Intelligence Brief

Issue 04 - Jan / Feb 2014 nitb.com

Look back, think forward Inside this issue

The beginning of the year is traditionally a World Police and Fire Games during a two performance time for taking stock of the year that was week period in August, taking place at 41 and looking forward to the year ahead. venues across Northern Ireland with 7,000 Pages 2 & 3 This issue of the Intelligence Brief aims competitors from 67 countries taking part. The latest analysis on tourism to do just that. Under the theme of ‘Look These events and more have played their performance including Jan-Sep back, think forward’ we will review and part in seeing overall trips to NI increase by tourism performance statistics recap the state of the tourism industry in 8% throughout January to September 2013 accommodation statistics, and 2013, whilst also exploring what it has in when compared with the same period in December 2013’s Tourism Industry store for 2014. 2012. Barometer.

This time last year, tourism in 2013 was Looking ahead to 2014, Northern Ireland faced with the dreaded ‘difficult second will play host to the Giro d’Italia’s Grande album’ syndrome. ni2012 had raised the Partenza or ‘Big Start’ from 9th - 11th May - Tourism trends bar and 2013 had a lot to live up to - but a four day celebration of elite professional live up it did. Stealing the show was cycling with three stages visiting Belfast, Pages 4 & 5 Derry~Londonderry’s year as UK City of the Causeway Coast & Glens and Armagh. A commentary on what’s trending in Culture which attracted over 1 million The event will command a huge worldwide the tourism industry including news visitors to the city throughout its year audience of 775 million across 165 countries. on the economy and tourism trends long programme of cultural events and 2014 will also see the opening of the for 2014. activities, of which some will live long in the Gobbins coastal path in Islandmagee and memory - the Fleadh Cheoil, the Lumiere the development of the Narnia story in the Festival of Light and the Turner Prize to Kilbroney Park and Rostrevor Forest areas. name but a few. Also headlining was the Regional trends

Pages 6 & 7 A review of 2013 highlights and 2014 prospects for Northern Ireland’s nine destinations.

Tourism intelligence

Page 8 An update on NITB’s latest insights and intelligence including an update on ‘Visitors from the East’ and an insight on the sharing economy.

Looking ahead to the Giro d’Italia Tourism Performance

Tourism Performance Statistics (January - September 2013)

All markets combined The momentum generated by ni2012 has continued into 2013 as demonstrated by the positive Jan-Sep 2013 tourism performance figures. These 9-month figures cover the period when key events such as the World Police & Fire Games and Derry~Londonderry City of Culture took place. Trips Domestic market from all markets increased by 8% (+ 250,000). Growth was also evident Total trips 10% (140,000 trips) for nights (up 8% by 901,000 nights) and spend (up 6% by £33 million). The increase in trips continues to be driven by sustained growth in both the domestic and GB markets. Visitors from ROI RoI market NITB research conducted in August 2013 Total trips 5% (6,000 trips) demonstrated that RoI residents had concerns Nights 2% (16,000 nights) about ‘protests and disturbances’, offsetting the positive impacts made by key events and Holiday trips 26% (37,000 trips) promotions. 2012 was a good year for the RoI market, undoubtedly helped by ni2012. When Business 35% (6,000 trips) we compare trips taken in Jan-Sep 2013 versus the corresponding period in 2011, VFR 25% (31,000 trips) strong growth of almost one third is evident.

GB/Overseas market Visitors from Increases in GB and overseas trips to NI GB/Overseas 11% (127,000 trips) were largely driven by growth in the GB Total trips market (up by 108,000). This GB market GB trips 14% (108,000 trips) growth is due to a considerable uplift in VFR trips (up 21% by 95,000 trips). Other overseas 5% (19,000 trips)

Click here to find out more about Tourism Performance Statistics

Accommodation Performance (January-December 2013)

Hotels Room Occupancy Bed-space Occupancy 1,828,300 1 % on rooms sold Jan-Dec 2012 65% 44%

