I. INTRODUCTION: TOURISM IN WALES

Under the new national government structure for Wales (The National Assembly for Wales) the lead agency for tourism in Wales is the Wales Tourism Board (WTB).

Tourism statistics in Wales are collated by two major surveys.  These are he United Kingdom Tourism Survey (UKTS) which is sponsored jointly by the national tourism boards for England, Northern Ireland, Scotland and Wales (WTB, 1997) and the International Passenger Survey (IPS) which is undertaken by the Office for National Statistics (ONS) (ONS, 1996).

According to the UKTS, domestic (UK) residents took on average some 11 million tourism trips in Wales during 1996.  The majority of these trips (65%) were for holiday purpose, a further 23% were to visit friends and relations, whilst 7% were for business and work purpose.  As a result spending by domestic visitors in Wales during 1996 accounted for approximately £1,180 million.

The International Passenger Survey (IPS) also indicates that 25.3 million overseas visitors came to the UK during 1996, a 7% increase on 1995.  The full figures for Wales from the 1996 IPS show that there were 830,000 overseas visitors, an increase of approximately 14% over the previous year’s figures.  As a result of this, spending by overseas visitors in Wales during 1996 amounted to £217 million, an increase from 1995 of 11%.
Source:  WTB 1997a;1996

The Wales Tourist Board suggests that information for day visitors is more difficult to obtain but estimates (from the UK day visitor survey) that expenditure on such trips amounted to approximately £550 million.  By combining the data from these different survey sources it can be estimated that tourist spending in Wales totalled £1,947 million in 1996 or approximately equivalent to 7.5% of Welsh GDP (WTB, 1997a; 1996) (see diagram 1).

As a result of this expenditure, the WTB estimates that tourism employment in Wales represents a substantially higher share (9%) of total employment than in the UK as a whole.  It is estimated by the WTB that more than 60,000 jobs in tourism are of a direct nature whilst the balance of more than 40,000 jobs are in industries supplying tourism (WTB 1997a; 1997b).

Tourism is thus a major contributor to the economy of Wales, but it also touches people’s lives in many other ways.  The recent WTB review (WTB, 1999) highlights the following benefits of tourism to the economy of Wales.

• £1.9 billion in direct visitor spending:  This is generated by staying visitors from within the UK and overseas and from people on day trips.
• 7.5% to GDP in Wales:  The economy in Wales is more dependent on overnight tourism than in other parts of the UK.  Tourism now contributes much more to the Welsh economy than agriculture and forestry (2.4%) and the construction industry (5.3%);
• 10% of jobs in Wales:  This relates to jobs supported directly and indirectly by tourist spending and amounts to 100,000 jobs.  They are found in a wide spectrum of occupations for men and women, young and old, managerial, skilled and unskilled.  It also includes may self-employed.  Some jobs are part-time and fit in well with new patterns of living;
• Income to a wide range of businesses:  Tourists spend more in places like shops, restaurants and garages than on accommodation.  Many businesses receive income from other sources apart from tourism.  10% of farms in Wales, for example, are involved in some type of tourism activity.  This additional income from tourism, can make all the difference to the viability of the farming enterprise;
• A wider impact through the “multiplier”:  Recipients of this income go on to spend their money elsewhere which directly benefits many other local services e.g. solicitors, plumbers, greengrocers etc.  It is probable that the total contribution to the economy could be anything up to double the direct visitor spending, through this multiplier effect;
• Opportunities in “town” and “country”:  Tourism is a force throughout Wales from Cardiff to Caernarfon and from Tenby to Denbigh.  It is particularly important in the more rural and remote areas which may find it difficult to attract other types of industry;
• Support for the environment, culture and heritage of Wales:  Tourism income is vital for the preservation and promotion of Wales’ landscapes and historic buildings.  It supports the activities of agencies such as Cadw and the National Trust.  It can also be a force for creative renewal, for example in Cardiff Bay.  Tourism values Wales’ distinctive culture, traditions and language and adds weight to the argument for their preservation;
• Support for local services and facilities:  Without additional income from tourism, many of the theatres, recreation facilities, transport services and restaurants enjoyed by local communities would not be viable;
• A boost to the image of Wales:  A positive and distinctive image of Wales world-wide, generated through tourism promotion, can help to attract investment and open new markets in all forms of commerce and industry.  At a local level, tourism can also stimulate confidence and civic pride within individual communities.  (WTB, 1999)

II. POLICY AND INSTITUTIONAL ISSUES

The administration of tourism in Wales is quite complex and major institutional changes are occurring which will have an important bearing on Tourism.  Some of the main ones are listed below:

