Market Intelligence
June Occupancy Stats from Visit Wales - is there a trend?
The serviced sector showed an overall modest increase for June compared to last year but there were exceptions; both the hotel sector and the guest house and B&Bs saw an occupancy decrease for 5* establishments and for those in large towns or cities. For self-catering, there was overall a substantial nine percentage point increase in occupancy but all of this was due to more visitors in ungraded or 2* properties with 3*, 4* and 5* places all recording a decrease.
These monthly accommodation surveys are commissioned by Visit Wales and conducted by TNS Travel and Tourism.
Hotel Sector - Based on a sample of 101 hotels throughout Wales which contributed to the June 2010 survey, the average bed and room occupancy rates were 52% and 70% respectively. This compares with 48% bed occupancy and 68% room occupancy recorded in 2009 and 47% and 52% in 2008.
Although the majority of bed and room occupancy rates for the grade and location categories were higher than in June last year, 5 star hotels and hotels located in cities or large towns experienced decreases in their average room occupancy rates.
For the survey in full, go to:-
http://wales.gov.uk/docs/drah/publications/Tourism/100824hoteljune10occeng.pdf
Guest Houses and Bed & Breakfast Establishments - A sample size of 96 showed average bed and room occupancy rates for June slightly higher than for both the past two years. Bed occupancy was 40% compared to 36% in 2008 and 39% last year. Room occupancy increased from 45% in 2008, 48% in 2009 and 50% this year.
However, the percentage of bed nights taken by overseas guests fell to 11% this year from the 14% recorded in June 2009. This sector shows a similar trend to hotels with average bed and room occupancy rates higher this year except for those graded 5* and those in city or large town locations. Click on the link for all the details:-
http://wales.gov.uk/docs/drah/publications/Tourism/100824ghbbjune10occeng.pdf
Caravan sector - Average static pitch occupancy fell by thirteen percentage points to 72%, a similar figure to that of 2008. However average touring pitch occupancy rose to 42% from 35% in June last year; the 2008 figure was 51%. Sample sizes were 25 holiday parks and 41 touring caravan/camping parks.
Self-catering - Based on a sample of 596 self-catering units, the average occupancy rate for self-catering properties throughout Wales was 65% this month, compared with 56% in June 2009 and 57% the year before.
But occupancy fell in units graded 3, 4 and 5 stars whereas in 2* properties and ungraded properties average occupancy rates were around twenty percentage points higher than in the same month last year.
Caravans and Self-catering - For the full report for both caravans and self-catering, go to:-
http://wales.gov.uk/docs/drah/publications/Tourism/100824scjune10occeng.pdf
Hostels - 33 hostels contributed to the June survey which gave average bed occupancy of 55%, compared with 53% in 2009 and 52% the previous year. There was a fall of five percentage points in the percentage of bed nights by overseas guests, bringing it down to 9%.
To access the full report, see:-
http://wales.gov.uk/docs/drah/publications/Tourism/100824hosteljune10occeng.pdf
Overseas Visitors to Wales
Provisional figures from the Office of National Statistics and the International Passenger Survey for the first quarter of this year show that the number of overseas visitors to Wales declined from 162,000 to 128,000, nights from 1.1m to 1m and spend from £78m to £49m.
As a comparison, overseas visitors to SW England dropped from 334,000 to 288,000, nights from 2.76m to 2.24m and spend nearly halved to £130m.
Travel Overseas by UK Residents
Figures for the year-to-date to June show that outbound visits by UK residents were down by 10% compared to the corresponding period a year earlier; visits to North America are down by 10%, visits to Europe down 11% and visits to the remaining parts of the world down by 4%.
Outbound holiday visits were down 10%, business visits down 9%, VFR down 12% and other visits down 20% in the year-to-date.
UK Residents spent 5% less on outbound travel in the year-to-date than a year before
Historic buildings Open Doors for free this month
Throughout the month of September entry to 300 buildings and sites of historic interest across Wales will be free to visitors. Known as Open Doors, this is the largest annual free celebration of architecture and heritage to be held in Wales.
It is part of European Heritage Days – a cross continent initiative in which buildings that normally charge entry fees waive them in a bid to encourage people to visit and learn more about history and heritage.
