A Best Value Review of Tourism Services was completed in 2002.

CONSULTATION PROCESS

As set out in the Discussion Document.

FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS

None for the Council arising out of this report.

APPENDICES ATTACHED

Discussion Document – Sustainable Tourism Development Plan for the Isle of Wight.

Contact Point : John Metcalfe

Head of Community Development and Tourism

( 823825

E-mail [email protected]

The Value of Tourism (Powerpoint Presentation)

Rita Williams

Updated 31.07.03

DISCUSSION DOCUMENT

SUSTAINABLE TOURISM DEVELOPMENT PLAN

FOR THE ISLE OF WIGHT

Contents

1. Pre-amble

2. Key Issues for a sustainable tourism development plan

3. Key issues and immediate priorities for tourism on the Isle of Wight

4. Next steps in the creation of a sustainable tourism development plan

Appendices (Not Attached)

I Key facts of the Isle of Wight from Island Futures

II Island Futures - Aspirations and Key Actions

III 1973 and 1994 tourism strategies - comments

IV 2003 Tourism Baseline Audit - summary findings

V 2002/2003 IWT complaints report

VI 2001/2002 visitor number and expenditure

VII “Quality Service, Quality Product” - an approach to skills and workforce development for the Tourism, Hospitality and leisure industries in Hampshire and the Isle of Wight - Wessex Partnerships, October 2002

VIII List of tourism research available and current activities

IX List of relevant documents and plans

X List of contacts, agencies, organisations, and Council departments involved in tourism

XI Requirements for a sustainable tourism development plan

XII IWT Service measures

Pre-amble

As part of my remit at Isle of Wight Tourism, my role in respect of the Tourism Development Plan is to contribute to its creation, review and delivery, initially focussing on key issues and research that has already been undertaken in order to set out a detailed brief/terms of reference for this plan. I have undertaken an initial review of previous strategies and plans, Island Futures, etc., consulted with representatives of TSE who have previously been involved in strategy work on the island, as well as a number of representatives of the tourism industry and the council. This paper is intended to start off the process of developing the TDP.

The Isle of Wight is characterised by its natural environment (much of it is designated AONB), heritage coast, parks, coastline, rights of way, biodiversity, conservation areas and large amount of listed buildings. Agriculture and horticulture take up 80% of the land area. There is a good quality of life and the island enjoys good security. However, 25% of the population are in receipt of means tested benefit, 25% are of retirement age and over and wages are 23% below the national average. There are very few large firms on the island and 5 of the 14 employing over 200 people are in the public sector. Tourism and retail accounts for over 30% of employment, public administration for nearly 30%, manufacturing between 17 and 24% (depending on statistics used), finance and business 8% and agriculture 3%.

The island is therefore predominantly service orientated and its reliance on tourism for employment is considerable. Improved turnover and performance of the tourism industry is considered vital to the island economy. Adding value to the tourism services and facilities offered to visitors is key to the quality destination offer to visitors and encouraging higher spend on the island. An improvement profitability, in the quality of jobs and prospects offered by the industry to islanders is considered a crucial measure of success of any development plan.

Island Futures has set out its tourism aspirations and key actions and many of these focus on adding value to island assets and facilities. These include:

- upgrading and regenerating the main tourist areas

- ensuring a range of better quality tourist accommodation

- the Isle of Wight becoming recognised as a world class destination

- encouraging the use of local produce in the tourist industry

- becoming an all-year destination

- improving beaches and esplanades

Key actions are set out as follows:

- Creating a tourism development plan - this process is starting now

- Establishing five blue flag beaches - 4 beaches have achieved this status

- Ensuring year-round opening of attractions and leisure facilities

- Developing plans for the key gateway and resort towns by branding and identifying these towns and realising commercial opportunities

Key issues for a successful sustainable tourism development plan

Based on initial research and consultations, I have set out below some of the key issues that need to be addressed prior to and during the process of creating a sustainable tourism development plan for the Isle of Wight. These have also been highlighted by the District Audit, various reports and the failure of previous tourism strategies to deliver many of their specified objectives.

Sustainability

The Isle of Wight has long recognised that it needs to become more pro-active in developing tourism and a number of plans and strategies have been formulated at different times over the last three decades. However, none have been comprehensively followed through and adopted by all those involved in tourism. As long ago as 1973, it was recognised that the tourism industry was becoming much more competitive and that the Isle of Wight would have to compete harder for visitors. However, much of the “product” on the Isle of Wight has changed little since the 1970s. For certain aspects of tourism e.g. environment, natural features etc. this is advantageous, in many others e.g. visitor facilities, infrastructure, accommodation, some attractions, it is not.

