‘Wales Tourism Policy - Toward 2020’ ‘In 2020 we want tourism to be the lead contributor to Wales’ economy and employment’ Chris Osborne, Chair, WTA Company No: 4449548 October 2012 1 Background - The Value of Tourism to the Welsh Economy The total contribution of tourism to the economy, post the start of the recession in December 2007, accounts for around £6.2bn of GDP, equating to 13.3% of the total economy. The direct contribution from visitor spend was £2.7bn, that is 5.8% of Wales GDP. In the light of the current economic situation the WTA, in consultation with its industry members, has identified the need to devise a policy document which lays out a new vision for the future. Foremost, we believe in a free market, a level playing field and an industry with minimal government intervention through legislation or regulation, but with agreed support in those areas where it is neither possible, nor practical, for the private sector to deliver. This policy aims to be: a simple no nonsense policy with which all tourism businesses, small or large, can engage in partnership across all sectors including public. to provide overarching direction to all its constituent companies and organisations with customer focus and industry’s interests at its core. represent tourism business interests to local and central government, public agencies and policy-makers to avoid duplication and overlap with the activities of other organisations. All we ask is that...all who wish to participate are dedicated to working in partnership to provide the best, most competitive tourism product available to the customers we target. Key Policy Areas 1. Investment in Product: All levels of government must assume responsibility for developing the infrastructure on which our tourism product relies, within the public realm and those areas where it is not in the private sector’s remit to deliver, but where it is essential that services exist for the visitor. Specifically: Direct government support is required for the development of tourism product where existing financial support may be unavailable for businesses to upgrade standards and grow. Development in this context should always aim to meet existing and future demand and thereby too remain competitive. We need to be able to attract and win investment. We want the Welsh Government to put pressure on the UK Government to get our banks to increase lending and ensure that unfair restructuring of existing loans does not adversely impact on our industry in Wales. We are committed as an industry to quality. Whilst the existing quality grading schemes may no longer be as important from the visitor’s point of view their other role must be to assist in maintaining and improving quality standards. Customers may look at online review sites when choosing accommodation but many still put a high value on the independent grading scheme offered by Visit Wales. This should not be ignored. We do not believe in subsidies as a means of propping up tourism products that have simply reached the end of their life cycle or market need. However, where a credible business case is made, but where a business is unable to gain sufficient financial support from conventional means, in this context we believe fall back financial support from Welsh government is appropriate. The industry require a commitment from the public sector in the search for new growth markets, for example active elderly visitors. The rapidly changing nature of demand should be recognised and catered for. For example with changing weather 2 patterns and seasonality, public and private sectors need to explore and develop all weather products. 2. People Investment: our industry needs a steady supply of skilled people with the right attitude and a direct interest in tourism. Training opportunities need to be financially supported and reflect actual identified need. In order to ensure that the industry gets the recognised qualifications that are fit for purpose and avoid over supply of skills in one area, there must be far more engagement between industry and training providers. Significant finances are directed towards training before employment, but there is a mismatch, more should be done to persuade and encourage those who are owner managers and others already working in the industry, to ensure continuous professional development and maintain standards of service at all levels. There must also be renewed positive promotion of tourism by the public sector that demonstrates it as an attractive long term career or business choice. 3. Investment in communities: Government resources allocated to programmes that assist businesses to build closer ties with their local communities should aim to ensure viable long term opportunities in employment and enterprise across Wales. 4. Research and Intelligence: We need an effective means of measuring the tourism industry’s vital statistics to ensure that the industry is achieving its full potential in terms of fulfilling existing market needs and reaching new markets. However it is even more crucial that we have the expertise to analyse and interpret this data if we are to make economic and market predictions which assist the industry in future decision making: We still require a market research and forecasting capability able to deliver the information the industry requires on the bigger picture as provided by Welsh government, but it is time we started using more of the information from our businesses. Industry needs to be more pro-active in providing data to central government for analysis, but it is up to government to improve the efficiency and opportunity for businesses to upload information and data in a neutral format that does not compromise individual businesses market position. The industry needs to standardise the way it collects and collates data so that we can quickly produce meaningful and supportive information. New technology should be embraced to help us with capacity and communication challenges. This needs to be at an individual business level as well as collectively. To overcome the challenge of getting businesses to participate in research, it is therefore essential that we start to improve and co-ordinate disparate surveys and at the same time demonstrate the competitive benefit of providing information to our businesses. 5. Marketing: For accommodation, attractions and other sectors of the industry, Wales of all the home nations, is most dependent on an external market, 80% of our custom originates from outside Wales; as opposed to Scotland at 49% and England at just 9%. Good targeted marketing can provide results that help sustain tourism business in Wales. We continue to require sustained effective Welsh Government Marketing Campaigns. 3 We need the Welsh Government to commit to Tourism marketing spend only, it is simply too weak to include tourism with all other sectors, tourism’s differentiation and bespoke product messages are likely to be diluted or lost. Welsh Government should commit to provide a coordinated and integrated marketing framework that can enable a joined up approach that achieves enhanced, targeted tourism marketing spend. All long term campaigns need to be agreed with, adopted and supported by the industry, alongside short lead in effective tactical campaigns to boost the industry where it has been let down by a sudden turn of events outside the control of the industry in Wales. e.g. sudden bouts of unseasonal weather; world events; unforeseen economic issues. Markets need to be clearly identified. For example: Young families are absolutely key to the tourism industry. Give children a great time and they will come back with their own children in 20 years time. We should be marketing Wales as the best place ever for children. All parts of the Welsh economy need to sign up to a single brand for Wales 6. Burden of potential Government Legislation: Avoidance of unnecessary legislative or regulatory burdens on Welsh Tourism Businesses, whether from Wales, Westminster or European government would assist more entrepreneurial activity. Consultation with the industry on proposed Government legislation should ensure that tourism is fully taken into account, regardless of where in government it might have originated. Existing legislation needs to be reviewed and reduced and even removed where appropriate. 7. Partnership - The tourism industry in Wales will only achieve its potential if all levels of government and the private sector work in partnership with a positive and common understanding. 8. Communications - To ensure continued effective government service it is important that professionals within government should have experience and knowledge of the tourism industry product in Wales. Effective action to assist communication and discussion between government and the industry requires all to work together with a common aim. Tourism Definitions – the language of tourism, internationally, nationally and locally, making it fit for purpose. Internationally agreed definitions for our professional language need to be adopted and learnt by both the Welsh Government and the private sector and applied to debate and reporting. Finally, our vision is for an industry working together to build the common wealth and well being of Wales. Wales Tourism Alliance - October 2012 4