Transcript - Tourism Management Institute

British Tourism Framework Review
Tom Wright
Chief Executive, VisitBritain
TMI Annual Convention 2009
Mercure Holland House Hotel Bristol 9 October 2008
The Required Framework
A British national tourism organisation (NTO) to
harness the resources of Britain, the devolved
agencies, industry and government
•
• An NTO that harnesses its international network
to develop and coordinate marketing programmes
and partnerships
•An England structure constituting a shared English
leadership agency for national and devolved tourism
interests
WHERE WE ARE TODAY
The global visitor economy
Predicted
Actual growth
to mature economies
of 3% pa
Number of visits (millions)
1,600
1,400
1,200
1,000
800
600
Forecasts
1.6 bn
Middle East
Africa
1 bn
Asia and the
Pacific
Americas
846 mn
Europe
400
200
0
1950
1960
1970
1980
1990
2000
2010
2020
Global picture – share of
international arrivals in 2007
Middle East
5%
Africa
5%
Americas
16%
4 in 5 are
intra-Europe
trips
9 in 10
are
intra-AP
trips
Asia and the Pacific
21%
Europe
53%
Origin Region
Origin Region
Inbound to Europe – trends and
forecasts
Arrivals in Europe (change %)
1990-2000 2000-07 2007-12
Africa
59%
4%
34%
Asia
33%
20%
36%
Europe
45%
19%
13%
Latin America
53%
5%
43%
Middle East
66%
23%
30%
North America
56%
-9%
14%
Africa
Asia
Europe
Latin America
Middle East
North America
Arrivals in Europe (000s)
Change (000s)
1990
2000
2007
2012 1990-2000 2000-07 2007-12
604
961
997
1,333
357
35
336
9,738
12,940
15,569
21,126
3,202 2,629
5,557
186,854 271,134 322,060 363,542
84,280 50,926 41,482
1,415
2,165
2,273
3,248
750
108
975
1,492
2,472
3,049
3,956
980
576
907
16,550
25,814
23,585
26,873
9,264 - 2,228
3,288
China
Outbound visits (%)
1997-2002 2002-07 2007-12
Short-haul
187%
91%
80%
Long-haul
90%
40%
85%
India
Forecasts in context
Short-haul
Long-haul
70%
79%
China
76%
47%
Short-haul
Long-haul
Outbound visits (000s)
Change (000s)
1997
2002
2007
2012 1997-2002 2002-07 2007-12
4,427 12,694 24,201 43,660
8,267 11,508 19,459
1,364
2,589 3,632 6,726
1,224
1,043 3,094
India
63%
73%
650 million
more
‘middle
class’ Asian
households
Short-haul
Long-haul
1,062
1,122
1,731
1,941
3,054
2,849
5,188
5,088
669
819
1,324
908
2,134
2,239
Over the past few years...
UK
population
more
diverse
More
foreign
students at
UK
universities
More UK
residents
own a home
abroad
More UK
based
multinationals
More Brits
live abroad
More
competition
for holiday
visitors
The £85.6bn British pie
Rent for second ownership
1%
Spending by overseas residents
during visit to UK
19%
Spending by overseas residents
on fares to UK carriers
3%
Spending by domestic residents
on tourism day trips for leisure
53%
Spending by domestic residents
on trips of 1+ nights
24%
UK’s global market share of
international tourism
6th most visited
destination and earner
from international
tourism
7.0%
6.5%
6.0%
5.5%
International Tourist Arrivals
International Tourism Receipts, US$bn
5.0%
4.5%
4.0%
Source: UNWTO, VisitBritain
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
3.0%
1980
3.5%
Trends in inbound and outbound
tourism
75,000
1991 – Gulf War
70,000
1994 – Channel Tunnel
65,000
1997 – Asia finance crisis
60,000
Thousands
55,000
50,000
2001 – FMD and 9/11
2003 – Gulf War/SARS
Outbound
2004 – EU expands
45,000
40,000
35,000
30,000
Inbound
25,000
20,000
15,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
The UK’s International Tourism
Balance of Payments
-
-4,000
-8,000
-12,000
-16,000
2007
2003
1999
1995
1991
1987
1983
-20,000
1979
Inbound spend less outbound spend, £m 2007 prices
4,000
Inbound markets – contrasting
trends 2000-2007 (1)
1.4 million more visits from Spain
1.1 million more visits from Poland
900,000 more visits from Ireland
700,000 more visits from Germany
700,000 more visits from Italy
Inbound markets – contrasting
trends 2000-2007 (2)
346,000 fewer visitors from USA
225,000 fewer visitors from Japan
66,000 fewer visitors from Israel
52,000 fewer visitors from Greece
34,000 fewer visitors from Hong Kong
Contrasting trends
• Shift in purpose mix of inbound
trips
• Friends and family are important
• Business tourism
FUTURE CHALLENGES
& OPPORTUNITIES
Access challenge:
Getting to, from and
around Britain
Socio demographic
challenges & opportunities
12% inbound visits were by the over 55s in 1993,
17% in 2007
British ex-pats account for one-in-eight inbound
visits
The family unit is evolving
The internet
Accommodation sector
productivity challenge
On average 53% of available bed spaces in
serviced accommodation are empty
Heritage and culture remains
a core UK strength
Britain perceived as a world leader
In an increasingly competitive market
vital to build on USPs, not rely solely on
tactical use of ‘fashion’
CHALLENGES
REAL & PERCEIVED
A SUSTAINABLE FUTURE
The future
• Economic cycles will ensure good years and
bad years but…
…has the era of discretionary spending power &
falling travel costs ended?
