How's Business for Tourism in South East Wales?－空思想

South East Wales, February 2009 ? The tourism industry in South East Wales is bracing itself for the challenges in the year ahead. The recession and a growing trend towards ever later bookings from customers mean that business owners across the region are seeking ways to equip themselves to respond positively to this situation. There is a growing consciousness that Wales as a tourist destination has a number of opportunities in the current economic climate providing it can offer value for money with guaranteed quality and build on customer loyalty. South East Wales in particular will weather the storm better if investment in key infrastructure is maintained.

A recent survey by the South East Wales Tourism Forum has revealed that most tourism businesses in the region are nervous about the year ahead. Sixty five percent of respondents to the survey reported that their levels of enquiries were down, and just over 68% stated that their bookings were lower compared to the same time last year, for the whole year ahead. One business owner stated on the survey that "Uncertainty is the biggest factor in the lack of bookings. People are afraid to make a commitment as they don?t know if they will still have a job in the near future." Dermot Keegan, General Manager of the Holiday Inn Cardiff adds that "forecasting is near impossible at the moment. One week forward bookings may look really quiet, and a few days later we are really busy." The pattern that is emerging here is certainly that people are often waiting until the last minute to book their breaks and holidays, which is making operators very uneasy.

Some positive stories are coming through though: Andrew Fryer, who owns the five star, 30 bed bunkhouse Wern Watkin in Crickhowell explains: "At this point in time, I?m 80% booked for 2009, mainly with groups and families." Andrew is involved in a number of other projects, including managing the Crickhowell tourist information centre and organising a walking festival on 1 March each year for a week, for which they take advanced bookings. "In 2008 we were about 20% up on 2007 in terms of visitor numbers at the information centre, and numbers look good this year." Andrew believes that this might be because although some package weekends abroad are still cheaper than here, there is a perception that UK breaks are now less expensive, combined with an awareness that product quality has improved here. There is more good news from activity provider and management training company Call of the Wild. Director Mike Soanes is optimistic about 2009 as advance bookings are a third up on the same period in 2008. In his view, while "we did experience a number of companies postponing events towards the end of the year, the flip side to this is that we gained work from others who would normally leave the UK for their events as this year they are being more prudent given the economic climate."

So what are our UK customers thinking at the moment? Research carried out by Visit Britain to understand the potential effects of the recession on the UK?s tourism industry shows that the dreaded Credit Crunch is becoming a reality for some: 54% of people have started to feel the pinch, more so among families (61% of which are being affected in some way), lower socio-economic groups (62%) and those working in certain industries such as banking and housing. In spite of this general pessimistic outlook on the state of the economy there was a general feeling that life goes on and one should still seek to enjoy it. The research concludes that holidays are the last thing that people are intending to cut back on, although plans may be modified. "Holidays are seen as a necessity rather than a luxury and so are less likely to be targeted than other more everyday purchases. While cost savings are important, consumers do not want to sacrifice the quality of their holiday."

Peter Cole, Regional Strategy Director at Capital Region Tourism, the lead organisation for tourism in South East Wales, sums up what the industry needs to do to respond to the challenges and opportunities that lay ahead: "we can take some comfort in knowing that holidays and breaks will be more resilient than other purchases. As an industry, we must grasp the great opportunity that presents itself: many consumers will be thinking of changing their usual holiday habits and will be shopping around. Added value and exclusive offers will be important in a competitive marketplace. " The answer to meeting this challenge according to Peter Cole, lies in "targeting more tightly defined market segments to maximise chances of a return and to present information ?smartly? to ensure the Wales message is there, is inviting and offers value and quality when people are researching ahead of choosing a break or a holiday." Sustained investment in skills, product development and marketing is also essential to meeting customers? expectations, regardless of the size of businesses.

Tourism businesses will need strong leadership and a solid framework to work in too: Significant investment in activity tourism in the South Wales Valleys is already starting to bear fruit. There is still a crucial need for Welsh Assembly Government, Visit Wales, the private sector and Local Authorities to work in concert and support investment in such key projects as inward routes to Cardiff Airport, a dedicated conference centre in the region and sophisticated destination management systems.

For further information, go to www.capitalregiontourism.org

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