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Country Land & Business Association

Wish You Were Here?CLA POLICY ON RURAL TOURISM


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For more information on Wish You Were Here? CLA policy on ruraltourism, published in March 2013, contact:

Dr Charles TrotmanSenior Rural Business and Economics AdviserCountry Land and Business Association16 Belgrave SquareLondonSW1X 8PQ

Tel: 020 7235 0511Fax: 020 7235 4696Email: [email protected]

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Harry CotterellPresident, CLA

This policy paper explains what the CLA does for rural tourism.

As the premier membership organisation for owners of land, property and businesses in ruralEngland and Wales, the Association can help those in the tourism industry in the countrysidewith:

• lobbying government and its agencies on behalf of rural tourism;

• advice;

• guidance;

• liaison with like-minded organisations; and

• targeting areas of work such as PR and marketing.

The CLA’s members display remarkable ingenuity at diversifying to spread their sources ofincome, and tourism is a prime channel of additional income.

However, there is much to be done to improve the tourism world in England and Wales and makeit easier for members to operate in this vital area.

We would like Visit England to develop a package to give practical help to tourism businesses.We want to see effective coordination between Destination Management Organisations, LocalEnterprise Partnerships and the tourism sector. Moreover, we are calling for VAT on the supply ofrural tourism services to be cut from 20 percent to seven percent.

The CLA would like tourism destinations to boost local food sales, providing the best of Britishfor visitors. We will lobby and campaign against any “bed tax”, which would make tourismbusinesses uncompetitive, and strive for high-quality accommodation, food and drink for tourists.

We want tourism to work for our members and for the people of England and Wales and themany millions who come to our shores to enjoy our green and pleasant land.

FOREWORD

Wish You Were Here? CLA policy on rural tourism 2013 1

2 Wish You Were Here? CLA policy on rural tourism 2013

LIST OF ABBREVIATIONS

CAP Common Agricultural Policy

DCLG Department for Communities and Local Government

DMOs Destination Management Organisations

EU European Union

LEPs Local Enterprise Partnerships

NPPF National Planning Policy Framework

ONS Office of National Statistics

RDAs Regional Development Agencies

SMEs Small and Medium-sized Enterprises

VE Visit England

BEAUTY SPOT: Knaresborough Bridge over the River Nidd, North Yorkshire

CONTENTS Page

Executive Summary 5

1. Introduction 6

2. The Real Benefits of Rural Tourism 7

2.1 The potential and reality of rural tourism 7

3. What Progress has been Made? 8

3.1 2003 and now 8

3.2 Visit England’s Rural Tourism Action Plan 8

3.3 The Government’s tourism strategy 8

3.4 The Government’s goals 8

3.5 Increasing domestic tourism 9

4. The Need for Rural Tourism Integration 10

4.1 Integration rather than fragmentation 10

5. Building an Effective and Reliable Communications and Marketing Network 11

5.1 The broadband challenge 11

5.2 Destination Management Organisations 11

5.3 Marketing 12

6. The Problems of Taxation and Planning 13

6.1 An economic stimulus 13

6.2 VAT on tourist accommodation 13

6.3 Bed tax 13

6.4 Rural tourism start-ups 14

6.5 The planning conundrum 14

7. Maintaining the Visitor Profile 15

7.1 Domestic and overseas 15

7.2 The environmental angle 15

7.3 Local food and rural tourism 16

7.4 Bringing policies together 16

8. Summary of Recommendations and Initiatives 17

Wish You Were Here?CLA policy on rural tourism



STONE FRIENDS: a sculpture park, Perry Green, Hertfordshire


Back in 2003 the CLA published its first policy reporton rural tourism entitled Rural Tourism: Opportunitiesfor Growth. It was the first time the CLA had assessedthe state of the rural tourism sector and the reportmade a number of recommendations for theGovernment and the industry.

It is pleasing to note that many of therecommendations put forward have beenimplemented and the main criticism of the industry –that of fragmentation – is being addressed on acontinual basis and progress is being made.

However, there still remains a long way to go. Thisreport sets out the key areas where the CLA believesaction is needed to represent better its rural tourismmembers and to lobby government and externalstakeholders so that policy changes can be made thatmake a clear difference.

The report examines the role and effect of theGovernment’s Tourism Strategy published in 2011 andlooks at the current state of progress. It assesses theprogress towards integration in the sector andrecommends the reformation of the National RuralTourism Partnership.

As has been made clear in discussions with ruraltourism operators, effective and affordablecommunications, including access to a suitablebroadband infrastructure, are vital for business toperform. The CLA’s main broadband message onuniversal coverage is set out. The role and importanceof Destination Management Organisations (DMOs)and local tourism groups are considered with a callfor the CLA to engage proactively in seeking widerrepresentation.

