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TRANSCRIPT
Agenda10am Welcome
10.15am Keynote speaker, Beverley Nielson,
Former CEO Heart of England Tourist Board
10.40am Q&A
11.10am Managing change, Colin Bell
1pm Lunch & tourism partnership networking
2pm All about money workshop, Malcolm Gallagher
3.30pm All about marketing workshop, Emily Whitehead
5pm Close
STEAM– the value of tourism in Leicester and Leicestershire
2016
1.762 £bn
>22,00 jobs
>33m Visitors
Yorkshire
Leicestershire
Warwickshire
Stay Play Explore
Family short breaks for 2 adults & 2 children from £149
Short breaks for 2 adults from £149
Overnight accommodation with breakfast plus entry into 3 world class visitor attractions/experiences
2017 -3,000 bookings +20,000 bednightsImpact £2 million +
Events & festivals• Loogabarooga• Edible Forest• Spirit of Harborough• Harborough Carnival• East Midlands Food &
Drink Festival• ChocFest• Artisan Cheese Fair• PieFest• Classic Car/Motor Cycle
Shows
Publications• Great Days Out guide• Market towns’ guides
Leicestershire Tourism & Hospitality Awards
2018108 businesses have reached the finals with 153 finalists in 22 categories
Speaker
Beverley NielsonFormer CEO Heart of England Tourist Board
£1 spent directly generates additional £1.80
Tourism - Seeds of growth…
Tourism in UK
Sky’s the limit…
£22bn
• In 2016 UK residents spent £18.5Bn on overnight trips in England
• Overseas visitors to England spent £22Bn in 2016
• 44% of overseas visitor spend was by visitors from EU
• 1.6 billion day trips were taken to English destinations in 2016, with spending totalling £53.5Bn
Framing the challenge…
The Midlands – Inbound Tourism:
○ The West Midlands reported the highest proportion of business visits in 2016
○ The East Midlands - the only area where a long haul market is not in top five generating markets
○ East Midlands takes c3% of inbound tourists
○ Top five markets in East Midlands are in Europe – Ireland, Poland, Germany, France, Spain and Italy
Shelling out…
GVA 2013 £bn % ReglGVA
England 50.41 3.9
London 15.39 4.5
North West 5.8 4.1
Scotland 5.24 4.5
West Midlands 3.76 3.4
East Midlands 2.57 2.9Rest of Engl (exclLdn) 35.02 3.7
How prepared are East Midlands Firms?
• 62% UK SMEs have done no Brexit planning (Sept 2018)
• 69% UK micros no assessment or preparation for Brexit
“How can we as business people know what to do if we don’t know what’s agreed and not agreed”
“For us as a business, as we have seen the drop in net EU migrant workers falling from 320k to 100k, we have found it much harder to appoint people into jobs. People are not coming to the UK as much. Our wages are not going up as much as the rest of the EU – at around 7-8% in Czech Republic and Poland, compared to 2.5% in UK.”
“DTI used to produce leaflets and send them to businesses outlining what they were doing, helping SMEs to feel involved. SMEs do not have a strong lobbying voice speaking up for them.”
EU Rules and Regulations impacting Tourism --Deep Roots
• The 2015 Package Travel Directive
• The Tour Operators Margin Scheme (TOMS)
• Access: incl visa regime and the Common Travel Area
• Road Transport: Carriage of passengers by coach and bus currently allowed to drive all over Europe
• Air Transport: market access, safety and air traffic management
• Passenger rights: when flight is delayed or cancelled
• Mutual recognition of qualifications directive: Guiding, Diving and hotel management qualifications
• Health and safety: Blue Flag and clean beaches and employment rights
• Health Cover: European Health Insurance Card guarantees local access during temporary stays
• Data: The Passenger Name Records (PNR) Directive
• Cross-border employment and labour rights: The Posted Workers Directive
• Duty free shopping
• Roaming: capped mobile phone charges
• State Aid regulations
Ageing Workforce
• 60% Tourism workers are 30 years and over
• 41% of EU nationals and 24% RoW nationals in tourism are aged 16-29.
