Isle of Wight Holiday Park Sector Audit and Review
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ISLE OF WIGHT HOLIDAY PARK SECTOR AUDIT AND REVIEW FINAL DRAFT 18.08.06 for Tourism South East and Isle of Wight Tourism by Rural Solutions Ltd June 2006 EXECUTIVE SUMMARY • For the purposes of this report a “Holiday Park” has been taken to include a wide range of holiday accommodation businesses including some holiday park accommodation associated with other types of accommodation (such as hotels). Equally we will refer to holiday ‘units’; these being either a chalet, a caravan in all its various forms, or a tent. • It is becoming increasingly difficult to spot consumer “waves”. There is a significant revolution going on in how “we” holiday and changes are occurring more rapidly than had ever been seen before. • The UK domestic holiday market is so large that it remains relatively stable despite any public uncertainty driven by world events. Stability is also a function of the wider UK economy which has, for the last 5-8 years been relatively stable with low inflation and some growth certainty. • The volatility of the leisure market and the higher aspirations of customers today, is causing leisure providers to continually evaluating new concepts, but they are also increasingly ring-fencing their products to limit any damaging failures. • In their publication ‘Destination South East’ the South East England Regional Assembly highlight the fact that “..the Isle of Wight and Brighton receive the highest level of visitor spend”. • Current trading conditions for traditional holiday parks are considered to be ‘challenging’ with consumer spending slowing down as a result of rising fuel costs and more particularly a reducing willingness by consumers to supplement their main European holiday by taking extra short-breaks in the UK. The traditional staple market for holiday centres – the family group – is stagnating and consumer expectations are raising the bar significantly in terms of accommodation and facilities. • The increasingly ‘affluent grey’ market sector, brought about by changing demographics, has initiated a resurgence in certain niche groups, such as the Warners product, but the traditional ‘holiday centre’ offer is not currently perceived as having anything to offer this growing consumer group. • Keynote indicates that caravanning is one of the fastest growing leisure activities in the UK. The increasing trend towards independent, activity based holidays, especially within family groups, combined with the increasing move toward short breaks, were seen as primary mechanisms for growth. • The Island holiday parks market currently comprises 88 parks, containing or with potential for up to 7,700 holiday units providing approximately 30,000 bedspaces and occupying in total about 1,000 acres of land. 2 • There are currently 70 operational holiday parks of which 20 are Chalet Parks, 41 holiday caravan and camping sites, and 9 holiday centres. The remainder are either closed or used by specialist groups. • 50% of the Island's holiday park industry has sought a quality grading award, and this represents over 80% of all holiday units on the Island. Over 70% are graded three-star or better. • Overall we believe that there are 7,694 holiday units of varying types available, comprising 2263 chalets; 2218 static holiday caravans; 2631 touring caravan pitches; 431 licenced tent pitches and 151 vacant or undeveloped units. • At the present time there are 1,302 holiday units in separate private holiday ownership, of which 347 are in chalet units and the balance (955) is made up from static holiday caravans. • Despite the apparent seasonality presented by the market it is heartening to see that about 35% of holiday units remain available all year round. The next most obvious seasonal period is the standard 8-month (March to October) season imposed on holiday caravan parks by past planning conditions. • Of the 15 parks that stay open all year, 7 are chalet parks comprising some 788 units, 3 are mixed sites providing 1,389 units, 4 are static caravan parks and 1 static/tourer park providing 258 units and there is 1 touring and tent camping park providing 60 units. • The holiday parks market on the Island delivers approximately 800,000 visits per annum at a tourism revenue contribution of about £50 million per annum. • For those in the fully-catered sector, the start of 2006 was seen as very poor and a function of falling coach operator business. The reason for this was stated as being the increasing fuel prices, particularly for the over 50’s as a proportion of their overall budget which meant that their marginal propensity to take short break holidays was diminishing and more were staying at home. • Many parks expressed a degree of frustration at the difficulty of achieving