Taxation and planning are crucial areas for ruraltourism businesses to consider. This report calls for areduction in VAT rates for people who provideaccommodation, arguing against the imposition of abed tax. The issue of helping rural tourism start-upsis also considered and again the CLA will beproactive in providing advice and information to itsmembers.

Finally, the importance of local food and the manyfood and drink festivals is acknowledged with therecommendation that the CLA works to design localfood trails as a means of encouraging greatercooperation.

EXECUTIVE SUMMARY

SUMMER FUN: sculling on the Avon, Bath


The CLA recognises the increasing importance of therural tourism sector to the rural economy and thenational economy. In 2003, the CLA launched a policyreport, Rural Tourism: Opportunities for Growth, tostimulate debate and encourage greater participationin the policy process.

The CLA has also been an active participant in VisitEngland’s Rural Tourism Action Plan as part of thatorganisation’s overall strategic framework for tourismin the UK. In addition, the CLA is a member of thenational Tourism Alliance.

There is little doubt progress has been made since2003 in rural tourism policy. For example, there is nowa greater awareness of the impact of rural tourismeconomically, and one of the greatest problems overthe past 10 years – the lack of reliable and up-to-datestatistics – is being addressed.

Nevertheless, vital issues that surfaced a decade agohave still to be resolved. Despite the Government’sapparent willingness to embrace all things “tourist”and the development of a Government tourism

strategy – “Government Tourism Policy” – thereremains a distinct feeling within the industry thatpolicymakers are still paying lip service to the needsof tourism. Restructuring of the sector appears to bebased more on political ideology rather thaneconomic necessity with a conspicuous lack ofavailable funding.

There is also the question of putting in place the rightinfrastructure. For rural tourism businesses to continueto be competitive, they must enjoy the samecommunications benefits as other businesses. It is stillthe case that many operators do not have access toeven a basic level of broadband connectivity. If ruraltourism is to be seen as a key economic driver, thismust change.

Major problems remain and are still to be resolved.This report reviews rural tourism policy and putsforward a series of recommendations for theGovernment and the industry to consider and takeforward.

1. INTRODUCTION

PONY CLUB: riding in the Welland Valley, Rutland

2.1 The potential and reality of rural tourism

Of a total of £100billion return for the overall tourismsector in England, the rural tourism industry is worthnearly £17billion1 a year and supports around 380,000jobs. For example, in Wales, tourism is one of thelargest industries and contributes £2billion inspending from overnight and day visitors. TheRamblers estimates that the current impact of walkingand mountaineering in Wales is worth £77million ayear and provides 4,250 jobs.

Rural tourism has an impact that goes beyond thecountryside. The rural economy is interdependentwith the UK economy as a whole, and both interactand overlap in many ways that form a complex webof economic relationships between cities, suburbs,surrounding countryside, and small towns andvillages.

People in rural areas realise tourism is not simply aconcern for tourism operators. For example, peopleon a short break in the countryside are not simplybuying services from the accommodation providersbut from a huge and diverse number of differentsources, purchasing leisure goods, clothing, localcrafts and souvenirs, meals and drinks and manyother products. These do not show up in the tourismstatistics but are nonetheless there.

Farming accounts for a small and declining share ofrural employment and income. Rural tourism canprovide a means of alternative income for the farmingcommunity either directly by diversifying into, forexample, providing rooms or holiday cottages forvisitors, or indirectly through environmentalstewardship to create and maintain the sort ofcountryside that visitors want to enjoy. It can alsoprovide additional income streams in the form oftourist attractions, such as wildlife parks andentertainment theme parks.

Apart from giving jobs and additional incomes forthose in the sector, rural tourism provides a valuablesocial and cultural benefit to the population as awhole, many of whom live in urban areas and ventureinto the countryside for enjoyment. Relaxation,tranquility, wonderful scenery and fresh air are highlyvalued. Walking is good for health and fitness. Wildlifestudy and observation can be educational and serveto enhance our belief in the need for conservation andpreservation. Our rural areas also provide a culturalreference point for many in formulating their sense ofnational, regional or local identity as well asmaintaining the sort of countryside which attractsvisitors and gives them enjoyment.

Rural tourism is also a valuable tool in thedevelopment of a cohesive and coherent society.While it can be said that the challenges of living inrural areas are different to those in urban areas – lowpopulation density, remoteness and the relativeimportance of land and its management – it is alsotrue that the concerns of rural people are notdissimilar to those in towns. These include havingadequate and effective broadband, education,healthcare, jobs and housing they can afford, andsecurity in their homes and on the streets.

The public should see the countryside as a place ofopportunity and not as a place to avoid or from whichto escape. More than ever the link between farmingand tourism is integral with each driving the other. Acoherent structure that ensures the growth of the ruraltourism sector needs to be put in place. Inadequateor ill-conceived policies also place an unmanageableburden on operators.

