To agree the remodelling of tourism delivery in Herefordshire based on a comprehensive review of the service.

The Cabinet Member Economic Development and Community Services presented a detailed report on the remodelling of tourism delivery in Herefordshire which had been based on a comprehensive review of the service and outlined the reasons for the recommendations.  Cabinet was advised of the proposal to form a new Destination Management Partnership (DMP) and to remodel the tourist information centres (TICs) service to move away from the traditional methods of service delivery to create a more efficient service.

The Leader stated that,

• Given the expectations of the Comprehensive Spending Review of the need for local authorities to cut between 25-40% of their budgets, difficult decisions needed to be made about the future of public expenditure.  Debates about the future of services needed to had against the background of public sector cuts.  Currently AWM and the ERDF contributed to the funding of advertising, market campaigns and sponsorship within the county, however, future funding from these sources could not be relied upon. 
• In relation to the TICs, the Council had inherited some expensive leases, which could no longer be sustained. 
• The great importance of tourism to the local economy was recognised and a commitment was made to retain a TIC presence in the localities, however such a presence needed to be provided in the most cost effective way through, where possible, a locality information point.  The administration would commit to retain such presence.
• In relation to the development of tourism, the joint bid for a Local Enterprise Partnership (LEP) from Herefordshire, Shropshire and Telford and Wrekin (Marches LEP) to HM Government would place an emphasis on the tourism industry as a priority area for support.  Tourism would be an important keystone for the LEP bid and its strategic importance would be emphasised.
• The importance of joint working with neighbouring areas in attracting visitors and in encouraging spend was emphasised, as visitors did not confine themselves to county area boundaries.

In discussion the following points were made by Cabinet Members:

• Thanks were expressed to all those involved in the tourism services within the county, however times were changing and a different approach to supporting tourism was imperative.
• In determining the future of the TIC service, it was necessary to consider the most cost effective use of council tax by vacating expensive buildings to appropriate shared facilities and using multi skilled staff, whilst ensuring the presence in the City and Market Towns.  Such an approach would emphasise the Council’s ‘tell us once’ vision.  The reports of alleged closure of the TIC service were untrue.
• It was acknowledged that the decision to remodel tourism delivery would not be easy and that such changes would need to be dealt with sensitively.  It was stated that there was a need to cut the cost of doing jobs before consideration of cuts to the front line delivery of services. 
• In considering the proposal to form a new DMP it was emphasised that there was a need to strategically develop new opportunities, to raise the profile of the county and to work with adjoining counties.
• It was recognised that the internet was increasingly being used by tourists to find out information on destinations and to make on-line bookings; at the same time there had generally been a decline in visitor numbers for TICs. 
• The development of a Tourism Strategy was to be welcomed and would provide vision and direction.  It was stated that local businesses, through the local Chamber of Commerce, were in agreement that the private sector was key to the future promotion of tourism in the county.

The Cabinet Member Economic Development and Community Services, in responding to comments from Members in attendance stated that:

• He did not recognise the comments which had been made regarding the fact that difficulties with the current DMP could be traced back to its establishment due to the fact it had not been set up as an independent body with the Council retaining control.  Additional comments made regarding the frustrations of tourist providers in relation to the DMP and that it was not given the opportunity to develop engagement with the private sector were additionally not recognised.
• He welcomed the acknowledgement that there was a need to reconsider the Council’s approach to TICs but did not support the view expressed that it was not appropriate to radically alter the TICs at the same time as proposals to change the DMP structure.
• The new business model was based on world wide best practice and would transfer the provision of tourism to the private sector and commissioning by the public sector. 

RESOLVED that:

(a)   Cabinet support the establishment of a new Destination Management Partnership (DMP) which will be required to work with Shropshire and Telford DMPs under the emerging Local Enterprise Partnership (LEP);

(b)   The proposed principles of the tourism strategy and brand essence are agreed as outline in appendix 1 to the report;

(c)   The remodelling of the TICs is progressed as outlined in the report; and

(d)   Delegated authority be given to the Director of Sustainable Communities to negotiate, subject to decisions about the Council’s spending proposals in 2011/12 and taking account of the Government’s comprehensive spending review (CSR) to be announced later in the autumn, future financial and staffing resources for the DMP.