produced by - fife tourism partnership

Kingdom of Fife - 2016

Economic Impact of Tourism

Produced by:

Destination Research Sergi Jarques, Director

2016

Average length stay (nights x trip) 4.13

Spend x overnight trip 302.35£

Spend x night 73.23£

Spend x day trip 25.77£

Economic Impact of Tourism Kingdom of Fife and districts - 2016 2

652,000

Overseas staying nights

Overseas staying spendUK staying spend

1,469,000 1,223,000

UK staying trips

508,000

Overseas staying trips

144,000

UK staying nights

87,000,000 110,134,000

Percentage of all employment

9%

Total Tourism Value

£565,990,000

Full time equivalent jobs

8,600

Total actual tourism related employment

11,568

£152,883,000

£32,992,000

7,830,000

Total staying nights

2,692,000

Associated spend

Total staying spend

Total day trip spend

Total day trips

Total staying trips

Total number of trips (day & staying)

8,482,000

£197,134,000

£201,749,971

Total visitor spendAdjustments made to avoid double-

counting (e.g. spending on retail and

catering at attractions or

accommodation, or travel spend taking at

the origin of the trip.

£413,107,000

Indirect / induced spend

Economic Impact of Tourism – Headline Figures Kingdom of Fife - 2016

Includes maintenance spending

on second homes, boats and

static vans as well as additional

household spending due to

people coming to stay with them.


14%

33%31%

10%

12%

Breakdown of expenditure

Accommodation

Shopping

Food and drink

Entertainment

Travel

82%

18%

Type of Accommodation

PaidAccommodation

Friends / relatives/ second homes

72%

20%

8%

Type of employment

Direct (tourism industries)

Indirect

Induced

54%

15%

27%

4%

Trips by Purpose

Holiday

Business

Friends / relatives

Other

Study

Jan feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Hotels 44% 54% 57% 70% 66% 77% 76% 80% 73% 70% 55% 43%

Guest Houses - B&Bs 6% 35% 25% 40% 67% 63% 59% 71% 82% 57% 45% 15%

0%10%20%30%40%50%60%70%80%90%

100%

Kingdom of Fife - Net Room Occupancy - Serviced Accommodation

Jan feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Self Catering Accomm. 10% 32% 22% 46% 29% 57% 57% 71% 64% 52% 18% 17%