Skills Shortages
• 25% businesses report vacancies – 38% ‘hard to fill’
• 2014-2024 industry requires 1.3m staff
• Most acute occupations to fill –
- Front-of-house staff : (45% hard-to-fill vacancies)
- Chefs : (36% hard-to-fill vacancies)
Country Nationality workers Nos. Employed Tourism % By Nat.
UK 2,166,000 84.2
England EU 27 (non UK) 246,000 9.6
Non EU 161,000 6.3
Keeping it fresh…
GREAT Priority Market Percentage Change
2010 (£billion ) 2016 (£billion ) % Change
US £2.1 £3.4 57.2
France £1.1 £1.4 20.1
Germany £1.2 £1.5 24.8
Gulf Cooperation Council -(Saudi,Bahrain,Kuwait,UAE, Oman and Qatar)
£0.8 £1.4 85.6
China £0.2 £0.5 180
India £0.4 £0.4 19
Brazil £0.2 £0.2 22.8
Inbound tourism growth leaps and bounds
UK Airports
Passenger
Analysis
2018 pax 2017 pax 2018
growth %
2016 pax 2017 growth % Total Runways
(sampled)
Airport/
Region % total pax
Airport % region
total
HEATHROW 78m 76m 3% 75m 1% 2 27% 45%
GATWICK 46m 43m 5% 40m 7% 1 16% 26%
STANSTED 26m 24m 6% 23m 8% 1 9% 15%
LUTON 16m 15m 8% 12m 19% 1 6% 9%
LONDON & SOUTH EAST TOTALS 173m 166m 4% 158m 5% 8 61% N/A
MANCHESTER 28m 26m 7% 23m 11% 2 10% 64%
NORTHERN POWERHOUSE
TOTALS43m 40m 7% 36m 11% 6 15% N/A
BIRMINGHAM 13m 12m 11% 10m 15% 1 5% 73%
EAST MIDLANDS 5m 5m 0% 4m 5% 1 2% 27%
MIDLANDS ENGINE TOTALS 18m 16m 9% 15m 12% 2 6% N/A
SCOTLAND TOTALS 28m 26m 7% 25m 6% 5 10% N/A
N. IRELAND TOTALS 9m 8m 5% 7m 10% 3 3% N/A
TOTALS PASSENGERS (PAX) 285m 270m 5% 252m 7% 24 100%
UK Airport Passenger Numbers 2016-2018 and % shareSource: CAA & IDEA Institute
Airports Birmingham Intl 2017 East Midlands Intl 2017
Capacity for pax growth 18m (with new Stands)
36m (with enhanced infrastructure)
c80m (with new Runway)
10m (Current runway)
Direct Destinations Served 174 destinations
330 onwards destinations Serviced by 50
airlines
80 destinations
(All short haul except
2 long-haul flights to Cancun in Mexico and
Orlando, US, weekly, during summer season
only)
Annual Flights 118,000 flights pa 60,000 flights pa
c28,000 cargo
35,000 passengers% Business v Leisure
Long Haul v Short Haul
17% Business v 83% Leisure
12% Long Haul v 82% Short Haul
6% Business v 94% Leisure
<1% Long Haul v 99%+ Short Haul
Freight Mixed: pax and freight includes smaller and
larger items in belly-hold
Largest dedicated Freight airport (In-hold => can
move smaller and larger items incl Bombardier
Carriages)
Night Flight Restrictions Max 5% traffic at night (23.30-0600) None
Source: IDEA INSTITUTE
East Midlands International Markets
East Midlands International Markets
EMA : Routes from Spain = 44% of seats (just under a million per year);Republic of Ireland, France and Italy = fewer than 200,000 seats per year.