Undoubtedly, there is real potential for the ruraltourism sector to grow, and this has been acceptedby government. But to tap into these opportunitiesthere needs to be cohesion rather than fragmentation,medium to long-term strategy rather than the quick fix,and a modern outlook rather than continually lookingto the past.


1. UK tourism statistics, Office of National Statistics, Visit England

2. THE REAL BENEFITS OF RURAL TOURISM

VISITOR LINES: Crich Tramway Museum, Crich, Derbyshire

3. WHAT PROGRESS HAS BEEN MADE?

3.1 2003 and now

In Rural Tourism: Opportunities for Growth (2003), theCLA made a number of recommendations. Many ofthese have been accepted, either by government orthe tourism industry, including:

• a tourism marketing body dedicated to England – Visit England;

• the adoption of rural tourism as a major feature ofthe Rural Development Programme for England;

• a dedicated Minister for Tourism;

• the adoption of the National Planning Policy Framework (NPPF) that should make it easier for rural tourism businesses to develop; and

• a more unified approach to the development of rural tourism policy through Visit England's Rural Tourism Action Plan.

These successes are welcome. However, there arestill fundamental issues that need to be addressedwithin the sector if rural tourism is to act effectivelyand efficiently as a driver towards economic recoveryand sustainability.

3.2 Visit England’s Rural Tourism Action Plan

The Action Plan is the first attempt by a nationaltourism body in England to put together a number ofinitiatives to ensure that rural tourism remainsprofitable. It has three objectives:

• to diversify and modernise rural tourism products to generate business opportunities suited to local environments and communities and to develop a year-round visitor offer;

• to increase consumer awareness, understanding and enjoyment of the products and experiences available in rural areas; and

• to encourage rural communities and economies tobenefit from the value of rural tourism by taking ownership for the development, management, protection and conservation of rural assets and locations.

The CLA fully supports the endeavours of the RuralTourism Action Plan and, together with others, willseek to meet its objectives. Given the CLA’s longexperience of telecommunications and broadband inparticular, we will continue to lobby hard for universalconnectivity. We believe bridging the rural-urbandigital divide is of fundamental importance inexploiting the economic potential of rural areas.

But there remains a problem. The philosophy behindVisit England’s overall strategy remains that of thediscounted offer which tends to support the largeroperator. There remains little within the Visit Englandethos to provide much-needed support to the smallerrural tourism business. It is vital that Visit England putstogether a coherent package that will provide clearsupport and guidance for the Small and Medium-sized Enterprises (SMEs) in the rural tourism industrythat do not have the economies of scale available tothe larger operator.

3.3 The Government’s tourism strategy

It could be argued that the Government’s first everTourism Strategy published in 2011 was a watershedfor the industry. Rather than neglecting the concernsof the sector that have been expressed over the pastfew years, the Government has finally recognised andembraced a sector that has huge economic potentialand that can act as a primary economic driver. Doesthe strategy fit the rhetoric?

3.4 The Government’s goals

The strategy’s three immediate aims are to:

• fund an ambitious marketing campaign to attract visitors to the UK in the years following 2012. The £100million campaign, funded by the Governmentand the private sector, aims to attract four million extra visitors to Britain over the next four years. Thatwould mean a far greater spend in our economy, and around 50,000 new jobs;

• increase the proportion of UK residents who holiday in the UK to match those who holiday abroad each year. For longer stays (four nights or more) this would mean 29 percent of travellers holidaying in Britain rather than 20 percent today (creating 4.5 million extra domestic trips each year, £1.3billion more spend and 26,000 new jobs).

The CLA recommends:

• Visit England should develop a package that provides practical and educational support toSmall and Medium-sized Enterprises (SMEs) inthe rural tourism industry.

The CLA will:

• produce a series of briefing notes for its rural tourism members to guide them through the fast changing nature of the sector.


And if the Government can replicate this scale of improvement for shorter stays as well, it will createa further £750million of spend and around 11,000new jobs; and

• improve the sector’s productivity to become one ofthe top five most efficient and competitive visitor economies in the world.

How has the Government performed? According tothe latest available data from the Office of NationalStatistics (ONS), July 2012 saw 3.18 million visitorscompared with 3.6 million in 2011. Importantly, visitorspend was down by six percent. However, whenlooking at the first seven months of 2012 the pictureis brighter with inbound tourism increasing by onepercent compared with the same period the previousyear. Visitor spend remained stable. This is despite aseven percent fall in visitor numbers experienced bythe rural tourism sector.

The weather also needs to be taken into account. TheCLA has calculated that as a result of the inclementweather in 2012, rural tourism businesses sawbookings fall by more than seven percent. Togetherwith the problems over cancelled events, which havean indirect impact on rural tourism businesses byreducing the number of visitors (the CLA calculatesthe cost was at least £240million), there is little doubtthat many businesses have suffered.

