Travel and Tourism in South West England - Coursework Example

Travel and Tourism in South West England: STP and Branding/Promotional Strategies Index Topic Page Number Introduction 3 2. Travel and Tourism in England and South West England 4 3. Tourism in South West England and Role of DMO 5 3.1 Factors Affecting Tourism Industry in South West England 5 3.2 Some Nature Factors affects Tourism in South West England 7 4. Segmentation, Targeting and Positioning of the Travelers in South 8 West England: Future Plans to Attract More Tourists 4.1 Segmentation 8 4.2 How to attract more tourists of various segments 9 4.3 Promoting Cultural Tourism 10 4.4 Government intervention and review of Policies 11 4.5 Some Other options to Promote Tourism in South West London 12 5. Conclusion 14 6. Reference 15 1. Introduction Travel and tourism is one the of main source of earning revenues for the government of any country and at the same time it is consider as one of the key sources of providing an option for employment for the people in every country. In every country there are numbers of spots which attracts tourist not only from the country itself but at the same time people from other parts of the globe as well. In some countries, travel and tourism is the main source of earning foreign currency and to boost the economy of the country government used to promote the travel and tourism of their nation in front of the world in more attractive and innovative ways. Various marketing strategies, branding and promotional activities, special offers- all are introduced by the government as well as by the travel and tourism organizations and tour operators of that particular country or the city to make their city the best destination for the tourist across the globe. The strategy adopted by the government as well as by the tour operators is in line with the main attraction of the area, the demography and social life style of the local people as well as the ritual and regional sentiments of the city or country. Effective and innovative branding and promotional strategies can make any place or city well popular in front of the world. In this paper the main objective is to analyze the possible segmentation, targeting and positioning strategies that can be adopted by the government as well as the travel and tourism companies in the South West part of England. The paper also analyze various micro and macro factors associated with the development of the travel and tourist destination in the city, what different kinds of obstacle are there in front of the authority and how they can overcome the same to make travel and tourism more eventful and a better option to earn money. 2. Travel and Tourism in England and South West England: In the year of 2009, contribution from travel and tourism industry was worth £115.4bn to the UK economy. Most importantly it was close to 8.9% of UK’s GDP. Apart from contributing a significant portion in the GDP of the country, travel and tourism industry is responsible for creating more jobs for the people. From 2010-2020, the number of jobs in this sector is supposed to increase by 250000 to reach 2.899 million. In 2010, 29.627 million individuals visited Britain, with a average spending of £563 per person. Out of total number of tourists visited the country in the year of 2010, one out of every three tourist was from France, Germany or USA as these three countries were top the list of people who are visiting UK. As a matter of fact, tourism sector is the third top export earning sector in the UK after chemicals and financial services, “with tourists spending more than £16bn annually and contributing over £3bn to the Exchequer”, (Kennedy, 2011) and from the point of view of brand value UK’s tourism brand is considered as the 5th best brand in the world of travel and tourism. (Kennedy, 2011) As the name suggest, the south west England is referred to the entire south western part of the country, which borders West Midlands and South East regions. In terms of area covered, it is the largest region in the country covering 23,828 square kilometers. The South West England is consists of 7 different counties namely: Bristol, Somerset, Gloucestershire, Dorset, Devon, Wiltshire and Cornwall. Although it the largest part of the country but this part is home of only 5 million people. It is well known for its natural diversity and tourist attraction for the people of rest of the country as well as people of other parts of the globe. It is a gateway for the nature lovers who like to visit “the UNESCO World Heritage Site of Dorset and East Devon Coast, also known as the Jurassic Coast, two National Parks – Exmoor and Dartmoor. (SW England, 2012). Apart from that there are some other key tourist attractions as well such as Quantock Hills- known for its spectacular landscape and variety of fauna and flora. Historically this place is also very interesting for the tourists who love to visit historical places. Some of the top most historical attractions of these places are the Neolithic monuments of Stonehenge and Avebury -the particular purpose of which is still remains a secret. Some other well-known tourist areas of the South West England are the City of Bath, Cornwall and West Devon Mining Landscape. (SW England, 2012) 3. Tourism in South West England and Role of DMO: From the analysis of past trend of tourism in the South West England, it is very clear that the local government of all the counties of the entire South West England have a major role to play in the development of tourism. There are number of bodies that are looking towards the development of the travelling industry and with an objective of making travel and tourism a success a new body called Destination Management Organizations (DMOs) was formed. They have design a master plan named “Towards 2015” which was designed not only to promote the travel and tourism but at the same time “streamlining the responsibility