TOU0018

Written evidence submitted by Cadw

Background - Heritage, Culture and Tourism in Wales

Heritage, museums and galleries, cultural events and tourism are devolved matters. In respect of tourism to Wales, the Welsh Government has powers to encourage and support the tourist industry in Wales by providing guidance and advice to tourist businesses, as well as capital funding through the tourism investment support scheme. Senedd Cymru can pass Acts of Senedd Cymru relating to tourism.

Visit Wales / Croeso Cymru is part of the Welsh Government. It has a strategy in place to sustainably grow tourism in Wales[1]. Tourism is an important part of the Welsh economy, representing 11.8% of the Welsh workforce.

Cadw

Cadw is the Welsh Government’s historic environment service. We care for our historic places, inspiring current and future generations. We do this by:

• helping to care for our historic environment for the benefit of people today and in the future;
• promoting the development of the skills that are needed to look after our historic environment properly;
• helping people to cherish and enjoy our historic environment;
• making our historic environment work for our economic well-being;
• working with partners to achieve our common goals together.

Our historic places continue to play a vital role in shaping modern Wales. They provide a living link to our diverse histories and help us make sense our place in a changing world.

Cadw is part of the portfolio of the Deputy Minister for Arts and Sport, and Chief Whip, Dawn Bowden MS.

Cadw sites and operations

On behalf of the Welsh Ministers, Cadw manages 130 historic monuments of which 29 are staffed sites that charge for entry. Attached at Appendix 1 is a map of all Cadw properties and list of staffed sites. By providing access to these sites as well as the wider historic environment, we aim to encourage people to explore, understand and appreciate Wales’s history.

Many of Cadw’s sites have international recognition including the seven monuments that are component parts of two of Wales’s four World Heritage Sites (Caernarfon, Conwy, Harlech and Beaumaris Castles and the town walls of Caernarfon and Conwy comprise the Castles and Town Walls of King Edward in Gwynedd WHS, and Blaenafon Ironworks is part of the Blaenavon Industrial Landscape WHS).

Prior to the pandemic, Cadw had been successful in increasing the number of visits to our sites, with commercial income figures increasing from £4.8m in 2014-15 to £8m in 2019-20.

The historic environment sector in Wales

In 2018–19, figures collated for Heritage Counts Wales 2018–19 (gov.wales)

demonstrate that historic houses, gardens, castles, abbeys, monuments and museums are key contributors to the Welsh tourism economy with the top 20 sites in Wales hosting in excess of two million visitors during 2018-19, while a further five million people visited a free museum and another 3.3 million visited a historic house or garden. Figures for the same year show that over 26.54 million people visited Wales because of the historic environment and spent £1.72 billion. The historic environment sector, heritage tourism and heritage construction together support 40,670 jobs, nearly 3% of Wales’s total employment.

Visitor numbers and impact of Covid-19 at Cadw sites

Visitor figures are collected at staffed sites only. 

Commercial income

Impact of Covid-19 on Cadw

The 2020–21 financial year saw unprecedented and constant change in the way in which we had to operate our monuments, especially the staffed sites. On public health grounds, we decided to close all our monuments to visitors on 17 March 2020.

To reopen sites safely in the summer of 2020, we installed fixed personal and protective equipment (PPE) and prepared site-specific Covid-19 risk assessments. Enhanced sanitisation regimes, controlling the movement of people (such as installing one-way systems) and controlling the number of visitors on site were key to successful reopening, backed up with dedicated training for all staff.

Reopening was managed by introducing a pre-booking system to control numbers on site at any time. To support this operation, we established a telephone helpline which has been retained and continues to offer bilingual customer support.

Inevitably, the visitor experience was affected by Covid-19 regulations and to compensate for restricted access to internal areas, we offered discounted admission when we first reopened. Limiting numbers of visitors and pre-booking have also meant that for the first time we have had to refuse entry on occasions and this has been hard for both visitors and staff.

The pandemic inevitably had a major impact on visitor numbers. Sites were closed from 17 March 2020, and only opened for about four months of the 2020-21 year, from August to early December, but with some variations and further restrictions across Wales as well due to regional lockdown rules. The closure of our monuments led to a fall in Cadw’s main income sources with admissions income down to just £419k (compared with £4,752k in 2019–20), and retail income down to just £188k (compared with £1,982k in 2019–20).

