Coastal Tourism Monitor

A snapshot of performance of tourism businesses on England’s coast

Results from Wave 3 (September to November 2016)

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Introduction

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The Coastal Tourism Monitor has been designed to provide a snapshot of the performance of tourism businesses on England’s coast. The research collects feedback on past performance and future prospects to give a national and regional overview.

The research involves a telephone survey with a core sample of 400 tourism businesses conducted 3 times per year. Businesses making up the core sample were recruited to reflect the nature and distribution of tourism businesses around the English coast. A small sample of destination managers are also surveyed.

Fieldwork dates are:

➢ 6-17 June 2016, reviewing Easter to the end of May➢ 5-16 September 2016, reviewing start of June to the end of the school summer holidays ➢ 5-16 December 2016, reviewing mid-September to the end of November

This report presents results from the third survey wave.

Business profile

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Business type Number of employees Business region

The core sample involved:

• 383 accommodation establishments including mix by region, establishment size and hotels / guest houses / B&B / self-catering / caravan and campsites.

• 18 visitor attractions including mix by region, attraction type, and size (measured by annual visitor admissions).

Business performance, September to November, compared to same period last year

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Overall across coastal businesses Performance by business type and across regions

For most businesses, performance was either up or the same as the same period last year. There were differences between business type and across the regions.

Reasons for decrease in performance, September to November, compared to same period last year

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Nearly half of all businesses which saw a fall in trade attributed this to a reduction in the volume of visitors over the period either to directly with themselves or to the area in general.

Reasons for increase in performance, September to November, compared to same period last year

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Good weather, an increase in staycation due to security fears abroad or the weaker pound, better marketing of business and a general increase in the appeal of the destination, were identified as top reasons driving growth.

Business performance expectation for next 3 months, compared to same period last year

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Overall across coastal businesses Performance by business type and across regions

Looking ahead, a quarter of businesses expect performance to be better with hotels being most optimistic

Key challenges affecting coastal businesses

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Are there key challenges affecting your business sector?

What are these challenges?

52% of businesses reported that there are key challenges facing their business.

Bad or unpredictable weather and poor UK economic climate are perceived to be the key challenges

Visitor market

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Changes seen in visitor needs/profile? What are these changes?

Our guests have not changed. They expect more year on year.

It is just a general thing you come to expect.

We saw a marked increase in the number of people coming

from overseas.

Comments from businesses

Just over a third of all businesses have experienced changes in visitor needs/profile with rising expectations being they key change.

More overseas visitors and shorter trips were also noted

More demand for Wifi and they expect more from their room for the same money.

People are coming to stay for a shorter period of time so for example they'll come to stay for 3 days but they'll do that twice a year instead of just

coming for one week once a year.

Rising customer expectations/more demanding

More overseas visitors

Shortening of trip length

More older visitors

Increase in younger customers and families

Decline in visitors from overseas

Growth markets seen for the future

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Looking ahead to next year what do you think will be the key growth markets for your business?

Overseas visitors (perhaps due to a weaker pound), older visitors and families were seen as key growth markets looking ahead to next year.

Initiatives taken to boost business in approaching off-peak season

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Now the main holiday season is over, what are you doing to attract additional customers and maintain business performance during the off peak period?

Although 40% are not planning anything in particular, a quarter of all businesses had started reducing prices and doing special promotions for the off peak period.

Nothing in particular

Lower prices and special offers

Closed during period

Doing more advertising

Investing more on improvements in the business

No additional activities needed as busy over winter

Special events

Tourism organisations engage with in area

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In this period of the survey, businesses were asked which tourism organisations they engage with in their area. Nearly half of all businesses did not engage with any tourism organisations.

Other organisations mentioned were local tourist boards, the AA, the Chamber of Commerce and the Federation of Small Businesses.

Comparison with Wave Two Survey

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Generally businesses reported less positive results compared to last year than in the summer. 34% reported that performance was better compared to 40% in the summer. Where better performance was reported this was largely due to good weather or staycation growth due to either security fears abroad or the weaker pound.

Similarly, businesses were less likely to be bullish about performance in the next quarter compared to perceptions in the summer.

Comparison with Wave Two Survey

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In relation to visitor profile, some businesses noted an increase in overseas visitors and 17% felt that overseas visitors would be a key growth market looking ahead to next year.

In terms of challenges, as in the spring and summer waves, poor/ unpredictable weather continues to be the key one. However a significant 20% of those who had noted change mentioned the poor UK economic climates with consumer’s having less money to spend.

Destination Managers

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14 destination managers were also surveyed during this period so that their thoughts could be compared with businesses.

As clear from the next slide most were quite bullish about both performance during the autumn and expectations for next year.

In terms of key challenges affecting the industry, destination managers cited competition from other parts of the UK, cost of using online travel agents and high staff turnover.

Coastal Tourism Monitor

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Expectations for next 3 months compared to same period last year

Destination Managers were far more positive about business in the last quarter with 64% saying they thought it was better than last year. Their reasons were better weather, better marketing plus an increase in staycations due to security fears abroad and a weaker pound.

Business performance compared to same period last year

Destination Managers were also positive about the forthcoming winter period with nearly two thirds expecting business to be better than last year.

In terms of key challenges affecting the industry, Destination Managers cited competition from other parts of the UK, the cost of using online agents and high staff turnover.

Coastal Tourism Monitor

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In this period of the survey, Destination Managers were asked which tourism organisations they engage with in their area. All except one mentioned DMOs and local hospitality organisations. A further 9 out of the 14 surveyed mentioned LEPs, BIDs and CCTs.

Destination Managers felt that key priorities in the coming year were trying to ‘extend’ the season, encouraging more staying visitors and maximising visitor value.

Key growth markets identified for the coming year were activity and wellness breaks, families and the continuing staycation trend.

Comments from Destination Managers

We create and operate themes throughout the year each aimed at different segments of the market.

Continue to develop high quality events programme in the face of economic challenges.

Ensure effective messages about our regeneration get out to the marketplace.

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The research will be repeated in spring 2017 to assess business performance over the winter and business confidence for main season.

Connect with the NCTALinkedin.com/company/national-coastal-tourism-academyFacebook.com/nationalcoastaltourismacademyTwitter: @nctacademyWebsite: coastaltourismacademy.co.uk

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For more information about the Coastal Tourism Monitor please contact:

Jo EdomAcademy Manager

National Coastal Tourism Academy

t: 01202 962572w: www.coastaltourismacademy.co.uk

e: jo.edom@coastaltourismacademy.co.uk