Destination Development – winning private sector support

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CLOA AGM
June 2012
Destination Development
Winning private sector support
Mark Smith
Director of Tourism, Bournemouth
"I play each point like
my life depends on it."
What I would like to cover:
• Why real partnerships?
• How to unlock private funding?
• What are the 3 D’s for success?
Why real partnerships?
• Time = Money = Advantage
• Shared ownership / responsibility
• Facilitate financial commitment
How to unlock funding?
• Strategic planning foundation
• Build trust
• The benefits of BID’s & TBIDS
BIDS or TBIDS?
• BIDS – Existing legislation /
Intricate / Proven UK / Equitable
• TBIDS – New legislation / Simple /
Unproven / Free - loaders
The Bournemouth BIDs
A proven track record
• Model imported from Canada/USA/Japan
• Legally established in the UK in 2004/5
• Over 126 successful UK BID ballots
• 45 renewals of which 40 re-approved
• Tried and tested process
BTMB
Business Improvement Districts
Where businesses choose to work together
and make individual contributions to create
a significant pot of money, which is 100%
ring fenced, to be locally managed and
locally spent, to generate additional
improvements in the trading environment
of local businesses.
Why are BIDs successful?
• B: Businesses are in control
• I: Investing 100% locally
• D: Decisions are profit led
• S: Supplementing what’s already there
Bournemouth’s BIDs
Town Centre BID
Key objectives:
Marketing & promotion
 Based around retailing, food & drink
 Day visits
The visitor experience
 Town Centre Rangers:
Welcome, safety, cleanliness
 Access
Maps, way finding, car parking
Coastal Districts BID
• It’s different – area covered
• It’s innovative – tourism lead
• It’s about getting more people
to stay longer
BID objectives
• To increase the number of people visiting
Bournemouth & persuade them to stay longer
• To encourage visitors and local people to visit
more of our unique coastal strip
• To provide visitors and local people with
reasons to spend more in local shops
• To improve everyone’s experience and
encourage repeat visits
• To help make businesses more profitable
Coastal Districts BID
Steering Group: private sector led
Des Simmons (Chairman)
Mark Cribb (Urban Beach/Reef/Boscombe)
John Butterworth (FJB Hotels)
John Green (Hot Rocks)
Peter Gunn (BHLive – BIC)
Julie Leigh (FSB)
Andy Lennox (Koh Thai Tapas/Boscombe)
Heather Martyn (Southbourne traders)
Ray McGlynn (Sovereign Centre)
Mandy Payne (BAHA)
Marianne Slettedal (Park Central Hotel)
Mel Smith (Westbourne Traders)
Andrew Wickham (Wilts & Dorset)
Kevin Wood (Oceana Hotels)
Andy Woodland (BAHA)
Cllr Rod Cooper (Bournemouth Council)
Mark Smith (Bournemouth Tourism)
What’s the process?
The ballot
Developing the Business Plan
Confirming the priorities/identifying the solutions
(Range of workshops)
Identifying the issues
(Initial business consultation survey)
Feasibility study
Who gets to vote?
• Tourism and retail related businesses
• Area: Westbourne to Hengistbury Head
• Rateable value in excess of £9,500
• 770 businesses, with total RV of £33million
The ballot
• Requires more than 50% support from
number of businesses that vote
AND
• These must represent more than 50% of
the rateable value of the voting businesses
How much will it cost?
• Depends on your suggestions
• Currently based on 1.5% of rateable value
• 1.5% levy produces £495,000 pa for 3 to 5
years from the 770 eligible businesses.
This would generate £2.5m over 5 years.
• Levy is mandatory on all businesses, if
the BID is voted through.
Delivering the Business Plan
• Set up a ‘Company Limited by Guarantee’
• Board members elected by local businesses
• Funded by levy on all eligible businesses
• No major changes without a ballot
• BID has fixed life: can vote to renew
• Baseline agreements with the Council
• Voluntary contributions welcome
Examples of some of the
benefits from other BIDs
Marketing and events
Safety, security, information
Saving money
Negotiating better deals:
Cleaning & maintenance
•
Insurance
•
Utilities
•
Trade waste
Improved access,
car parking
promotions
The results
What are the 3 D’s of
destination success?
• Direction
• Dynamism
• Differentiation
The Disney chain of excellence
• Creativity for competitive advantage
• Powerful leadership vision
• Corporate culture by design
• Exceptional quality service
• Sustaining customer loyalty
What are the 3 D’s of
destination success?
• Direction
• Dynamism
• Differentiation
Summary
• Partnerships are vital
• Funding is possible
• Clear Direction
• Dynamic approach
• Creative Differentiation
"Whoever said, ‘It’s not
whether you win or lose
that counts,’ probably
lost."
ANY QUESTIONS?
"I play each point like
my life depends on it."
Rafael Nadal
"Whoever said, ‘It’s not
whether you win or lose
that counts,’ probably
lost."
MARTINA NAVRATILOVA
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