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Wessex Coast to Coast Cycle Route: Assessment of Potential Economic Rother Valley Railway: Local Economic Impact Study ROTHER VALLEY RAILWAY: LOCAL ECONOMIC IMPACT STUDY INTERNATIONAL TOURISM CENTRE October 2013 International Tourism Centre 1 Manchester Metropolitan University Rother Valley Railway: Local Economic Impact Study PREFACE The International Tourism Centre was established in 1997 to undertake research and consultancy particularly, but not exclusively, in the emerging markets of Eastern Europe. It has since extended its activities to managing European Union projects in Sustainable Tourism and Hospitality in the North West, and carrying out contracts for public and private sector clients in the UK generally. It has carried out a number of assignments relating to Cycling Tourism; Recreational and Leisure Tourism; and Heritage and Cultural Tourism activities. Enquiries relating to the full range of services offered by the Centre can be addressed to: Mr John Theodore Director International Tourism Centre Manchester Metropolitan University Hollings Faculty Righton Building, Cavendish Street Manchester M15 6BG Tel: 0161-247-2720 E-mail: [email protected] STUDY TEAM Mr David Briggs Manchester Metropolitan University Dr Maurice Palin Manchester Metropolitan University ACKNOWLEDGEMENTS The authors wish to thank Graham Baldwin, General Manager of the Kent and East Sussex Railway, David Gillett of Rother Valley, staff at National Trust, Bodiam Castle and Tourism South East. International Tourism Centre 2 Manchester Metropolitan University Rother Valley Railway: Local Economic Impact Study Contents: 1.0 Executive summary 4 2.0 Introduction 6 3.0 Methodology 10 4.0 RVR/K&ESR “missing link”: background 11 5.0 Local economic impact 25 6.0 Policy considerations 35 7.0 Conclusions 52 8.0 References 58 International Tourism Centre 3 Manchester Metropolitan University Rother Valley Railway: Local Economic Impact Study 1.0 Executive summary Rother Valley Railway (RVR) commissioned this report to update the findings of a previous investigation undertaken by Manchester Metropolitan University in 2007. The earlier study concluded that restoring the link between Robertsbridge and the Kent and East Sussex Railway presented a rare opportunity for K&ESR to realise the vision of founding members and secure the basis for a more viable future. The principal findings of this study are as follows: Development of the RVR “missing link” should improve the commercial position of the Kent and East Sussex Railway with passenger numbers increasing to 150,000 per annum given moderate increases in capacity and 200,000 visitors per annum when additional resources from RVR come into place. Recent studies conducted by a parliamentary select committee and the Heritage Railway Association confirm that heritage railways now make a significant contribution to local economies. Although short term multiplier values range from 1.2 to 2.47, over the long term values can be much higher as indicated by research into the ‘legacy’ effect of the London 2012 Olympic Games. The nature of Rother District and adjoining economies suggests, as shown in the main text, that the proposed RVR “missing link” development would have a significantly beneficial economic and social impact upon these communities given the wider than average variations in income, deprivation and inclusion. The KESR turnover for 2012 was £2.43m. Providing the capital investment required to increase capacity on KESR is made, as passenger numbers rise to 150,000 the potential economic benefit could be of the order of £8.1m of which £3.24m is directly attributable to RVR. On reaching its full potential of 200,000 passengers the total economic benefit becomes £10.80m. of which £5.94m would be directly attributable to RVR. (Using the multiplier of 2.0 recommended in the main text). International Tourism Centre 4 Manchester Metropolitan University Rother Valley Railway: Local Economic Impact Study Higher figures are obtained if the average multiplier of 2.47 suggested by the July 2013 Parliamentary sub-committee is utilised. The proposed RVR “missing link” development fits well with the vision and objectives set out in Visit England’s Strategic Framework for Tourism 2010-20. Increased visitor numbers will directly benefit RVR/K&ESR and indirectly nearby visitor attractions but not without difficulty if resistance to modal shift (from private car to rail/public transport) remains. Without substantial marketing inputs this problem may prove difficult to overcome just as it has done for operators in the commercial transport sector. RVR/K&ESR like many heritage railways currently face a turning point in their development. As they move increasingly towards the provision of products having wider public appeal or function (such as a