Executive summary: The tourism marketing strategy has been prepared with realistic, achievable goals and objectives that will maximise the opportunities provided to tourism operators within UK. It is constructed in a manner that provides linkages with the marketing strategies of major industry stakeholders. Britain tourism industry profile:
Tourism is the UK’s sixth largest industry – amounting to £105bn in revenue each year. It has employed over 1.3m people, generates £20bn per annum in foreign exchange and contributes an estimated £24bn per annum to the Exchequer through VAT and other taxation.
Value of tourism industry in UK: There is great potential to increase the tourism industry in UK. The table shows the value of tourism in UK both in terms and percentage.
Table: 1 value of tourism (real terms) Sectors | 2010 | 2020(expected ) | Inbound tourism | £20 bn | £36 bn | Domestic tourism | £70bn | £112 bn | Outbound tourism | £15bn | £24bn | Total | £105bn | £172bn |
Table: 2 value of tourism industry (%) Sectors | Percentage (%) | Inbound tourism | 19% | Outbound tourism | 14% | Domestic (day visitor) | 46% | Domestic (overnight) | 21% |
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Advising tourist on product, contract
Transport to the destination
Providing accommodation food, etc.
Organise event, experience
Transport from the destination
Travel Agent
Transport Company
Hotel, Restaurant
Site Operator, Cultural Group
Transport Company
CO-ORDINATION OF SERVICES
Tour Operator
Tourism Authority
Simple Tourism Value Chain
Inbound and domestic tourism expenditure profile: Accommodation- 15.2% Travel- 13.2% Shopping- 22.7% Tourism services- 1.4% Eating and drinking- 30.2% Attraction- 14.4% Anything else- 3.0%
Tourism - main sectors * Hospitality: Hospitality has 70,000 establishments including world-class hotels, country house hotels, guesthouses, holiday, and caravan parks, bed and breakfasts, timeshare and self-catering properties, and 110,000 restaurants, bars, pubs and catering companies. * Attractions: Attraction has included 7,000 businesses including museums, historic houses and heritage sites, parks, gardens, theme parks and zoos. * Events: Events have included over 25,000 businesses staging conferences and meetings, festivals, exhibitions and concerts. * Visitor Transport: Visitor transport has included over 15,000 businesses in the aviation, rail, coach, hire car, and ferry sectors. * Education: Education has included English Language Schools and higher education institutions, which contribute around £13 billion each year to the UK economy through taking overseas students. * Tourism Services: Tourism services have included over 7,000 travel agents and tour operators, and 2,000 guides and information centres.
Structure of travel industry in the UK: The travel and tourism industry is one of the world largest and fast growing industries. It is also one of most fragment industry and a lot of players are involved in the industry.
Distributer:
The people, groups or firms that have delivered the products and services of travel to tourists for consumption. The distributers includes
* Travel agents (business and leisure) * Travel operators selling direct to the consumer * Firms selling on the internet * Call centres handing customer services
Regulatory bodies: The organizations are set up to oversee and regulate the industry. They are including * Trade association such as ABTA( Association of British travel agent) * Statutory bodies such as the CAA (Civil aviation authority ) * Consortium of independent tour operators * Federation of tour operators * People 1st ( skill council for tourism, hospitality, and leisure)
Public sector organizations: The Government departments are involved and have responsibility of running the tourism industry. * Department for transport (DFL) * Deportment of culture media &sports (DCMS) * Foreign and common wealth office (FCO) * Visit Britain * Regional development Agencies * English heritage
Transport:
Transport is the infrastructure that tourists have used to reach their destination. They are including * Road travel * Air service * Sea travel * Rail travel
Other industry player: There are the other industry players that facilitate and provide services in the industry. They are including * Insurance firms provides cover for goods , services and people * Car hire provides meeting onwards travel needs of business and leisure customers. * The tourism alliance represents industry views to the government.
