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Search forBeach operators hard hit in rollercoaster year
Tuesday, November 11, 2008, 08:31
The latest survey shows that while some businesses and attractions, like Paignton Zoo, have reported a bumper year, others are well down.
Malcolm Bell, chief executive of South West Tourism, said this means next year will be tough for those who haven't yet adapted to the changing consumer trends and economic downturn.
He said the up and down performance would have been reflected in Torbay.
"Probably the hardest hit would have been the beach operations this summer who might be eight to 10 per cent down. But that may have benefited some of the attractions," said Mr Bell.
Overall he thought the season was two to three per cent down, but it was hard to gauge whether more people were cutting costs by staying with family and friends. He thought visitors were also spending less, for example going for sandwiches rather than a meal out.
Mr Bell said: "Those who have reported a good year are very much selling on added value, increased quality and offering more to their visitors, which has been helping to encourage repeat and early bookings for next year.
"In terms of next year, there are reasons to be positive such as the exchange rate, which will make holidaying in the Euro zone far more expensive and also make it cheaper for European visitors to come to the UK. We also know that our customers now see a holiday as an entitlement rather than a luxury, so our challenge is to market well and present a value proposition to both our existing and potential customers.
"Now is not the time to be down-hearted but to grasp the opportunities that have and will arise, even in an economic downturn."
The South West Tourism's Business Snapshot survey for January to end of August 2008 shows that only an approximate one in five businesses are operating at the same levels as they were in 2007, both in terms of visitor numbers and turnover.
A large number of respondents cited the credit crunch as a factor affecting their area.
While accommodation providers reported similar levels of businesses in July and August this year, the contrast among visitor attractions was quite marked, with 41 per cent of attractions reporting increases in visitor numbers and 42 per cent reporting decreases. Just 17 per cent of visitor attractions reported similar business levels to 2007.
As a result, the average figures for all businesses show similar levels of visitors in 2008 to 2007 during the school holiday period.
The research showed an average 1.4 per cent increase in turnover for the school holiday period across the sector. Accommodation providers turnover was two per cent up for the period and attractions' turnover was four per cent higher. However, both food and drink and other businesses reported average decreases in turnover of minus four and five per cent respectively.
Thirty-seven per cent of both accommodation providers and attractions reported increases in visitor numbers for the year, while 40 per cent of each sector also reported decreases.
Holiday parks were hard hit with 76 per cent reporting decreases for the year to the end of August.
The survey did not take into account increases in both business costs and the cost of living, and increased turnover does not necessarily reflect an increase in business profit.
Large proportions of businesses are now less optimistic for the future.
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