The last strategy (1994) had no central structure or mechanism to deliver objectives. I have been advised that LSC/IWP and other agencies demonstrated little interest. I have been advised that product development was either ignored or happened incidentally. Training and customer care has not happened to any great extent. There is now a design brief for Sandown Bay but this has taken a very long time to produce. Very little major public or private reinvestment has occurred. Research has not been used effectively for marketing and investment. The available support of STB has not been greatly utilised. The Image campaign initiated by this strategy is considered by some not to have been maintained or developed, and marketing is considered to now focus mostly on advertising.

It is likely that many of the tourism objectives and actions required that a tourism development plan will highlight from earlier strategies. However, for this plan to succeed, there will need to be a robust mechanism in place to ensure delivery. Potential funding partners for major regeneration projects, e.g. SEEDA, want to know that the island is taking tourism development seriously. A long term sustainable tourism development plan for the next 10-15 years and the capability to drive it through will be required to help demonstrate this.

The crucial question is how to ensure the ongoing “commitment” of those involved in tourism to resourcing and following through a new tourism development plan throughout the period it is intended to cover. A mechanism is required to successfully deliver the plan.

The existing private and public sector structures, organisations and agencies including IWT are not set up to deliver at present, although the new sub-regional arrangements are intended to assist this process. The importance of tourism and the necessity for a delivery mechanism needs to be accepted by all. We need to work out what to put in place - means/structures/processes/targets/monitoring - to ensure a successful plan.

Corporate (Council) leadership,

The plan needs to fit in with/influence (or be at the heart of) other Council strategies and plans (as set out in Island Futures) and general island development. For many, tourism cannot be developed without reference to island development and vice versa and therefore the island requires a development plan with tourism at the heart of it rather than a separate tourism plan. The UDP states that a key objective is developing the Council’s enabling and co-ordinating role. Tourism policies of the UDP seek, amongst other things, to promote tourism as a growth industry and to protect tourism assets. Both of these issues require definition - how much and what sort of growth - and - recognition that the whole of the Isle of Wight comprises its tourism asset - islanders, the natural environment and the built environment. The Council is the appropriate body to set parameters on growth and environmental considerations, and therefore, the plan needs high status within the Council even though tourism is not a statutory obligation.

The plan needs to be set out in a joint document (between industry and Council) with agreement and commitment by all involved.

The new Tourism South East (TSE) is effectively the tourism agent for SEEDA and the Isle of Wight plan needs to be aligned to the regional strategy, especially in setting priorities and resource allocation.

Clarification of the roles of the public sector and the private sector, and other agencies

These roles need to be clarified and agreed upon to ensure complete understanding over who is responsible for the various components of tourism development.

Council - maintaining and improving those visitor facilities and infrastructure under Council control (beaches, parks, gardens, council-operated attractions, events, public conveniences, street cleaning, street furniture, environment, roads, parking, signage, rights of way, etc.), Island development, planning, environment, regeneration, economic development/inward investment, education, resource allocation, leadership.

Current mission - “to improve Island life”

Industry - transport, product provision (leisure, food, beverage, accommodation, retail), improvement, investment (and associated risk-taking) training, quality, value for money, customer care/welcome, individual/group marketing, local purchasing, advisory.

Current mission (ITIA) - “supporting Isle of Wight Tourism to promote the island as a leading, quality tourist destination (in partnership with the Council)”.

IWT - importance of tourism, profile with islanders and the Council, research, leading on/facilitating tourism/product development, facilitation of training for tourism businesses, grading scheme, business support, marketing and positioning the island (with inward investment agency), specific target marketing based on research (DMS), supporting regeneration of specific areas, TICs, visitor information and complaints, working in partnership with and for the industry.

Current mission - “promoting and developing the Isle of Wight as a quality tourist destination”. (In reality IWT does not focus on “developing” the Isle of Wight but is acutely aware of the support needed by the industry on quality, training and investment decisions).

Tourism South East/SEEDA - The newly created Tourism South East is the regional tourism agent for SEEDA and will take on an important role in strategic development/regeneration, research and training for the whole of the region. As a sub-region, the Isle of Wight will benefit from a range of services, strategic research and advice, access to funding, etc. The new structures for working with TSE are currently being put in place.

