This document analyzes the UK government's 2011 tourism policy. It was one of the coalition government's first major policy statements formed after the 2010 election amid an economic crisis. The policy aimed to increase tourism as a potential growth sector and capitalize on a weak pound. It sought to boost domestic tourism and develop a new marketing campaign. The policy reflected the government's neoliberal agenda and focused on reducing regulation and improving industry coordination and skills. It changed governance structures and relationships between public and private sectors, aiming for more private sector leadership but with cuts to public funding for tourism. The analysis concludes the policy swung between ambitious and mundane goals and lacked clarity on institutional arrangements and mechanisms to measure success.
1. +
Analysis of UK
Government’s 2011
Tourism Policy
Dr. Samantha Chaperon & James Kennell
University of Greenwich, London
2. +
Political context
UK coalition government
formed in May 2010
Tourism was one of the
first main policy
statements
UK government viewed
tourism as a potential
growth sector
3. +
Economic context
Aim of reducing public
spending by approx. 13%
on 2010 levels (Taylor-
Gooby, 2012)
By the end of 2011,
international arrivals to the
UK had risen by 3.3% and
spending by these tourists
had risen by 6.5% (ONS,
2012) Domestic tourist
trips in the UK also rose by
approx. 9.3% (Tourism
Alliance, 2012)
Coalition government
elected in the wake of
economic crisis
Structural reforms and
austerity programme
Tourism viewed as one of
the ‘winners’ in the UK
economy
Ability to capitalise on weak
national currency
Provide domestic tourism
opportunities
4. +
Key aims of UK Tourism Policy
1. Develop an innovative new
partnership marketing campaign
2. Increase the proportion of UK
residents who holiday in the UK to
match those who holiday abroad
each year
3. Improve the sector’s productivity to
become one of the top 5 most
efficient and competitive visitor
economies in the world
(DCMS, 2011)
5. +
UK Tourism Policy Approach
Reflects the Government’s neoliberal policy agenda
Focus is no longer on London 2012, but identifies many similar
areas for growth and barriers to growth
e.g. regulation, balance of trade, need for skills development, poor
industry coordination, inadequate signage
Often prescriptive
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Relationship between the state and
industry
Continued government intervention
justified through problems of market
failure and free-riding
Reduced government intervention -
private sector now taking the lead
with public sector funding for
tourism development and marketing
suffering large cuts.
Contradiction?
8. +
Relationship between the public and
private sectors
Visit Britain’s new role is to be 50% co-funder of a partnership
marketing campaign with a value of £100 million
To attract 4 million additional overseas visitors in four years
after London 2012
To gain £2 billion in extra visitor spend
To create 50,000 new jobs
Issue: After 12 months, £10 million has been raised by private
sector (some in-kind) and £25 million by public sector
9. +
Relationship between regional and
local levels
DMOs are restructured to fit ‘natural geography of a tourist area’
(DCMS, 2011:forward), similar to new LEPs ‘natural economic
geographies’ (BIS, 2010)
In line with new localism agenda
Issue: No definition of tourism geographies
Issue: Problems of private sector buy-in for DMOs (Cole et al
2012)
10. +
Conclusions
Swings from highly ambitous to very mundane
Radical proposals on governance
Micro-management of signage and hotel rating schemes
No indications of development process or mechanisms for
measuring success and evaluation
New institutional arrangements lack clarity and stakeholders
appear disengaged
Tourism can provide growth, but is unclear wit this policy will
help or hinder it
Notes de l'éditeur
In the first quarter of 2009, Global tourism arrivals dropped by 8%. European arrivals were down 10%.In 2009 in UK, a drop in domestic tourism receipts of £184 million were partially offset by the rise in inbound tourism receipts of £142 million.In 2012, inbound tourist numbers grew by 1% and spending grew by 4% - though interestingly, this growth occurred at the beginning and end of the year, and during the summer months when the Olympics and Paralympics were staged numbers remained the same as the previous year.
The aim of this marketing campaign was to harness the success of London 2012. £100m campaign, co-funded by the government and the private sector. Aim to attract 4 million extra visitors to Britain over the next 4 years.For longer stays, 4 nights or more, this would mean 29% of travellers holidaying in Britain rather than just 20% today
The 2011 policy does not radically diverge from the policies of previous UK administrations, instead it builds incrementally on the previous aims.Often prescriptive – government still sees itself as having a role to play in the future development of the industryNo indication of development process – no explanation of the decision-making process, not clear how these ideas were arrivedNo associated set of action plans or easily identifiable and measurable targets – e.g. ‘Broaden our tourism offer by creating alternative destinations which match London’
Continued government intervention:‘…because of the sector’s high proportion of SMEs, and free-ridgin by firms which benefit from shared marketing campaigns which they haven’t participated in, there’s a high level of market failure which stops it happening. As a result, the public sector has had to step in, which has left the industry – unusually for its size and importance – particularly dependent on public funds’Reduced government intervention:‘…reduce the sector’s dependence on taxpayer funding, increase the amount of money available for collective destination marketing, and create a sustainable new model of destination marketing and management’The policy seems to put forward a contradictory position. If Government’s intervention and reforms can eradicate market failure, then tourism will need no greater level of support than other industries receive. But, if market failure persists, then current levels of corrective state funding are unsustainable. In this scenario, market failure, accompanied by unsustainable state support, could lead to an industry that lacks regualtion and direction.
Visit Britain is the National Tourism Organisation for UK, with three devolved NTOs for Scotland, Wales and Northern IrelandVisit Britain – History of engagement with private sector, but has principally been public sector-led body, operating at arm’s length from government, with the responsibility for distributing fund.50% co-funder with British Airways, Easyjet, Hilton Hotels, P&O ferries.No increase to total funding to Visit Britain. As part of the austerity programme, total core funding was cut from £73.9 million in 2011-12 to £43.6 million in 2014-15, a drop of 58%. This is not offset by the new partnership fund as this has been ring-fenced for promotional campaigns and not for other Visit Britain functions.
Localism agenda – ideological and political commitment to reduce state structure and encourage stronger local control.Natural geogr