‘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.