0%10%20%30%40%50%60%70%80%90%

100%

Kingdom of Fife - Net Unit Occupancy - Self Catering Accommodation

Contents

Volume of Tourism 5

Staying Visitors - Accommodation Type 6

Trips by Accommodation 6

Nights by Accommodation 6

Spend by Accommodation Type 6

Staying Visitors - Purpose of Trip 7

7

7

7

Day Visitors 7

7

Value of Tourism 8

Expenditure Associated With Trips 9

9

9

10

10

10

Employment 11

12

Full time equivalent 12

Estimated actual jobs 12

Indirect & Induced Employment 12



Total Jobs 13



Headline figures 14

Full district breakdown 15

Appendix I - Cambridge Model - Methodology


Nights by Purpose

Direct Expenditure Associated with Trips

Other expenditure associated with tourism activity

Direct Turnover Derived From Trip Expenditure

Spend by Purpose

Trips and Spend by Urban, Rural and Coastal Area

Supplier and Income Induced Turnover

Total Local Business Turnover Supported by Tourism Activity

Direct

Trips by Purpose


Volume of Tourism

Staying Visitors - Accommodation Type

Trips by Accommodation

UK Overseas Total

247,000 49% 70,000 49% 317,000 49%

110,000 22% 31,000 22% 141,000 22%

23,000 5% 6,000 4% 29,000 4%

8,000 2% 2,000 1% 10,000 2%

1,000 0% 0 0% 1,000 0%

0 0% 1,000 1% 1,000 0%

23,000 5% 6,000 4% 29,000 4%

1,000 0% 0 0% 1,000 0%

9,000 2% 3,000 2% 12,000 2%

86,000 17% 23,000 16% 109,000 17%

Total 508,000 144,000 652,000

Nights by Accommodation

UK Overseas Total

501,000 34% 596,000 49% 1,097,000 41%

444,000 30% 370,000 30% 814,000 30%

81,000 6% 36,000 3% 117,000 4%

28,000 2% 18,000 1% 46,000 2%

5,000 0% 3,000 0% 8,000 0%

0 0% 5,996 0% 5,996 0%

60,000 4% 28,000 2% 88,000 3%

6,000 0% 3,000 0% 9,000 0%

50,000 3% 38,000 3% 88,000 3%

294,000 20% 126,000 10% 420,000 16%

Total 1,469,000 1,223,000 2,692,000

Spend by Accommodation Type

UK Overseas Total

£42,377,000 49% £53,619,000 49% £95,996,000 49%

£26,358,000 30% £33,350,000 30% £59,708,000 30%

£2,571,000 3% £3,253,000 3% £5,824,000 3%

£1,252,000 1% £1,584,000 1% £2,836,000 1%

£182,000 0% £231,000 0% £413,000 0%

£0 0% £540,000 0% £540,000 0%

£1,980,000 2% £2,505,000 2% £4,485,000 2%

£244,000 0% £309,000 0% £553,000 0%

£2,688,000 3% £3,401,000 3% £6,089,000 3%

£9,347,000 11% £11,341,000 10% £20,688,000 10%

Total £87,000,000 £110,134,000 £197,134,000

6

Other

Friends & relatives

Camping

Static caravans

Group/campus

Paying guest

Second homes

Boat moorings

Other

Friends & relatives

Serviced

Self catering

Camping

Static caravans

Group/campus

Paying guest

Second homes

Boat moorings

Other

Friends & relatives

Serviced

Self catering

Camping

Static caravans

Group/campus

Paying guest

Second homes

Boat moorings

Serviced

Self catering

Serviced accommodation includes hotels, guesthouses, inns, B&B and serviced farmhouse accommodation. Paying guest refers to overseas visitors staying in private houses, primarily language school students. Other trips includes nights spent in transit, in lorry cabs and other temporary accommodation.

Staying Visitors - Purpose of Trip

270,000 53% 82,000 57% 352,000 54%

85,000 17% 14,000 10% 99,000 15%

137,000 27% 41,000 28% 178,000 27%

16,000 3% 6,000 4% 22,000 3%

0 0% 1,000 1% 1,000 0%

Total 508,000 144,000 652,000

741,000 50% 363,000 30% 1,104,000 41%

140,000 10% 74,000 6% 214,000 8%

578,000 39% 259,000 21% 837,000 31%

10,000 1% 301,000 25% 311,000 12%

0 0% 227,000 19% 227,000 8%

Total 1,469,000 1,223,000 2,692,000

£44,212,000 51% £65,717,000 60% £109,929,000 56%

£14,265,000 16% £4,022,000 4% £18,287,000 9%

£27,572,000 32% £16,237,000 15% £43,809,000 22%

£951,000 1% £16,305,000 15% £17,256,000 9%

£0 0% £7,854,000 7% £7,854,000 4%

Total £87,000,000 £110,134,000 £197,134,000

Spend x trip

Leisure 3,132,000 40% £77,040,000 38% £24.60

VFR 2,237,000 29% £35,306,000 18% £15.78

Eating Out 895,000 11% £24,210,000 12% £27.05

Events 895,000 11% £23,680,000 12% £26.46

Shopping 671,000 9% £41,359,000 21% £61.64

Total 2016 7,830,000 £201,595,000


Trips Spend

Day Visitors

Trips and Spend by Urban, Rural and Coastal Area

Holiday

Business

Friends & relatives

Other

Study

Spend by Purpose

UK Overseas Total

Total

Holiday

Business

Friends & relatives

Other

Study

Study

Nights by Purpose

UK Overseas

Overseas Total

Holiday

Business

Friends & relatives

Other

Trips by Purpose

UK


Value of Tourism

Expenditure Associated with Trips:

