The contribution that tourism makes to the South West economy is huge.  Figures from South West Tourism show that it attracts some £9.4 billion in annual visitor spend and, with an estimated total employment figure of over 268,000, it accounts for 11% of the region’s employment.

Over many years, tourism operators have tried to iron out the sector’s seasonality of summer peaks and winter troughs and have done a remarkably good job by providing new products and experiences and taking advantage of increasing consumer disposable income and mobility.

Visitor expectations have also risen and the successful tourism businesses have ensured they have invested in their facilities to meet these growing demands.  Many who have failed to do so have fallen by the wayside but a leaner and fitter tourism product is arguably better than a low quality offering that is likely to attract visitors only once.

With the rising cost of travelling abroad and the uncertainty now in people’s minds that their cherished break can be disrupted by strikes or volcanic ash, the tourist trade in the South West is well placed to take long term advantage of getting visitors to the region all year round and offering an experience that they will want to repeat.

Investment in tourism and leisure comes in many forms.  It can be building hotel extension, installing new rides or upgrading existing accommodation to internationally accepted standards.  It can also be a garden makeover at a B&B, new refreshment facilities or a lick of paint to enhance the built environment.

One area which is increasingly attracting new investment is sustainability and infrastructure development to deal with the impact of the environment.  On the one hand, the market is responding positively to any tourism offer that can demonstrate ‘green’ credentials’.  On the other hand, many tourism operators are reacting to evidence of extreme and volatile weather conditions due to global warming.

Having seen the instantaneous effect of torrential rain on Boscastle in 2004, in Cumbria earlier this year and, with an even more tragic outcome, in the South of France last week, it is not surprising that some operators are looking to take precautionary steps.

Some businesses, particularly holiday parks and waterside attractions are undergoing risk assessments to investigate the impact of closure or infrastructure damage due to flooding. Some are making investments that reduce the risk of flooding by raising waterside paths, re-landscaping or creating lakes to cope with large amounts of unexpected run-off.

Such measures are not just about damage limitation, they can make a very positive contribution to the business by introducing features designed to cope with extreme conditions but which also enhance the visitor experience and save money in the long run.

An environmental review, for instance, will indicate where energy and water is used and where it is wasted and steps can be taken to reduce these costs or divert superfluous energy or water into practical usage such as powering outside lighting or creating water features.

Our valuable tourism business needs investment to grow and to secure long term repeat business.  Investing in sustainable facilities ticks more boxes than the ‘feel good’ factor. 

Not only is it a socially responsible course of action, it can save money for reinvestment and upgrading, and, in forming part of a coherent risk assessment and environmental management programme, it can be a very valuable part of a business case when seeking funding.

For further information:

Contact Peter Cliff, at Francis Clark’s South Devon office. Telephone: 01803 320100

Francis Clark has offices in Exeter, Plymouth, Salisbury, Taunton, Tavistock, Torquay and Truro. Francis Clark is the winner of the ‘Auditor of the Year - Mid Tier’ in the National Financial Directors’ Excellence Awards 2011, and LexisNexis Best General Tax Practice Award 2009. More information is available by logging on at our Online Information Centre