Current mission - “creating a world class destination”

Understanding and acceptance of the importance of tourism by the public and the Council

The issue that islanders do not recognise the importance of tourism to the economy has been quoted by many reports and individuals and is seen as a barrier to the ongoing development of tourism. However, Island Futures, based on wide consultation, sets out tourism aspirations and islanders’ suggestions for tourism development. This seems to indicate that this issue does not apply to all islanders and that we need to be clear as to why this is and/or is still a problem. ITIA have recently commissioned a report on the benefits of tourism to the island which will be used in conjunction with a PR campaign on the island. It has also been suggested to use "Wight Insight” to inform residents on the importance of tourism.

Council recognition of the importance of tourism for the economy and the provision of quality infrastructure

Again, this issue has been quoted by a number of reports and individuals and is also seen as a barrier to the development of tourism. Specifically, many of the services the council already resources and/or operates has implications for tourism but this fact is considered by many not to be recognised by individual council departments, all of whom work within limited resources. The maintenance and upgrading of, for example, brown signs, public conveniences appears to be constrained by limited budgets and a low priority for tourism within these budgets.

Taking the development plan process forward

The suggested way of taking this process forward and resolving the issues outlined above is to establish a steering group, as follows:

Chair Portfolio holder/Leader of the Council

SEEDA representative

Tourism Southeast (TSE) representative

Private sector attractions

Hotels

Self catering

Holiday camps

Transport

Training

Council Planning

Economic Development/regeneration

Environment/AONB

Highways

Tourism

Leisure

Organisational Development

Beaches, Parks and Gardens

Property Services

Local Community

Education

Key issues and Immediate priorities for tourism

Initial consultation with representatives of the industry and an initial review of visitor research, previous tourism strategies and the Tourism Baseline audit highlight a number of key issues which require immediate attention. A number of these have been highlighted by previous strategies, specifically quality, training, investment, and off-season growth.

The Tourism Baseline audit confirms that the tourist industry is made up of a large number of small firms and micro-businesses, that employment for approximately one third of employees is seasonal and that minimal investment is taking place. 20% of accommodation is ungraded and in general the self catering standards are higher than serviced accommodation. The Bay area provides 73% of all hotel bedspaces and average gradings here are lower than for the rest of the island. The area employs nearly 30% of all staff.

Visitor research indicates that the growth in visitor numbers since 1994 has been relatively low - 2.5m visitors in 2001/2002 against 2.3m in 1994 (although visitor numbers have peaked at 2.7m in between times). Of the2.3m visitors, day visitors total 1.173m, overnight visitors 1.379m. Total spend for 2001/2002 was £314m, estimated average £31 per day visitor, £200/£230 per overnight visitor. Assuming this spend includes transport costs, average spend is low.

Of total day trips, 430,000 represent leisure day trips, the remainder representing business and VFR. Of total staying trips, 842,000 represent holiday trips, the remainder representing VFR, business etc. The island attracts a good percentage of repeat visitors (variously quoted between 25% and 75%) and, although a static market, a considerable amount of coach visitors. Overseas visitor numbers are small, less than 1%, although spend is considerably higher. The number of new, independent visitors to the island is estimated to be circa 2-300,000 ( but we need more research to clarify these figures).

There are variations in occupancy rates for types of establishment and size of establishment but in general these follow the pattern of the lowest rates in the Winter, increasing through Spring to a peak in Summer and falling off during the Autumn. In 2001/2002 room occupancy for hotels, etc. ranged from a low of 21% in January to a high of 86% in August. For self catering, the winter low was 10% and the summer peak was 96%. Chalets and static sites occupancy ranged from 8% to 97%.

The Tourism Baseline audit and quantitative visitor research confirms that the priorities of quality, training, investment and off season growth still have to be successfully addressed.

Sandown Bay Regeneration

This is a priority for Island Futures, SEEDA and TSE. The Tourism Baseline audit confirms that the Bay area contains 45% of all bedspaces (21,818) and 73% of all hotel bedspaces (14,157), 31% of food and drink outlets and 21% of attractions and leisure. The area employs 30% (5,400) of all staff (18,000) in the peak season and 27% (3,172) of all staff (12,000) in the quietest season. Average star ratings are lower than the island average and 17% of establishments have no grading. It is likely that 40+ per cent of overnight visitors will be staying in this area. However, we believe the area is underperforming in terms of visitor spend, investment and training due to market mix and quality of facilities. A recent visitor survey concluded that overall satisfaction was reasonable although entertainment and shopping were below average. The survey is based on existing markets rather than new markets the island is intent on targeting e.g. for shortbreaks. Isle of Wight Tourism receives the majority of complaints from this area and, in addition, the majority of burglary and theft crime occurs in this area. The area requires a comprehensive approach to secure further investment in the physical environment and infrastructure, improvements in the quality of accommodation stock as well as identifying and developing new markets. Substantial pump priming grant funding would be available from SEEDA. The brief has now been finalised and a budget of £50,000 is available from IWC/TSE and Sandown/Shanklin. NB Since starting this paper, consultants have been appointed and will report in September.