2,765,800 1 % on down 1% on down 2% on bed-spaces sold Jan-Dec 2012 Jan-Dec 2012 Jan-Dec 2012

Guesthouses, Guest Accommodation & Bed & Breakfasts Room Occupancy Bed-space Occupancy 356,900 2% on rooms sold Jan-Dec 2012 31% 22%

578,800 4% on down 2% down 1% bed-spaces sold Jan-Dec 2012 Jan-Dec 2012 Jan-Dec 2012

Taking part counts - Occupancy data is a good indicator of tourism performance. NITB encourages you to participate in NISRA Accommodation Surveys if invited. Click here to find out more about Source for NI and Accommodation Performance statistics: NISRA Source for Republic of Ireland statistics: CSO Accommodation Performance Statistics

p2 Tourism Industry Barometer Research - December 2013

The NI Tourism Industry Barometer is a survey of tourism businesses designed to provide insight into tourism performance for the year to date and prospects for the coming year. The tables below display the top five positive factors and issues of concern affecting tourism businesses in 2013, along with expections for 2014. Top five positive factors affecting businesses in 2013 Top five issues of concern in 2013

77% ‘repeat visitors’ 62% ‘fuel and energy costs’

66% ‘recommendations’ 59% ‘state of the domestic economy’

60% ‘own marketing’ 55% ‘state of the global economy’

48% ‘weather’ 47% ‘rising prices for goods and services purchased by tourists’

46% ‘local events’ 40% ‘civil unrest’

What is the industry saying about 2013?

“Social media has been a real drive too, “There have been large jumps in especially Twitter and Facebook.” overheads and utility costs.” “The weather helped no end!” B&B owner Activity provider Visitor attraction

“I have a core group of repeat visitors “Volatile political situation makes “The large number of events has who keep returning for holidays and business incredibly hard to predict and increased visitor numbers.” other visitors who highly recommend if the same as last year is experienced, Visitor attraction me.” this will be difficult on the industry.” Self-catering owner Hotel Manager

Industry expectations for 2014

of respondents expecting larger 47% volumes of business in 2014

Accommodation Other

of guesthouses remain optimistic of car hire/coach operators remain 67% for 2014 73% optimistic for 2014

of hostels remain optimistic for of golf clubs remain optimistic for 53% 2014 69% 2014

of hotels remain optimistic for of attractions remain optimistic for 49% 2014 58% 2014

of B&Bs remain optimistic for of activity providers remain 42% 2014 47% optimistic for 2014

Click here to find out more about the Tourism Industry Barometer

p3 Tourism trends

Tourism trends to watch out for in 2014

Trend What’s it about? What does it mean for Northern Ireland?

Post-recession frugality While economies around the world are slowly Looking ahead to their travel plans for the year recovering from a long and debilitating recession, ahead, staycations and day trips will be the many consumers continue to adopt a cost- only realistic options for many cash-strapped conscious lifestyle as they suffer from the extended consumers; particularly families given the effects of the downturn. Even those who may continued rising cost of package holidays. For be beginning to recover financially are not likely those who do travel in 2014, the budget option is to spend as freely as they once did as they lack likely to remain popular, as will deals that represent confidence or have simply got used to frugal living. good value for money.

The continued rise of the Chinese outbound tourists will reach 100 million Tourism businesses around the globe are Chinese visitor in 2015, growing ten-fold since the turn of the scrambling to attract more of the Chinese market. millennium thanks to rapid urbanisation, growing Whilst Chinese visitors currently only account for levels of education and rising disposable incomes. a small proportion of visitors to Northern Ireland, Chinese tourists are now the world’s biggest there is significant potential for future growth. The spenders when abroad and the most numerous Westminster Government’s recent simplifications overseas arrivals at global airports. to the visa process are a sign of progress and it will be interesting to observe its effect in 2014.

