Tourism and Hospitality Sector Growth Plan
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1 Tourism and Hospitality Sector Growth Plan
2 Sector Growth Plan Key sector within the Strategic Economic Plan Highlights strategic priorities, gaps and opportunities within the sector relating to people, place and business Guide services, projects and activities of partners and businesses Demonstrate the role the sector can play in supporting the Strategic Economic Plan Support the sector to make the business cases for investment in projects and programmes
3 Importance of Tourism Nationally One of UK s fastest growing sectors, responsible for one-third of the net increase in UK jobs. representing 9.6 per cent of UK employment Set to grow 3.8% per annum to 2025 significantly faster than manufacturing, construction and retail Currently worth 127bn and growing to 257bn by % of UK GDP and 11% of total UK employment For every 1000 generated in direct tourism GVA there is a further 1200 that is secured elsewhere in the economy through the supply chain Recent employment growth has been stellar more than four times the rate of manufacturing One third of all new jobs created in Britain between 2010 and 2012 were in the sector (Deloitte 2013)
4 Importance of Tourism Locally Contributed 1.48bn to the Leicester and Leicestershire economy in 2013 Growth of 6.2% on the previous year Over 29m people visited Leicester and Leicestershire in ,485 jobs supported by tourism Over two-thirds of businesses had experienced turnover growth, which is anticipated to be similar next year
5 Importance of Tourism Locally Major assets of national significance including National Space Centre, Twycross Zoo, National Forest and King Richard III Excellent opportunities for rural diversification, city cultural breaks and themed activities to drive future growth Growing hotel and accommodation network, with opportunities for further capacity
6 Consultation Process 85 businesses engaged through Business Engagement Event with Leicestershire Promotions Ltd 73 businesses engaged through online business survey LLEP Winter 2014 Business Survey (146 tourism and hospitality businesses responded) Over 25 key businesses and stakeholders interviewed Prioritisation Event with 20 attendees
7 Future Growth Drivers Focus and attention on Leicester and Leicestershire (including KRIII) Long term development of the areas offer to visitors Return to growth in the wider economy and the short-term likelihood of an increase in household disposal income Increase in overseas visitors into the UK Improvements to the built environment, retail and cultural offer
8 Consultation Findings Most of the areas largest attractions are operating near capacity for some or all elements of their offer which is constraining growth of in-bound visitors Main issues affecting business growth are staff retention, access to finance, better broadband in rural areas and perceptions of the area as a place to visit The sector is relatively steady state, with most businesses having operated for over 5 years For most businesses, most of their income is derived from customers within the City and County
9 Guiding Principles Tourism is a sector that is already experiencing a long term growth trajectory the plan needs to concentrate on enabling growth by removing long term barriers more than quick fixes The plan needs to ensure that the areas major visitor assets achieve and maintain excellence and that this will have benefits to a wider spread of businesses Emphasis is on developing existing businesses to grow rather than stimulating huge numbers of new start up businesses
10 Guiding Principles There is a structural issue with regards to accommodation and its proximity to the areas visitor offer that needs to be addressed over the long term Skills gaps will be an increasing issue over time as employment grows. Staff retention is a major issues which may need local action The plan needs to ensure enough of the right consumers know about the product(s) of Leicester and Leicestershire
11 Outcomes
12 Vision for Jobs Growth To create 10,000 additional jobs in the sector by 2020 Current jobs BRES 30,307 STEAM 20,485 Current Growth BRES 2,500 over the past 3 years STEAM 881 jobs in previous year
13 Key Proposed Actions Develop the areas coach parking offer Expand the Richard III offer and promote additional marketing Develop clear Place Marketing Plans Ensure all of Leicester and Leicestershire has been covered by an Accommodation Demand Study Promote skills development
14 Key Proposed Actions An investment programme to support key attractions to increase their capacity Support key businesses in the sector to become low carbon exemplars Support rural businesses to diversity their offer into tourism and hospitality Secure more events and conferences Work with Superfast Leicestershire to enable tourism businesses to gear up for superfast broadband
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