Tourism in the North East

House of Commons North East Regional Committee Tourism in the North East Third Report of Session 2009–10 Report, together with formal minutes, and written evidence Ordered by the House of Commons to be printed 18 March 2010 HC 498 Published on 25 March 2010 by authority of the House of Commons London: The Stationery Office Limited £0.00 North East Regional Committee The North East Regional Committee is appointed by the House of Commons to examine regional strategies and the work of regional bodies. Current membership Ms Dari Taylor MP (Labour, Stockton South) (Chair) Mr David Anderson MP (Labour, Blaydon) Mrs Sharon Hodgson MP (Labour, Gateshead East & Washington West) Mr Denis Murphy MP (Labour, Wansbeck) Phil Wilson MP (Labour, Sedgefield) Powers The North East Committee is one of the Regional Committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No.152F. These are available on the Internet via www.parliament.uk Publications The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at www.parliament.uk/parliamentary_committees/ne/ne_reports_and_publications. cfm Committee staff The current staff of the Committee are: David Weir (Clerk); Ian Thomson (Inquiry Manager); Emma Sawyer (Senior Committee Assistant); Ian Blair (Committee Assistant); Anna Browning (Committee Assistant); and Sian Jones (NAO). Contacts All correspondence should be addressed to the Clerk of the North East Regional Committee, Committee Office, 7 Millbank, London SW1P 3JA. The telephone number for general inquiries is: 020 7219 0654; the Committee’s e-mail address is: [email protected]. Tourism in the North East 1 Contents Report Page Tourism in the North East of England 3 Why an interim Report? 3 The importance of tourism to the North East 3 One North East 4 Visitor Tourism Strategy 4 Attracting visitors to the North East 5 Specific attractions 5 Arts and culture 5 International visitors 6 Accommodation for visitors to the region 6 Food and drink 6 Marketing the region and its attractions 7 Passionate People, Passionate Places 7 Generic versus brand marketing 7 Desti.ne 7 Future marketing funding 8 Workforce issues 8 Conclusions and recommendations 9 Formal Minutes 10 List of written evidence 11 List of Reports from the Committee during the current Parliament 12 Tourism in the North East 3 Tourism in the North East of England Why an interim Report? 1. The North East Committee announced on 20 July 2009 that it would follow its inquiry into Industry and Innovation in the North East of England with an inquiry into Tourism. The Committee sought evidence on: the region’s tourism strategy; the role and responsibilities of One North East, the regional development agency (RDA); the national and international marketing of the North East; and the long-term potential for tourism in the region. We had intended to take evidence in the region and visit significant visitor attractions during January and February 2010 with a view to our producing a Report before the general election. 2. It became necessary for us to alter this plan in December 2009 when Corus announced that 1,600 jobs would be lost in the region and Teesside Cast Products facilities mothballed at Redcar. We accordingly announced on 11 December that we would instead inquire into the steel industry in the early part of 2010 and would have to postpone our inquiry into tourism. That short inquiry has now been completed. 3. The imminence of the general election makes it unlikely that we shall complete our planned tourism inquiry within the term of the present Parliament. The usual practice of a Select Committee in such circumstances is to report the evidence it has received to the House of Commons so that a future Committee might decide whether to continue the inquiry. The North East Committee, like the other eight Regional Committees, was, however, created under a temporary Standing Order of the House of Commons, meaning that there is at present no guarantee that there will be a successor Committee to undertake any such work. For that reason, we felt it appropriate to produce a brief interim Report on the basis of the written submissions received from organisations within the region in response to our call for evidence. We regret that we will be unable to complete our inquiry into Tourism in the North East before the 2010 general election. We make this Report to highlight some significant issues facing an industry that employs more than 5% of the region’s working population. The importance of tourism to the North East 4. Tourism was worth £3.9 billion to the regional economy of the North East in 2007.1 It contributed 4.5% to the region’s gross