From baby boom to baby zoom Now that they’ve started to retire and have According to the statistics, the baby boom generally speaking found the perfect combination generation is already making its mark on Northern of time and money, the Baby Boom generation Ireland’s tourism landscape. In the domestic (born between 1946 and 1964) present a huge market in 2012, the baby boom generation market opportunity – which is why tourism accounted for 35% of overnight stays and also businesses are spending more and more of their accounted for 33% of direct visitors from GB & marketing budgets on this generation, especially overseas visitors. As more of this generation enters with their younger counterparts strapped for cash retirement, it is anticipated that their influence and faced with a stagnant job market. on the NI tourism industry will increase further in 2014.

Keep an eye on the Millennials The Millennial generation (born between 1980 Millennials will grow in importance over the next and 1999) are not quite as lucrative as their Baby decade. Their preferences and habits will be key Boomer parents given their sometimes limited drivers of change in the consumer world over the discretionary income. However, Millennials are the next decade and beyond. For many industries fastest growing age segment for travel and are on including tourism, they are like a crystal ball into the cusp of being key influencers in both the family future trends. For this reason, forward thinking and business travel markets. business will already be planning ahead in 2014 to earn the business and loyalty of this generation.

Staying one step ahead of the Rapid advancements in digital and mobile Visitors to Northern Ireland have changed and will mobile revolution technology have transformed all aspects of the continue to change as technology advances. The travel cycle as well as the traveller itself. Change is challenge for NI tourism businesses in 2014 will be taking place at an unprecedented rate and it will to keep moving with the pace of change. get even faster and more transformational as we approach 2016, when 4G connectivity is expected to be adopted into the mainstream.

The real deal: local, authentic Visitors are arriving at destinations with a wealth of This trend is one which Northern Ireland Tourist experiences previously researched information and demanding Board has prioritised with the objective of helping more from their stay. They want to get beyond what to create more authentic travel experiences in it says in the guidebooks and really experience a Northern Ireland. Keep an eye out for how you can place in a more immersive and authentic way. This get involved in 2014. See nitb.com/experience for places the focus on feelings, sensations and stories further details. rather than simply products.

For more information on these trends visit www.nitb.com/vision

p4 Economic Outlook 2014

economic NI The economy ended 2013 on a relatively tourism high note. Key indicators are showing conditions long-awaited signs of recovery including falling unemployment, increased business activity across all sectors’ conditions and improving consumer confidence. consumer RoI A much-welcomed announcement in confidence market the Chancellor’s Autumn Statement that Northern Ireland would receive an additional £136 million in funding over the next two years has only added to the positive sentiment.

On 8th January 2014, Finance Minister overseas Simon Hamilton underlined his own visitors access optimism for the year ahead, saying “The beginning of a new year is traditionally a time for looking back at the year we’ve just finished and forward to the one ahead. Over the last number of years, we have global industry reflected on tough times with much hope of better times ahead. I believe, as we leave tourism outlook 2013 behind, we have justifiable cause for optimism that 2014 will herald an improved economy”.

favourable changeable Consultancy firm, PwC, shares the Minister’s optimism and has calculated the following GDP growth forecasts: 2013 2014 Economic conditions NI tourism As per the economic outlook on the right, The latest NISRA statistics point to an 8% NI 0.7% 1.6% forecasts are pointing to signs of recovery in increase in trips from all markets in Jan- markets across the world. Economic growth Sep 2013. When you consider that the bar UK 1.4% 2.4% is expected for NI, RoI and GB in 2014. was raised high in 2012, these results are ROI 0.2% 2.4% encouraging. Consumer confidence NI’s economy is ending 2013 in better health RoI market The UK economy is showing clear signs of than a year ago. According to a recent Total trips from RoI was down by 5% in recovery and Northern Ireland is sharing in Danske Bank report, 15% of respondents Jan-Sep 2013. Although this is an increase of that, albeit at a slower pace. The forecast said ‘their financial position had improved almost one third is evident when compared growth in 2013 has yet to be confirmed – if in 2013’, with spending expectations at their to the same period in 2011, there remains achieved, it will be the first increase in highest level in five years. concerns about safety and security. output by over 1% since 2007.

