VISITOR ECONOMY STRATEGY

VISITOR ECONOMY STRATEGY GROUP - SURVEY RESULTS

Data based decision making and evidence based forecasting is key to the success of Tourism and Hospitality in Jersey, so it is really interesting to see June 2023 - Monthly Exit Survey Results

https://cdn.jersey.com/images/v1691140042/Trade/Passenger-Exit-Survey-summary-Jun-V3/Passenger-Exit-Survey-summary-Jun-V3.pdf

SOME QUESTIONS ARSING FROM THIS DATA

Does the breakdown of visitors align to the spend on marketing for each jurisdiction? eg does £1m spend on UK more useful than £1m spend on Netherlands

68% of visitors were from the UK (44,100)

8% of visitors were from the other Channel Islands (4,990)

16% of visitors were from France (10,290)

3% of visitors were from Germany (1,760)

Is it possible to compare visitors to the destinations that Ports of Jersey connect with?

What was the demographic and value of each: Are Germans, French, UK [young, couples, families, older] and what is the net spend in each category as tracked by credit card

Which venues, events and attractions did they attend by reference to bookings, reservations, sales data

Based on mobile phone cell data where do they come from, how often do they return, what locations did they visit?

How do these numbers match against the "dashboard" of KPIs

>> Target for volume of visitors via plane or boat (necessary for connectivity)

>> Target for value of visitors' spend (necessary for economy)

>> Target for bed-nights occupancy (necessary for hotels, guest houses, self cating etc)

Indeed what are the "dashboard" of KPIs for Visit Jersey, JHA, Chamber, Ports etc?

ABOUT THE VISITOR ECONOMY STRATEGY GROUP

All the PUBLIC minutes of the Visitor Economy Strategy Group are here

https://business.jersey.com/about-us/plans-reports/visitor-economy-strategy-steering-group

Visitor Economy Strategy - Policy Position Summary

The Case For Change

Why does it matter?

Tourism and hospitality are important to Jersey for a number of reasons:

- Supports connectivity for locals to get off island for leisure, to study and visit friends and family

- Makes it an attractive place to do and set up business and somewhere it is easy for businesses to attract staff due to the quality of lifestyle and hospitality offering, and connectivity to other business hubs

- Has the potential to makes Jersey a more vibrant place to live for young people

- Provides employment opportunities to all and an alternative career choice to young people

- Contributes positively to the lifestyle of everyone who lives here

- Means there are things to do year-round

- Contributes to a diverse economy

- Provides export revenue in the form of Tourism spend

- Represents an opportunity to showcase our culture and share it with the world

Why is now a critical turning point? Why do we need a strategy?

1. A combination of external economic factors as well as limited oversight from government and lack of clarity on the direction of travel for the sector has led to a loss of investment confidence which is crucial to the continued survival, evolution and revitalization of the hospitality and tourism industry. Whilst this has been felt most acutely during the recent years of Covid, and remains to some extent as we recover and navigate economically turbulent and uncertain times, there were signs of stagnation and uncertainty prior to that, and it is of note that there had been no government strategy for Tourism since 2004.

2. The decline in visitor accommodation bedstock is now reaching critical levels where there is very high risk this could lead to connectivity loss . If airlines are unable to fill seats to a great enough extent to make them commercially viable, they may cease to operate routes to Jersey, a matter which is very much a live topic in conversations between those responsible for managing and restoring the islands connectivity and the airline representatives.

3. Whilst there is work to be done to establish in more detail the likely rate of further hotel and other accommodation closures, we know that without a concerted effort to rectify the situation we are unlikely to see the rate of replacement keep up with the rate of closure, and so we must act with a sense of urgency in order to mitigate the risk of connectivity loss. We want to continue to transform our offering and encourage investment, through a combination of investment in existing stock and development of new product. However, due to a number of market factors, (including cost and availability of land, construction costs, increasing cost of debt, availability of finance, the risk profile of operational property, rising operating costs and the seasonal nature of many operations), it is unlikely the destination will see significant new investment unless we proactively work together to make that happen.

4. We want to have a quality offering across a range of accommodation types and price points in order to appeal to a diverse set of customer needs and to remain relevant in an increasingly competitive environment, particularly where we know we will not be positioned as a cheap or mass market destination. We know there is growing consumer appetite for unique experiences and offerings, yet some of our product lags and remains generic, or is not clear on its positioning and requires differentiation in order to appeal to a clear target market. As we continue to move towards being a destination focused on value rather than volume, we need to ensure all product moves in that direction. This doesn't mean everything needs to be luxury or upscale, far from it - in order to maintain connectivity we know that some order of volume is necessary, and becoming too expensive or exclusive as a destination could lead to further decline and reduce the potential pool of demand we are able to tap into.

5. We also know there is work to be done in order to improve the experience for the digitally savvy and connected consumer of the future, to ensure we both capture their interest before they visit, and provide them with the information, maps, experiences, communication options, payment systems and on-island engagement they expect when they are here. There is also significant opportunity for businesses to embed technology much deeper into their operations and for business leaders and decision makers from across industry and government to harness the potential of data.

6. We want to continue to drive productivity growth through a combination of reducing seasonality, increasing automation, and business modernization, which will enable business owners and operators to be sustainable and financially viable for decades to come.