• The forthcoming National assembly for Wales presents major opportunities to ensure that policies affecting tourism in Wales are more sustainable – and, in particular, more responsive to the changing needs and expectations of local people.  Although the Secretary of State has placed a duty on the Assembly to adopt policies, which adhere to sustainable development principles, many observers fear that this issue will not command high priority.
• Rural areas fear that the Welsh Assembly agenda will be dominated by urban Southeast Wales, to the detriment of rural areas.   Speculation has been rife regarding the structure of the re-organised Welsh Development Agency (WDA), which will assimilate the Development Board of Rural Wales (DBRW).  Clarification is eagerly awaited regarding the remit, size, location and resources of the WDA’s Rural Development Unit, and the outcome will have a significant impact on the future of rural Wales;
• The debate surrounding the case for EU Objective 1 funding for Wales for 2000-2006 has also enjoyed a high profile during the current year.  There has been controversy about boundaries and fears about competition for EU funds from the Eastern European entrants;
• There is a growing evidence that Welsh Office and European area-based approaches have resulted in an urban bias.  Recognition within local government circles of the urgent need for a nationally approved set of rural deprivation indicators has led to the commissioning of a major research project by the following – Mid Wales Partnership, South West Wales Economic Forum and North Wales economic Forum.

Looking to the future, it is to be expected that tourism policy issues will remain a key – and, no doubt, contentious – issue for debate by the Welsh Assembly.  It is important for the Assembly to create an institutional and policy framework that will enable a vibrant rural economy to exist.  Tourism will play an important role in this process and the following sections of our report go on to consider how tourism can help to safeguard local economies, communities and the environment.

The current structure and responsibilities for Tourism and ancillary development are highlighted in Figure 1.

i. National Assembly for Wales
Quasi autonomous Welsh Government.

ii. Wales Tourist Board – WTB
Government Department to promote and develop tourism in Wales and co-ordinate regional offices and TICS.

iii. Cadw:-  Welsh Historic Monuments
Government department to protect ancient monuments and historic buildings in Wales.

iv. National Museum of Wales
Government funded federal museum with sites across Wales.

v. Countryside Council for Wales (CCW)
Government Agency to protect and conserve wildlife and landscapes of Wales and assist with countryside management.

vi. Arts Council for Wales
Government Agency to promote art cultural industries within Wales.

vii. Welsh Development Agency (WDA)
Government Agency to promote economic development within Wales.

viii. Environment Agency
Government Agency to protect the environment from pollution.

iv. National Park Authorities
Public agencies to manage three National Parks in Wales.

v. Local Authorities/Community Councils
Local Government.
 
 

III. CURRENT POLICIES FOR TOURISM

WTB has previously prepared a succession of medium-term strategies, which provide a framework to guide the development and marketing activities of the tourism industry over a prescribed timescale.  The present strategy, Tourism 2000 – A Strategy for Wales was launched in March 1994 by the Secretary of State for Wales and was based on extensive consultation with the industry.

Tourism 2000 has the following mission statement:

“The Wales Tourist Board seeks to develop and market tourism in ways, which will yield the optimum economic and social benefit to the people of Wales.  Implicit within this objective is the need”:

• To offer high standards of product quality and service
• To sustain and promote the culture of Wales and the Welsh language.
• To safeguard and enhance the natural and the built environment.

Tourism 2000 is based around three essential themes:-

i) Sustainable Tourism
The resources upon which tourism depends are finite and can be fragile.  Tourism 2000 acknowledges that the scale, pace and character of development must be carefully controlled to safeguard the country’s environmental and cultural assets, but it also sets out to invigorate tourism and optimise its contribution to the economy of Wales.

ii) Partnership
Tourism in Wales is characterised by its diversity, scale, quality, type and location.  It ranges from small B&Bs to 5 star hotels and from narrow gauge railways to theme parks.  Most tourism businesses are run by private sector operators but a range of public sector organisations have an important role to play in marketing and developing the industry.  Tourism 2000 identifies a need for improved co-ordination between the private and public sectors to reduce wasteful duplication of effort.

iii) Targets for Growth
Tourism 2000 defines medium term growth targets for the industry based on past performance, forecast market trends and wider economic influences.  (WTB, 1999)

Looking to the future the outlook for further tourism growth is encouraging.  A new Welsh Assembly should create the impetus to promote a more distinctive and inspirational identify for Wales.  WTB believes that tourism will play a central role in promoting a dynamic, modern and attractive image for Wales within the UK and overseas.

There are, however, clear challenges facing the industry.  Raising its profile and status, extending political and community support for tourism and improving organisational structures are all crucially important if tourism’s future contribution to the economic, social and environmental well being of Wales is to be optimised.