for giving visitors what they want. This way, South West Tourism hopes to eliminate waste and inefficiency.” (Bized, 2005) 3.1 Factors affecting Tourism Industry in South West England: Before designing an effective branding and promotional plan along with using proper segmentation, targeting and positioning, the first stage is to analyze the reason behind less number of tourists visiting the south west part of England. The key points are as follows: All the counties in the South West England are at their limit in terms of population capacity. So when more number of tourists used to visit various counties then the essential service can get hamper or interrupted. Increasing number of tourist can hamper the transportation and other essential services as there are limited services available for the residents of those counties only. Unhelpful behaviors, less social interactions, lesser number of travel and tourism accessories like guide, hotels, and amusements are another reason which is affecting the tourism. Increasing competition from other counties can also hamper the tourism industry. (Bized, 2005) Increasing rate of VAT (Value added tax) is another key reason which is affecting the tourism industry of South West England. Present rate is 20% which is making accommodation in hotels, eating out in restaurants and other amusement more and more costly for the travellers. If one compare the VAT in travel and tourism in UK with other EU countries, it is very clear that the VAT rate is exactly half, (10.8% in EU countries). Amount of tax paid by the UK tourist for their domestic holidays more than that of the other EU counterparts. (Devon News, 2014) Nature of the people in UK is another factor which is affecting the travel and tourism industry. Most of the foreign tourist have a negative feelings about the people of UK, as in their view people in every parts of the UK are “arrogant, unfriendly and have almost no sense of humor.”(The Telegraph, 2006) A survey conducted by Visit Britain has found that according to the view of people from 35 different countries, Britain ranked 16th in terms of welcoming their guest, mainly the foreign guests. As per the report published in The Telegraph (2006), “The attributes relating to human aspects are the weakest, with low mean scores for being welcoming, having a good sense of humor.”(The Telegraph, 2006)The most concern point for the foreigners is lesser sense of humor among the UK people. Along with that Tourists are also unimpressed about the government policies in the UK; stand on maintaining human rights and at the same time its foreign policy stances. 3.2 Some Nature Factors which affects Tourism in South West England: Often the adversity in weather condition affects the travel and tourism industry. For example, people who like to visit South West England generally prefer a dry weather condition. But sometime extreme weather can bring about new challenges, for example: during July 2007’ Gloucestershire received over 1.5 times the regular July rainfall a single day resulted in devastating floodwhich not only affected number of visitors but at the same times hampered businesses and some emergency services, leaving many deprived of power and water for days. The cost of that devastating flood was projectedaround £50 million and the tourism industry was significantly affected. On the other hand, dry and warm month of August in 2003 brings about record number of tourists in Bournemouth and Poole. This situation makes accommodation in hotels and beaches totally full, but at the same time it also pressed local structure, amenities and services like healthcare and other essential amenities to its limits. Stern (2007) in his review has mentioned “projected climate change will not only affect tourism through changes in thermal conditions, but also through ecosystem change, impacts on infrastructure and services, effect on access and transport prices, and even changes in economic growth and prosperity.”(Stern, 2007). Simpson et al, (2008) in their review has mentioned that these different impacts not only bring about challenges for the government but also provides them the opportunity to cash on and improve the performance and make travel and tourism industry a huge success. 4. Segmentation, Targeting and Positioning of the Travelers in South West England: Future Plans to Attract More Tourists: 4.1 Segmentation: Based on previous records, trends and patterns or tourists visiting various parts of the South West England one can easily categories them in various segments. Most often, this segmentation is associated with geographic, demographic and physiographic factors. In this case, geographic factor is associated with the nationality of the tourists visiting South West England, demographic factors associated with factors like income, social class, life stage etc. and the psychographic factor is associated with lifestyle, personalities and values of the tourists. “While targeting any segment it is best to design an effective and well thought out marketing mix for each segment presenting the best opportunities. Before doing this it is necessary to make sure each segment is viable.” (Kotler, 2003). Here are the segments of tourist who generally visits South West England maximum times. Market Segmentation on this basis will be helpful. Visiting friends and relatives (VFR): This segment has the major portion of total number of tourist visiting the places. Family Groups: It is another key segment to target to promote the travel and tourism industry in the South West England. There are few subparts in this segment as well namely: travelers enjoying Pre-family holiday breaks (mostly the young generation); Family Holiday breaks (mostly the family persons enjoying summer or winter breaks) and post family holidays (people with 55+ age who looking for exploring new places as their professional life is coming to an end) Activity Based or Special