Overseas visitors Access However, despite this optimistic outlook, The number of visitors from GB and overseas Total capacity to the island of Ireland is 3% it must be remembered that the economy markets to Northern Ireland increased by up on winter 2012. However, this accounts still faces tough challenges including high 11% in Jan-Sep 2013. Similarly, Tourism for a 9% decrease on NI routes and 7% levels of household debt and restrictive Ireland reports that overseas visitors to the increase on ROI routes. lending conditions, as well as high island of Ireland was up 10% in 2013. recently announced 70% more seats on new unemployment and sluggish income Canadian routes from Toronto, Montreal and growth. For many consumers in Northern Global tourism St Johns to Dublin and Shannon. Ireland, tangible recovery will continue to UNWTO has reported that international be a slow process. tourist arrivals reached a record 1.087 billion Industry outlook in 2013, up from 1.035 billion in2012. Global NITB’s Tourism Industry Barometer found Likewise, for tourism, the process of growth is set to continue for the foreseeable that 47% of tourism businesses in NI were rebuilding confidence amongst visitors, future. optimistic about prospects in 2014. industry and external influencers (e.g. airlines) alike is underway but will take time.

p5 Regional trends

Derry~Londonderry

Think Forward Look Back •• ‘Music City’ theme for 2014. •• Very successful City of Culture 2013 with approximately 1 •• Events to look forward to include: Other Voices in February; million visitors to the city. Pan Celtic Festival in April; Brides Across The Bridge in May; •• 430,000 attended the Fleadh Cheoil, the first time the event the return of the Clipper Round the World Yacht Race in had been held in Northern Ireland. June; Music City event in June; Walled City Marathon in June; •• 34,000 attended the Turner Prize, the first time it had been Walled City Tattoo in August; and Culture Tech in September. held outside of . •• Derry~Londonderry will continue to take forward its •• 180,000 were wowed by the Lumiere Festival of Light. Destination Development Plan for the city. •• The £10 million Guildhall visitor experience was launched in June and welcomed 230,000 visitors in its first 7 months. •• The £2 million Walled City Lighting Scheme was launched in October.

Tyrone & Sperrins

Think Forward Look Back •• New interpretative centre to •• On Home Ground Poetry open in Bellaghy to honour Festival pays tribute to Seamus Heaney. Seamus Heaney. •• Plans underway to develop •• Garvagahey Sports facility Tullaghoge Fort, Cookstown opened. Tyrone and Sperrins •• Corrick House Hotel and destination management Spa, Clogher was awarded plan. 4* under the Quality grading scheme for accommodation. Armagh

Think Forward Look Back •• New draft destination plan to •• The 10th annual Georgian Day be in place by spring 2014. took place in Armagh on 30th •• New destination forum to be November, attracting a record agreed to oversee delivery. 30,000 visitors. •• Day 3 of the Giro d’Italia will begin in Armagh on 11th May. •• In April / May, Armagh is hosting a series of events to commemorate the 1,000th year anniversary since the death of Brian Boru.

Fermanagh

Think Forward Look Back •• Fermanagh will take forward its revised •• The G8 Summit took place in June at the Destination Development Plan for the Lough Erne Hotel and was lauded ‘the county. friendliest and safest G8 ever’. •• Broadcast of Series 2 of the successful •• HLF awarded Enniskillen Castle’s BBC series Blandings which was filmed ‘Fermanagh Heritage Gateway’ project around Crom Castle. a stage one pass towards potential •• Completion of interpretation and visitor funding of £2.5 million. services enhancements at Marble Arch •• The Happy Days Enniskillen Caves Global Geopark. International Beckett Festival took place following the successful 2012 event with an inspiring programme of events and perfomances.