3.5 Increasing domestic tourism

Another key feature of the Government’s strategy isthe need to increase the number of members of thepublic that stays and holidays in Britain. According tothe strategy, currently less than 40 percent of totalholiday spend goes on domestic tourism.

The Government has also accepted the need toexamine the issue of brown road signs (whichpromote tourist destinations) that has long been aperennial problem for the sector. The CLA welcomesthis move but points out that it is vital there is propercoordination between the Highways Agency and thelocal planning authorities to ensure best practice isemployed in this area.

The CLA recommends:

• there must be a more sympathetic, consistentand less costly approach to brown road signs.

TOURISM STRONGHOLD: Alnwick Castle, Northumberland

BROWN SIGNAGE: family-run wildlife park, Cambridgeshire



4. THE NEED FOR RURAL TOURISM INTEGRATION

4.1 Integration rather than fragmentation

Undoubtedly, progress has been made in addressingthe significant issue of fragmentation in the sector. Inthe past, there has been a lack of structure andawareness that rural tourism businesses needadequate representation. This lack of integration wasresponsible for the inability to put together policiesthat benefitted rural tourism operators.

Today, there is far greater policy coherence. Indeed,as noted above, there is now a Government TourismStrategy and we have welcomed the establishment ofVisit England as the primary organisation in promotingtourism in the country.

In addition, as a member of the Tourism Alliance, theCLA plays an integral part in seeking to influence thetourism debate at a national level by remindingpolicymakers of the needs of rural tourism businessoperators.

However, there is still fragmentation in the industry.The restructuring of Destination ManagementOrganisations (DMOs) and the difficulties in securingsufficient funding to promote them effectively placesfurther burdens on the industry.

There is now also the issue of the influence and ever-growing importance of Local Enterprise Partnerships(LEPs). Although a number of them is still very much

in their infancy or experiencing a period of flux, theCLA recognises the importance of the LEPs as ameans of promoting economic growth. However, thereneeds to be cohesion and interaction. There alsoneeds to be effective engagement with LEPs so thatthey are made fully aware of the requirements andaspirations of rural tourism operators.

The CLA believes what is needed is a genuinepartnership between government, DMOs and ruraltourism operators. The fragmentation that has beenthe hallmark of the industry over the past decademust not be allowed to continue. Rural tourismbusinesses need and should demand representationat all levels of government.

We remain convinced that the rural tourism industryand the trade associations that represent it have aunique opportunity to influence the policy debate.

The CLA recommends:

• the National Rural Tourism Partnership be reinvigorated with other like-minded trade associations to ensure that the views of rural tourism operators are heard by those in Whitehall, Westminster, Cardiff, the Local Enterprise Partnerships (LEPs) and in the county halls across England and Wales.

WHEEL TOURISTS: cyclists at Rutland Water


5. BUILDING AN EFFECTIVE AND RELIABLE COMMUNICATIONS AND MARKETING NETWORK

5.1 The broadband challenge

One of the greatest challenges facing rural tourismbusinesses is the ability to be able to market andcommunicate their offerings to the consumer.It is essential that all rural tourism businesses andrural diversification businesses in general haveaccess to an effective and affordable broadbandcommunication and adequate mobile telephony.Without the ability to engage effectively, the tourismbusiness will struggle to survive.

The CLA has been at the forefront of pushing foruniversal coverage of at least two megabits persecond (Mbps) broadband connection. In our 2012policy report Broadband Fit for Rural Growth: CLAvision for rural broadband we make clear that withoutuniversal coverage rural Britain is not – and can neverbe – fully open for business.

The current rural-urban digital divide is anathema toeconomic efficiency. Rural tourism is being held backfrom performing the vital function earmarked by theGovernment. The CLA has made clear through itslobbying that we are not wedded to a singletechnological solution. We believe that a variety oftechnologies within a patchwork quilt model needs tobe deployed if universal broadband is to become areality. We remain unconvinced that the present effortsby government on the deployment of broadbandinfrastructure are effective in putting in place amodern network. Delays simply exacerbate theproblems being experienced by those rural tourismoperators without effective connectivity.

5.2 Destination Management Organisations

The rural tourism sector has undergone significantstructural change over the past decade. From a timewhere there were Regional Tourist Boards under theumbrella of the English Tourism Board, there are nowa plethora of Destination Management Organisations(DMOs) whose purpose is to promote the localtourism offer.

One of the major problems of the DMOs and localtourism groupings is the availability of funding. Many

bodies are struggling to survive simply because thereis a dearth of funding. This is particularly true sincethe abolition of the Regional Development Agencies(RDAs) that sponsored the regional and local tourismstructure.

The lack of confidence that rural tourism operatorshave in DMOs is a major issue. Without the necessarycredibility, the potential for success for the DMOs willremain unrealised. It is still surprising, given the longgestation period, that a number of DMOs is stillstruggling. More effective communication betweenthe DMOs and rural tourism operators is needed. It isevident that this is still not happening.