Interest Holidays or Tour Groups and Overseas tourists are other segments of tourists who are regularly visiting various parts of south west England but their percentage are not so much higher. (Leonard, 2003). Those mentioned above are broad categories of tourist generally visiting various parts of South West England most of the times. Research has also shown following figures associated with number of tourists from different segments: Local Residents and their visitors holiday 36.1%; UK holiday makers 39.1%; Overseas holiday makers 10%; Groups 11%; Business 0.7% and Others 3.0%. (Statistics on Tourism & Research, 2003) 4.2. How to attract more tourists of various segments: The main objective of ODM is to attract the above mentioned segments more in number to various parts of the South West England. It is the basic approach which the ODM needs to take at the beginning to improve the travel and tourism in the parts of South West England. To do that they can take following target positioning approach for each of the above segments: Strategy for Visiting Friends and Relatives (VFR): The requirements and desires of this group are generally like visiting new and interesting places with their hosts to have an eventful day outs. VFR generally looks for some activities which are affordable as well as sociable. For them the interesting places can be the palaces and other historical areas of the south west England. All these places are comparatively less expensive. So by promoting these places for the VFR groups, authority can generate more revenue for them and at the same time can increase the number of repeat visitors in those areas. Strategies for the Pre-family Group: This group is always looks for easy access to various tourist information and media. For this group, branding or promoting various natural spots, and sea cost can be a better option. Promoting through Websites van be an suitable media, as large number of information available on internet about various spots can always encourage them. At the same time, authority can also ask various hotel owners as well as travel agencies to design various packages based on their choices to ensure that they can do every necessary booking through internet. Having large number of information and at the same time various kinds of travel plan or offer can easily encourage them to book those spots and visit more often. Strategies for the Family Group: The common trend associated with the travelling plan of Family group is arrangement of entertainment for every form of weather where they can enjoy their vacation and along with that they also want activities specially designed for children. Their pattern of day out is more of educational, interesting, and eventful with fun for their children.So the accommodation needs to be in a standard and well organized hotel with availability of quality foods, option for amusement for children and pleasure for the seniors. As they are having children with them, so while taking them to the historical place, authority need to make arrangement of push chair so that they can easily take their children along. Arrangement of foods, water is also necessary inside those historical places as children can often ask for those. Medical facilities are also key requirement in those areas. 4.3 Promoting Cultural Tourism: Another key way to promote the travel and tourism in the South West England is promoting cultural tourism. McKecher & Du Cros (2002) and Tien (2008) in their review has pointed out some key features of the cultural tourists such as: more educated than others, belongs to higher income groups, generally the first time visitors, prefer to use online sources for make bookings and gather information, like to engage in various travel and hospitality activities etc. In the South West England there are number of cultural tourist attraction such as Stonehenge, Eden project, Roman Baths, Buck fast Abbey, Gloucester Cathedral etc. (Visit England, 2010) but one major point of concern is that, among all these travel spots on the South West England, no spot is free of cost for the visitors. Therefore all these areas are popular among cultural tourist only. So to make this spot popular among the non-cultural tourist also authority can make this free for them or can reduce the entry free, make free entry for children’s and at the same time can offer discount for groups. These strategies can encourage more tourists to visit these areas, so the earning from other activities like accommodation, refreshment and child enjoyment, restaurant, transport can be raised. The main objective is not to make these places interesting for only one segment of tourist but promoting every city, every place such a way that every segment of people looks to visit all areas across the entire South West. 4.4 Government intervention and review of Policies Apart from promoting various segments of travellers, ancient and historic spots in the South West England, government also have to play a key role in the development of travel and tourism industry in the South West England. Among various policies which they have to review, most important one is VAT. Charging full vat of tourist accommodation by default increase the rate for the travellers, and therefore people often thinks twice making their trip to any part of the country or making repeat visits. A study conducted by the Deloitte has proved that if the government reduces VAT on accommodation in hotels, resorts and also various points of attractions in various parts of the country, there can be a net present value gain for Treasury of 2.6bn pound in next 10 years, and majority of which will come from South West England. By reducing the air passenger duty for the travelers, UK government can attract more foreign tourists in to visit more number of places all over UK. It is point of great concern for the tourists as in last 5 years, APD for economy passengers has increased almost 