Written evidence from the Welsh Association of Visitor Attractions – Southern Region (IRW32)
 

Many are dismayed by what is happening within Welsh tourism under stewardship of the Welsh Government.

There are around 18 million visits to Welsh attractions every year, and in recent surveys conducted by Visit Wales visiting attractions is the top, or second highest rated reason for a visit to Wales.

Attractions employ approximately 7.500 people, more than many other sectors of the tourism industry. Nearly all the people employed by attractions are local Welsh people from their immediate area.

Welsh attractions however need high volume levels of visitors coming in to Wales in order to survive in the highly competitive field of ‘attraction tourism’.

The approximate value to Wales from attractions is enormous.

It has been estimated that total gross direct expenditure at attractions, plus expenditure to attractions as the main reason for the trip, including expenditure by those visiting attractions as part of their trip comes to approximately £1200 million annually.

The key to our concerns Minister is the amount Visit Wales spends on marketing to get people in to Wales. The Welsh marketing budget is ‘pathetic’ when compared to our major competitors, and will have consequences for the industry in Wales if this continues.

Scotland - spends £47 million.

Visit Britain - £36 million, plus a 4 year “Great “ campaign.

Ireland - £34 million.

Jersey - an Island only ‘seven miles long’ spends £6 million on tourism.

Wales spends approximately £7 million.

(Even this figure is bolstered by EU funds.)

Glasgow – alone spends about the same as Wales on their marketing budget!

Why are our competitors investing this amount of money? It is because the long term economic rewards are so great for those that do. Why is this not being recognised in Wales?

For every £1 spent on tourism marketing, £20 goes back in to the local economy. Tourism marketing money generates real wealth for Wales plc.

In 2006 the Wales Tourist Board spent £45 million. (Half from government and half from EU.)

If you consider that the Welsh tourism industry generates some 8.7 billion in to the local economy, then the above stated £7 million figure spent on marketing ‘Tourism Wales’ looks even more unrealistic if you wish to ensure that Welsh attractions grow both in revenue terms, and continue as a major Welsh employer.

Since the WAG took over the tourism portfolio, international overseas visitors are down a quarter of a million. There has also been little growth in domestic visitors, or the amount tourists are spending in Wales over this same period.

Last year’s attendance figures were reported as being up for attractions by Visit Wales. However, in 2012 visitor numbers were for some the lowest since foot and mouth, reflecting the wettest summer for 50 years! Hence, 2013 figures mainly increased owing to better weather conditions, and is not a sign that the Strategy for Growth document is working.

Visit Wales also reported that for 2013 overseas visitors to Wales increased by 3%.

However, what was not reported was that Scotland’s overseas visitors increased by 10%, and England’s by 6%.

If the Welsh Assembly Government does not increase their marketing spend Welsh tourism/attractions will inevitably slowly decline as our markets are gradually captured by other parts of Great Britain that are spending more money promoting their tourism regions to potential customers.

Even independent Welsh tourism academics are advising an immediate doubling of the Welsh tourism marketing budget.

The new ‘Partnership for Growth strategy’ sets out a growth in revenue for Welsh tourism of 10% by 2020.

However, the target set by England is 51%, Scotland 18%, and Northern Ireland 86% for the same period.

Why are the ambitions for Wales set so low?

Presumably because with so little marketing money being spent on Welsh tourism, growth will inevitably be limited?

This scenario however does not encourage Welsh attractions to develop long term financial development plans based on your poor WAG growth forecasts.

Also worrying is the perceived process of ‘constant change’ within Visit Wales. Most of the people with an in-depth knowledge of Welsh tourism, and the attractions industry have gone.

The Regional Tourism Partnerships are also being closed down from this September. With their demise goes the last of the senior advisors to the Welsh tourism industry. For many this again does not inspire confidence for the future.

It is strange that the WAG finds £30 million to support the creative film industry coming to Wales, which at best employs thousands, yet the near quarter of a million Welsh people that work in tourism, representing some 9% of the entire work force, sees the marketing money for their industry in decline?

Yet the importance of tourism to Wales based on GDP (18%) is higher in Wales than England, Scotland or Ireland. It therefore does not take a genius to work out that it is economic madness not to fully support Welsh tourism/marketing for the huge economic returns this could bring.  

Following the above, if the tourism industry were to be fully supported by the WAG it would create new jobs especially for young Welsh people, and also help the rural economy to survive in many parts of Wales. However, marketing money is essential to achieve this goal.

Our major competitors in Britain must be overjoyed to see how little the WAG now spends on marketing Wales, as this will make it so much easier for them to capture Wales traditional markets.

We are so concerned with what is happening within Welsh tourism that there are growing calls for a vote of ‘no confidence in the WAG’ marketing funding for tourism. This matter to be debated later in the year.

If more marketing funding is not provided urgently Welsh tourism will most definitely decline, and tourism jobs will be lost.

July 2014