Illuminations Investment Scrutiny Final Report

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Illuminations Investment Scrutiny Final Report Blackpool Council Overview and Scrutiny - Improving Services for the Community ILLUMINATIONS INVESTMENT SCRUTINY FINAL REPORT Illuminations Investment FINAL REPORT Blackpool Council Overview and Scrutiny - Improving Services for the Community CONTENTS PAGE 1.0 Foreword by Chairman 3 2.0 Background Information 4 3.0 Methodology 5 4.0 Detailed Findings and Recommendations 4.1 Promenade Collections and Small Scale 5 Donations 4.2 Sponsorship 7 4.3 Local Business Collections 8 4.4 Memorabilia Sales 10 4.5 Car Parking 11 4.6 Events 11 4.7 External Funding 12 5.0 Conclusion 13 6.0 Financial and Legal Considerations 13 Action Plan 16 Appendix A – Meetings of the Working Group Illuminations Investment Page 2 of 22 FINAL REPORT Blackpool Council Overview and Scrutiny - Improving Services for the Community 1.0 Foreword Blackpool Illuminations are the number one tourist attraction in Blackpool, generating tremendous visitor numbers and trade for the town. They are a unique, world famous series of events, extending the tourist season and providing revenue for businesses and employment for local people. The Illuminations are a significant financial commitment for the Local Authority, especially in difficult economic times. In the past, a significant amount of the funding for the illuminations has been provided by donations from the private sector, collections from the public and sponsorship. However, this funding has decreased significantly in recent years. The Tourism and Regeneration Overview and Scrutiny Committee agreed to investigate this issue, while analysing alternative methods for generating increased funding directly for the Illuminations. A part of the scrutiny review process, Members examined why businesses, both large and small, now donate so little money, why the direct collections from the public have declined and why merchandising and sponsorship have never really proved significant. As a result, we have produced a series of recommendations covering all these areas and hope that most of them can be pursued for the benefit of the town. We have also given due regard to financial implications as we are aware that all Local Authorities are facing significant budgetary restraints, both in the short and long term. Therefore, we have tried to ensure that the recommendations have no financial implications or will be able to return the initial necessary expenditure through generating increased income on a long-term basis. On behalf of the Working Group, I would like to thank the officers within visitBlackpool and the Council’s Illuminations department who contributed to this scrutiny review so that it could be completed in a timely manner. I also freely acknowledge the help and assistance given to me by the other Councillors on the Committee. Councillor Robert Wynne Chairman of the Tourism and Regeneration Overview and Scrutiny Committee July 2010 Illuminations Investment Page 3 of 22 FINAL REPORT Blackpool Council Overview and Scrutiny - Improving Services for the Community 2.0 Background Information 2.1 In January 2010, the Tourism and Regeneration Overview and Scrutiny Committee considered a report which detailed the current sources of investment to the Council’s Illuminations. These included the Promenade collection, a collection from local businesses and from the sponsorship of features. The revenue generated by these ‘traditional’ methods has been declining year-on-year for the last couple of decades. For example, donations from visitors and local business have declined from £353,500 in 2002/03 to £147,700 in 2008/09. This situation means that unless other resources become available, there will be a very limited capacity to build new features to refresh the annual lighting display. Much of the core funding from the Council is exhausted in erecting, dismantling and maintaining the nine-week event. 2.3 There have been a number of attempts to generate investment through alternative methods, such as through branding of the event and the sale of Illuminations memorabilia. However, all but one of those initiatives have either lost money or broken even. Furthermore, the availability of Government grants and funding for the Illuminations is likely to diminish and the contracting out of the Illuminations service cannot guarantee cost savings or improved delivery. In light of these issues, Members consider that it was essential that a detailed exploration and assessment of potential sources of investment to secure a sustainable funding stream to the Illuminations. 2.4 It was therefore agreed in January 2010 that an Illuminations Investment Scrutiny Working Group be established. Councillors Julian Minuer, Robert Wynne, Tony Brown and Fred Jackson volunteered to sit on the Working Group and upon first meeting, agreed to the following objective: “to ascertain sources of funding and investment to improve and sustain the provision of Illuminations in Blackpool.” 