Immediate action required: Long term resource to lead, manage and drive forward the Sandown Bay Regeneration programme.

Training/Skills Development/Welcome Host

The Tourism Baseline audit indicates that accommodation providers are not investing in training, and less than 3% of food and drink and attraction businesses invested in training in the previous year, although there may be some qualification required here - some businesses are employing trainees, which may not be included under “training”. IWT are aware of, through their day to day contact with new entrants to the industry, potential and existing IWT/ITIA members, the urgent need for assisting businesses in new skills development, addressing skills deficiencies (communications, job specific skills, management skills) and facilitating a wide-spread take up of training programmes. Complaints received by IWT also highlight the need for training at all levels and other agencies have confirmed that, although courses and funding are available, the take-up is low. For the Isle of Wight to promote itself as a quality destination and for visitors to receive an excellent experience, the quality of service needs raising across the industry.

HTP have now been given the go-ahead to develop a centre of Vocational Excellence for hospitality by the government and this will provide the island’s own centre/hotel/restaurant for training people in the industry. Wessex Partnerships Ltd. have set out a skills development framework, based on comprehensive research of the problems in consultation with the industry, to address key priorities of staff recruitment and retention, raising skill levels, improving professionalism and building and maintaining partnerships. There are already a number of agencies involved in the provision of training, funding and courses available. The industry is dominated by a large number of small employers who may require assistance, advice and encouragement to engage and invest in training.

Immediate action required: Identify long term resource to facilitate the take-up of business and skills development programmes.

Quality

The Tourism Baseline audit has set out information on the size and nature of the tourism industry covering accommodation, attractions, leisure outlets and food and drink outlets. The only information on quality is in respect to the grading of accommodation. Just over 20% of total accommodation is ungraded. Within this figure 40% of guest houses, B&B etc are ungraded. The majority of hotels fall within 2 and 3 star and 3 and 4 diamond grading , whilst over 60% of self catering falls within the 3 and 4 star categories with a small amount of 5 star. Camping sites and holiday camps also fall mainly within 3 and 4 star with 10% of holiday camps achieving 5 star.

The Isle of Wight still has a considerable amount of accommodation at the low end of the market and within official gradings, there are problems with quality and consistency. This is highlighted by the complaints received by and dealt with by Isle of Wight Tourism; the majority of complaints are in respect of graded establishments.

The Tourism Baseline audit does not cover quality assessment of attractions, leisure, food and drink outlets and again, we know from complaints and visitor research, there are issues of quality to be addressed.

As a quality destination, the Isle of Wight needs to be able to offer “quality” across the spectrum of facilities and gradings. In addition, to attract new visitors in the off-season (who will likely have higher expectations), the issue of quality is critical.

The issue of quality also applies to many other facilities making up the visitor experience including transport to the island, taxi services, island infrastructure and environment etc.

Immediate action required: Piloting/Progression of quality assurance packages that are available - these include a food assessment package and a quality assurance scheme for attractions. Comprehensive qualitative assessment of all of the facilities and services that make up the visitor experience.

Developing and exploiting the VISIT Destination Management System

The VISIT DMS system (Integrated online tourism marketing and management service) is expected to go-live September/October 2003. There is a complex installation/implementation plan, which requires the engagement of the industry and IWT over the next 4/5 months, and thereafter to ensure development and exploitation of the system. VISIT will provide comprehensive support throughout implementation as well as ongoing support to exploit the system. The system is continually being developed by VISIT and new applications will be available as they emerge from this development process. There will be a contractual relationship (provided for in an agreement) between Isle of Wight Council and VISIT Service Unit. This agreement is in respect of £240,000 VISIT software, service and support costs. Total project costs over five years are estimated at £750,000.

