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Tourism in trouble


Earlier last week, I mentioned some of the data coming out of the Assembly regarding tourims spend.

This was supported by other data from the Index of Hotels & Restaurants for Wales, which showed that for the latest four quarters, it fell by 8.7 per cent compared with the previous four quarters. The UK index rose by 4.0 per cent over the same period.

The accommodation sector output for the latest four quarters was 5.3 per cent lower than the previous four quarters. In addition, the Restaurants & Catering sector output for the latest four quarters was 13.4 per cent lower than the previous four quarters.

With a recession likely to hit the industry hard during this summer, especially given the rising prices of food and fuel, it would seem that the decision to scrap the Wales Tourist Board (WTB) and bring it under direct ministerial control could have been a major strategic error.

This follows a report by the Assembly’s audit committee last month which highlighted the fact that the level of savings from efficiency gains after quangos were taken over by the Assembly Government had not materialised and that it had been largely cuts in the budget that had resulted in money being saved. As a result, there are concerns that the scrapping of the WTB, and its sister body the Welsh Development Agency, had more to do with centralisation than improving services for the tourism and business sectors.

Of course, if we have less tourists coming to Wales, then you would expect the Welsh Assembly Government to re-examine its tourism strategies and, more importantly, revise its marketing and advertising expenditure to address this. However, the opposite seems to have happened, with papers to the Assembly's Enterprise and Learning committee earlier this year revealing that there were plans to cut £74 million from the tourism marketing budget.

This could not come at a worse time for the industry struggling to be competitive during an economic downturn. Tourism is one the jewels in the Welsh economy and it is critical that the funds are made available to market Wales at home and abroad as a world class tourism destination.

If the right level of support is not made available to the industry, then many parts of Wales may lose out despite the presence of key events such as the 2010 Ryder Cup which in itself needs a properly funded and effective targeted marketing campaign.

I would therefore urge the Assembly Government to re-examine its commitment to the tourism industry and ensure that it gets the support it deserves.

If not, then this could be a very long summer for businesses across the tourism areas of Wales.

Comments

Welshwalker said…
You imply here that there is a correlation between the level of governmental support to the tourism sector (in the form of marketing done by agencies such as the WTB) and its success in a global marketplace.
I think it is more complicated than that. I don't see why WAG (or any WTB type agency) needs to get involved here- they are crap at marketing Wales anyway and seem to have next to no commercial or economic focus. Surely it would be better to improve the general business climate by reducing business rates and by assisting tourism businesses to help improve themselves in the form of development grants and easier planning.
I also cannot, for the life of me, understand why I as a Welsh tax payer should be subsidising marketing of the Ryder Cup! This is an event that has plenty of support already and will make a fortune only for the vulgar marbled temple to golf that is the Celtic Manor. Whilst I'm on this theme, Dylan, what about all the Lottery funds being diverted away from Wales to help pay for the Llundain Olympics!
Here is a classic test case for local procurement of goods and services - a theme that you have been banging on about for months on this blog. It will be interesting to monitor just how much Olympics business actually goes 'local' in spite of promises by Lord Coe and politicians.
May 20, 2008 12:27 pm
Anonymous said…
Mike German found out that the exchange rate for last year and the year before for the pound an Euro were the same, the high exchange rate is one of WAG's reasons why the there was a dip in tourist numbers along with the rain.

Why don't the Assembly just reform the Wales Tourist Board and be done with it, give the Welsh Tourist Industry a break. (pun intended)
May 21, 2008 3:32 pm
Anonymous said…
You called it centrallisation,as indeed it is, but there may also be the old evil of empire building at work here. In my view, there is a leadership crisis in the WAG, manifest by a lack of focus on key issues for which they have responsibility, and blaming problems on external factors. I say they need to wake up and smell the coffee!
May 22, 2008 2:06 pm
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