OTAs

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Considerations when developing bookable product

ü Products to be well researched (in terms of market appeal) and fully developed to take to marketü Better packaging Develop ‘off the shelf’ saleable products - complete packages with products grouped

together, that can be built easily into tour programmes ü Awareness of the key contracting requirements of the travel trade ü Early release of information about upcoming events/exhibitions - 1 year to 18 months in advanceü Work closely with other product developers to develop highly attractive joint tour products and to

undertake joint marketing and visitor servicing – with integrated booking, where possibleü Ensure that visitors have memorable, authentic experiences that will differentiate the product from others

and ensure repeat visits and recommendationsü Engage with DMCs, on whom many tour operators rely on heavily to source new product – obtain their

advice on how to make the product as attractive as possible ü Remember that OTAs will become an increasingly important route-to-market for out-of-London

experiences.

Asks of Government

Tourism Sector Deal

Industrial Strategy White Paper

The strategy sets out how the Government will boost productivity and earning power across the country by focusing on 5 foundations:

• Ideas• People• Infrastructure• Business environment• Places

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Tourism recognised in the White Paper

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Business Secretary Greg Clark MP, House of Commons, 27th November:

“The tourism and hospitality sectors are very important. They feature in the industrial strategy as two areas where it is particularly important to work together with firms big and small, as we are doing, to establish training institutions and spread technology so that we can raise their performance to compare with the strongest performance elsewhere in the economy.”

Sector Deals

Four Sector Deals, first trailed in the Green Paper, have been announced:1. Life Sciences Sector Deal2. Construction Sector Deal – instead of the Creative Industries3. Artificial Intelligence Sector Deal4. Automotive Sector Deal

The next stage will now lead to Sector Deals being struck with industries who have demonstrated:• Clear leadership.• Represents the breadth of the sector. • Rigorous analysis of the strengths/weaknesses.• Impact on productivity.

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Tourism ‘v’ other Sectors

Life Sciences482,000 people

£37bn

Automotive169,000 people

£71bn

Creative Industries2.9m people

£84bn

Nuclear64,000 people

£3bn per annum

Tourism3.1m people

£126.9bn

Sector Deal?

Sector Deal?

Sector Deal?

Sector Deal?

High Performance SectorCurrent

performanceVa

lue

Gro

wth

Jobs

Prod

uctiv

ity

£126.9bn

3.1m in every local authority

Increase of 1% yields£12bn additional

output increase into the economy

Output in £ per hour£18.3

Compared to £33 in food, and £28 in transport

Each extra £54,000 in tourism spending creates a new job

1.8m extra visitsif inbound tourism to the UK had grown at the same pace

as Western Europe in 2006-16

£268.3bn(2025)

Central forecast: 2025

£257.4bn(2025)

3.7m jobs by 2025

Output in £ per hour£20.8

If real productivity follows 2006-16 trend

Average annual growth in overnight arrivals 2006-16

UK = 1.6%Western Europe= 2.4%

And we could be…

Forecast annual growth in overnight arrivals

2016-2025UK = 3.6%

Western Europe= 3.3%

UK-wide and industry-ledIndustry Engagement

• Steve Ridgway, Sector Deal leader, has had CEO-level meetings with the industry.

• Four industry-led Working Groups have met, consulted and reported back with key proposals:

1. Regulation2. Connectivity3. Industry of the Future4. Industry of Choice

• The BTA hosted an online consultation on the tourism sector deal to help shape the final submission. This resulted in 500 responses from DMOs, SMEs and the cultural sector.

National and Regional Round Tables with industry

Tourism Sector Deal

Connectivity

Place&Product

Skills

TheIndustryoftheFuture

Productivity

• A Tourism & Hospitality Skills Campaign – fixing the image and boosting long-term careers.

• Improved Productivity –increasing the season, and improving business visits and events.

• Tourism Zones – helping make our product thrive and be Europe’s most competitive.

• Connectivity - driving more visits from more markets than ever by 2030

What a Sector Deal will deliver… How we will deliver it…

Skills: Workforce for 2030; a New CampaignTourism needs a workforce to match its ambition: Long Term Growth can only be supported by a Long Term shift in attitudes to sector and major addressing of Labour needs.

An Industry “10 Year Campaign” to recruit UK workers. Helping to change perceptions of the industry and building long termcareer paths. The Government would activity support by seconding specialist DWP staff and working with the Careers andEnterprise Company.

Align education system with skills and employment needs – particularly around vocational training in hospitality andfacilitating development of Degree Apprenticeships in hospitality, akin to Hospitality Centres of Excellence in Europe.

Recruiting and training of 5,000 industry representatives to work with Careers and Enterprise Company and Springboard tosecure 50,000 work experience opportunities and placements, and helping to mentor and encourage uptake of careers in theindustry.

Sector Skills Shortage

Resolution of status of EU citizens in UK is essential. KPMG estimates that the sector currently requires 62,500 EU migrants per annum to maintain current activities.

Employer Skills Survey suggests that 25% of businesses are reporting vacancies, with 38% considered hard to fill and 64% being skills related alone.

Case Study: Perception of the Industry• At every industry

roundtable, businesses have highlighted the poor perception of the industry as critical to success.

• Helping parents understand careers routes and encourage their children to look at the sector is vitally important.

Anticipated

Growth

20172030

CoreHospitalityskillsshortages

Productivity: Britain; Europe’s most productive Tourism Sector by 2030 Tourism will increase it’s productivity by 1%. With over 3m workers linked to tourism, this target will have profound impacts on the UK economy.

