This Tourism Update looked at the current state of the industry as at December 2009 and identified issues and potential trends and implications as the industry moved into 2010. It was used to review business support and advice provided by Business Link to the tourism sector.

1. Tourism Development Update
David Friesner, Director of Tourism
Leicester Shire Promotions
December 2009
Joint EMT Business Link People 1st DMO event

2. Tourism in Leicestershire
• No surprises
• Destination - holding our own –
encouraging…continues to be challenging
• Industry – mixed reviews 50/50
• Challenges, the way forward and
opportunities in 2010
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3. Business Barometer. Aut 2009
• 1/3 up/same/down
• 83% ‘investing’ - 50% maintaining
facilities, 31% upgrading, 21% in
marketing, training 6%
• Confidence in investing at this time 40%
• Confidence for the winter season 35%
very, 36% fairly, 9% not at all
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4. No surprises…tourism businesses
• Cost cutting
• (Review and) investment in marketing
(How much? How to do business to stay
competitive?)
• Product development
• Competitive rates with added value
• Ability to respond to deal seeking and last
minute bookings
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5. Balance into 2010…
There is fine line
between offering good
value and harming the
business. Consumer
benefits in short term.
What does this mean for
long term business
health and profitability?
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6. Business Barometer. Aut 2009
• Last minute bookings
• Price competition and budget operators
• Value FM quality offer and packaging up
• More domestic visitors; caravan and
camping up
• Attractions generally doing well (farm
attractions – media coverage)
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7. Domestic Industry Panel
• In the leisure sector, the “staycation” has
been a real trend, fuelled by the
combination of a weak pound, the
recession and its impact on consumer
confidence, and the media discussion.
However, businesses are finding themselves
pressured into cost-cutting as visitors seek
the best deals, choose cheaper
accommodation options, and rein in
secondary spend
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8. Domestic Industry Panel
• Those reliant on business travel have
continued to see volumes fall, though the
weak pound (keeping some business events
in the UK and attracting overseas visitors)
and an increase in leisure travel have
together gone a little way to lessen what
could have been an even deeper impact
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9. Forward into 2010…
• Slightly more optimistic
• Business rates and VAT increases
• Mixed views
• Ongoing factors – exchange rate,
experience of 2009 holidays, ‘done the UK’
plus election and World Cup
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10. Into 2010…Leisure
• Cheaper accom. (more varied styles)
• Staying shorter time
• Choosing fixed price options
• Take day rather than overnight stays
(challenge to increase av. spend)
• More packaging of Attractors + Accom.
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11. Into 2010…Business
• Business tourism ‘far from recovering’
• Need to redesign ‘business’ offer
• ‘Look to leisure sector’ (business
replacement at lower revpar)
• Focus on the necessities; persuade UK
companies to hold events at home
• Build on public transport access
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12. Opportunities into 2010…
• Cheaper pound / weakness of sterling
• Offerings MUST be seen as good value;
series of product packages; deal seeking
(cuts in secondary spend); low added cost
> higher consumer added value
• Target ALL market segments with tailored
approach
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13. Opportunities into 2010…
• Last minute bookings – gear up ‘online’
• The General Election and the World Cup.
What are the opportunities?
• Engage in more partnership working
• Keep on the PR offensive; lobby and get
industry messages across; ongoing media
coverage – Are you regularly getting your
story across?
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14. Opportunities into 2010…
• Ongoing timely, flexible and responsive
action
• Investment in product, marketing (including
targeting, packaging up and online activity)
• Maximise returns when strong demand
• Create new market opps. to drive demand
• Maximising communications inc. online
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15. Destination & Theme offers
• The National Forest • M1 Business Corridor
destination - ‘an • Arts and Culture
international quality
recreational resource in • Sport
the making’ • Heritage
(Destination East Midlands, EMT/emda
2003. Investing in Icons - Attract and
• Distinctive Food & Drink
Disperse, 6.4) • Water Resources
• Countryside
• Business Tourism
• Flagship Attractions
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