I-Speed SWOT Analysis for Powys (UK) Contents 1. Introduction....................................................................................................................................................................1 2. Methodology ..................................................................................................................................................................1 3. Scope and Context for SWOT Analysis Report ...............................................................................................................1 4. Overview of Powys as a region.......................................................................................................................................1 5. Tourism in Powys ...........................................................................................................................................................2 6. Narrative on the findings of the SWOT research ...........................................................................................................2 7. SWOT Analysis Matrix ....................................................................................................................................................6 1. Introduction This report is Powys County Council’s contribution to the SWOT Analysis element of the I-Speed INTERREG Project. 2. Methodology The content of this report is based on information gleaned through one-to-one interviews with six members of Powys 1 County Council staff holding various roles in Tourism, Economic Regeneration and ICT. External research sources were used, including Wales Visitor Survey, STEAM Tourism Activity Reports, Ofcom Communication Reports, National Office of Statistics and Powys County Council policy and strategy documents. All main findings were condensed into this final report. Not all SWOT findings are included due to the limitations of the report in terms of scope and document length, but the most pertinent points are included. 3. Scope and Context for SWOT Analysis Report Powys County Council approached the SWOT analysis within the following scope: “The County of Powys and the application of Information and Communication Technologies as a means to develop tourism” In the context of: • • Powys County Council’s past and potential future role in the development of the use and application of ICT in tourism. The overarching objectives of increasing visitor numbers, increasing visitor spend and improving tourism service provision to visitors. 4. Overview of Powys as a region Powys is, geographically, the largest county in Wales, spanning an area of some 2,000 square miles that stretches from Wrexham in the north to Swansea in the south. It is a “land-locked” county, whose Eastern border connects Wales with England, intersected by the famous Offas Dyke. Powys’ land mass accounts for approximately 25% of the land area of Wales. Powys is one of Wales’ least populated counties in terms of people per hectare of land, with only 25 persons per square kilometre recorded in 2007 (Powys County Council statistics), as compared to 144 persons per square kilometre across Wales on average. Once a noted focus for manufacturing industries, particularly in the Welshpool/Newtown area, its 1 Hazel Bowen, Tourism Marketing Officer. Ceri James, Tourism Information Services Officer. Ffion Williams, Tourism Marketing Officer Gavin Stephens, Economic Development Officer. Becky Morgan, Development Officer (IT). Cllr Wynne Jones, Portfolio for Regeneration and Development, Vice Chair, Powys Regeneration Partnership, Political Representative for the I-Speed project I-Speed SWOT Analysis for Powys (UK) economy is now heavily reliant on public sector employment (Powys County Council employs over 8,000 people), agriculture, tourism and service industries. Powys has a relatively aged population, with the average age being 44 years old, compared to an average age in Wales of 40.9 years. In 2006, an estimated 59% of Powys residents lived in villages, hamlets and isolated dwellings compared with 17% in Wales and 11% in England and Wales (Powys County Council). The main towns in Powys consist of Welshpool, Newtown, Machynlleth, Builth Wells, Llandrindod Wells, Hay-on-Wye, Brecon and Ystradgynlais. Of these, Newtown is the largest town in the county, with a population of around 12,500. Newtown is home to offices of the Welsh Assembly Government, whilst the county council’s main offices are located in the Victorian spa town of Llandrindod Wells. There are good rail links throughout the county and easy road connections to the Midlands, south Wales and the M4 corridor. There are no Universities in Powys, although the higher education college Coleg Powys has sites in Brecon, Llandrindod Wells, Newtown and Ystradgynlais. Although there is no University in Powys, its population boasts a slightly higher than national (Wales) proportion with NVQ4 or higher qualifications (27.5% in Powys with this level of qualification, compared to 26.5% across Wales and 29% in GB). The Office for National Statistics’ figures record that 65,400 economically active and 14,900 economically inactive people resided in Powys in 2008 (giving a total working age population for 2008 as 80,300). 