Recession, Opportunities and Threats for 2009

With the recession comes opportunities as well as threats - and even though the economy could shrink up to 5% over two years, it still means that 95% of the economy is still operating in the current recession.

We have seen consumer spending priorities change over the years and from a variety of research resources it is clear that people consider a holiday as a necessity not a luxury, with holidays a high priority for peoples spending in 2009. However, many, if not all, will have less money to spend than in previous years, and research also indicates that half of the consumers will not be prepared to compromise on quality, but will holiday less frequently and/or stay for a shorter period. The remaining half of consumers will not compromise on quantity, but will trade down to ensure they still have their full breaks and holidays.

However, both types of consumers will be looking for value and this does not mean discounting; it is ‘value’ as perceived by the consumer and you might well be thinking what is the difference between value and discounting? Value is about holding the price and adding services and options that are valued by the consumer, but should not cost you too much. For instance; if you are a restaurant why not provide a talk on wines; if you are an accommodation provider targeting families why not create a treasure hunt for the children; if you are a hotel then look to bulk buy attraction tickets and offer them free to customers, or purchase some bikes and offer free bike hire; if you are a small business then why not offer to take visitors on a personal guided tour of your area etc.

I hope these ideas stimulate your thinking about what you can add to an offer that will make a holiday appear excellent value for money and generate bookings.

On a different note, there is one big difference in this recession compared to any others that we have seen and that is the Internet. In the last recession in the early 1990’s the Internet was just a toy for academic anoraks, whereas today it is widely used by the majority of the population and a favourite for researching holidays and travel. It provides a great opportunity for you to market to consumers using direct emails, or ensure your website features the value of your offering, plus plenty of information on all the activities that people can do for free in and around your local area.

However, as the old saying goes, ‘you only get one chance to make a first impression.’
I believe, with the Internet you only get one chance to position the value of your product and this will be a critical challenge for businesses in 2009, as consumers will be researching holidays like never before in search of a quality product at a good price.

I have highlighted the challenges for 2009, now lets look at more positive aspects of the coming year. Never, since its creation, has the Euro been so strong against the pound, making us a very attractive destination for overseas visitors, but more importantly making our overseas competition far more expensive to our domestic customers. Our challenge is to bring back our loyal, repeat visitors and capture those Brits who would have normally gone abroad to holiday in the South West.

So finally, although there are many challenges for 2009, and with rising unemployment, the number of Brits taking holidays is very likely to reduce, however that does not mean it has to reduce in the South West. Therefore now is the time to capture new overseas visitors and convert new business to the South West that was destined for overseas.

I wish you all a profitable and busy Christmas and New Year and I hope I have helped to stimulate some ideas to enable you to see the opportunities available in 2009, to ensure a profitable and prosperous year ahead.


Malcolm Bell,
Director of South West Tourism

Non-Executive Directors and Chairman of the Board

South West Tourism is seeking to appoint seven Non-Executive Board members including a Chairman of the Board.

For more information please visit:
http://www.swtourism.co.uk/about-us/board-of-directors/BoardVacancies.ashx

South West Tourism AGM

Thank you to those who attended South West Tourism’s AGM on 02 December at Tiverton Hotel, it was a well attended event. We would also like to thank the members of the panel for taking part in the Question Time session.


The venue was at capacity in the end, so apologies to those who couldn’t attend, however if you would like to view the draft minutes please visit the following:



http://www.swtourism.co.uk/content/tourism-industry-conference-and-south-west-tourism.ashx

Do you have paying guests?

If so, fire safety law applies to you and you must take action


Visit the following for more information:


http://www.communities.gov.uk/publications/fire/payingguests