Accomm. Shopping Food and Drink Attractions Travel Total

£23,913,000 £11,697,000 £23,153,000 £9,978,000 £18,259,000 £87,000,000

£33,156,000 £32,088,000 £23,077,000 £11,870,000 £9,943,000 £110,134,000

£57,069,000 £43,785,000 £46,230,000 £21,848,000 £28,202,000 £197,134,000

29% 22% 23% 11% 14% 100%

£0 £88,742,000 £74,876,000 £19,412,000 £18,719,000 £201,749,000

0% 44% 37% 10% 9% 100%

Total £57,069,000 £132,527,000 £121,106,000 £41,260,000 £46,921,000 £398,883,000

14% 33% 30% 10% 12% 100%

Boats Static vans

£960,000 £1,908,000


£3,354,000 £26,770,000 £32,992,000

Other expenditure associated with tourism activity

Other expenditure associated with tourism activity - Estimated spend

Second homes Friends & relatives Total

Total Staying (%)

Total Day Visitors

Total Day Visitors

%

Direct Expenditure Associated with Trips

UK Tourists

Overseas tourists

Total Staying

Spend on second homes is assumed to be an average of £2,000 on rates, maintenance, and replacement of furniture and fittings. Spend on boats assumed to be an average of £2,000 on berthing charges, servicing and maintenance and upgrading of equipment. Static van spend arises in the case of vans purchased by the owner and used as a second home. Expenditure is incurred in site fees, utility charges and other spending and is estimated at £2,000. Additional spending is incurred by friends and relatives as a result of people coming to stay with them. A cost of £175 per visit has been assumed based on national research for social

0%

10%

20%

30%

40%29%

22% 23%

11% 14%


Total Staying (%)

0%

20%

40%

60%44%

37%

10%9%


Total Day Visitors

Total Direct

Total

Total Value


£318,906,000 £247,084,000 £565,990,000

Direct £218,844,000 £194,263,000 £413,107,000

Indirect £100,062,000 £52,821,000 £152,883,000

Total Local Business Turnover Supported by Tourism Activity – Value of Tourism

Staying Visitor Day Visitors Total

£100,062,000 £52,821,000 £152,883,000

Income induced £35,737,000 £7,650,000 £43,387,000

Indirect spend £57,727,000 £45,171,000 £102,898,000

Non trip spending £6,598,000 £0 £6,598,000

Supplier and Income Induced Turnover


£218,844,000 £194,263,000 £413,107,000

Non-trip spend £32,992,000 £0 £32,992,000

Transport £16,921,000 £11,231,000 £28,152,000

Catering £44,843,000 £72,630,000 £117,473,000

Attractions £22,748,000 £21,049,000 £43,797,000

Accommodation £57,993,000 £1,498,000 £59,491,000

Retail £43,347,000 £87,855,000 £131,202,000

Direct Turnover Derived From Trip Expenditure


Business turnover arises as a result of tourist spending, from the purchase of supplies and services locally by businesses in receipt of visitor spending and as a result of the spending of wages in businesses by employees whose jobs are directly or indirectly supported by tourism spending.

Adjustments have been made to recognise that some spending on retail and food and drink will fall within attractions or accommodation establishments. It is assumed that 40% of travel spend will take place at the origin of the trip rather than at the destination.

Income induced spending arises from expenditure by employees whose jobs are supported by tourism spend.


Employment

956 30% 25 1% 980 17%

431 13% 873 34% 1,304 23%

789 24% 1,277 50% 2,066 36%

319 10% 295 12% 615 11%

115 4% 77 3% 192 3%

611 19% 0 0% 611 11%

Total FTE 3,221 2,548 5,768

1,414 31% 37 1% 1,451 17%

646 14% 1,310 35% 1,957 23%

1,183 26% 1,916 51% 3,099 37%

450 10% 416 11% 867 10%

163 4% 108 3% 271 3%

697 15% 0 0% 697 8%

Total Actual 4,553 3,787 8,340

Indirect & Induced Employment

Total FTE

Total Actual


2,112 1,115 3,228

Indirect jobs 1,358 954 2,312

Induced jobs 754 162 916

Estimated actual jobs


1,853 978 2,831

Indirect jobs 1,191 837 2,028

Induced jobs 662 142 803

Catering

Entertainment

Transport

Non-trip spend

Full time equivalent (FTE)