7. With travel forecast to continue to grow globally and remaining high on consumer priority lists despite the current economic climate, we know there is a significant opportunity to grow the spend of both visitors and islanders if the product is right. The visitor economy has both a direct and indirect impact on so many other parts of the economy and the spend of visitors and the revenues generated by hospitality businesses filters down to many suppliers, producers, partners, and employees that contribute to our overall economic output and a balanced economy for the island.

8. We want to foster collaboration (both within government and externally), and work together on building our future, rejuvenating and revitalizing the industry which we know can continue to contribute very positively to Jersey in the future as a place to live, work and do business.

9. It will require a concerted effort across multiple stakeholders to ensure the potential of the visitor economy of the future is fully understood and exploited, and whilst we recognize there may be areas of tension, differing priorities, or competing for similar resources, if we do not work together to find compromise and points of flexibility and agree on solutions that work for all, we may find the industry is driven into further decline by internal factors, rather than external ones.

10. There is currently a need to work out how best to balance the needs of housing and holiday lets for example, or balancing population and immigration with the need for employees to support economic growth, and we will continue to work together and build relationships in order to resolve these issues in a way that is collaborative, considers the impact on multiple stakeholders, and ultimately does what is right for Jersey in the long-term without being detrimental to a sector we know is essential to the island’s future for the reasons set out previously.

11. We also recognise the need to act now on the issues of sustainability and carbon reduction and acknowledge there is further strategic work to be done in order to move more rapidly in this direction. The industry is still fossil fuel intensive in some areas, and wasteful in others, with monitoring and accreditation limited at a time when consumers are paying increasing attention to this when they travel and in the brands and businesses they choose to purchase from, associate with and work for. We need to ensure we are transparent on our current position and where were aim to be, and put in place a road-map and achievable yet meaningful goals in order for us to remain credible, relevant and attractive as a destination and as an industry.



Our Approach

In order to break down our strategy into manageable parts and to identify the actions needed to implement it, we intend to structure this around 5 key themes:

- Accommodation

- Non-Accommodation Product & Infrastructure

- Digitalization

- Staffing

- Sustainability

It is our intention to develop each of these themes using a framework with the following components:

1. Current position

a. Why is it an issue, why does it need to change, what happens if it doesn’t?

2. Strategy

a. What do we want to see in future?

b. What are our key objectives?

c. How do we break it down into sub-themes or projects?

d. Who /what are the key dependencies /stakeholders?

3. Actions

a. What do we need to do in the short term as part of the current government 2023-2026?

b. What do we need to consider in the longer term (to 2040)?

c. What are the key actions and interventions for Government, ALOs and Industry?

d. How will we measure progress / what are the KPIs?

e. What is the timeline?

f. What are the funding or resource requirements?



We have also identified a number of Critical Success Factors that are essential in order for the industry to function and thrive. These include:

- A planning framework that allows growth in the industry where necessary

- Legislation that is fit for purpose

- Access to financing to enable investment

- Delivery partners that are fit for purpose with clarity on roles and responsibilities and appropriate and sustainable funding mechanisms

These will also be worked through with internal and external stakeholder groups, and in conjunction with other strategic workstreams (eg FEP) where there is overlap.

Government’s Objectives

In order to ensure subsequent work, strategy and policy development, and division of responsibilities under an action plan is clear, it is important to set out upfront what Government’ objectives are for the Visitor Economy, a draft list of which is as follows:

- To drive economic growth

- To increase productivity

- To support a balanced economy

- To contribute to Jersey’s attractiveness as a place to live, work and do business

- To support connectivity to and from the island

- To offer diversity of employment

- To contribute to making Jersey an attractive place for young people

- To positively contribute to the island’s reputation and international reach

Industry in turn will need to identify its own objectives, what they are going to do to achieve them, and where something is preventing that from happening to articulate what government levers need to be activated to overcome barriers.

BLOGS ABOUT TOURISM AND HOSPITALITY IN JERSEY

Unlocking the Potential of Data in Boosting Jersey’s Tourism and Hospitality Sector

https://www.linkedin.com/feed/update/urn:li:linkedInArticle:7097585169733169154/

A data driven vision of volume and value in Hospitality and Tourism

https://www.linkedin.com/feed/update/urn:li:linkedInArticle:7097514809734131714/

What creates confidence in Hospitality and Tourism

https://www.linkedin.com/feed/update/urn:li:linkedInArticle:7097511722546032640/

The Role Of Government Is Not As A Driver

https://www.linkedin.com/posts/timhjrogers_businessmentor-businessadvice-businesscoach-activity-7094628140026601472-AzuI

TEDTALKS ABOUT TOURISM AND HOSPITALITY

How to save tourism from itself

https://www.ted.com/talks/doug_lansky_how_to_save_tourism_from_itself

Towards a More Inclusive Tourism

https://www.ted.com/talks/nagore_espinosa_towards_a_more_inclusive_tourism

Tourism On the Line

https://www.ted.com/talks/tina_o_dwyer_tourism_on_the_line

How the tourism industry can be responsible for its environmental footprint

https://www.ted.com/talks/sean_nino_how_the_tourism_industry_can_take_responsibility_for_its_environmental _footprint?language=en

Sustainable Tourism - A modern eco friendly perspective on tourism

https://www.ted.com/talks/sumesh_mangalasseri_sustainable_tourism_a_modern_eco_friendly_perspective_on _tourism