15.7% of people in Powys are recorded as being self-employed. This is a significantly higher percentage than both the Wales and UK figures (8.8% and 9.2% 2 respectively) . There are over 10,000 jobs directly or indirectly supported by tourism and over 3,000 tourism related businesses. Tourism related employment is relatively high in Powys (11.9%), compared with 8.8% in Wales and 8.2% GB. 5. Tourism in Powys Powys does not have a major visitor attraction in the region to act as a draw but has stunning countryside and some particularly popular areas such as the Brecon Beacons National Park and the Elan Valley Estate. There are over 1,600 3 accommodation providers in the region, mainly consisting of small serviced and non-serviced accommodation. The STEAM report (research showing tourism activity in Powys) for 2008 indicates that Powys had 4.7 million visitors staying a total of 11.1 million days generating a total revenue across all expenditure sectors of £647.2 million. There were 1.42million trips and 5.7 million bed nights in the same year. There are 6793 serviced bed spaces in the county and 43,855 un-serviced bed spaces, including camping and caravanning. Powys’ Visitor Profile - Wales Visitor Survey 2009 • • • • • 4 33% of visitors to Powys in the survey were visiting as a Day Visitor 43% of Powys visitors were aged 55+, 41% were aged 35-54 and 15% were aged 16-34. In terms of socio-economic grade, Powys visitors were more likely to be from the ABC1 grouping (professional and non-manual occupations) than average; 73% were ABC1 and 27% were C2DE (skilled and unskilled manual occupations, and non-working groups). Looking at the type of trip being taken by Staying Visitors in Powys, 47% were on a short break, 31% on their main holiday of the year and just over a fifth (21%) on an additional holiday. The main reason for choosing to visit Wales given by visitors to Powys was the scenery, landscape and countryside – mentioned by 52% of visitors. Other main reasons for visiting included the sightseeing and attractions (35%), peace and quiet (32%), historic sites (26%) and the history/heritage of the area (25%). 6. Narrative on the findings of the SWOT research a. STRENGTHS i. Excellent natural tourism product – Rural Landscape, National Parks Powys has the natural asset of its rural landscape, which includes the Brecon Beacons National Park and the Elan Valley Estate. As well as the scenery, wildlife, cycle routes, outdoor activities and walking opportunities, history and heritage, the County also hosts three of Wales’ large events. These are the Royal Welsh Agricultural Show, Hay Festival and Brecon Jazz. The county also has a strong ‘local food’ selling point. ii. Powys County Council takes a leading role in promoting and developing tourism Most tourism operators in Powys are small and the County Council recognizes this and has developed strategies and plans in order to take a leading role in promoting and developing tourism in the region. The Sustainable Tourism Strategy sets out 2 3 4 ONS Annual Population Survey STEAM Report 2008 (Scarborough Tourism Economic Activity Monitor) – Global Tourism Solutions (UK) Ltd Wales Visitor Survey 2009 – Beaufort Research 2 I-Speed SWOT Analysis for Powys (UK) a strategic framework for development priorities and an annual business plan sets out the key delivery activities. Niche marketing is undertaken for activities, attractions, cycling, walking and food. There is a strong emphasis on ‘regeneration’ based projects to develop attractions, infrastructure, interpretation materials etc. A large proportion of regeneration funding has a tourism focus and local communities are engaged / involved in tourism development. iii. Excellent tourism projects in the County Powys County has some strong and effective projects that help boost tourism growth. For example, the ‘Leaping Stiles’ project focuses on creating walks in Powys and providing information on these to visitors and uses many different on-line marketing methods. ‘Community Welcome’ supports tourism development in communities and supports Web based marketing. Mid Wales Tourism and Tourism Partnership Mid Wales work with partners to provide training to tourism businesses in ICT, emarketing and other subjects. This list is by no means exhaustive and there are many other projects such as green/sustainable and activity related projects such as the Wild and Green Tourism Project. iv. Awareness of the need to improve ICT services and deliver more tourism information electronically It is clear that those involved in the tourism department in Powys County Council are aware of the need to use ICT to promote tourism and deliver more information to visitors electronically both before they visit and during their stay. On a wider level, Powys County Council’s ICT Strategy 2009 – 2012 