Staying Visitor Day Visitor Total

Accommodation

Retailing

Accommodation

Retailing

Catering

Entertainment

Transport

Non-trip spend

Employment

Direct employment



The model generates estimates of full time equivalent jobs based on visitor spending. The total number of ‘actual’ jobs will be higher when part time and seasonal working is taken into account. Conversion of full time equivalent jobs into actual jobs relies on information from business surveys in the sectors receiving

Total Jobs

3,221 63% 2,548 72% 5,768 67%

1,191 23% 837 24% 2,028 24%

662 13% 142 4% 803 9%

Total FTE 5,074 3,526 8,600

4,553 68% 3,787 77% 8,340 72%

1,358 20% 954 19% 2,312 20%

754 11% 162 3% 916 8%

Total Actual 6,665 4,902 11,568

Tourism Jobs as a Percentage of Total Employment

Total

Total employed 91%

Tourism jobs 9%


Proportion all jobs 5% 4% 9%

Total

Total employed 135,000 135,000 135,000

Tourism jobs 6,665 4,902 11,568

Direct

Indirect

Induced

Staying Visitor Day visitors

Direct

Indirect

Induced





Actual jobs are estimated from surveys of relevant businesses at locations in England and take account of part time and seasonal working.

91%

9%

Tourism Jobs as a Percentage of Total Employment

Total employed

Tourism jobs

The key 2016 results of the Economic Impact Assessment are:

8.5 million trips were undertaken in the area

7.8 million day trips

0.7 million overnight visits

2.7 million nights in the area as a result of overnight trips

£399 million spent by tourists during their visit to the area

£33 million spent on average in the local economy each month.

£197 million generated by overnight visits

£202 million generated from irregular day trips.

£566 million spent in the local area as result of tourism, taking into account multiplier effects.

11,568 jobs supported, both for local residents from those living nearby.

8,340 tourism jobs directly supported

3,228 non-tourism related jobs supported linked to multiplier spend from tourism.