Although we had to cancel all events at our sites and reduce numbers at wedding ceremonies, filming was allowed and 30 pieces of commercial filming took place at over 20 different Cadw sites during the year, bringing in some much-needed revenue. All sources of income were, however, lower than for previous years with the overall total reaching just £1,161k, compared to £8,003k in 2019–20.

In 2021-22, sites started reopening at the end of April/May, and since then commercial income figures have recovered very strongly, with the income figures for June and July 2021 being approximately 75% of the figures for the equivalent months in 2019 prior to the pandemic, and from August 2021 onwards have been very broadly in line on a month-by-month basis with the figures prior to the pandemic. The total income for 2021-22 was £6,485k, compared to £8,003k in 2019-20.

We were very successful in maintaining Cadw’s membership base during the pandemic. Membership income for 2020-21 was £465k, compared to £713k prior to the pandemic. This was largely a reflection of discounted arrangements as a result of the pandemic, whereby members were offered either a 50% discount or a six month extension to their membership. The total number of members is currently 47,936, compared to 44,101 in March 2020. The retention rate was very strong, at 89%, which is considered to be a good result during the pandemic, and of course is a tribute to our members. This, together with a significant number of new members secured by offering a 50% discount, has resulted in an 8.7% increase in the overall number of members, therefore maintaining and increasing this important income stream for the future.

Travel trade

A number of visitors, especially international visitors, come to Cadw sites via travel trade tour operator bookings. There has been sharp decline in these bookings from 2020 onwards. This is an inevitable consequence of the pandemic, but the recovery has started.

Visitor profiles

UK and overseas visitor numbers to Wales are greater in the summer season, which is reflected in the visitor residency profiles at Cadw sites. The latest research dates from 2018 by Strategic Research & Insight Ltd. 

https://cadw.gov.wales/sites/default/files/2019-04/18-Visitor-Research-Summer-Eng-2018.pdf

This reported that 73% of Cadw’s visitors came from outside Wales. No significant differences in visitor profile were identified for summer season 2018 and a previous study in 2015. However, overseas visitors increased in proportion from the shoulder season to about a fifth (19%). Visitors from every continent were represented, but with most overseas visitors travelling from Europe.

Cadw’s peak season extends from Easter to September during which time all sites, including seasonal sites are open, and we see the greatest increase in visitor numbers. August is our busiest month, when we welcome approximately 200,000 visitors, in comparison to January, our quietest month, when we receive approximately 20,000 visitors. Figures for the two years prior to the pandemic were as follows:

Pricing strategy

Admissions

• Admission prices have been increased in recent years, to generate additional commercial income, but were then frozen during the pandemic. They have been increased from 1 April 2022 by 5% across all categories.

• Cadw had passed on the reduction in VAT to visitors during 2021-22. The VAT rate returned to 20% from 1 April 2022 and the new prices have been calculated by adding 5% to this base price.

• A free guidebook is currently being offered to all visitors to Caernarfon and Caerphilly in recognition of the conservation and development works taking place at these sites which limits visitor access to some areas. We also apply reductions to admission prices where appropriate on a targeted basis at sites where there is significant conservation work being undertaken.

• Concession discounts are 30% for juniors and 5 -10% for seniors.

• Free entry is offered for the following groups and events:

—     Disabled visitors and their carers

—     Pupils of all ages on educational visits

—     Children under 5

—     Open Doors visitors

—     Monument Pass holders

—     Explorer Pass holders

—     Cadw members

—     Second year English Heritage and Historic Environment Scotland members

—     Visitors on St David’s Day

—     Timebanking volunteers

—     Community education and youth groups and other groups under the Lifelong Learning supports visit remit

—     Foster families participating in the Action for Children scheme

—     Admission to 102 of the 130 Cadw sites is free.

• A Monument Pass was introduced in 2016 costing either £10 or £7.50 depending on the site. The Pass allows unlimited free entry to any one site for the 3-year duration of the pass. During 2018/19 Cadw recorded 4,299 visitors to who used a Monument Pass. 626 passes were sold in 2019/20.

Cadw marketing and promotion

Cadw operates a marketing and PR programme with the main objective to widen access to Wales’s culture and heritage and encourage greater public participation. This is measured against the value of tourism spend and the number of paid visits to monuments in our care.

The marketing programme underpins our ability to generate income, which is offset against our running costs. Pre-Covid we recovered some 40% of our total running costs from income generated by visitors to sites and related services and are tasked with increasing this significantly. Cadw’s income target for 2022-23 is £8.9 million.