sets out clear plans to transform the way in which internal and external facing ICT services are provided and managed, along with increased ICT adoption and permeation into many business processes. v. Good working partnerships with other key partners Powys Council Council has a good working relationship with other key partners supporting tourism in the region. These include, not exclusively, Tourism Partnership Mid Wales, Visit Wales, Mid Wales Tourism and the Brecon Beacons National Park Authority. Activities include joint funded marketing, collaborative projects to boost tourism and improve the quality of the tourism product, data sharing and strategy synergy. b. WEAKNESSES i. Lack of required ICT skills in Tourism Department and lack of joined up ICT resource In order to exploit the use of ICT as a marketing and destination management tool, the Tourism department needs to have access to appropriate ICT skills. The required skills are not currently available and whilst the corporate ICT department could be seen as able to assist in this respect, it is debateable whether the commercial ICT and eMarketing skills are present, or even sufficient resourced to support the tourism department. This could be addressed by either outsourcing various elements or building on the central ICT department with dedicated staff to assist with ICT in tourism. ii. Reliance on paper based marketing / insufficient emarketing activity Whilst Powys County Council does have a main Website (www.exploremidwales.co.uk) the main marketing activity is seen as the production and distribution of brochures (90,000 with 50,000 being distributed through Visit Wales). Very little information on the success of these brochures is known and it is an expensive operation. Other emarketing activities are not utilised effectively, such as paid on-line advertising, email marketing and social networking iii. Lack of suitable visitor database Powys County Council does not have a suitable database of past or potential visitors to the area for marketing purposes. Although Visit Wales sends brochures out on behalf of Powys, the recipient’s details are not passed on. Some tourism research is available that indicates the type of visitors to the area but there is very little information on who the visitors are and what they do while they visit. Without detailed information on visitors to the area, interacting with them prior and during visits is difficult and direct marketing or building customer relationships is not possible. iv. Use of approved ICT systems or in-house ICT services can hinder effective use of ICT in tourism Currently, Council policy requires the main tourism Website for Powys to be developed using the same content management system as the remainder of the council Website. As such, there are limitations on what the Website can do and the general feeling is that this hampers the department’s ability to act effectively in a commercial market. The tourism department can be frustrated by compromises that have to be made and be satisfied by what is possible using the system, rather than specifying requirements and sourcing a professional supplier to deliver. Another example is the desire to offer WiFi to visitors, potentially at tourism information centres, which has been restricted due to the risk of compromising the Authority’s network. v. Tourist information centres numbers are reduced and devolved, leading to possible quality issues and potential gaps in information provision Powys County Council took the decision to close all but one of its Tourist Information Centres and instead provide grants to fund eight community Tourist Information Centres (TICs). This decision was based on evidence showing a fall in the use of TICs as an information resource by tourists, with the Internet being seen increasingly as the choice for tourists, and also the need to cut costs. There are concerns over the quality of the service provided at the community TICs and it is important that the Internet information provision is improved to fill the gap left by the change in the TIC presence. There are concerns 3 I-Speed SWOT Analysis for Powys (UK) that the relationship between the trade and Powys County Council may have been affected due to this closure. Effective engagement by Powys County Council with the trade is vital. vi. Limited budgets and staff reductions have reduced activity Restructuring and cost savings have resulted in lower staff levels in the tourism department and this, combined with the need for further cost savings has impacted on the activities undertaken by the department. For example, Powys County Council now no longer attends certain events and trade shows to promote the County as a Tourist Destination. There is also less of a staff resource within the department to undertake other marketing activities. c. OPPORTUNTIES i. Improvements to the Web presence in Powys The current main Website, www.exploremidwales.co.uk, could be improved to have a more modern feel and more effective functionality. There have