‘How’s business’ results

Thank you to the 860 tourism businesses who completed the Business Snapshot Survey last month, relating to how the industry has performed during 2008. View the results.

Business Snapshot Survey 2008

Click here for an overview of the county results
Click here for the full report

Regional results summary
Latest research from South West Tourism’s Business Snapshot Survey for January to end of August 2008 indicates business levels are still extremely mixed, as a number of businesses are reporting either increases or decreases for both visitor numbers and turnover.

This is especially true for the data showing the year to the end of August. The summary figures for ‘all businesses’ and ‘all accommodation’, which provide a robust sample in each instance, shows that only an approximate 1 in 5 businesses are operating at the same levels as they were in 2007, both in terms of visitor numbers and turnover.

School Holiday Period Performance (July / Aug) (compared to 2007)
Whilst accommodation providers reported similar levels of business in July & August this year as compared to last year, the contrast among visitor attractions was quite marked, with 41% of attractions reporting increases in visitor numbers and 42% reporting decreases. Just 17% of visitor attractions reported similar business levels to 2007.

As a result, the average actual change figures for all businesses show similar levels of visitors in 2008 to 2007 during the school holiday period.

School Holiday Period Turnover (July / Aug) (compared to 2007)
The research showed an average actual change in turnover of + 1.4% for the school holiday period across the sector. Accommodation providers turnover was +2% for the period and attractions turnover was +4%. However, both food & drink and other businesses reported average actual decreases in turnover of – 4% and – 5% respectively.

Whilst visitor numbers appear to have held up reasonably well during the peak period, there are indications that there has been a reduction in secondary spend (non-accommodation related spend), with food & drink businesses having the largest proportion of businesses reporting decreases in turnover for the period.

Year (to end of August) Performance (compared to 2007)
When looking at visitor numbers for the year so far (to the end of August) it is apparent that business levels are very mixed. 37% of both accommodation providers and attractions reported increases for the year, whilst 40% of each sector also reported decreases in visitor numbers for the year.

Visitor levels by accommodation type are also very mixed, however, holiday parks stand out of the accommodation types with just 16% reporting increases in visitor numbers and 76% reporting decreases for the year to the end of August.

Generally speaking, when comparing visitor numbers for the year to the end of August, to the same period in 2007, there is little change in the actual average change across most sectors and counties.

With regards to turnover specifically, it should be noted that this survey does not take into account differentials in both business costs and the cost of living between 2007 and 2008, and it is likely that a small overall increase in turnover does not reflect an overall increase in business profit. Although, this is something that some individual businesses may have been able to address through cost cutting measures.

Predictions and limiting factors for businesses
A large number of respondents cited the credit crunch as a factor affecting their area, regardless of how they were currently performing, both by county and by business type. Large proportions of businesses, the majority in some instances, are now less optimistic for the future of the tourism industry in their area.

With regards to those reporting increases in turnover, across all sectors, a recurring theme is that they have been active with their business plans. This includes things such as offering value for money, adding value to their product, diversifying into other areas and discounting prices to keep their turnover up.

‘Fire safety sense’ campaign launched

A major campaign regarding the damaging effects surrounding the enforcement of the 2006 fire regulation is being launched by nine national organisations representing the vast majority of small tourism businesses in the UK.

The campaign is highlighting the closures of small B&Bs and home-based businesses, and calling for common-sense in determining what fire precautions are required in the home.

A website has been launched at FireSafetySENSE.com, and a 10 Downing Street Petition has been opened.

The campaign calls on the Government to act to halt the damage being caused to very small businesses (including small B&Bs, families offering a self-catering room or flat, and home-based businesses) by the inconsistent and burdensome way the regulations are being enforced by local fire authorities.

In 2006 the Government abolished Fire Certificates and brought in a new self-assessment fire precautions regime under the Regulatory Reform (Fire Safety) Order (the “RRFSO”). It was intended as a deregulatory measure, virtually all premises used by the public were brought under the regulations, but very small premises (now covered for the first time) were intended to be treated proportionately, bearing in mind their size and the actual fire risk posed.