tourism transport railway), the balance of resources, especially the ratio of paid staff to volunteers, may call for a fundamental rethink. Demographic factors such as an ageing population may benefit heritage railways in terms of customer base and volunteer recruitment but the age profile of volunteers who were founder members inevitably works against them. Heritage railways such as RVR/K&ESR are now firmly woven into the economy and fabric of their host local community. The economic and wider impacts cement this relationship and in a manner increasingly of benefit to both parties International Tourism Centre 5 Manchester Metropolitan University Rother Valley Railway: Local Economic Impact Study 2.0 Introduction This study aims to update an investigation previously undertaken by Manchester Metropolitan University on the Local Economic Impact of Rother Valley Railway. Overall the findings were very positive and it is now necessary to reconsider many areas as the Rother Valley Railway (RVR)/Kent and East Sussex Railway (K&ESR) “missing link” project reaches a critical new phase. The Kent and East Sussex Railway is a heritage railway currently operating between the town of Tenterden in Kent and a terminus station located near Bodiam Castle. Rother Valley Railway has restored two sections of track along a section previously linking Tenterden with the national rail network at Robertsbridge. Once the whole section from Bodiam Castle to Robertsbridge is reinstated, it is anticipated that impact upon the local tourism economy will be significant. K&ESR is a good example that typifies achievements made in the field of railway preservation since the 1960s. Through the efforts of a predominantly volunteer workforce and local residents wishing to retain something regarded as part of the fabric of their community, railway closures forced on grounds of commercial viability ultimately gave rise to a thriving heritage railway sector. K&ESR is a success story in these terms and is marketed under the theme “Britain’s first light railway”. Over the past fifty years, preserved railways have translated their success from a product having a strong appeal for narrow interest groups (rail enthusiasts) into one with much wider (public) appeal. Consequently, as preserved railways evolved into successful tourist attractions in their own right, the process has not been without challenges and some tension arising from the need to meet commercial objectives but simultaneously satisfy the objects of an organisation founded for the purpose of preserving valuable railway artefacts. This conundrum remains because preserved railways would not exist without the foresight and continued contribution of railway enthusiasts. However, all of this may count for very International Tourism Centre 6 Manchester Metropolitan University Rother Valley Railway: Local Economic Impact Study little if the organisation through which they channel their efforts is not financially sustainable. Typically, most preserved railways are charitable organisations funded in part by members’ subscriptions and donations. Whilst charitable status brings many advantages with respect to taxation, revenues often need to be supplemented through trading activities in line with The Charities Commission (CC) and Her Majesty’s Revenue and Customs (HMRC) guidelines. Trading activities place preserved railways on the front line as visitor attractions operating in a competitive environment exposed to general economic conditions and demands from an increasingly more discerning consumer within the visitor economy. Whilst volunteer inputs provide a substantial subsidy toward investment and operating costs, reliance upon a largely volunteer workforce has drawbacks in terms of availability and reliability in delivering required operating capacity on a day-to-day basis. Recently, K&ESR have experienced a number of problems in terms of delivering a successful, well-proven product from a tightly constrained resource base. Through development of the “missing link” between Bodiam Castle and Robertsbridge opportunities may arise whereby some of these capacity constraints are alleviated. In turn, this may produce a more substantial player in the heritage railway sector and local visitor economy. Securing these benefits will involve trade-offs expressed in terms of economic, social and environmental impacts. Therefore, this study seeks to provide through a ‘holistic’ view an evaluation of these areas. It is within this context that the study has been commissioned by Rother Valley Railway and whilst research objectives broadly follow those of our previous study it is recognised that significant changes have occurred in the backdrop against which the RVR/K&ESR “missing link” project is set. Hence the following objectives were covered:
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