We believe DMOs can play a vital role in promotionand marketing. However, we remain concerned that,it would seem, the structure is changing once morewith the alignment of Local Enterprise Partnerships(LEPs) and county councils. Although we fully supportstrategic frameworks that are intended to bringstability to the sector, we believe this is once more amove towards regionalisation and away from theGovernment’s stated policy ambitions of localism andthe Big Society. Restructuring the industry is fine if itis effective, but restructuring for the sake ofrestructuring leads to market failure because of a lackof direction and funding.

The CLA believes:

• there must be a universal service obligation putin place that ensures that everyone has accessto a benchmark two megabits per second (Mbps) by 2015; and

• government should ensure that rural areas areprovided with adequate mobile telephony.

The CLA believes:

• there must be clarity in how the rural tourism sector is being restructured. It is clear that thefailure of government to fund adequately Destination Management Organisations (DMOs) will lead to a number of them disappearing which will be to the detriment ofthe rural tourism industry as a whole; and

• there must be adequate and effective coordination between Destination Management Organisations (DMOs), Local Enterprise Partnerships (LEPs) and the rural tourism sector to identify the inherent strategicissues through which to develop effective solutions.

ENGLISH ICON: telephone box, Lake District


What is happening is the consolidation of the DMOstructure as a direct result of the lack of availablefunding. In principle, this could lead to benefits.However, it is imperative for the DMOs to allow all theproducts and services that are on offer, and thereforebeing promoted, to be made accessible to thecustomer, in this case, the rural tourism business.

It is also clear rural tourism businesses need effectiverepresentation at the DMO and the county andregional level.

5.3 Marketing

Marketing continues to be an issue that divides thosein the rural tourism sector. Not only is it an ongoingchallenge, it can often lead to considerable amountsof money being wasted by businesses failing to tapinto a viable market. This means rural tourismbusinesses need advice and guidance as to howprofitably to market their operations.

There is clearly a case to be made for Visit England'smarketing, and that of other tourism bodies, to provideguidance on how operators can engage customers.Those who diversify into rural tourism need toconsider new marketing strategies to remaincommercially viable.

The CLA recognises the importance of social mediain today’s society. It also recognises the importanceof the internet and the value websites can play in themarket place. However, the speed of change withinthe sector – as with other elements of society – meansthat the rural tourism operator now has to have myriadskills over a far wider range of areas. Where today, themost common use of social media is Facebook,Twitter and the business network LinkedIn, this is verylikely to change.

However, this is not to say that social media is alreadyredundant. Far from it and for particular businesses itcan provide an essential marketing tool. But it is notfor everyone.

The CLA believes that rural tourism operators have tobe assisted in how they use technologies such associal media and internet service optimisation. Butthis can only be effectively achieved through propercollaboration. Real assistance to rural tourismoperators has to come in the form of providinginformation on the latest market developments andproviding analysis of prevailing and future marketconditions.The CLA will:

• encourage its rural tourism members to join their respective Destination Management Organisations (DMOs) and will lobby for effective representation on the boards of the DMOs.

The CLA will:

• maintain an active watching brief and seek toliaise with organisations so that rural tourism businesses can market proactively; and

• provide a series of resources, through briefingand guidance notes, to help guide its rural tourism members’ marketing plans.

The CLA will:

• play its part in providing guidance and information to rural tourism businesses run byits members, informing and educating them onthe latest developments in technology and helping them to focus on the most effective tools available; and

• engage in discussions with the main tourism marketing bodies in England and Wales on behalf of its members to ensure that the interests of the rural tourism sector are recognised and that a more efficient marketingfocus, taking account of these needs, can be put in place.

SLEEPY HEADS: a country B&B

6.1 An economic stimulus

A key part of the Rural Economy Growth Reviewannounced by the Government in 2011 was apackage of £25million to support rural tourism. Theaims are to:

• promote tourism in rural areas;

• support the development of rural tourism businesses;

• improve tourism, in Areas of Outstanding Natural Beauty; and

• support communities to develop local path networks.

The CLA acknowledges the efforts of Defra throughthe Rural Economy Growth Review to target the needsof rural tourism. We are pleased rural tourism hasrisen up the policy agenda.

6.2 VAT on tourist accommodation

The CLA believes rural tourism operators should beable to benefit from the lower levels of VAT that arecommon in other member states of the EuropeanUnion (EU). The increase in VAT from 17.5 percent to20 percent has had the effect of severely restrictingthe economic viability of rural tourism businesses.

Indeed, many farmers are discouraged when tryingto diversify into rural tourism because they will bevoluntarily registered for VAT well under the minimumthreshold to enable them to claim back VAT on farmsupplies. This means they would have to charge VATon the supply of tourism services.