At present the WTB is undertaking a Tourism 2000 half term review (WTB, 1999).  An important part of this strategy review process, therefore, will be to consider the roles and responsibilities of the different organisations involved in tourism.  The aim will be to use this consultation process to derive an organisational structure for tourism which is most appropriate and in the best interests of the tourism industry in Wales.

The new strategy will be delivered in a concise document.  It will aim to be visionary and will deliberately concentrate on strategic issues as they relate to tourism in Wales and identify the most effective response to these issues.  It will also aim to be closely integrated with an action plan which will set out the essential tasks needed to meet the shared objectives of the strategy, agree who will fulfil these tasks and identify when they should be carried out.

The new strategy will assimilate the views of the industry in all its component parts.  Effective consultation will be a priority and WTB has recently produced five topic papers to stimulate comments and views.  A wide variety of important issues which are likely to affect tourism over the medium term are covered in these papers and all interested parties are invited to respond to a range of related questions.  This paper is a general position statement, providing background information on tourism trends and examining some of the main challenges facing the industry.  There are four complementary topic papers:-

• The Benefits of Partnership – examines the role of partnership working, the need for an effective organisational structure and the importance of raising the profile of tourism;
• Extending the Benefits of Tourism – explores the contribution of tourism to the economy and its environmental, cultural and community impact;
• Understanding and Attracting the Customer -  considers the importance of understanding market trends and adopting a professional approach to marketing Wales;
• Responding to Customer Needs – examines investment needs and other initiatives to ensure that the tourism product in Wales matches market expectations.  (WTB, 1999)

IV FUTURE OPPORTUNITIES

The new WTB Strategy highlights the future key opportunities of how tourism can be developed within Wales.  These opportunities include:-

• Extend the tourism season – between October to May the industry operates well below capacity.  A longer season would provide important economic benefits to Wales by strengthening career structures and increasing the number of full time job opportunities;
• The Welsh Assembly will launch a drive to promote a more distinctive identify for Wales – tourism has a central role in promoting a dynamic and attractive mage for Wales;
• Growth of additional holidays – Wales is well placed to benefit through its accessibility to key markets and its ability to match market needs;
• Build on competitive advantage in activity holiday provision – lifestyles are becoming healthier and more people are seeking new ways of self-fulfilment;
• More effective partnership working between the public and private sectors in the integrated marketing of Wales and the development of new and improved facilities;
• Improving the profile and status of tourism to enhance government support and to maximise resource availability for the industry;
• Improve attitudes towards tourism among host communities in Wales to stimulate indigenous businesses and safeguard local cultures and the natural environment;
• Work collectively to promote a distinctive and attractive image for Wales within the industry and with other organisations;
• Improved co-ordination of information and bookings services – better integration of information technology within the industry including the Internet;
• Develop long term awareness benefits arising from Rugby World Cup and the Millennium;
• Employ more sophisticated market segmentation techniques to improve the effectiveness of the industry’s marketing activities;
• Improve the accuracy and relevance of research information through collective working;
• Encourage more people to consider careers in tourism by developing better training support structures and improving the status of employment in the industry;
• Develop a more appropriate industry structure with a clear understanding of the roles and responsibilities of organisations involved in tourism promotion and development.  (WTB, 1999)
• Support for local services and facilities:  Without additional income from tourism, many of the theatres, recreation facilities, transport services and restaurants enjoyed by local communities would not be viable;
• A boost to the image of Wales:  A positive and distinctive image of Wales world-wide, generated through tourism promotion, can help to attract investment and open new markets in all forms of commerce and industry.  At a local level, tourism can also stimulate confidence and civic pride within individual communities.

V CONCLUDING SUMMARY

From the issues outlined, there is strong evidence to support the need for improved strategic planning linked to a strong and well-funded statutory body for tourism development.  The establishment of the new National assembly for Wales (as quasi-autonomous national government structure) bodes well in this respect, as national Welsh interests become increasingly prioritised against existing Westminster dictats.  A strong national structure supporting tourism will inevitably be able to tackle the real issues highlighted.  Importantly, tourism can be fully recognised as a significant motor for sustainable tourism development.  In this respect, a strong agency would be able to facilitate, co-ordinate and enhance partnerships between the other Welsh NGOs and at a more local level between local authorities and local communities in order to implement more coherent strategies.  For example, the development of an integrated strategy for training, marketing, facilitating innovative product development and promoting contemporary cultural images would directly benefit from this approach.  The ability to co-ordinate research, based upon the dissemination of ‘good practice’ linked to support at a broader European level would also be a key benefit in this respect.