650% and for business class, the increase is almost 700% in the UK. If the UK government replaces this high APD with EU Emissions Trading, there will be a great chance to earn more foreign currencies from the foreign visitors. Research has suggested that the above policy can increase GVA by almost 4billion pound, can create almost 100,000 new jobs in travel and tourism, hospitality and hotel management sectors, which again indirectly helps to increase the tax earnings for the government by the end of 2020. Government also has to reduce visa processing fees to attract more number of foreign tourists in UK. From 2000 to 2009, in these 10 years, the earning for the UK government from international visitors was increased by almost 40%; but it was far less compared to other EU countries-where the growth rate was as high as 50% or more. To promote tourism, the government needs to withdraw charges from issuing visas to selected number of countries, with whom they have better relations, have very little threat terrorism etc. Relaxing other norms can also help the south west England to attract more number of tourists. 4.5 Some Other options to Promote Tourism in South West London: Introducing the concept of home stay in various sea sores and other places in the south west London with historical interest. This can help the local people to have some extra income and at the same time can provide the opportunity for the tourists to avoid high percentage of Vat that they needs to pay in the hotels. Promote various local festivals in all the 7 counties of the south west England to attract more number of foreign people. Encourage repeat visits by the tourist by offering some attractive discounts of free offers in big hotels and resorts. Organize local cultural festivals, food festivals etc. in different times of the year in every parts of south west London. These initiatives can encourage more number of tourists. Providing opportunity to the tourist to enjoy local foods, local culture generally attracts more number of people. Developing the facilities for the tourists like additional medical care centers, development of transport system, developing more airports, effective use of the rivers to encourage the water transport can also help this part of the country to improve its tourism. Introducing water sport is another way to encourage the young starts as well as kids in the south west London. Generally people love to visit this part when the weather is dry after the horrific incident of flood. To make this place a tourist destination 12 months of year, authorities need to develop a better disaster management system for the tourists so that they can feel free and safe to visits this area. Promoting tourism in collaboration with local NGOs can be a positive way to attract more tourists in South West England. This not only helps them to attract more tourists but at the same time can also increase the chance of repeat visits for those who will feel associated with NGOs. Connecting the tourists with local culture, local history, and social structure by interacting with them more frequently is another way by which people of South West England can stand against the myth that people of England are very much non-cooperative. Providing local guide, local service person as well as local driver to conduct sight seen can also increase their association with common people. Organizing regular training for the people who are regularly associated with travelers to improve the standard of services, offering, after sale services etc. 5. Conclusion: Travel and tourism is one of the key components associated with the development of economy as-well-as provided enough opportunity for the people of the country where people like to visit. Apart from helping financially, travel and tourism also helps the country to demonstrate their culture, their life style as well as beauty of nature associated with their areas in front of rest of the world. Popular tourist destination not only encourages economy and provides more jobs but at the same time also helps them to develop their social norms, helps them to incorporate positives from the culture and practices of the people who are visiting their areas and at the same time encourage foreign investor to invest in the development of transportation, hotels and restaurant industry, social structure, child care, etc. References Arrogant, unfriendly and no sense of humour: what foreign tourists think of the English, (2006), Travel: The Telegraph, available at: http://www.telegraph.co.uk/travel/736311/Arrogant-unfriendly-and-no-sense-of-humour-what-foreign-tourists-think-of-the-English.html (accessed on June 28 2014) Devon News, (2014), Pressure mounts in the South West for government to cut tourism VAT, available at: http://www.thisisthewestcountry.co.uk/news/devon_news/11283229.Pressure_mounts_in_the_South_West_for_government_to_cut_tourism_VAT/ (accessed on June 28 2014) Kennedy, T. (2011), UK Tourism facts and figures. The Telegraph. Available at: http://www.telegraph.co.uk/earth/environment/tourism/8587231/UK-Tourism-facts-and-figures.html (accessed on June 28 2014) SW England, (2012), Brief Guide to South West England For First Time Visitors; retrieved on 26.6.2014 from http://www.southwestid.org.uk/ (accessed on June 28 2014) Bized, (2005), Towards 2015: Marketing in the Travel and Tourism Industry; retrieved on 26.6.2014 from http://www.bized.co.uk/educators/16-19/tourism/marketing/activity/marketing1.htm Kotler, P. (2003), Marketing Management, USA: Prentice Hall. Leonard, G. (2003), State of Tourism South West – Intelligence Report; South West Tourism, Kingsbury Shaw; retrieved on 26.6.2014 from http://www.kingsburyshaw.com/tourismreport Key Facts of Tourism for South West England 2002, (2003), STAR UK: Statistics on Tourism & Research; retrieved on 26.6.2014 from www.staruk.com McKercher, B. & Du Cros, H. 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