1. Tourism Strategy for the 2012 Games: local authorities at the heart of a decade of opportunity Andrew.Cunningham@culture.gsi.gov.uk Andrew Cunningham Acting Head of Tourism, Economic Impact & Licensing Division November 2006

2. 2 The visitor economy matters It is a key part of the global economy –One of the world’s fastest growing industries with 4% annual average growth 1970-2005 –UK is in the top 10 countries in the world in terms of tourism receipts –With sales in 2005 of £13bn, it is our 3rd largest export earner after oil and vehicles It is a significant economic sector in UK –An industry with inherent competitive advantage –Annual turnover of £74 billion, equivalent to 4.4% of GDP –Employs over 2.1m people, 7% of the workforce –Hospitality, attractions, place and travel the core product It has an important local impact –Key employer and generator of GDP in South West, Yorkshire, North West –Almost half overseas visitors enter UK through regional gateways –London’s second largest industry after financial services

3. 3 That is why the challenge we face on growth is so serious Annual growth of over 4% is required in order to meet our target of a UK tourism sector worth £100bn by 2010 – well beyond trend growth for the wider economy.

4. 4 And the progress we need to make on productivity is equally stretching –The tourism sector lags the productivity performance of its overseas competitors, as well as other UK service sectors. –Government action focuses on interventions that support skills agenda, encourage investment, support innovation and enterprise, and remove barriers to competition.

5. 5 Local authorities are at the heart of meeting these challenges Spending on tourism by local authorities between 1999 and 2005

6. 6 Local authorities are at the heart of meeting these challenges Indicative local authority investment by activity 2004/5

7. 7 We can expect the importance of councils’ role on tourism to be further enhanced There are a number of inter-related developments in the pipeline which could have a profound effect on local authorities leadership role on tourism: –The Lyons Inquiry into local government –CPA and LAA developments –The Partners for England initiative –The Comprehensive Spending Review –The Tourism 2012 Consultation and Strategy

8. 8 OBJECTIVES: The Overall Objective of the Olympic and Paralympic Games Delivery Programme is: “To host an inspirational, safe and inclusive Olympic Games and Paralympic Games and leave a sustainable legacy for London and the UK.” Drawing on this, the Welcome>Legacy consultation exercise aims to inform the DCMS Tourism Strategy for the 2012 Games: “The Strategy will set out clear actions and deliverables for making the very most of the Games for the visitor economy.”

9. 9  Estimated that 50%-75% of benefits of hosting the Games could accrue to tourism  …. in cash terms, between £1.4 and £2 billion The 2012 OLYMPIC AND PARALYMPIC GAMES OPPORTUNITY:

10. 10 Widest Ever Consultation of the UK Tourism Industry  Issued over 5000 copies of the full consultation document;  Sent out 250,000 leaflets to individual businesses, local authorities and others in the UK public and private sectors.  Sent tourism consultation leaflet via direct mail to over 14,000 small hotels, guest houses and B&B’s.  Set up a number of meetings throughout the consultation period to spread the T2012 messages and foster consultation response. The next biggest consultation was Tomorrow’s Tourism, issued by DCMS in 1999 – we sent 20,000 copies – but back then we could not engage people electronically.

11. 11 KEY AREAS OF FOCUS 1.Getting tourism’s Olympic structures right 2.Positioning the UK as a truly world class destination 3.Improving the quality of our welcome 4.Making the links between tourism and the wider 2012 effort 5.Setting ambitious and stretching targets

12. 12 Taking part in the Consultation: We need all responses to the consultation on the tourism strategy for the 2012 Games by 17 November 2006. To get hold of a copy either: Visit www.culture.gov.uk/tourism2012.htm www.culture.gov.uk/tourism2012.htm Or Phone 020 7211 6335 Lines are open from 9.30am to 4.30pm

13. 13 Flexibility No Plan Survives Contact With the Enemy -Evolve And Adapt The Royal Marines