Labour shortages
A long term policy challenge which continues to impact the sector. A key issue is business having to reduce (or even cease) trading due to a lack of staff.
Context
The 2023 GM Visitor Economy Evidence Report (Ekosgen) identifies a number of policy issues which set the context within which the sector operates.
The global market is becoming more competitive
And the UK market share fell from 6th to 10th between 2016-2019. Marketing efforts linked to visa policy and border welcome are key to reversing this trend.
Seasonality is a barrier to productivity
Although less seasonal than many destinations, GM still has peaks and troughs in demand leading to staff recruitment, retention and productivity issues. Government is keen to address seasonal dispersal and attract more visitors through business events in Autumn and Winter.
The cost of living crisis and its impact supressing demand is also a key challenge
Reduced disposable incomes households are likely to curtail spending on family holidays and trips impacting particularly on hospitality and leisure. There is recent evidence that international travel is being impacted most.
The inbound visitor economy is heavily skewed to London and the South-East
In a wider policy context of Levelling Up, this adds to the challenge as it concentrates the benefits in some areas. With ‘over tourism’ in some areas such as Cornwall and the Lake District with negative externalities and with other areas left behind. How to address geographic dispersal remains a key policy challenge.
Uncertain and unstable global operating environment and economic context
Including Ukraine conflict, rising energy costs, inflation and low levels of private investment into the visitor economy. These are all impacting significantly on the visitor economy. Government policy has focused on supporting businesses with energy costs through Energy Price Guarantee, Energy Bill Relief Scheme and Energy Bill Discount schemes. Business reliefs have also been targeted with reliefs increasing from 50% to 75% for retail, hospitality and leisure for 2023-24. This is combined with Small Business Rate Relief or Rural Rate Relief to ensure that no small business will experience a significant increase in business rates costs (greater than 1%)
Challenges
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As a result of the pandemic, international uncertainty, inflation, and the cost-of-living crisis, the visitor economy across Greater Manchester has many challenges.
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Transport, skills, competition, cost of living, recruitment are all areas which require attention to ensure GM is better connected, continues to have appeal to its audiences and has a thriving workforce in the sector.
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GM must continue to rise to the challenges presented by external factors – governance structures and funding. We need to continue to strive to greater partnerships within the visitor economy locally, regionally, nationally and internationally.
OPPORTUNITIES
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Staying ahead of the competition and maintaining a strong appeal with our target markets remains as important as ever as other cities continue to develop and enhance their product.
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Continuing investment in new products (inc Aviva Studios, Coop Live, Therme) opens new markets.
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Potential and desire to signpost our visitors to our wider districts with greater transport links and better connectivity is a clear opportunity, highlighting the abundance of green space and countryside on the edges of the city and its health and wellbeing benefits
Being ahead of the trends and drivers will maintain Greater Manchester’s envied position as the UK’s most innovative, cutting edge city region. We will continue to strive to maintain and enhance our position as a thriving, regenerative visitor destination of choice whilst providing the platform for businesses to thrive.