Accommodation and other services: They are providing accommodation and other services to the tourists. Such as * Hotels , villas, apartments, camping parks * Packages of travelling at various destination * Selling their travel products/ services to individuals and business consumers
Tour operators: There are four firms operating as tour operator. These are included * TUI( Thomson) * First choice * My travel * Thomas cook
Tourism agencies: Tourism agencies are the tourist boards and offices that promote the tourism within and overseas. Such as * Promoting Britain to overseas customers( visits Britain ) * Promoting the regions of the UK to overseas and domestic customers (visit Northumbria) * Providing information to customers ( tourist information centres)
Tourism agents and conference organizers: Tourism agents are working in the tourism industry. They are well-known, independent and some working in the niche market.
The conference and exhibition organizer agencies advocates the importance of location, value and services at venues, role of sponsorship and customer care.
Core values of UK tourism industry: The UK tourism industry have core values that distinct it from competitors and attract the international tourist to visit the Britain.
Demand: The UK strong history, natural beauty and cultural heritage appeal the global tourists and also UK resident have much to discover.
Capacity: The UK has well established infrastructure and considerable capacity to provide services (accommodation, attraction and transport) to tourists.
Accessibility: The UK is an international travel hub and has comparatively good transport and roads networks. The accessibility to UK tourism products and services is easy.
Market awareness and motivation: The UK has strong recognition and an appealing image internationally which is the basis of a good promotion campaigns. The domestic tourist well knew the tourism opportunities within UK. All the potential tourist keeps inspired to visit various parts of the UK.
Competitively priced products: The UK has great suffers from high level of VAT and APD, which has hyper their competiveness. Instead of these issues UK has rich content that deliver high value.
Tourism trend: The UK is one of the most attractive destinations in the World, generating £19 bn by attracting 32m overseas visitors every year. Tourism trends show the growth in tourism industry. The global economic crisis have caused a short term inbound decline in tourism. The number of tourist is still expected to increase consistently next ten years. In fact it is estimated that the growth of tourism will increase at an annual compound growth rate of 5% from £105 bn in 2010 to £ 172 bn in 2020. The British is one of travel hub and British resident take 70m overseas trips each year for business leisure and to visit their relatives. The travel and tourism is an integral part of the modern life and the economic benefits associated with the industry are spread throughout the UK.
Key issues and challenges: There are the following issues that must be address to accelerate the growth in UK tourism industry. These are
1-High rate of VAT on tourism services: The UK is one of three courtiers (the others Denmark, Slovenia) that do not reduce their VAT rate in order to boost tourism. The UK is also one of 13 EU countries that does not reduces VAT rate on Restaurants meals and attraction. This great harm the competitiveness of UK tourism industry.
2-Increase in Air passenger Duty:
The UK is always talking about the free trade but is one of few countries that levy the tax, which reduces in bound tourism. In November 2010, the Government have increase ADP by 55% which costs a family of four up to £680 to board a plane to the UK. By comparison, most of tourism destination do not charge ADP or apply at very low rate. This issue increase the competitiveness of UK in highly competitive tourism industry.
3-Daylight saving: The UK Government have introduced Daylight saving and tourism industry will able to generate extra revenue. The daylight saving have also a number of benefits including saving lives on road, reducing Co2 emission and helping fight obesity.
4-Aviation capacity and lack of airports: The UK is a island and require a strong transport in order to increase the number of the international tourist. In the future UK needs to build new airports and increase the capacity of existing airports in order to benefit from the global growth of tourism. Special interest segments: The tourists around the world have visited the UK for some special interest. There are following special interest segments. Divers: Typically young and teenage and travel regularly to various destination. Adventure experience: The tourists like to travel remote and unexpected areas and perform adventure activities. Shopping leisure and entertainment tourists: The tourists have high disposable income and limited time. The people seek escapism from daily life and have fun and entertainment.
