News - March 2010

Norfolk's tourism sector reports busy year

1st March 2010
It has been widely reported that 2009 was a successful year for many businesses in Norfolk’s tourism sector.

The results of the Larking Gowen/EDP Tourism Business Survey are therefore eagerly awaited. There is some uncertainty in the economy and the potential threat of a “double dip” still looms large. So what does this mean for the tourism industry in Norfolk for 2010?

With the ongoing cold spell continuing, it is not unexpected to hear that people have started to plan their holidays. News of increases in overseas bookings cannot be surprising, bearing in mind they are being compared with the same time last year when the grip of recession was starting to take hold. There is good news, however, in that bookings are already up (again, compared to the same time last year!) for those looking to enjoy England and the staycation phenomenon is likely to be repeated. This phenomenon surprised a number of businesses last year and many had already taken steps to reduce costs due to the uncertain economic climate. With early indications of increased bookings, the risk is one of complacency in the sector for 2010. This could come in two forms: the expectation that business will come to Norfolk so we do not need to be proactive in any way; and secondly, that we do not look to change anything in the belief that customers bought last year so they will buy again.

I am not suggesting that the “Norfolk product” needs to be changed; indeed, it is important it retains its mix and charm, but it is always important to keep things fresh, maintaining investment, so that it keeps working properly. The sketch in “Only Fools and Horses” where Trigger proudly states that he has had the same broom for 20 years, gives the message that I am referring to, as he then adds, “but the broom has had 17 new heads and 14 new handles”! In effect it is the same…..but it is different! He maintained investment to keep it working properly.

Budgeting for 2010 should therefore be by way of two alternatives, anticipating both a best case and a worst case scenario. There is still uncertainty, with the economy still shaky and an Election not far away. The key is to plan a protective strategy should the early indications of visitor numbers not prove indicative of the full season. A second and more positive strategy also needs to be in place which highlights how to adapt to increased trade and to have in mind how the increased turnover can be invested and rolled into 2011 to further enhance the product, ensuring we maintain the momentum and keep getting visitors to come back year after year.

Whatever the economic picture we know that visitors will come; the question is how many? It is also well known that people buy on emotion and if they are having a good time will happily spend a little more, so in the last few months before the season really starts we need to ensure that our mood is right, that our offering is bright and cheery and our staff (that really crucial element in what we offer) share the same ethic and provide a warm and welcoming environment for the guests to this wonderful county. We only get one chance to make a first impression, so let’s make the most of it.

Chris Scargill

Tourism and Hospitality Partner

Larking Gowen Chartered Accountants

0845 408 1732

tourism@larking-gowen.co.uk

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