value added (GVA), which compares with the 6% contributed by construction and the 4% by primary industries such as agriculture and mineral extraction.2 It was also responsible for 5.2% of the region’s jobs, with more than 60,000 people employed in the sector.3 Indeed, the wider hospitality, leisure, travel and tourism sector is responsible for about 89,000 jobs in the region, making this sector the fourth biggest in the region and employing more people than coal mining, forestry, 1 Ev 3 2 Ev 21 3 Ev 3 4 Tourism in the North East agriculture and fishing combined.4 Around 7,300 businesses are tourism-based.5 The region receives about 2% of the total share of international visitors to the United Kingdom, and about 4% of domestic visits.6 There were 8.9 million overnight stays in the region in 2007.7 The fact that the North East tourism industry is built around 7,300 businesses, most small or medium-sized, can make it easy to forget how economically important tourism is to the region both in providing employment and income to more than 60,000 people and in bringing £3.9 billion into the regional economy. One North East 5. In 2003, England’s nine RDAs were made responsible for tourism within their regions. The task of developing and implementing a tourism strategy therefore fell to One North East (ONE), which now invests more than £10 million a year in tourism activity.8 Submissions to our inquiry have been positive about the role ONE has played in promoting tourism, citing in particular the increased investment it has brought about, the creation of the Tourism Network North East (TNNE) to unite four regional tourism partnerships—County Durham, Northumberland, Tees Valley and Tyne and Wear—and the introduction of the Desti.ne database to improve information about and marketing of attractions, accommodation, and food and drink outlets within the North East.9 In the five years since 2004–05, ONE has invested £43.7 million in specific tourism development and promotion.10 In the three financial years from 2005–06 to 2007–08, ONE invested more in tourism than any other RDA outside London, reaching £10.6 million investment in the final year.11 Visitor Tourism Strategy 6. A new Visitor Tourism Strategy is currently being developed by ONE to follow the existing five-year strategy which concludes in 2010. There is some concern that the time and resources being put into developing the strategy may be misplaced, particularly given uncertainty about whether RDAs will continue to exist after the 2010 general election. The British Hospitality Association asks “whether this is a valid exercise, particularly with the uncertainty about how tourism will be shaped after the next election”.12 We note the high level of praise attained by One North East since it assumed responsibility for tourism strategy in the region and the fact that it has raised investment levels substantially over the past five years. The future of regional development agencies is not at present entirely certain, but it is clear that an innovative body with strong local connections and 4 Ev 8, Ev 13 5 Ev 17 6 Ev 4, Ev 32 7 Ev 21 8 Ev 1, Ev 3 9 Ev 2, Ev 6, Ev 8–9, Ev 33–34 10 Ev 24 11 Ev 3 12 Ev 9 Tourism in the North East 5 knowledge can bring an energy and effectiveness to the delivery of tourism objectives which it would be folly to cast aside. Attracting visitors to the North East 7. The North East is home to two world heritage sites—Durham Cathedral and Castle and Hadrian’s Wall. Northumberland also contains a national park and two Areas of Outstanding Natural Beauty. Specific attractions 8. Hadrian’s Wall is a significant draw for the region, with an estimated 1 million to 1.5 million visitors annually.13 There are significant local economic benefits from this: some 80% of businesses along the Wall are cited as saying that the Hadrian’s Wall Country Brand is essential to their sustainability.14 Perhaps as a sign of the recent recession and the “staycation” culture much reported over the summer, occupancy in the area improved significantly in the past year, with figures 25% higher than those for 2008. Hadrian’s Wall Heritage Ltd is, unsurprisingly, among those who believe that a brand-led marketing campaign is the best way in which to bring visitors in to an area, saying “We would welcome greater overt support for the key regional brands recognised by ONE […] Creating a more competitive set of destinations within the region through stronger direct investment by ONE would lead to much greater overall returns for the region”.15 9. Kielder Water is a further significant, and growing, attraction.

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