Key DOMESTIC overnight tourism results



2.9 nights per trip


£171 spend per trip

£59 spend per night


Key OVERSEAS overnight tourism results



8.5 nights per trip


£765 spend per trip

£90 spend per night



Economic Impact of Tourism – Headline Figures Kingdom of Fife - 2016

Comparative data

St Andrews Dunfermline Kirkcaldy

North East

Fife Fife Council

UK trips 167,000 103,000 108,000 129,000 508,000

Overseas trips 47,500 28,800 30,800 36,200 144,000

Total trips 214,500 131,800 138,800 165,200 652,000

UK nights 465,000 270,000 319,000 411,000 1,469,000

Overseas nights 400,000 227,000 248,000 326,000 1,223,000

total nights 865,000 497,000 567,000 737,000 2,692,000

UK spend £29,802,000 £16,287,000 £17,571,000 £23,185,000 £87,000,000

Overseas spend £35,976,000 £20,431,000 £22,355,000 £29,331,000 £110,134,000

Total spend £65,778,000 £36,718,000 £39,926,000 £52,516,000 £197,134,000

Tourism day visits 2,505,000 2,067,000 1,965,000 1,295,000 7,830,000

Day visit spend £66,183,000 £53,559,000 £52,343,000 £30,393,000 £201,749,971

Total direct £131,961,000 £90,277,000 £92,269,000 £82,909,000 £398,883,971

Other Direct Spend £3,695,000 £10,008,000 £11,922,000 £7,159,000 £32,992,000

Indirect impacts £38,624,000 £20,819,000 £29,425,000 £17,880,000 £152,883,000

Total Value £168,288,000 £116,843,000 £129,267,000 £103,027,000 £565,990,000

FTE employment 2,505 1,726 1,945 1,567 8,600

Actual jobs 3,446 2,363 2,621 2,159 11,568

% of employment 47% 4% 4% 10% 9%


2,719,500

2,198,800

2,103,800

1,460,200

St Andrews

Dunfermline

Kirkcaldy

North East Fife

Total Trips by District

£168,288,000

£116,843,000

£129,267,000

£103,027,000

St Andrews

Dunfermline

Kirkcaldy

North East Fife

Total Spend by District

St Andrews







3,446

Adjustments made to avoid double-





Total visitor spend

£131,961,000


£38,624,000

Total Tourism Value

£170,585,000


2,505

£65,778,000

UK staying spend Overseas staying spend

£29,802,000 £35,976,000


Associated spend £66,183,000

£3,695,000

167,000 47,500


865,000

UK staying nights Overseas staying nights

465,000 400,000

Total staying spend

Economic Impact of Tourism – Headline Figures St Andrews


2,719,500

Total staying trips

214,500

Total day trips

UK staying trips Overseas staying trips 2,505,000

Includes maintenance spending on

second homes, boats and static

vans as well as additional



Dunfermline






£20,819,000

Total Tourism Value

£111,096,000


1,726


2,363

£16,287,000 £20,431,000



£10,008,000






Total visitor spend

£90,277,000



497,000


270,000 227,000

Total staying spend

£36,718,000


2,198,800

Total staying trips

131,800

Total day trips


103,000 28,800

Economic Impact of Tourism – Headline Figures DunfermlineTotal number of trips (day & staying)






Kirkcaldy







2,621

£39,926,000

Economic Impact of Tourism – Headline Figures Kirkcaldy







Total visitor spend

£92,269,000


£29,425,000

Total Tourism Value

£121,694,000


1,945


£17,571,000 £22,355,000



£11,922,000

108,000 30,800


567,000


319,000 248,000

Total staying spend

2,103,800

Total staying trips

138,800

Total day trips












Total day trips

1,295,000

North East Fife

£17,880,000

Total Tourism Value

£100,789,000


1,567


2,159


737,000

£23,185,000 £29,331,000



£7,159,000






Total visitor spend

£82,909,000



411,000 326,000

Total staying spend

£52,516,000


1,460,200

Total staying trips

165,200

UK staying trips Overseas staying trips

129,000 36,200

Economic Impact of Tourism – Headline Figures North East Fife








Appendix I - Introduction about Cambridge Model

This report examines the volume and value of tourism and the impact of that expenditure on the local economy. The figures were derived using the Cambridge Economic Impact Model and the research was undertaken by Destination Research.

The model utilises information from national tourism surveys and regionally based data held by Destination Research. It distributes regional activity as measured in those surveys to local areas using ‘drivers’ such as the accommodation stock and occupancy which influence the distribution of tourism activity at local level.

Limitations of the Model

The methodology and accuracy of the above sources varies. The results of the model should therefore be regarded as estimates which are indicative of the scale and importance of visitor activity in the local area. It is important to note that in the national tourism surveys the sample sizes for each area changes year on year. This is as a result of the random probability nature of the methodology. As such, the results of the Cambridge Model are best viewed as a snapshot in time and we would caution against year-on-year comparisons.

It should be noted that the model cannot take into account any leakage of expenditure from tourists taking day trips out of the area in which they are staying. While it is assumed that these may broadly balance each other in many areas, in locations receiving significant numbers of day visitors from London, there is likely to be an underestimate in relation to the number of overseas day visitors staying in holiday accommodation in London.

Whilst it is important to be aware of these issues, we are confident that the estimates we have produced are as reliable as is practically possible within the constraints of the information available.

RoundingAll figures used in this report have been rounded. In some tables there may therefore be a slight discrepancy between totals and sub totals.

Data sourcesThe main national surveys used as data sources in stage one include:• Great Britain Tourism Survey (GBTS) - information on tourism activity by GB residents;• International Passenger Survey (IPS) information on overseas visitors to the United Kingdom;• Day Visits in the annual Great Britain Day Visitor Survey using information on visits lasting

more than 3 hours and taken on an irregular basis

These surveys provide information down to a regional level. In order to disaggregate data to a local level the following information sources are used:

• Records of known local accommodation stock held by Destination Research;• VisitEngland's surveys of Visits to Attractions, which provide data on the number of visitors to

individual tourist attractions ;• Mid-2016 estimates of resident population as based on the 2011 Census of Population;• Selected data from the 2011 Census of Employment;• Selected data on the countryside and coast including, national designations and length of the

coastline.