Open Doors is organised by the Civic Trust for Wales on behalf of Cadw, the Welsh Assembly Government’s historic environment service. Some venues require visitors to book in advance in order to ensure that they secure a place on a guided tour. Other sites are less specific and visitors can just turn up.
This year the range of buildings varies from private houses to archaeological sites, religious buildings and castles to examples of the best of contemporary architecture. New and established sites are taking part in the programme. In addition to sites waiving their charges for visitors, other properties offer a chance to see behind the scenes of some very familiar buildings that are normally closed to the public.
There are extended programmes in Monmouth, Llandaff, Swansea, Conwy, Cardiff, Ruthin, Llangollen and Denbigh. For visitors who like to explore on foot there are guided walks and heritage trails.
For the more sedentary visitor, there are venues with concerts and lectures. New award-winning buildings are included and present a unique view of the ‘heritage of tomorrow’.
Among the highlights of the programme will be the opening of all the most impressive buildings looked after by Cadw, such as the castles in Caerphilly, Caernarfon and Conwy and the fascinating Elizabethan town house Plas Mawr in Conwy.
The jewels in the crown of the National Trust such as Llanerchaeron in Ceredigion, Erddig near Wrexham, Dinefwr Park and Castle near Llandeilo and Powis Castle near Welshpool are also available to visitors from Wales and beyond.
Wales is one of 49 countries across the continent that takes part in European Heritage Days. Wales has an impressive array of sites to offer to this initiative which is an important contributor to Europe’s cultural heritage landscape.
Based on the success of the Open Doors in previous years, around 50,000 visitors can be expected to attend sites this year. Open Doors is also Wales’ largest volunteer event in the heritage sector. Much of its success is due to the hard work and enthusiasm given by individuals and local voluntary groups.
International Passenger Survey - The Headlines for June from VB
• In June 2010, the number of overseas residents visiting the UK was 4% lower compared with June 2009. Looking at the year-to-date, 4% fewer visitors came to the UK when compared to the corresponding period a year earlier.
• While there was no disruption due to volcanic ash, BA carried 12.5% fewer passengers in June than a year ago – industrial action by cabin crew disrupted flights over the first nine days of June.
• Spending in the year-to-date was 1% lower in nominal terms than during the corresponding period a year earlier.
• The Euro was 3% weaker against the Pound in June 2010 (compared to June 2009) but remained strong compared to the previous three or four years. On average, £1 cost €1.48 in June 2007, but in June 2010 £1 cost just €1.21.
• The US Dollar was 10% stronger against the Pound in June 2010 compared to June 2009. £1 cost $1.99 in June 2007 but cost just $1.48 in June 2010.
• Holiday visits dropped 3% in the year-to-date as the slow economic recovery impacted.
• VFR continues to be affected significantly, down 10% in the year-to-date compared to the corresponding period of 2009.
• After steep declines a year earlier, Business visits have increased 3% so far this year, but remain at significantly lower levels than before the economic downturn hit.
• Visits for other reasons (including short-term study, shopping, watching football and many other reasons) have fallen 4% in the year-to-date.
• The number of visits in the year-to-date from EU15 countries (nations who were members of the European Union before the 2004 expansion) is 2% lower compared to the corresponding period a year earlier.
• Visits from Accession countries are down 5% in the year-to-date; visits from non-EU countries in Europe are down 4%.
• Visits from North America have declined 9% in the year-to-date, although they were significantly affected in April by the ash.
• Visits from remaining parts of the world (Central and South America, Africa, Middle East, Asia and Australasia) were down 4% compared to the corresponding period a year earlier.