Value of East Midlands Top Inbound Markets to UK
Country 2014 2015 2016
Poland 356 438 389
Ireland 870 934 1.059
Germany 1.478 1.378 1.490
France
Spain
Italy
Totals
1.434
1.082
922
9.448
1.493
999
890
9.605
1.372
992
980
9.855
UK Inbound tourism spend for EU member states (£millions)
European Funding benefitting tourism
a. European Structural and Investment Funds (ESIF), incl Skills Funding Agency funding for skills
b. European Regional Development Fund (ERDF)
c. Cohesion
d. ESD Effort Sharing Decision (ESD)
e. European Agricultural Fund for Rural Development
f. European Maritime and Fisheries Fund
g. LIFE
h. Competitiveness of Enterprises and Small and Medium-sized Enterprises( COSME)
i. Horizon 2020
j. Creative Europe
k. Erasmus +
l. Employment and Social Innovation (EASI)
European Funding available for tourism operators in East Midlands
Existing frameworks for trade facilitation in this sector
• General Agreement on Trade in Services (GATS); sets out general rules, principles and obligations as a framework for trade in services
• GATS Modes :
1) where a product rather than a service supplier/consumer crosses a border ;
2) where the consumer of the service crosses a border (eg. an inbound tourist);
3) where the company crosses a border (e.g. a retail chain opening a new establishment in another country); and
4) where the service provider moves
• The key piece of horizontal EU legislation in services is the Services Directive, which covers half of the services sector, including tourism, providing that Member States cannot impose discriminatory, unnecessary or disproportionate requirements on services providers from other Member States.
Tourism in England
• VisitBritain, Arm’s Length Body of DCMS with annual targets to increase international visitor growth and spend across Britain
• Works with Visit England, Visit Scotland and Visit Wales, to deliver targets
• LEPs, incl LLEP, have local tourism strategies and targets working with DMOs
• Issues over coordination of strategy across regions, eg East and West Midlands
• Role for Midlands Engine?
hello
IKEA
‘’by failing to prepare, you are preparing to fail’’Benjamin Franklin
IKEA
Value Proposition
People
Finance
Operations
Customers
Markets
Products
Leadership
Adapted from Business Model Generation
IKEA
capitalising on market growth
IKEA
Recruiting, developing and retaining the people you require to deliver growth
PRODUCTM
AR
KET
THERE
Be ready for the twists and turns
If you don’t know where you’re going, then all roads lead there!
Build a trusted team & delegate
CHANGE
Don’t get stuck in the weeds:
markets
Key questions:
• Which markets represent growth for you?
• International and/or domestic?
• Have you got any experience in these markets?
• If not do you know anyone who has?
customers
Key questions:
• Which customer segments represent growth?
• What do they demand, need, want?
• What does your ideal customer look like?
• How can you get to them?
• How can you use the internet, social media, trip
adviser etc. to get to more businesses?
products
Key questions:
• What new products and services can help you
to attract new customers and access new
markets?
• Can you sell more services/products to your
existing customers?
• Can additional demand help to smooth
seasonal peaks and troughs? e.g. different
markets travelling at different times of the year?
people
Key questions:
• What skills are critical to the delivery of your
value proposition? Are they easily available?
• Why should people work for you rather than
someone else?
• How can you attract new employees?
• How do you develop and retain talent in your
business?
finance
Key questions:
• Does a weak £ make your products or services
more attractive to overseas and domestic tourists?
• Where do you need to invest for growth?
• How will you access growth capital?
• Have you accessed EU funding in the past, where
will you access similar funding in the future?
operations
Key questions:
• Thinking about your suppliers, do any of them source their
goods from the EU, how will this effect your business?
• How can you use technology to attract more customers and
capitalise on market growth?
• How do you use technology to cope with growth and become
more efficient?
leadership
What is your
VISION?
Why should I follow you?
Key questions:
• Do you have a trusted team that you can delegate to?
• How adaptable and flexible is your culture?
• How change orientated are your people?
• How can you inject a sense of entrepreneurial spirit into
your business?
confidence
com
pet
ence
high
high
low
low
Telling/participating Delegating
Telling Selling/participating
• Plot where you think your people currently are.
• Think about what you need people to do to capitalise on
market growth.
• Do your people currently have the required competence
and confidence?
• Draw an arrow to where you need people to be.
Task:
confidence
com
pet
ence
high
high
low
low
BM
JM
DM
MM
• Plot where you think your people currently are.
• Think about what you need people to do to capitalise on
market growth.
• Do your people currently have the required competence
and confidence?
• Draw an arrow to where you need people to be.
• In groups discuss how you can help them to make the
shift.
Task:
And finally
Adapted from Business Model Generation
next steps
