PAPER B

TOURISM PARTNERSHIP LIMITED

A company limited by guarantee and without share capital

REPORT OF THE DIRECTORS TO THE MEMBERS OF THE TOURISM PARTNERSHIP LIMITED NOVEMBER 2001

The directors submit a report for the period up to the date of the Company's Fifth Annual General Meeting.

Principal Activity

The Company's principal activity consists of giving advice and direction to the Head of Tourism Services on the promotion and marketing of the Isle of Wight for tourism purposes and advising the Isle of Wight Council on various tourism issues.

The Company has met on 4 occasions.

The advent of the Food & Mouth Disease and the resulting rural crisis dominated 2001. Business on the Isle of Wight was down 8 per cent for the period Easter to June compared to 2000. The long-term effects of this, however, are unknown. The Isle of Wight retained its reputation as a quality, safe destination throughout and market research is expected to confirm that our performance during the peak summer months improved last year.

The departure of the Isle of Wight Council's chief executive had a direct impact on the direction of Tourism Services. Recent management restructuring has placed the service in the directorate of Finance and IT. Current uncertainties over the future of the Isle of Wight Economic Partnership, together with a regional review of tourism responsibilities, has created significant confusion and some concern over the direction of tourism in the future. However, the partnership between the Isle of Wight Council and the Island Tourist Industry Association continues from strength to strength with Isle of Wight Tourism now representing more than 850 Island businesses.

With more changes expected, it is hoped the Island can adopt a positive agenda for the development of Island-friendly tourism, delivering sustainable economic growth and improved quality of life for Islanders whilst ensuring a quality natural and built environment is retained.

Tim Addison
Head of Tourism Services

6 November 2001