Report of the Group Chief Executive, The Growth Company attached

This report provides an overview of Marketing Manchester’s role in developing the City’s visitor economy; analysis of performance of the City’s tourism sector; and the highlights of Marketing Manchester’s recent activity, concluding with future opportunities and challenges.

The Committee considered a report of the Group Chief Executive of the Growth Company, which provided an overview of Marketing Manchester’s role in developing the City’s visitor economy. 

The main points and themes within the report included:-

·                The strategic context for Marketing Manchester’s activities;

·                An overview of tourism sector performance in Manchester with UK comparisons;

·                A review of Marketing Manchester’s activity delivered in 2018/19; and

·                Future opportunities and challenges

Some of the key points that arose from the Committee’s discussions were:-

·                How would the new Tourism Strategy for 2020 – 2030 look to reduce carbon emissions within the tourism industry and how would it look to make the tourism industry resilient to the changes that climate change mitigation would bring;

·                What was being done to promote areas of the city, outside of the city centre, to encourage visitors to stay longer;

·                Was the current tourism performance due to any specific symptoms or were they part of a wider trend, with reference to hotel occupancy levels and business viists/events;

·                Was there a need to be concerned that hotel occupancy levels, although high, appeared to be stagnant;

·                Was there any specific reasons why the average spend per day and average night stay from international leisure from China was so high; and

·                What progress had been made with the proposed visitor levy.

The Leader advised that in terms of hotel levels, Manchester had had the fastest increase in hotel rooms over any city for a considerable period of time and the fact that it was having no impact on the percentage of rooms let was remarkable.  He advised that a more telling comparison would be to compare the yield per room as this was what drove the industry, and when compared to other cities, what visitors paid for a hotel room in Manchester was much higher.  In terms of conferences in the city, this was a more complicated area, as at times it was it was difficult to attract certain conferences, however, Manchester Central Convention Centre (MCCC) was having to turn business away as it did not have the capacity.

In terms of the tourism industry becoming resilient to the changes that climate change mitigation would bring, the Leader informed the Committee that the assumption that there would be a reduction in the number of flights into and out of Manchester Airport would reduce as a result of mitigation was not true, and the real challenge for the aviation industry in addressing climate change was how it made aviation a cleaner mode of transport.

Officers advised that the new Tourism Strategy would be subject to a nine month consultation period , which would start at the Growth Company’s Tourism Conference and as part of this, it would include how the strategy took on board the priorities and thinking of the Council in terms of addressing climate change and the goal of being a carbon neutral city.  In terms of tourism zones, it was acknowledged that there were opportunities to widen the tourism offer beyond the core of the city centre and the expansion of the Metrolink would assist this.  In relation to the spend and stay of international leisure from China, it was reported that this was remarkable and had had a real impact on the city’s economy.  In part this was as a result of direct flights from Manchester Airport to Beijing, China.

The Committee was advised that in terms of the visitor levy, the Growth Company had started to have conversations with the hotel industry to foster ideas of the creation of a Business Improvement district for accommodation to drive more demand for tourism in Manchester and so far there had been a positive response from those engaged.

Decision

The Committee:-

(1)       Notes the report; and

(2)       Requests that the leisure visitor survey is circulated to Committee Members for information