planning permissions which were part and parcel of upgrading and improvement plans, as well as simply addressing the need for more bedspaces within their particular sector. • The costs of meeting modern legislative standards (particularly within the health and safety sector) necessitated some means of recouping capital investment through higher occupancy levels. With many parks being based on formats developed over 50 years ago, they were struggling to satisfy increasing expectations within a system that was not flexible enough for their needs. • There was a general agreement that holiday parks should not be allowed to operate as unofficial residential parks. Anecdotal evidence suggested that despite recent activities by the Council to address this issue, some parks remained open to abuse in this way. 3 • We are of the opinion that in circumstances where the holiday parks industry is supported in its desire to upgrade and improve, any inappropriate use of accommodation will be diminished as lawful occupiers begin to make wider demands on the park operator to maintain high standards. • The scale of the chalet unit market is a real weakness, as many will require upgrading or redevelopment in the foreseeable future. Given that this group represents 30% of both the Island parks and bedspaces it presents a very real concern for the future holiday park product on the Island. • A whole new sub-group of marketing and caravan owner businesses are developing on the back of the availability of owner occupied homes. Many are owned as an investment and personal business opportunity. • There was a general feeling that the holiday parks industry was not recognised for its value in the local economy and as there were no votes in the holiday industry it was not considered important to the Council. • Planning policies which support the upgrading and improvement of holiday parks within their existing bounds should continue. • Policies that supports expansion of parks in appropriate circumstances should be considered. • A separate chapter provides the position for the holiday parks industry within the eastern part of the Island covered by the Bay Action Area Plan. Amongst other recommendations there may be a need to enlarge the sphere of influence of this area having regard to several parks in the viscinity which primarily rely upon the Bay Area for their success. • The development of a more constructive dialogue between the parties, perhaps by way of a Holiday Park Working Party, could be a valuable means of gaining a better understanding and assisting the establishment of a purposeful holiday parks industry on the Island for the future. 4 CONTENTS EXECUTIVE SUMMARY 2-4 CONTENTS 5-7 1.0 BACKGROUND AND INSTRUCTIONS 8-11 1.1 Background 8 1.2 Instructions 9 1.3 Methodology 9 1.4 Rural Solutions 10 1.5 Recognition of Risk 11 2.0 HOLIDAY PARKS – A DEFINITION 12-13 3.0 THE NATIONAL TOURISM MARKET 14-29 3.1 The Tourism and Leisure Market 14 3.2 Market Overview 2006 15 3.3 Holiday Leisure Trends 20 3.4 Holidays taken in the UK by the British 22 3.5 South-East Regional Tourism Trends 25 3.6 Isle of Wight Tourism Trends 26 4.0 THE HOLIDAY PARKS MARKET 30-38 4.1 Traditional Holiday Centres 30 4.2 The Forest Lodge Concept 32 4.3 The Holiday Caravan Market 33 4.4 The Foreseeable Future for the UK Economy 37 5.0 THE SIZE AND NATURE OF THE ISLAND 39-51 HOLIDAY PARKS MARKET TODAY 5.1 The Parks 39 5.2 Park Location 40 5.3 Park Type 40 5.4 Unit Numbers 41 5.5 Quality Grading 44 5.6 Fleet and Owned Units 45 5.7 Bedspaces 46 5.8 Seasonality 47 5.9 Seasonal Occupancy 48 5.10 Facilities 51 6.0 ECONOMIC VALUE OF HOLIDAY PARKS TO 52-61 THE ISLAND ECONOMY 6.1 Alternative Assessments 54 6.2 Additional Economic Value 55 6.3 Isle of Wight Comparison with other UK Areas 56 5 7.0 THE HOLIDAY PARK QUESTIONNAIRE AND 62-79 PUBLIC MEETING 7.1 The Public Meeting 62 7.2 The Questionnaire Responses 68 7.3 Employment Issues 73 7.4 Discussion with Harcourt Sands 75 7.5 Discussion with Park Resorts 79 8.0 OTHER ISSUES 80-88 8.1 SWOT 80 8.2 Tackling Perceptions 82 8.3 Environment and Sustainability Issues 83 8.4 Quality 86 8.5 Is local Opposition Correctly Weighted? 88 9.0 SECOND HOME OCCUPATION OF HOLIDAY 89-104 UNITS 9.1 What Drives the Second Home Market? 89 9.2 A Typical Second Home Owner 90 9.3 The Second Home Market at Home and Overseas 93 9.4 Why Choose the UK? 96 9.5 Where in the UK? 96 9.6 Second Home Tenure 98 9.7 Wider Perceptions of Second Homes 99 9.8 The Future for the Second Home Market 100 9.9 Holiday Park Units as Second Homes 102 10.0 RESIDENTIAL USE OF HOLIDAY PARKS 105-112 10.1 Why does it happen? 105 10.2 What is the Holiday Industry doing about it? 107 10.3 The Issue on the Island today 108 10.4 Means of Detection 110 10.5 What Control Measures can be Taken? 110 11.0 PLANNING POLICY ISSUES AND FUTURE