The RRFSO requires owners to perform a “Fire Risk Assessment” and put in place “appropriate” fire precautions.

However in the two years since the new regulations were introduced, the trade associations behind the campaign have been inundated with calls from members threatened with closure or the enforcement of major works including fire doors, emergency lighting and sophisticated fire alarm systems – often even in family homes offering one or two bedrooms on a “B&B” basis.

David Weston, Chief Executive of the Bed & Breakfast Association, commented:
“Many small B&Bs have already closed rather than substantially alter their homes or spend a five-figure sum in order to offer hospitality to a couple of guests – and the guests themselves are choosing B&Bs for their more home-from-home qualities. All our members are very fire safety conscious, but we don’t see why commercial fire systems and fire doors are necessary, for instance, in a cottage which already has smoke detectors and fire extinguishers, and a careful owner staying on the premises”.

Malcolm Bell, Chief Executive of South West Tourism said:
“We have always supported the abolition of the 6 bed rule and we do support sensible fire regulations. However, at present there needs to be a more common-sense approach that is fit for the purpose and is also affordable. In addition the confusion and lack of consistency in the application of the new rules needs removing so that they are less confusing to the industry.

Otherwise bed & breakfasts’ in the region will be put out of business by having to spend vast amounts on safety measures that are being inconsistently enforced around the region.”

Although the RRFSO specifically excludes “domestic premises”, the Government’s ‘Department for Communities and Local Government’ (DCLG) have declared that if even one room is let to a non-family member even occasionally, the regulations apply. This means that everyone who accommodates a student in their home, for instance, must comply or face a possible £5,000 fine.

This brings hundreds of thousands of households within the fire regulations regime for the first time ever – and hardly any of those affected yet realise what the Government requires of them. By including all these homes, the regulations will only be workable if “common-sense” applies in practice and minimal precautions are enforced on householders – the campaign’s supporters fear that this may not be the case, unless the approach used during the first two years of the regulations is substantially modified.

The “Fire Safety SENSE Campaign” is supported by the Tourism Alliance, the Bed & Breakfast Association, Alastair Sawday Publishing, South West Tourism, Tourism South East, Farm Stay UK, the English Association of Self-Catering Operators, and the British Institute of Innkeeping, amongst others.

The campaign’s launch follows the decision of the Fire Safety Minister, Parmjit Dhanda MP, not to issue guidance to local fire authorities, despite admitting that “an over-zealous and, in some cases, a disproportionate approach by some fire safety officers may be damaging both the [tourism] sector itself and the reputation of the Fire and Rescue Service”.
For further detail, please see http://www.firesafetysense.com/

New Welcome to Excellence course dates released

Already leading the way in the tourism leisure, and hospitality sector, Welcome to Excellence is also now seen as the way forward by retail businesses, travel operators, local authorities and many other organisations for which quality customer service is critical. Isn’t it time you join them? Click here for course dates

Lead, Motivate And Succeed - A new course developed in response to widespread demand. A stimulating and inspiring one-day course that will empower first-time managers and supervisors to get the most out of their team. It aims to help supervisors and managers to lead, develop and motivate their staff so that the whole team delivers world-class customer service.
click here for course dates and further information

Excellence Awards: winners and finalists revealed

South West Tourism reveals the winners and finalists of the prestigious South West Tourism Excellence Awards in association with the Enjoy England Awards for Excellence, First Great Western and South West Water. Click here to view the award winners

Businesses can’t afford to ignore increasing flood risk

Small businesses are more at risk from flooding than fire - and the effects can be 30 times as costly as burglary - yet many businesses still do not have any measures in place to protect their property or staff from flooding. Click here for more information

Access 08 ‘easy ways to win’ event feedback

The Easy Ways to Win conference on the 22 September, provided advice and guidance to tourism businesses about how they could take simple steps to improve their offer to visitors with disabilities and their families. View the presentations from the event.
Click here for the presentations