2.5 In April 2010, Councillor Jackson was replaced by Councillor Gary Coleman on the Tourism and Regeneration Overview and Scrutiny Committee, and therefore also on the Working Group, for the Municipal Year 2009/10. 2.6 Issues that were considered throughout the course of the review included: • Background information relating to current sources of investment. • An outline of alternative investment attempts and an analysis of why these were unsuccessful, relating to the following: - small scale donations - sponsorship / advertising - street collections - memorabilia sales - toll charging - events - external funding • The level of investment/sponsorship required to sustain the Illuminations. • An investigation into potential investment sources, with careful consideration of brand image. Illuminations Investment Page 4 of 22 FINAL REPORT Blackpool Council Overview and Scrutiny - Improving Services for the Community 2.7 Blackpool Council Corporate Plan 2010/11 2.7.1 It was identified that the scrutiny review would help the Council to achieve the following goal and objective as outlined in the Corporate Plan 2010/11, including: Goal 1 – Improve Blackpool’s Economic Prosperity • Provide high quality, all year-round reasons to come to Blackpool. 3.0 Methodology 3.1 During the review, the Working Group consulted with visitBlackpool and the Illuminations division to discuss the strengths and limitations of previous funding methods and consider alternative techniques to increase sources of income and evaluate sponsorship opportunities. An outline of the meetings is attached at Appendix A. 4.0 Detailed Findings and Recommendations 4.0.1 The following evidence outlines the background information relating to previous funding and investment attempts for the Illuminations, together with recommendations relating to solutions that the Working Group believes will attract increased funding. 4.1 Promenade Collections and Small Scale Donations 4.1.1 Members consulted with the Illuminations division and the Assistant Director for Enterprise and Business Development to gather evidence and information on the collection of small scale donations. This is principally undertaken via designated collection huts that are located at the start and end points of the Illuminations along the Promenade, to encourage passing motorists to donate to the Illuminations. On average, this yields around £114,000 per year. Other forms of small scale donations are acquired through collection boxes, the Friends of the Illuminations scheme and a bucket roving collection, which in total generates on average an additional £4,000 per year. 4.1.2 The level of funding acquired through the Promenade collection system has been declining progressively over the past decade, suggesting that visitors are becoming increasingly reluctant to donate to the attraction. For example, officers from the Illuminations division and visitBlackpool reported that in their experience, some visitors used alternative routes to purposely avoid the collection points along the Promenade. 4.1.3 The Working Group considers that the image of the collection huts is outdated and uninviting. They have not had a revamp in a number of years and do not actively encourage donations. Therefore, Members recommend that the collection huts be redesigned and enhanced to provide a more entertaining and interactive service to visitors, which would add to the overall Illuminations experience. Illuminations Investment Page 5 of 22 FINAL REPORT Blackpool Council Overview and Scrutiny - Improving Services for the Community 4.1.4 Members are conscious that the Council is facing severe budgetary constraints and has more pressing priorities than investment in the revamp of collection huts; however, they would like to point out that any spend on the huts would be a valuable investment as it will generate increased donations and achieve an enhanced tourism experience. Furthermore, consideration to the sponsorship of the huts should also be explored as a means of paying for the revamp and continued maintenance. Recommendation 1 That the Promenade collection huts are improved / made more interactive, with consideration made to sponsorship opportunities. 4.1.5 It was also considered that the collection employees operating the huts could also provide a more interactive and entertaining service for visitors. For example, their uniforms could be more visually appealing and represent a Blackpool theme. Members note that the uniforms will still need to retain the necessary safety elements due to the location of staff on the highway. Both Recommendations 1 and 2 are supported by the Illuminations
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