The region’s tourism industry has many positives but challenges, particularly around funding, remain

Dorset’s natural assets and rich hospitality sector have made it one of the UK’s premier visitor destinations, however challenges abound when it comes to maintaining growth, remaining competitive and ensuring visitors needs are met.

This was the topic discussed at a Dorset Biz News roundtable in June, held at The Nici Hotel in Bournemouth, which focused on how successfully Dorset is capitalising on its tourism sector which was attended by supporters and partners of the website.

Participants

Lewis Barr, Marketing and Commercial Director, Frettens

Hannah Mazrae, Partner, Saffery

Tyron Meiring, Commercial Insurance Broker, Gallagher

Stephen Emerson, Managing Editor, The Business Magazine (Chair)

Alan Lindstrom, Regional Business Manager, The Business Magazine

Kate Shaw, Managing Director, KTPR

Rosie Radwell, Managing Director, Marsham Court Hotel and Chair of the Bournemouth, Christchurch and Poole Accommodation Accommodation BID

Paul Taylor, Business Development Manager at Dorset Chamber of Commerce

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According to data compiled by the South West Research Company in 2021, total visitor spend in Dorset  was £1.3 billion, comprising £525.8 million from domestic tourists and £39.3 million from overseas visitors.

Paul Taylor, Business Development Manager at Dorset Chamber of Commerce, said that collaboration across the industry was vital in meeting future challenges.

He said: “There is a great value, especially in an industry like hospitality, in collaboration to help improve the greater good.

“If everybody is singing off the same hymn sheet then the industry here will grow.”

Dorset Appeal

The roundtable discussed the tourist appeal of Dorset and the developments that could fuel future growth 

Lewis Barr, Marketing and Commercial Director, at Frettens Solicitors said: “We’re very blessed with being, having incredible beaches, wonderful landscapes, lots of history and plenty of amazing outdoor space.

“Bournemouth and the wider conurbation of Dorset has a lot to offer.

“The football club being a Premier League club has helped to put the place on the map and people know exactly where it is.”

Hannah Mazrae, a Partner at accountancy firm Saffery, said that the increase in flights from Bournemouth Airport was a positive development for the region.

She said: “Bournemouth Airport is growing and hopefully we will get more international visitors when Jet2 start their Bournemouth flights in 2025.”

Tyron Meiring, a Commercial Insurance Broker at Gallagher added that Bournemouth was also well-positioned to take advantage of the opportunities at the top end of the tourist market with Poole now able to accommodate super yachts.

He said: “Poole is one of the first harbours in the country to be super yacht ready which will have a big knock-on effect on the local economy.”

Challenges

However despites its natural assets and strong transport links, several challenges for the region’s tourist sector were highlighted.

The hospitality industry is acutely feeling the effects of the skills shortage which is affecting much of the UK economy.

Paul Taylor of Dorset Chamber of Commerce, said:  “While it is positive that the tourism industry is growing, hospitality is having major issues with staffing at the moment and this could hinder growth.”

Hannah Mazrae of Saffery echoed this point.

She said: “The hospitality industry has been hammered by Brexit, by Covid and increases in the minimum wage and energy costs.”

Rosie Radwell, Managing Director of Marsham Court Hotel and Chair of the Bournemouth, Christchurch and Poole Accommodation Accommodation BID, said that she welcomed the increase in tourism number to the region but had concerns over its ability to cope.

She said: “Since COVID, London people have been coming down here and that is shown through hotel bookings.

“It does have a positive benefit to the economy, my only worry is that if we don’t have the staff in place we will not be able to service it.”

For any industry to grow, it needs new investment from outside of established circles and the roundtable noted that the investment taps into tourism had slowed in recent years.

Tyron Meiring, a Commercial Insurance Broker at Gallagher, said:  “We are finding that people are pooling together to fund newer type builds.

“The investment is not what it was and we are not seeing much overseas investment.

“Most of the investment is coming from existing investors in the industry.”

Rosie Radwell said that the reduction in council funding for the sector was a key concern.

She said: “There are no events planned for 2025 like Bournemouth Air Festival, no Poole Christmas Maritime Light Festival and no Christmas Tree Wonderland.

“The only thing going ahead is Bournemouth Arts by the Sea because the council were in a contract.”

Potential Solutions

With skills shortages and a lack of investment putting a potential blocker on the future growth of the industry, the roundtable discussed potential solutions to the problems affecting the region’s industry.

The tourist levy was cited as a potential solution to many of the issues affecting the sector, particularly around the drop in council support.

In May, Bournemouth, Christchurch and Poole Accommodation BID (ABID) organised a vote which narrowly passed the introduction of a tourist levy.

The initiative would see 75 hotels in the region paying £2 per room, per night (excluding VAT), with the proceeds raised being used to market and promote the region.

Shortly after this roundtable was held,  Bournemouth hoteliers launched an appeal against the introduction of the levy, which is currently waiting to be seen by the Secretary of State.

The ABID have since announced that the levy will be delayed until after the appeal has been heard. 

Rosie Radwell said: “We have to promote this area as it is one of the most beautiful areas in the UK.

“We cannot do this and provide more facilities for visitors and reasons to come here unless there is funding.

“All of the council funding to promote tourism has been withdrawn so this is an alternative that will help to tackle this issue.”

With the tourist levy being narrowly voted through, there is sizeable opposition to the plans with many hotels feeling they will be put at a competitive disadvantage.

Rosie Radwell said:  “The opposition comes because they feel they are not getting anything for the money and they feel they are going to be put at a competitive disadvantage.

“Marketing convinces people to visit a place and that is what the levy will help with.”

Paul Taylor of Dorset Chamber of Commerce said that a lot of UK councils were struggling with funding and schemes like the tourist levy could provide a blueprint for other tourist locations across the South Coast to follow.

He said:  “Most councils are in financial challenges so schemes like this could help with their financial problems.

“I understand the urgency, if this was to take three years then we have no events and it will take a lot to restart them.”

Kate Shaw, Managing Director of communications and public relations firm KTPR, said the initiative could be a real opportunity when it comes to marketing the region. 

“If we capture and use visitor engagement data well, the resulting PR and marketing strategies could be extremely effective in bringing more visitors in – especially out of season when numbers traditionally subside,” she explained.

“I think there is a real opportunity to look at things here from a fresh viewpoint and data is really key to this.”

Hannah Mazrae of Saffery said that the proof of the success or failure of the tourism levy would be shown, in time, by the number of bookings.

She said: “It will be interesting to see the effect this has on bookings and if individuals are saying they are not coming because they are going to pay the extra £2.40”

Rosie Radwell argued that clear communication with visitors about the tourist levy was vital.

She said: “I think PR is key here as there is a lot of misinformation out there.

“People don’t know if they are paying £2 a night or £20 a night and who they are paying.

“The message needs to be clearer.”

Diversification

The need to expand Dorset’s tourism industry beyond its key hubs was also highlighted as vital to ensuring that its positive effect was felt more widely in the county.

Hannah Mazrae of Saffery said: “We have agricultural clients that are looking at ways to diversify in to the tourism sector.

Hannah pointed to Farmer Palmer’s Farm Park as a successful example of diversification.

“Farmer Palmer’s has diversified and has a brilliant business model.

“There is also a growing trend around local produce, including local food and drink which gives opportunities to farmers but also the hotel sector as they can buy into this and say they are fully local.”