6.3 Bed tax

The Lyons Report into Local Government raised theissue of putting in place a bed tax to raise revenue forlocal authorities. In principle, a bed tax appeals tolocal government as it is seeking to make up ashortfall in grant from the Government. In addition,such a tax would ensure tourists make a contributiontowards the public costs of preserving theenvironment.

The CLA believes a bed tax is flawed for threereasons:

1. imposing such a tax on the tourist would discriminate against the tourist and the accommodation provider particularly as the latter already supports the local economy by paying business taxes;

2. no sound idea has been proposed for collecting such a tax; and

3. levying bed tax would invariably increase costs tobusinesses many of which are Small or Medium-sized Enterprises (SMEs). At a time of recession, placing such burdens on the industry would defeatattempts to boost the economy.


The CLA recommends:

• there should be a reduced rate of VAT of seven percent on the supply of rural tourism services, bringing Britain into line with the restof the European Union (EU).

The CLA recommends:

• no bed tax is levied on the rural tourism industry of England and Wales.

6. THE PROBLEMS OF TAXATION AND PLANNING

HAT TRICK: three oast houses, Kent

6.4 Rural tourism start-ups

Starting any business is risky. Many matters need tobe agreed before a business can get going. Theseinclude creating a fully fledged business plan,ensuring there is a viable market, sensible marginsand an effective communication infrastructure andfinally securing sufficient finance.

The issue of securing the right level of capital to startthe enterprise has been made more difficult by thereticence of high street banks to lend money to SMEs.Compelling evidence indicates restrictions in lendingare having a detrimental impact on the rural tourismsector. The slowness of banks to open new businessaccounts is also concerning. It often takes up to fourmonths to open business accounts even when thebusiness may have orders to fulfil, the CLA has beenreliably informed. This is unacceptable.

6.5 The planning conundrum

The planning system holds the key to the developmentof many rural tourism businesses, either for theimprovement, enlargement or change of use of thebusiness or as a business start-up.

Progress is being made in making the planningsystem less rigid, more flexible and more businessfriendly. The adoption of the National Planning PolicyFramework (NPPF) is a clear attempt to allowbusinesses to develop. This clearly also applies torural tourism operators. The CLA has alwayssupported a planning system that is sufficientlyflexible and confident to encourage as well as controlappropriate development in rural areas.

A great deal will depend on how the NPPF isimplemented as well as in the interpretation given bylocal planning authorities to proposed developments.

Progress is being made slowly but the CLA willcontinue to liaise and lobby the Department forCommunities and Local Government (DCLG) toensure rural tourism businesses are not being stifledand much-needed development can take place.


The CLA recommends:

• the changes within the National Planning PolicyFramework (NPPF) are implemented to bring certainty and consistency to the rural tourism sector.

The CLA will:

• discuss with other trade associations how thedelays in opening new accounts can be resolved and lobby the Government on this issue.

WATER ATTRACTION: Colwith Force, Lake District

7.1 Domestic and overseas

A number of factors has to come into play for the ruraltourism sector to flourish and act as a primaryeconomic driver. There needs to be a suitable policyframework. There must also be a unity of purpose,and there needs to be a more focused strategy ondeveloping both inbound tourism (that from overseas)and domestic tourism.

The Olympics and the Paralympics in 2012 showedoff the best that Britain had to offer. The legacy ofthese two great sporting events is crucial. Capitalisingon this legacy is vital to the future success of thesector.

Delivering this legacy requires coordination andcooperation between the tourism industry andgovernment. However, it must be incumbent upon theindustry, through the representative tradeassociations, to make sure the voice of rural tourismis heard.

Tourism often creates a sense of perception andexperience in the minds of visitors. A good holidayoften leads to repeat bookings and business growth.A poor or bad experience will lead to cancellationsand negative publicity. The onus is on the rural tourismoperator to provide a high-quality experience.

7.2 The environmental angle

Landscape and the natural environment in generalplay a huge role in attracting visitors to thecountryside. Wildlife schemes, mile after mile ofhedgerows and the ease of access to rural areas

have all been shown to be a key reason why peoplevisit the countryside. The CLA has been at theforefront of the policy debate on the reform of theCommon Agricultural Policy (CAP) to maintain thesignificant progress made on the environment.


7. MAINTAINING THE VISITOR PROFILE

The CLA believes:

• sub-standard accommodation, cafés, pubs, restaurants and attractions do immense damage to the rural tourism industry. We support assessment and accreditation schemes that ensure good quality and best practice; and

• the criteria adopted by Destination Management Organisations (DMOs) have to beflexible enough to take into account the rangeof accreditation schemes that are on offer. Simply relying on a rigid formula and omitting perfectly acceptable rural tourism operations creates a major barrier to tourism growth.