• New global hubs for business
• Socio-demographic change will impact why we
travel and who we travel with
The future
• Geo-politics
• Fashions will come and go
….there will always be shocks
• Technology will alter how we research, book,
experience and recount travel
Competition for tourist $
Climate change will shape government,
business and consumer behaviour
Sustainability
• Economic prosperity
• Social equity and cohesion
• Environmental & cultural protection
• Resource depletion
• Balance scorecard
The future…to 2012…& beyond
• Welcoming the world
• Engaging the customer
• Extending our reach
through partnerships
• Winning new business
• Leaving a legacy
WHY TOURISM MATTERS
Tourism reaches parts that
other industries don’t…
Dispersed
throughout Britain
Indirect
benefits
Brand Britain
Spillover
effect
Major source
of
employment
Won’t achieve full
potential without
active public agency &
government support &
investment
WHAT IS THE NEEDED
TOURIST BOARD FRAMEWORK?
£m tourism investment
Destination investment
Visit Wales
VisitScotland
Visit London
RDAs
VisitBritain
2000
2002
2004
2006
Enquiries
100%
90%
80%
70%
60%
Online
50%
Offline
40%
30%
20%
10%
0%
2000
2007/8
VISION &
POLICY
Visitor
INDUSTRY
Destination Marketing Organisations/ Local Authorities
Distribution Services
STRATEGIES
Overseas Networks
Wales
Scotland
Britain
London
England
Shared Platforms
VisitEngland
Partners
for
England
The National
Tourism
Strategy
VE
Business Services
(shared with VB)
Marketing &
The Visitor
Experience
Industry
Engagement
VisitEngland
The National Tourism Strategy
• Policy and Advocacy
• Strategy Development
• Research & Insights
• Communications & Reputation
Marketing & The Visitor Experience
• Gateway Marketing
• Digital Marketing
• Visitor Information
• Visitor Offer
Industry Engagement
• Managing and Developing Quality
• Business Development & Support
• Key Account Management
The role of Partners for England
Informs and
influences England’s
tourism strategy
Offers direction &
acts as an expert
advisory panel to VE
Ensures
stakeholder buy-in
Promotes outcomes
with the tourism
communities it
represents
Actively involves
the industry
Maximises resources through
partnership working
VisitBritain
VB
Policy
Forum
Strategy &
Insights
Secretariat
Business Services
(shared with VE)
Marketing
Britain
Marketing
Directors
Board
Overseas
Network
Distribution
Services
VisitBritain Core
Strategy & Insights
• Communications
• Research & Insights
• Policy & Advocacy
• Strategy
Marketing Britain
• Brand Britain
• Brand Partnerships
• Britain Online
• Events & Exhibitions
VisitBritain - Common Platforms
Overseas Network
• Operations & Stakeholder Management
• Europe
• Asia Pacific
• Americas
Distribution Services
• National Tourism Open Platform (NTOP)
• Retail & Commercial Services
• Publishing
• BLVC
Decade of change
VB3 & VE
BTA & ETC
2000
VB
FMD &
9/11
2002
VB 2
2004
2006
2008
What does success look like
•
•
•
•
•
•
Strategic partners, Brand partners, travel partners
Shared platforms
One overseas network
Shared strategies and metrics
Common policy and Government affairs
2012 legacy
THE HIGH ROAD
what happens next?
End Oct – Nov…consultation on
draft report with stakeholders
11 Nov…Deloitte’s Economic Case for Tourism
launched
…and publication of Executive
Summary of British Tourism Framework Review
…full report released end Dec/Jan 2009
New VB 3 year strategy
Feb 2009
New 3 year
VE/P4E
England
strategy
2009
QUESTIONS