Trends Update 2 September 2010 from VisitBritain
Transport News
Demand for international air travel in July was 9.2% up on a year ago according to IATA; European carriers continue to lag those in other world regions with growth of 6.2%, by contrast Middle East carriers saw traffic 16.8% up on July 2009
IATA report that in June business class airline travel increased globally at an annual rate of 16.6%, considerably faster than economy class travel at 9.5%
The number of long-distance rail journeys undertaken in the UK during the period April to June was 5.8% up on a year ago
Economic News
UK consumer confidence improves marginally during August
Eurozone inflation reaches its fastest rate for nearly two years; unemployment remains at an average rate of 10.0% across the 16 country bloc
The European Central Bank ups its forecast for Eurozone economic growth in 2010 to between 1.4% and 1.8% and in 2011 to between 0.5% and 2.3%
Revised figures show that the US economy grew at an annual rate of just 1.6% in the second quarter, down from the earlier estimate of 2.4%
US consumer confidence registered a small improvement in August
Japanese economic growth has weakened markedly, down to just 0.1% in the second quarter of the year
Tourism News
Global Blue report a 58% annual rise in the value of sales to overseas visitors reclaiming tax during July thanks to a 43% increase in the number of transactions and 10% rise in the average spend per transaction
The UK tops the European list for the greatest number of hotels in the pipeline, according to the latest figures from STR Global. The hotel analysts said at the end of June, Britain had 26,653 rooms in the pipeline with a further 11,381 under construction.
According to TRI Hospitality Consulting chain hotel occupancy in London during July reached 91.9%, up from 88.7% a year before. In the provinces occupancy stood at 77.4% up from 74.3%
UNWTO report that international tourist arrivals were 7% up in the first half of 2010. Middle East (+20%) and Asia Pacific (+14%) enjoyed the fastest growth whereas Europe is recovering much more slowly with arrivals up just 2%
Britain’s culture and heritage has international appeal
A VisitBritain survey has shown that Britain's major museums and galleries earned the country £1 billion in revenue from overseas tourists last year.
A new comprehensive report on Britain’s culture and heritage shows this is a key motivator for many international visitors to Britain, with our free world-class national museums and art galleries a particular draw.
VisitBritain sponsored a question on the International Passenger Survey asking about a range of activities that visitors may have undertaken during their stay. Among the 30 million inbound visits in 2009, 7.7 million included visiting a museum and 4.2 million, an art gallery.
The French just nudge the Americans out as the top visitors to our museums (with about 960,000 visitors each), while over half a million Germans and Spanish also visited our museums.
For art galleries Americans replace the French in top spot with well over 500,000 visits, with the Germans and Spanish once again holding third and fourth place.
For both museums and galleries the most popular time to visit is July to September, while there is a slight dip in visitors from January to March. However, it’s clear that visiting museums and galleries is something inbound visitors indulge in throughout the year.
The longer the duration of the stay, the more likely a tourist will visit museums and art galleries. A large proportion give a number of people who stay in Britain for 4 to 7 nights visit a museum or gallery, while 42% of people who stay 15+ nights will spend time at museums and 26% in art galleries.
As far as visitor characteristics are concerned, equal numbers of males and females visit both museums and art galleries within each age group with the exception 16-24 year olds where females are more frequent visitors. In terms of the proportion of visitors from each gender and age group, females are more likely to visit both museums and art galleries for all age bands except for the 65+ group.
Britain's Accessibility by Air
The August edition of VisitBritain’s ‘Foresight’ includes an article exploring trends in Britain's accessibility by air over the past few years and an article examining trends in the number and whereabouts of the world's high net worth individuals.‘Foresight’ can be accessed at:http://www.visitbritain.org/Images/Foresight%20Issue%2082a_tcm139-194068.pdf
PKF July Hotel Report
Although the sun did not shine as strongly in July as in June, London hoteliers enjoyed a busy month with occupancy reaching 92.0%. Meanwhile, for regional hotels, it was the first time in 2010 that a year on year increase in room rate was achieved, according to preliminary monthly figures released on 24 August by PKF Hotel Consultancy Services.
In the capital, hoteliers posted strong July figures. Room rate was up 21.1% on the same time last year, from £115.17 to £139.49. Occupancy was also up, by 3.1% to 92.0% which meant overall, rooms yield increased 24.9% in the capital from £102.76 in 2009 to £128.35 this year.
In the regions, room rate increased by 0.3% from £61.54 in 2009 to £61.70 this year – the first year on year increase seen so far this year for room rate in the regions. Occupancy also rose, by 4.7%, from 74.0% to 77.5%, and rooms yield was up 5.0% from £45.54 to £47.81.