been moves towards a more interactive Website with features such as ‘Build a Brochure’ and the on-line shop, but they are not very effective at present. The Website could be more inclusive in terms of the number tourism businesses featured by either linking into central data feeds for this information or removing the need for businesses to advertise in the paper based brochure before being included on the Website. The content on the multiple activity and community based Websites in the region could be made more consistent, with increased synergy between sites in order to improve consistency and help to create more of a brand for Powys, reducing confusion for the potential visitor. The main Website needs to compete effectively with other Websites serving competing tourist destinations. ii. Green tourism Whilst climate change is one of the most also one of the most serious threats to tourism, the tourism industry has a vested interest in working to minimise climate change through the provision of “green” or environmentally friendly tourism 5 services and resources. The UNWTO reports that tourists are increasingly willing to pay a premium for sustainability or environmentally-friendly practices and operators are responding with new products and services. Powys is well placed to take advantage of this trend with its rural, clean landscape and projects in place to encourage and promote ‘Green/Sustainable’ tourism, the Wild and Green Tourism run by Glasu being one example. iii. Improved destination management on-line There is scope to improve the destination management within the County in terms of increasing the availability of visitors to check availability and book on-line, both at a Powys County Council level and individual tourism provider level. Increased information sharing and collaboration between accommodation providers, attractions and travel companies could simplify and improve the offering to potential tourists to the area. iv. Improved use of emarketing More and more visitors are booking and planning their holiday on-line and so an accessible Web presence is vital, along with a cohesive emarketing strategy. Emarketing is under utilised in Powys at present and there is an opportunity to improve its use in the form of email marketing, pay-per-click advertising, social networking and enhanced search engine optimisation. Currently, the emphasis is on paper based marketing through the brochure and whilst this still has its place, digital technologies can be used to greater effect to increase visitor numbers and assist visitors in planning their visit to the region. v. Communicate more effectively with tourists while in Powys using ICT There is an increasing trend for visitors to Powys to make day visits to the area (STEAM report, first half of 2009), which supports the overall trend for visitors to make shorter visits with less prior planning. Providing information via Websites that can be accessed using portable devices such as mobile phones, iPhones and netbooks over 3G networks or wireless internet could facilitate this and in turn increase spend, quality of visit and potentially even length of stay. Wireless hotspots at key locations throughout county the would assist with overcoming the lack of 3G or even 2G mobile connectivity at many locations in Powys. Whilst Powys County Council is reluctant to create wireless hotspots due to security risks to the network, it may be possible to introduce internet connections provided by external broadband suppliers. A trial of public WiFi is underway in libraries in Powys. vi. Introduction of Touch Screens, outside of the County Whilst the introduction of ten touch screens at various locations throughout the County is a positive step, there is an Opportunity to site similar touch screen facilities at major railway stations and other locations that either act as gateways to the County of Powys or locations that are used by potential visitors external to the county. c. THREATS i. Economic situation (disposable income, fuel prices) The much publicised downturn in the economy is very likely to have an impact on both visitor numbers and visitor spend. Visitors to the area are likely to be seeking better value for money from their visit and undertake more discretionary 5 World Tourism Organisation 4 I-Speed SWOT Analysis for Powys (UK) spending. Ad hoc reports from the tourism providers in Powys point towards a much slower than usual start to the year (2010) in terms of advance bookings. ii. Lower than UK average use broadband and varying quality and availability of broadband and wireless hotspot infrastructure The availability of quality broadband and telecommunication is a threat to the provision of Wireless Hotspots by the Authority and individual tourism providers. Furthermore, it can hinder the advanced adoption of ICT technologies by tourism related businesses. Powys as a region, and in fact Wales as a whole, lags behind the rest of the UK in terms for availability of connectivity and adoption of technology. For example, in Wales 83% of people have access to a fixed telephone line compared to 87% in the UK. Broadband penetration, although increasing in Wales, is at 58% compared to 68% in the UK. 85% of people in Wales have a mobile phone, compared to 89% across the UK. In Wales, 18% of premises within Wales are over 5Km from the exchange ( Ofcom, The Communications Market Report 2009 – Wales). This distance from the telephone exchange limits the speed of connection to the internet. iii. Poor 2G and 3G mobile coverage A considerable threat to the use of mobile handsets to provide information to tourists while in Powys is the poor availability of 2G and 3G coverage. Wales as a whole has worse mobile coverage than the UK average. 