p6 Causeway Coast & Glens

Think Forward Look Back •• Giro d’Italia 2014 will visit on Day 2 of the race. •• 1 million visitors welcomed to the Giants Causeway World Heritage Site. •• West Bay, Portrush to benefit from new promenade development. •• Steensons Jewellery, Scullion Hurls, Broighter Gold Rapeseed oil were •• Plans underway to develop Dunluce Castle Visitor Experience. designated Écononmusée ‘Artisans at Work’. •• Visitor experience to be enhanced at West Lighthouse, Rathlin Island. •• Heritage Lottery Fund Glens Landscape Partnership awarded £1.6m. •• Improvement of visitor facilities at Benone Visitor Complex. •• £600,000 development of new visitor facilities at Drumaheglis Marina, •• Visitor economy to benefit from Game of Thrones. Ballymoney •• £6 million Gobbins Cliff Path visitor experience project. •• New innovative project for visitors – launch of Portrush free WiFi •• Larne TIC is due for refurbishment . •• Visitors can now explore rich heritage of Ballycastle town via the new •• Arthurs Cottage, Cullybackey to re-open for visitors. heritage trail. •• Development plans Bushmills Dunes Resort at Runkerry.

Belfast

Lough Neagh & Its Waterways Think Forward Look Back Think Forward Look Back •• Giro d’Italia will take place in May. The •• Another record year for Cruise Belfast - time trial stage will take place in Belfast 59 ships, bringing 110,000 passengers •• Visitor economy to benefit •• £6 million restoration of and day two will see the race traverse and generating £5.8 million. from Game of Thrones. Antrim Castle Gardens the Causeway Coast. •• Opening of SS Nomadic in June. •• £1.6million in new visitor completed. •• Target to bring in 65 cruise ships. •• The Game of Thrones exhibition came facilities Portglenone Marina. •• New mountain bike trails •• Visit Belfast estimates that 51 to Titanic Belfast in June, attracting developed at Davagh Forest. conferences will be held in the city in 19,000 visitors. •• Heritage Lottery Fund awards 2014, welcoming over 14,000 delegates •• The highly successful World Police Lough Neagh Partnership with and generating an estimated 35,000 & Fire Games took place in August £2.58 million for a Landscape bed nights and £16.2 million. at 41 venues across NI, with 7,000 Partnership programme. •• Works commence on Belfast Harbour’s competitors from 67 countries. •• Destination Marketing Plan new cruise terminal, opening in 2015. •• VisitBelfast relocated to new state-of- launched for Lough Neagh and •• The Belfast Integrated Strategic the-art premises in December. Its Waterways. Framework for Tourism is currently •• Since opening in Dec 2012, Crumlin •• £120,000 funding secured being reviewed and will be in place by Road Gaol welcomed 100,000 visitors. by Lough Neagh Partnership spring 2014. •• In 2013/14, 58 conference bids were for tourism and recreation •• TFL has led the development of a won by VisitBelfast, welcoming 21,630 activities Titanic Destination Forum which delegates and generating 63,100 bed will support the development of the nights and £27.4 million. quarter.

Mournes Strangford Lough

Think Forward Look Back Think Forward Look Back •• The Single Speed European •• Mournes mountain biking •• 2014 will see the launch of •• New destination plan now in Championships will take place trails officially launched in July Strangford’s first Heritage place for 2013 - 18. in Castlewellan on 25th - 27th - over 110km of trails across 4 Management Strategy •• Destination website up and April. locations. promoting excellence in running. •• Development of the Narnia •• New destination plan now in heritage. •• Marketing and visitor servicing project in the Kilbroney Park place for 2013 - 18. •• Strangford Lough will launch a collateral in place. and Rostrevor Forest areas, •• Destination website up and £100,000 intiative to develop •• Exploris threatened with due to be completed in running. water-based recreation closure. September 2014. •• Marketing and visitor servicing through community coastal •• Strangford Lough attains •• Restoration of Annalong Corn collateral in place. rowing. This initiative will have Marine Conservation Zone Mill as a focal point of the links with Scotland, where it status, which will help Mourne Granite story. has been very successful. safeguard its natural assets. •• Coach Drivers Guide for •• Strangford Heritage Festival Mournes to be published. held in May / June, attracting a •• Phase 3 of Mourne Coastal record 6,000 visitors. Route infrastucture ongoing.