Full review of Government financial support for Events and new long term, cross-departmental plan for BV+E.

Build a national programme of events to showcase Britain’s business and cultural excellence and expertise. Direct action and support would be strategically planned with BEIS, FCO, DCMS and DIT.

Understand the data: A new system of measuring tourism productivity improvements with ‘way points’ agreed across the sector.

Increased shoulder season in rural, coastal and towns through Tourism Zone Action Plans. Defined local targets for extended season.

Government set targets agreed by LEPs and Metro Mayors for increases in productivity and tourism included in local plans.

Janu

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March

April

May

June July

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PeakSeason

CaseStudy:NewZealandTourism2025setouttoimproveseasonalityinordertoimproveproductivity.

Focusonnewmarketstoincreaseshoulderseason,retentionofskills,eventsandlocalisedstrategiestokeepbusinessesoperational,longer.

Robustnessandresiliencebuiltaroundsustainability.

Business Visits and Events

Britain currently lags behind the competition in 5th place.

A full review of Government financial support and new, longer term planningtargeting the ‘Gold List’ of events, operating cross departmentally is criticalto future resilience and success.

Business Visits and Conferences support other key sectors, boost Britain’simage overseas. A best practice programme could help to make Britain themost attractive destination globally within 10 years.

Business Visits have successfully increased the season in competitormarkets and boost overall productivity.

Increasing the Season is critical

Tourism Zones: Growth, productivity and developing place.

Tourism Zones: Across the UK, tourism is a strong local economic component, but more needs to be done to build product, encourage extended season, and fixing localised transport issues to improve experience –especially in coastal communities. Best competitor practice has seen Tourism Zones work.

Tourism Zones

Local Enterprise Partnerships including Tourism on their boards and in local growth plans.

Shoulder Season increase targets TZs will have agreed targets for increasing shoulder season through events and planning.

Planning TZs will have simplified planning, through local development orders –helping attractions and hotels grow and increase business and trade.

Local Digital Plans Localised digital plans helping SMEs get to new markets and building resilience. Broadband roll out will be overseen and pushed by the management.

Transport TZs will push localised ticketing connecting rail, bus and tram networks to help customer experience and solving final mile issues.

Business Rates TZs will have the incentive to retain business rates and help start-ups, local SMEs and following success of enterprise zones.

Product Building product and using the Discover England Fund to grow new and competitive local offers for customers both inbound and domestic.

How a Tourism Zone will workLocal Leadership –encouraging new cooperation and clear leadership teams

Current Issues

Fragmentation –Government identified in Tourism Action Plan.

Seasonality is an issue, with many businesses closing at certain time, reducing productivity.

Product doesn’t have the reach it could have.

Many markets don’t know about English product outside of London.

Transport isn’t built to make exploration easy.

Asks

Pilot Tourism Zones with 5 zones working over 5 years.

Work across DfTand Rail Delivery Group to fix ticketing/final mile.

BEIS to help SMEs digitise locally with best practice.

Criteria“Biddable.”

Pre-Existing Transport Hub.

Clear Tourism dominated economy.

Potential to build new and exciting product through local leadership.

Case Study: Japanese Tourism Zones- Increasing stays, through

local cooperation with sites/accommodation.

- Increasing Transport connectivity.

- Improved local data to understand customers.

- Online bookings.

Case Studies: UK’s existing Hotspots

Cornwall: £1 in every £10 is in Tourism.

Bicester Village: Highly connected, strong international saturation. Linked to other attractions nearby.

Cumbria: Lake District National Park connected on West Coast Mainline, but difficult to navigate.

North Wales: New adventure products, strong marketing, within 1hr of 2 International airports, but fragmented final mile solutions.

Connectivity: driving more visits from more markets than ever by 2030Globally and domestically connected: By 2030, we want to be driving domestic and international customers from more markets, to more destinations in the UK, at more times of the year, to spend more money.

EvidenceThe price competitiveness and process of UK visas has been identified as a barrier for travellers and can effect perceptions of our welcome.

A strong domestic transport network which is easily navigable by international visitors will improve their perceptions of Britain, increase their confidence in the use of the British public transport network and encourage visitors to travel to all parts of Britain.

74% of overseas visitors travel to the UK by air. Ensuring that we are developing new routes into regional gateways will deliver growth outside London - as well as increasing capacity along existing routes.

Access to the UKEU nationals must continue to have visa-free access to the UK and if Electronic Travel Authority is introduced they must be used as an opportunity to improve visitor experience and target marketing.

Border Force and UKVI must be adequately resourced to deliver management of the border and customer service.

Government to facilitate cooperation and coordination between UKVI, DIT, Border Force, DMOs and airports to meet the demands of major events and conventions.

Two-year as standard visit visas tobe extended to key markets suchas India and a ten year visa forChina adopted.

Tourism Transport

Tourism to be embedded in surface transport planning. Involvement in franchising and planning. Australia has mandated tourism planning as part of its 2020 Tourism Plan – this is an example to follow.

Capacity improvements and tax policy (including APD) to make developing new air and international rail routes as easy as possible.

Inclusion of Tourism within the Government’s aviation strategies and future legislation.

The Next Steps

November 2017

Spring 2018

Announcement of new Sector Deals –early 2018

White Paper on the Industrial Strategy –27th November

Negotiation on a deal with the Government - ongoing

Thank you