This powerful system can transform and strengthen marketing, management and sales, improving operational efficiency, customer services, research, target marketing as well as generating revenue. Implementation of this system will effect change throughout Isle of Wight Tourism leading to enhanced tourism services offered to both visitors and the industry as well as comprehensive visitor research information which can be used to inform the tourism development plan. The system will provide information to providers on what visitors are looking for and encourage providers to improve/adapt their product accordingly. The VISIT programme will upgrade staff skills in e:commerce and e:tourism and provide opportunities for development at all levels. However, there is a recognised risk that the project, which crosses research, marketing, sales, membership etc. in a non-hierarchical way and demands a fast-track non-hierarchical approach to its implementation and development, may be difficult to progress in the current (and long standing) hierarchical structure. This risk was recognised in the business case.

Immediate action required: High level support and backing for the project team to ensure exploitation of the system in view of the substantial investment by the Council and the potential of the system to transform and improve tourism services for the benefit of the island.

Isle of Wight Tourism

IWT is currently faced with a number of issues and expected changes including externalisation, its relationship with the industry generally, its relationship with ITIA, TSE and partnerships e.g. IWEP, the sub regional status, and the introduction of the DMS. Additionally, the potential impact of the introduction of GAGS on call centre services is recognised. Unfortunately, some of these issues have been in discussion for a very long time and still not resolved, although others are making progress. However, a considerable amount of evaluation is taking place within IWT, and for some staff, it is a real opportunity to use their talents and skills to help develop the organisation for the benefit of tourism and to be able to support the industry. Development, which was originally included in IWT’s mandate, is considered as important as the promotional role. For IWT to move forward (and the introduction of the DMS will help encourage this process), a number of decisions need to be taken.

1. Establishment of a quality development role for IWT extending to the whole of the industry

2. Availability of services to everyone who fulfils the relevant quality standards

3. Where appropriate, some marketing to be undertaken in co-operation with other relevant partnerships/partners.

These decisions will enable IWT to:

1. Focus on the requirements of the whole of the industry

2. Encourage more people to take advantage of tourism services

3. Participate in a more strategic approach to marketing and pooling of resources.

Since writing this paper, the ombudsman’s decision means that IWT are obliged to review the availability of services and criteria for access to them.

People’s perceptions of the Isle of Wight (that it is further away than it really is) and their perceptions of what it offers

This problematic perception of crossing the Solent by both islanders and potential visitors is shown by a number of surveys and some qualitative visitor research. The Tourism Baseline audit indicates that over 30% of industry want better or cheaper ferries. The visitor survey indicated that over 30% regarded transport to the island as an obstacle. These perceptions have been known about for a very long time and still need to be addressed using the facts of getting to the island and the positive aspects of any crossing (e.g. maximum 1 hour crossing in time, light years from mainland stress levels).

Some operators consider that peoples’ perceptions of what the island offers still concentrate on it being for older people, school parties, yachties and increasingly extreme sports. However, the island is attracting middle class, middle aged and younger visitors, many of whom wish to go walking and cycling etc. and the walking festival is regarded by some in the tourism industry as an example of exactly what is required to help stimulate demand.

However, both issues point to the need for a marketing campaign that is united and focussed on addressing the perceptions of potential visitors. Although current marketing activity attempts to address these perceptions, it is seen by some in the industry as not particularly successful. Additionally, a considerable amount of activity by IWT and other organisations and a substantial advertising spend by industry is focussed on producing a variety of brochures. Other agencies are also involved in marketing the Isle of Wight separately. There is therefore an argument for evaluating this area of activity and establishing the most effective use of these resources. Additionally, the issue of event organisation and marketing is causing confusion amongst operators. For some operators, events form a very important part of theirs and the island’s strategy for attracting new visitors in the off season and in their opinion, this issue needs urgent attention.

Immediate action required: Evaluation of marketing by IWT, Wight Leisure and other agencies and formulation of a marketing strategy for off-island marketing to address the above perceptions and issues and for more efficient on-island marketing.

Next steps in the creation of a sustainable tourism development strategy

1. Establishment of a steering group

2. Resolution of key issues and clarification of roles

3. Detailed review and analysis of available research

4. Detailed review and analysis of the Tourism Baseline audit

5. Detailed brief/terms of reference for the tourism development plan

6. Identification of resource to undertake comprehensive research study, develop, manage and monitor the plan over the 10-15 year period

REASON FOR SELECT COMMITTEE CONSIDERATION

CONSULTATION PROCESS

Sustainability

Clarification of the roles of the public sector and the private sector, and other agencies

Current mission - “to improve Island life”

Current mission (ITIA) - “supporting Isle of Wight Tourism to promote the island as a leading, quality tourist destination (in partnership with the Council)”.