p7 Tourism intelligence

Latest Insights What can we learn from the Visitors from the East

In June 2013, NITB published an insight sharing economy? report on the emergence of the Chinese tourist and what it means for NI. The report The ‘sharing economy’ (sometimes referred to as ‘collaborative consumption’) made big emphasised the overwhelming potential waves across the global travel industry in 2013 as it continues to emerge as a viable alternative in attracting more Chinese tourists to NI to mainstream travel. and highlighted products and services should be tailored to meet their needs and So what exactly is it? Rachel Botsman, author on the topic, defines the sharing economy as interests. It also referenced VisitBritain’s “the rapid explosion in swapping, sharing, bartering, trading and renting being reinvented three-year strategy to attract an additional through the latest technologies and peer-to-peer market places in ways and on a scale never 200,000 visitors to (GB) per possible before”. This trend has really taken off in a number of industries, which the all-time- year by 2015. high popularity of services like Gumtree and Freecycle will testify. But within tourism, it has been especially predominant in the US, with countless business start-ups offering everything The update is that this strategy is beginning from accommodation, car rentals, tour guide services and home cooking. to take effect in GB as a whole. Tourism spend and visits from China have soared A combination of the global economic downturn and increasing trust of the internet and in the latest 2013 figures. The Chinese online payments has given rise to the growth of the sharing economy. Consumers have grown inbound market has grown faster in accustomed to a thrifty lifestyle meaning that they are not only seduced by budget options percentage terms than any other of offered via collaborative consumption, but are more likely to notice idle assets (e.g. a spare VisitBritain’s twenty-two priority markets, room, a second home) on which they could make a profit. with spend up by 132% (to £181m) and visits up by 21% in the first half of 2013 compared The sheer speed in which this trend has gathered momentum in the past two years is hard to to the first half of 2012. And the efforts ignore. For instance, you only have to look at the growth of Airbnb, who pioneered the concept aren’t over yet: British Culture Secretary of regular people opening their homes to tourists to rent. Airbnb was used by one million Maria Miller said in December that Britain guests worldwide at the end of 2011. By the end of 2013, this figure had grown to hopes to become “the most welcoming ten million. Yes, it still only accounts for a fraction of the almost 1.1 billion outbound tourists destination in Europe” for Chinese visitors, in 2013 and therefore is not seen as a threat to conventional travel – but the huge success of and a new campaign is set to be launched in the collaborative consumption model should be heeded as an indication of how the modern spring 2014. consumer - particularly the Millennial generation - likes to travel.

For NI to experience real growth from the The sharing economy reflects travellers’ desire to travel like a local and really experience the China inbound market in the longer-term, culture of the destination. They are no longer satisfied with just sunbathing, taking holiday measures such as improved air access and snaps or collecting souvenirs. They want to immerse themselves in authentic local experiences flexible visa arrangements would need to and get a real flavour for the places they visit by meeting local people and making personal be considered. However, the growth that connections. Travelling via the sharing economy facilitates this consumer demand and this is VisitBritain appears to be generating is why its popularity has rocketed. certainly a step in the right direction. As is Tourism Ireland’s new office network and Whilst not all aspects of the sharing economy model can be replicated in Northern Ireland sales missions in China, the largest ever of due to legislative certification requirements for tourist accommodation providers, this which was held in November 2013. doesn’t mean that tourism businesses can’t take lessons from its success to help tap into this same consumer demand. The opportunity for tourism business lies in giving their visitors more options to connect with local Feedback? communities by bringing inside the culture that awaits outside their walls (such as Comments? food, music, stories). Much can be achieved through a clustered approach, for example, Queries? through a B&B linking up with a local tour Contact NITB for guide and local restaurant to give visitors a real flavour for the area. Encouraging further information at tourism providers to meet the demand for [email protected] local authentic experiences is something that the Northern Ireland Tourist Board has prioritised in 2014.

See nitb.com/experience for further details.

(Source: adapted from skift.com)

p8