The CLA will:

• continue to lobby for a Common Agricultural Policy (CAP) that is fair to British agriculture and that embraces the beauty of the countryside so that the qualities of rural England and Wales can carry on being appreciated by all.

WESSEX WONDER: Golden Cap, Dorset


7.3 Local food and rural tourism

Local food and drink remain a central part of thecountryside experience for tourists. As we said in2003, rural tourism businesses should seek to makethe most of the local produce available in theirmarketing and promotion strategies. The CLA believesthat greater cooperation and coordination are neededto make the most of the opportunities afforded by thegrowth of the local food sector and the many localfood and drink festivals that take place.

7.4 Bringing policies together

This report has already set out the various initiativesand policies that have been developed or are beingdeveloped to meet the needs of the visitor to the

countryside of England and Wales. A great deal isbeing done. The industry is in a better position nowthan it was when the CLA put forward its rural tourismpolicy in 2003.

The key to all this is the tourist. We saw in the summerof 2012 that the 70,000 volunteers that became so-called Games Makers made the Olympics and theParalympics a joy to behold. This philosophy has tobe extended to the rural tourism sector if it is to makethe economic progress the Government believes itcan.

We will play our part, implementing the ideas andinitiatives we have set out in this report throughworking with those in government and with externalstakeholders.

The CLA believes:

• that by working together with all those who work in, work for and represent rural tourism businesses we can collectively make a difference and strive towards an economicallyviable and prosperous rural tourism industry.

OLDE ENGLAND: the Falkland Arms, Great Tew, Oxfordshire

The CLA recommends:

• looking at ways in which rural tourism businesses and local food outlets can work together through the development of local foodtrails.

8. SUMMARY OF RECOMMENDATIONS AND INITIATIVES

What Progress has been Made?

3.2 Visit England’s Rural Tourism Action Plan

Rural tourism businesses need to be supported byVisit England with advice that is practical andbusiness orientated.

The CLA recommends:

• Visit England should develop a package that provides practical and educational support to Small and Medium-sized Enterprises (SMEs) in therural tourism industry.

The CLA will:

• produce a series of briefing notes for its rural tourism members to guide them through the fast changing nature of the sector.

3.5 Increasing domestic tourism

The CLA is pleased the Government has recognisedthe importance of brown road signs (which promotetourist destinations) to the rural tourism industry. Nowproper coordination between the Highways Agencyand local planning authorities is needed to ensure aconsistent approach.

The CLA recommends:

• there must be a more sympathetic, consistent andless costly approach to brown road signs.

The Need for Rural Tourism Integration

4.1 Integration rather than fragmentation

Although there is significantly less fragmentation inthe rural tourism policy debate than in the past, thereis still a need for the voice of rural tourism operatorsto be represented at the national level.

The CLA recommends:

• the National Rural Tourism Partnership be reinvigorated with other like-minded trade associations to ensure that the views of rural tourism operators are heard by those in Whitehall,Westminster, Cardiff, the Local Enterprise Partnerships (LEPs) and in the county halls acrossEngland and Wales.

Building an Effective and ReliableCommunications and Marketing Network

5.1 The broadband challenge

It is widely recognised that effective and affordablebroadband connectivity is vital to economic growth.What is true of the general economy is certainly thecase for the rural tourism sector. Failing to providebroadband for all at an acceptable speed will simplyexacerbate the uncompetitive nature of rural tourismoperators.

The CLA believes:

• there must be a universal service obligation put inplace that ensures that everyone has access to a benchmark two megabits per second (Mbps) by 2015; and

• government should ensure that rural areas are provided with adequate mobile telephony.

5.2 Destination Management Organisations

It is crucial that rural tourism businesses areadequately and effectively represented at DestinationManagement Organisation (DMO) level. Through thiswe hope that the needs of the rural tourism sector willbe recognised throughout counties and regions.

The CLA believes:

• there must be clarity in how the rural tourism sectoris being restructured. It is clear that the failure of government to fund adequately Destination Management Organisations (DMOs) will lead to a number of them disappearing which will be to thedetriment of the rural tourism industry as a whole;and

• there must be adequate and effective coordinationbetween Destination Management Organisations (DMOs), Local Enterprise Partnerships (LEPs) andthe rural tourism sector to identify the inherent strategic issues through which to develop effective solutions.

The CLA will:

• encourage its rural tourism members to join their respective Destination Management Organisations(DMOs) and will lobby for effective representation on the boards of the DMOs.


5.3 Marketing

The CLA recognises the importance of social mediain marketing businesses. However, social media is notthe answer on its own. Clear and practical marketingadvice is needed using the latest availabletechnologies and practices.