Honey Moners: The newly married couple have spent important amount of money on honey Moon. They are like to going in dream destination and residing in luxury resorts. MICE: The tourists have consumed this product within their company to attend business meeting and events. They expect and demand perfect service. Education tourism: Students from all over the world comes to UK in order to learn and improve their English language and get higher education. Bird’s watcher: Tourists are passionate about birds and wish to see specific rear birds. For this purpose they are willing to travel around the world. Health seeker tourist: The tourists around the world have visited UK to solve their health problems. The UK is one of leading health supplement in the world. Culture explore: UK culture and history has attracted the tourist all around the world. A tourist likes to visit UK to explore culture of England. Beach relaxation: Tourist from the Europe and around the world has visited UK beaches. The mostly undertaken activities are relaxation, sun along beach, fishing, diving, sailing, water skilling, and wind surfing. Golf tourist: Golf tourists are passionate about the golf and travel around the year different destinations. Vision: Our vision is to improve the UK share of tourism worldwide and its contribution to UK economy, employment and quality of life. Goal: An environmentally and socially responsible tourism that provide opportunities of employment and widely distributed income Objectives: * Increase UK share in global visitor market * Build on Britain image * Increase product range for visitor * Make easy to get in UK * Improve the engagement of visitor with products * Improving market access and connectivity * Developing and marketing competitive tourist destination in UK * Targeting the most profitable ( domestic) prospects * Use a collaborative approach for marketing and promotion * Promoting and embracing UK rich natural resources Top ten international tourism Destination:
SWOT analysis: * Strengths * Large Global Aviation route network * Strong association with culture and heritage * Strong tourism infrastructure * English language * London is global city * Weakness * Lack of future airport capacity * Lack of awareness anything outside the London * Product and packaging gap * Poor value of money perception * Poor perception of Britain welcome * Opportunities: * Growing range of destination * Promoting whole Britain by using variety of themes * Opportunity of more investment in tourism industry * City and group tours popular among younger's * Youth – educational travel and language school * Threats: * Lose of market share last few years * Become more competitive market internationally * Britain visa regime deters potential visitors * Air passenger duty(APD) increase cost of travel to Britain * Recession create major risk due to increase in unemployment and decrease in average income Marketing strategy and action plan: In order to make UK most experience destination in the world, the marketing strategy has been developed. The following steps have been taken to implement the marketing plan. * Improve market access and connectivity * Develop and market competitive products and destination * Improve the governance in tourism and human resource capabilities 1-Improve the market access and connectivity The UK market access and connectivity has been improved by considering following factors. a-Establish the secondary international Airports and increase the capacity There are following benefits of establishing secondary airports. * Reduced the congestion between tourist and improve the impression * Improve the passenger handling capacities * Establish the priories for tourists b-Improve the connectivity between UK and its key growth market The following factors should be consider to improve the connectivity of UK with its key growth markets * Establish environmental air service agreement with key growth market countries * Review the ADP and reduce the air operation costs in UK * Simplify the border formalities and procedure c-Develop a strategic access infrastructure between secondary airports and tourism destination. * Improve and develop accessibility to the UK secondary airports * Improve and upgrade road connectivity to secondary airports. 2-Develop and market competitive products and destination There are the following steps have been taken to develop competitive products and destination A-Destination infrastructure * Construct tourism information centre and support infrastructure in tourism development areas * Construction of transport terminal and services in tourism development areas * Tourism sites access and visitor improvements B- Develop diversified tourism products and engage local community * Develop mix use of tourism complex in the international airport * Linking the local communities to the tourism value chain * Review the regulation that impede in the new product development C- Safeguarding cultural heritage and vulnerable group * Developing uniquely UK destinations and products * Increasing number of heritage sites for international recognition * Advocating the sustainable use of heritage sites * Providing a professional interface between sustainable heritage and tourism Marketing strategy and action plan implementaion: There are following steps have been taken to implement the marketing strategy * Consolidate present product offering and develop highly-focused new products * Define new target market and undertake market penetration * Set up unique market positioning and differentiate UK as tourist destination 24
Product-Market Mix Approach
Recommendation: * The UK Boarder Agencies had needed to locate visa application centres with other European countries and provide one window for UK and Schengen visas. It would reduce the cost for both the UK and visitors. * The UKBA have encouraged legitimate visitors including the English Language students and prevent illegal entrant. * Remove the ADP and ensure the sector plays an active part in preventing climate change. * Review the VAT on tourism and lower the rate equal to European (8.5%) which is economically. * Increase the UK, s Aviation Capacity by controlling environment appropriately. * Local authorities have develop and publish local tourism strategies * Simplify the tourism related legislation and review the local regulatory enforcement system. * Establish collaboration between visit Britain, the National tourist boards, visit London and other DCMS agencies and make joint marketing campaign to promote Britain globally * Encourage the public funding investments in tourism industry. .