In the wider context, the marketing programme promotes the historic environment’s direct contribution to the nation’s economy, which was estimated at £1.8 billion annually by the 2010 report, Valuing the Welsh Historic Environment. The Strategic Research & Insight Summer Season Visitor Survey 2018 Cadw report provided the following insights for summer visitors:

• 31% visitors visited on day trip
• 65% visitors visited on holiday
• 4% were visiting friends or relatives

Based on the same research, how visitors found out about Cadw sites was identified as the following:

• 2% - social media
• 5% - website
• 10% - leaflet
• 8% - previous visit
• 22% - word of mouth
• 28% - local knowledge

Wales Visitor Survey 2019

Cadw commissioned questions in the Wales Visitor Survey in 2019 Wales Visitor Survey: 2019 | GOV.WALES to obtain insights into the reasons people visit heritage sites. Research was carried out at 12 sites across Wales with two stages of interviews. Stage 1 was a face-to-face survey, followed by a Stage 2 telephone interview (post-visit). 7,683 face-to-face interviews were conducted at Stage 1, and 3,909 telephone interviews were conducted at Stage 2.

Cadw brand and Visit Wales

Cadw works closely with Visit Wales to dovetail marketing activities rather than duplicate efforts. All our campaigns and activities are closely aligned, complement and tie into Visit Wales’ priorities. Recent Visit Wales campaigns have focussed around “Year Of” to which Cadw has aligned its promotion, events and activities.

Following Visit Wales’ rebrand, Cadw completed its own rebrand exercise and is in the process of rolling the brand out across all platforms. Cadw sits as part of the Cymru Wales brand family.

Impact of replacing EU structural funding with other funding mechanisms on Cadw with respect to tourism development work

Cadw has benefitted in the past from EU Structural Funding, particularly the Heritage Tourism Project some years ago which helped fund a major project to develop the tourism offer at Harlech Castle. The total project cost was some £8m, with approximately 50% being funded by the EU funding. This work was completed in August 2015.

Since then, Cadw’s Capital Programme (Conservation work and Investment Projects) has been funded by solely by Welsh Government funding. However, Cadw has been successful in securing increased amounts of funding to finance major development projects to invest in sites and increase the visitor offer. Cadw’s total capital funding budget has increased from some £5m per annum in 2019-20 to £8.7m in 2021-22, and to £10m per annum for the next three years.

Cadw is currently delivering the following major redevelopment projects across its estate:

• the major conservation and redevelopment of the Kings Gate tower at Caernarfon Castle – total expenditure of some £5m, which will be completed this year;
• the conversion of the Great Barn at Tretower Court to form a new visitor centre (£1.4m) which will open this summer;
• a raft of redevelopment projects at Caerphilly Castle (£5m), with the main contract to commence this autumn; and
• work on the conservation and redevelopment of Porth Mawr town wall gatehouse, Caernarfon (£1.1m).

Discussions are underway about the next major investment projects to develop some of our other sites across Wales, and masterplanning and a prioritisation process will be undertaken shortly.

Impact of Covid on the heritage sector in Wales

The Covid-19 pandemic has proved to be extremely challenging for all industries, with the tourism industry and historic environment sector being no exceptions. The communities in which our monuments stand have suffered greatly due to the necessary national and local lockdowns as the Welsh Government tackled the spread of the virus.

Throughout the pandemic Cadw has worked in close partnership with other heritage organisations such as National Trust, National Museum Wales, local authorities and National Parks to co-ordinate and manage reopening of sites, with the emphasis that they were safe to visit under guidance.

During 2020-22 the heritage sector benefitted from a wide range of economic support packages provided by both the UK and Welsh governments, and there is no doubt that this has proved crucial for the survival of many heritage organisations during a very challenging year.  

Cadw staff played a leading role in designing the Cultural Recovery Fund grant scheme and distributing the support to heritage organisations. Heritage organisations and individuals were also able to benefit from wider support measures including the Welsh Freelancer Fund and the Economic Resilience Fund.

Concluding points

This paper has set out a comprehensive picture on the role of Cadw within the wider visitor economy in Wales. The Welsh Government would welcome further input into the enquiry, as we have further evidence relating to the work of Visit Wales and developing our international brand. Visit Wales supports the Welsh tourism industry, aims to improve tourism in Wales and provides the framework within which tourist businesses can operate. 

May 2022

Appendix 1 – Cadw Properties (Staffed and Unstaffed)

Cadw staffed properties