The CLA will:

• maintain an active watching brief and seek to liaisewith organisations so that rural tourism businessescan market proactively;

• provide a series of resources, through briefing andguidance notes, to help guide its rural tourism members’ marketing plans;

• play its part in providing guidance and informationto rural tourism businesses run by its members, informing and educating them on the latest developments in technology and helping them to focus on the most effective tools available; and

• engage in discussions with the main tourism marketing bodies in England and Wales on behalfof its members to ensure that the interests of the rural tourism sector are recognised and that a moreefficient marketing focus, taking account of these needs, can be put in place.

The Problems of Taxation and Planning

6.2 VAT on tourist accommodation

In our 2003 report Rural Tourism: Opportunities forGrowth the CLA lamented that UK rural tourismproviders of tourist accommodation were obliged toimpose 17.5 percent VAT on bookings. Currently thatrate is 20 percent, the highest in the European Union(EU). All this does is put accommodation providers ata distinct disadvantage compared with their Europeancompetitors.

The CLA recommends:

• there should be a reduced rate of VAT of seven percent on the supply of rural tourism services, bringing Britain into line with the rest of the European Union (EU).

6.3 Bed tax

There are strong arguments against local authoritiesimposing a bed tax. Such a move could do long-termdamage to the rural tourism industry.

The CLA recommends:

• no bed tax is levied on the rural tourism industry ofEngland and Wales.

6.4 Rural tourism start-ups

Starting a rural tourism business requiresconsiderable work and effort and can be almostimpossible without access to the right advice andinformation.

The current economic downturn and the need forbanks to retain adequate levels of capital mean thatborrowing is becoming more difficult for businesses.Therefore new businesses are not supported whenhigh street banks significantly delay opening businessaccounts.

The CLA will:

• discuss with other trade associations how the delays in opening new accounts can be resolved and lobby the Government on this issue.

6.5 The planning conundrum

Progress is being made in making the planningsystem less rigid, more flexible and more businessfriendly. The adoption of the National Planning PolicyFramework (NPPF) is a clear attempt to allowbusinesses to develop.

The CLA recommends:

• the changes within the National Planning Policy Framework (NPPF) are implemented to bring certainty and consistency to the rural tourism sector.

Maintaining the Visitor Profile

7.1 Domestic and overseas

The CLA has always supported – and will continue tosupport – accreditation schemes for rural tourismoperators that ensure quality. However, given thenumber of schemes available, it is essentialDestination Management Organisations (DMOs) allowgreater flexibility in the criteria set for those schemesthat will be promoted. Failure to do so affects agrowing number of rural tourism operators.

The CLA believes:

• sub-standard accommodation, cafés, pubs, restaurants and attractions do immense damage tothe rural tourism industry. We support assessmentand accreditation schemes that ensure good quality and best practice; and

• the criteria adopted by Destination Management Organisations (DMOs) have to be flexible enough to take into account the range of accreditation schemes that are on offer. Simply relying on a rigidformula and omitting perfectly acceptable rural tourism operations creates a major barrier to tourism growth.


7.2 The environmental angle

The CLA has been at the forefront of the policy debateon the reform of the Common Agricultural Policy(CAP) to maintain the significant progress made onthe environment.

The CLA will:

• continue to lobby for a Common Agricultural Policy(CAP) that is fair to British agriculture and that embraces the beauty of the countryside so that thequalities of rural England and Wales can carry onbeing appreciated by all.

7.3 Local food and rural tourism

With the growth of local food over the past decade,there are unique opportunities for rural tourismoperators to cooperate with local food outlets. Inessence, the rural tourism business providesconsumers for local food outlets increasing visitorspend.

The CLA recommends:

• looking at ways in which rural tourism businesses and local food outlets can work together through the development of local food trails.

7.4 Bringing policies together

The 2012 Olympics and Paralympics showed thepower of a large number of people all pulling togetherto deliver a world class event. Tourism relies on thesame kind of teamwork.

The CLA believes:

• that by working together with all those who work in,work for and represent rural tourism businesses wecan collectively make a difference and strive towards an economically viable and prosperous rural tourism industry.


FLYING HIGH: Imperial War Museum, Duxford, Cambridgeshire

VISITOR FUN: fly-fishing tuition, Blenheim, Oxfordshire


CONTACTS

For more information on Wish You Were Here? CLA policy on ruraltourism, published in March 2013, contact:

Dr Charles TrotmanSenior Rural Business and Economics AdviserCountry Land and Business Association16 Belgrave SquareLondonSW1X 8PQ

Tel: 020 7235 0511Fax: 020 7235 4696Email: [email protected]

© Country Land and Business Association Limited 2013

Registered in England and Wales No: 6131587 at the above address.

All rights reserved. No part of this publication may be reproduced or transmitted, in any form or

by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in any

retrieval system of any nature without prior written permission of the copyright holder except as

expressly permitted by law.


16 Belgrave SquareLondon SW1X 8PQT: 020 7235 0511F: 020 7235 4696E: [email protected]

www.cla.org.uk

Wish You Were Here? CLA policy on rural tourism

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