Staying Visitors

The GBTS provides information on the total number of trips to the region and the relative proportions using different types of accommodation. By matching these figures to the supply of such accommodation, the regional average number of trips per bedspace or unit of accommodation can be derived. The IPS provides information on the total number of trips by overseas visitors to the region.

Day Visitors

Information on day trips at the regional level is available from the Day Visits in Great Britain survey. The survey includes all leisure-related trips from home. It should be noted that a large proportion are local trips made by people resident in the locality. The model uses information from the survey to estimate the number of longer day trips (defined as those lasting at least 3 hours and involving travel of more than 20 miles) and irregular trips lasting more than 3 hours.

Impact of tourism expenditure

This section examines the impact of the tourism expenditure in terms of the direct, indirect and induced expenditure as well as an estimate of the actual jobs (both direct and indirect) supported by tourism expenditure in the district.

The GBTS, IPS and Day Visits to Great Britain survey data on the breakdown of visitor spending.The impact of this initial round of expenditure will be subsequently increased by multiplier effects. These arise from the purchase of supplies and services by the businesses in receipt of visitor expenditure (indirect impacts), and by the income induced-effects arising from the spending of wages by employees in the first round of business and in subsequent expenditure in supplier business (induced impacts).

The New Earnings Survey which provides information on wage levels by industry sector and region; An internal business database which includes data on the structure of business expenditure, local linkages and multiplier ratios drawn from a wide range of business and economic studies carried out by Geoff Broom Associates, PA Cambridge Economic Consultants and others. By applying the breakdown to the estimates of visitor spending, the model generates estimates of total direct spending.

Evidence from national studies suggests that some minor adjustments are required to match visitor spend to business turnover – for example, some expenditure on food and drink actually takes place in inns and hotels that fall in the accommodation sector and within attractions. More significantly, expenditure on travel costs associated with individual trips is equally likely to take place at the origin of the trip as the destination. Therefore the model assumes that only 40% of travel expenditure accrues to the destination area.

Number of full time job equivalents

Having identified the value of turnover generated by visitor spending, it is possible to estimate the employment associated with that spending. Wages for staff and drawings for the proprietors will absorb a proportion of that turnover. By applying these proportions to the overall additional turnover in each sector, the amount of money absorbed by employment costs can be calculated.


The New Earnings Survey provides data from which the average costs by business sector, adjusted to take account of regional differences, can be calculated. After allowing for additional costs such as National Insurance and pension costs, an average employment cost per full time equivalent job can be estimated. The number of such jobs in the local area can then be estimated by dividing the amount of business expenditure on wages and drawings by the average employment cost per job.

Number of Actual Jobs

The model generates estimates of full time equivalent jobs based on visitor spending. However, the total number of actual jobs will be higher when part time and seasonal working is taken into account. The full time equivalent jobs arising directly from visitor spending are converted into actual jobs using information from business surveys in the sectors receiving visitor spending. In general, the conversion factor varies around 1.5 in those sectors.

The indirect and induced jobs arise across a much wider range of employment sectors. Therefore, the average 1.16 for all sectors based on Census of Employment data has been used to convert full time equivalent jobs in this sector to actual jobs.

The employment estimates generated by the model include both self employed and employed people supported by visitor expenditure. The model also includes an estimate of the additional jobs arising in the attractions sector, which are not related to visitor expenditure. However, the numbers do not include other tourism-related employment such as jobs in local authorities arising from their tourism functions, e.g. tourist information staff, additional public health, parks and gardens, public conveniences, maintenance sections and jobs arising from capital investment in tourism facilities.

Produced by:

Registered in England No. 9096970 VAT Registration No. GB 192 3576 85

45 Colchester RoadManningtreeCO11 2BA

Sergi JarquesDirectorTel: 01206 392528info@destinationresearch.co.ukwww.destinationresearch.co.uk

http://www.destinationresearch.co.uk/

produced by - fife tourism partnership

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