Visitors from Overseas to London’s Theatre

September 2010

Coming up…

• London’s Importance to Inbound Tourism• London’s Top Inbound Markets• Importance of Heritage and Culture• Theatre Visitors from Overseas• Value Messaging• Importance of Word of Mouth

London’s Importance to Inbound Tourism

• 14.2 million visitors in 2009– 11 times Edinburgh– 18 times Manchester– 20 times Birmingham– 50% of all staying visits in the UK

• Spent £8.2 billion (£580 average per visitor)

• International Hub– Mix of short and long-haul visitors– Higher proportion of Holiday visitors than UK average

• Olympic & Paralympic Games

Source: International Passenger Survey (ONS)

London – Top Inbound Markets

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

USAFrance

GermanySpain

ItalyIreland

NetherlandsAustraliaCanadaPoland

SwitzerlandBelgiumSweden

DenmarkNorway

JapanIndia

AustriaPortugal

South Africa

2009 - Visits (000)

• London relies on mature markets and always will• However, emerging markets such as Brazil, India, China, and Russia

are forecast to grow rapidly over the next decade

Source: International Passenger Survey (ONS)

The importance of Culture & Heritage

• 57% of online population agree that Culture & Heritage is a strong influence on their choice of holiday destination (NBI)

– 15% disagreed

• Britain can capitalise– UK is rated as 4th out of 50 nations for Culture– 4th for Contemporary Culture– 4th for Vibrant and Exciting Cities

• Culture & Heritage motivates £4.5 billion inbound spend in the UK

– 100,000+ jobs

Source: Nation Brands Index 2009, VisitBritain/International Passenger Survey

Theatre is a fairly common activity for visitors to London from overseas

• One in six visits involves theatre (all journey purposes)– One in four visits (holiday)

• Fairly even seasonal spread

• Over 2/3 of theatre visitors from overseas are on holiday– 1/5 VFR– 1/20 Business

• 64% Musicals, 25% Play, 3% Dance, 1% Opera (Ipsos MORI)

Source: International Passenger Survey (ONS)

Figures are for visitors who only visited London

Musicals more appealing to females and seniors

• Similar story for theatre/ballet/opera

Source: VisitBritain/Nation Brands Index

Appeal of Britain’s Theatre, Opera, Ballet

• Similar story to musicals in terms of age/gender

• 55% of theatre-goers from overseas are female– likely to bring their partner

• Theatre attracts visitors of all ages…

Females likely to drive decision to go

0-15, 4%

16-24, 18%

25-34, 23%

35-44, 17%

45-54, 19%

55-64, 12%

65+, 5%

Source: International Passenger Survey (ONS)

Figures are for visitors who only visited London

• Amongst Holiday visitors, 29% of over 45s went to the theatre in 2009 (vs 23% of under 45s)

• Due to aging populations, the proportion of visitors to Britain aged 55+ has been growing for years, and should continue

• In 1993, 12% of visitors were 55+ (18% in 2009)• In 1993, 25% of visitors were under 25 (18% in 2009)

• The West End is well positioned to capitalise on demographic trends, but must keep connection with younger audiences too

– 44% of visitors to the UK were 25-44 in 2009

…But Older Age Groups Have a Higher Propensity to Visit

Musicals have highest resonance amongst English-speakers

• Musicals have highest appeal in Norway, Denmark, Sweden, Ireland

• Theatre, Opera, Ballet most highly regarded by Nordics, Asian nations, and parts of Latin America (NBI)

League of London Theatre Visits

0% 5% 10% 15% 20%

USAGermany

NetherlandsSpain

FranceIrish Republic

DenmarkItaly

AustraliaNorwayCanadaSweden

SwitzerlandBelgium

Austria

0% 10% 20% 30% 40%

DenmarkBrazil

NorwayNew ZealandSouth Korea

GreeceMalaysia

AustriaCanada

AustraliaNetherlands

USAPortugal

SingaporeSouth Africa

• 1 in 6 theatre-visitors from overseas is from the USA

• Visitors from countries with a high level of English, visitors from Asia, and from Brazil have a high propensity to go to theatre

Proportion of theatre visits Proportion of visits involving theatre

Source: International Passenger Survey (ONS)

Figures are for visitors who only visited London

Price of Tickets and General Expense are main reasons for not going more often, but…

• …cost of Sterling has fallen

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Source: Ipsos MORI, VisitBritain

Cost of Sterling presents an opportunity

• From Aug 2007 to Aug 2010 Sterling has fallen…

• 20% against US Dollar• 22% against the Euro• 28% against the Australian Dollar• 17% against the Swedish Krona• 18% against the Norwegian Krone• 18% against the Danish Krone

Source: VisitBritain

Theatre is a ‘Hidden Opportunity’

• For the majority of visitors to Britain, theatre is not the main reason for the trip

– Theatre was main reason for visiting London for 13% of theatre-goers from overseas

– 49% of theatre-visitors from overseas book on the day or one day before the performance

• However, visitors from overseas who went to the theatre in Britain are even more likely to recommend Britain than non-theatre-visitors

– Encouraging more visitors to go to the theatre once they have decided to visit will result in more recommendations

• Word of mouth is the most common way overseas visitors find out about theatre productions

• Growing importance of social media

Source: Ipsos MORI, TNS/VisitBritain

Key Points

• High appeal to visitors with a high level of English

• More appealing for females and more senior age groups, although many theatre visitors are younger

• The cost of sterling is a major opportunity relative to a few years ago

• For the majority, theatre is not the reason to visit Britain, but word of mouth drives recommendations

Theatre is frequently mentioned as one of the most enjoyable aspects of the trip, especially the Globe and musicals

Attending a performance at the Globe Theatre and

standing in the 'yard'. Fantastic!

- USA

Being with my grown kids and 'Spamalot' at

one of the original

theatres! I just want to go back

to see theatre!!!

- USAWe enjoyed the

theatre, specifically Les Miserables and

the Lion King.- USA

It was a Theatre experience. I saw 9 shows in the 8 days -

USA

Monty Python's Spamalot!!!!!!-

Denmark

The best was Billy Elliot the Musical –

South Africa

Source: Lynn Jones London Visitor Survey

Sources

• International Passenger Survey (Office for National Statistics)

• Nation Brands Index (2007, GMI)• Nation Brands Index (2009, GfK)• The West End Theatre Audience (Society of London

Theatre, Ipsos MORI)• Lynn Jones London Visitor Survey (2008-9)• Visitor Experience Research (TNS/VisitBritain, 2007)