92% of the Welsh population have 2G coverage from at least one provider (UK 98%). Wales has just 40% 2G coverage from four providers. 39% of Wales has access to 3G from at least one provider (75% UK average). 7% have 3G access from four providers (32% UK average) (Offcom, ‘Mostly Mobile’, date?). These figures are for Wales as a whole and coverage is significantly worse in Powys. An indicator of this is the A470 Mobile coverage survey case study (2008) undertaken by Ofcom, where one of the main trunk roads running through Powys (not exclusively) was tested for mobile coverage by making calls on various networks every 2 minutes. The research shows that 32% of all 2G handset calls failed and of those that connected, 11% dropped connections within 90 seconds. Of calls made by dual mode 3G/2G handsets, 39% failed and where calls could be made, only 17% of calls were made using 3G. iv. Competition from other tourism destinations who are making more use of ICT There is a danger that Powys could fall behind other tourism destinations both in the UK and abroad if the tourism sector does not at least keep pace with other destinations in terms of use of ICT in tourism. If the opportunity to increase communication with visitors using electronic means is not taken, visitor numbers may fall. v. Fall in staying visitor numbers and increased tendency for ‘day visits’ Visit Wales (2009) reported that since 2006 there has been a downward trend in visitor volumes to Mid Wales. The STEAM report for Powys in the first half of 2009 shows falling tourist days by ‘staying’ visitors decreasing by around 20% on the same period for the previous year. However, Day Visitors increased by 7% over the same period. Whilst these STEAM statistics are only one set of figures relating to the sector, this does at least show a worrying trend in falling numbers of staying visitors, which has knock on consequences for visitor spend in the region. vi. Climate change The World Tourism Organisation (UNWTO) comments that tourism and travel is a vital contributor to the global economy and especially important for many developing countries. It furthermore acknowledges that climate change is one of the most serious threats to tourism, with climate defining the length and quality of tourism seasons, this in turn affecting tourism operations and influencing environmental conditions that both attract and deter visitors. It thus declares that the tourism sector is considered to be highly-climate sensitive and that the effects of a changing climate will have considerable impacts on tourism. It follows therefore that the tourism industry has a vested interest in working to minimise climate change through the provision of “green” or environmentally friendly tourism services and resources. 5 I-Speed SWOT Analysis for Powys (UK) 7. SWOT Analysis Matrix Strengths Weaknesses • Excellent natural tourism product – Rural Landscape, National Parks • Lack of required ICT skills in Tourism Department and difficult to source within the Authority • Powys County Council takes a leading role in promoting and developing tourism • Reliance on paper based marketing / insufficient emarketing activity • Excellent tourism projects in the County • Lack of suitable visitor database • Awareness of the need to improve ICT services and deliver more tourism information electronically • Use of approved ICT systems or in-house ICT services can hinder effective use of ICT in tourism • Good working partnerships with other key partners • Tourist information centres numbers are reduced and devolved, leading to possible quality issues and potential gaps in information provision • Limited budgets and staff reductions have reduced activity. Opportunities • Improvements to the Web presence in Powys • Green tourism • Improved destination management on-line • Improved use of emarketing • Communicate more effectively with tourists while in Powys using ICT • Introduction of Touch Screens, outside of the County Threats • Economic situation (disposable income, fuel prices) • Lower than UK average use broadband and varying quality and availability of broadband • Poor 2G and 3G mobile coverage • Competition from other tourism destinations who are making more use of ICT • Fall in staying visitor numbers and increased tendency for ‘day visits’ • Climate change 6