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Measuring the Local Economic Impact of Tourism

Measuring the Local Economic Impact of Tourism. Jo Hendrickx Sustainable Destinations Manager Manchester University, 22 nd Jan 2014. The Local Label Effect. The Local Label Effect. How does it work?. Based on the Travel Foundation’s ‘Greener Excursions Checklist’

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Measuring the Local Economic Impact of Tourism

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  1. Measuring the Local Economic Impact of Tourism Jo HendrickxSustainable Destinations Manager Manchester University, 22nd Jan 2014

  2. The Local Label Effect

  3. The Local Label Effect How does it work? • Based on the Travel Foundation’s ‘Greener Excursions Checklist’ • Resorts identify current excursions and assess them against this checklist • Resorts can create new excursions and base them on this checklist • The checklist is then reviewed by an internal panel with 1 in 5 applications also being reviewed by the Travel Foundation • Once all the component parts of the excursion comply, it can be promoted using the Local Label logo and strapline

  4. The Local Label Effect Where can you find them? Greek Islands 18 Turkey 2 Bulgaria 1 Montenegro 1 Italy 2 Malta 1 Spain 2 Canary Islands 2 Sri Lanka 1 Portugal 2 Mexico 2 India 1 Djerba 1 Egypt 1 Kenya 3 40 Local Labels in 23 destinations

  5. The Local Label Effect Is it good for business? • By using the Local Label on events planners and having reps talk about it in meetings, we were able to promote the added value from authentic, traditional and local experiences to our customers • Sales of these pre-existing excursions increased by 17% • Arrivals into the destinations were down by 4% 17% increase in sales due to the Local Label

  6. The Local Label Effect The ‘Local Label’ Reach 40 agency offices Over 1000 TC employees 126 suppliers

  7. The Local Label Effect Social and Economic Impacts

  8. The Local Label Effect Impacts – Survey Responses • We asked all customers the following questions and received 1,459 responses: • Generic questions regarding rep service, timings, and overall satisfaction with event • Motivations for taking the excursion (culture, food, shopping, religion, convenience) • Discretional spend on: • Local, traditional souvenirs • Imported souvenirs • Refreshments • Entrance Fees • Tips • Donations

  9. The Local Label Effect Responses per destination

  10. The Local Label Effect The impact from discretional spend • Information gathered via Local Label customer questionnaire • Responses are collected via survey monkey • Average spend per person was multiplied by 63,156 (customers that did a ‘Local Label in summer 2013) Based on 1,459 questionnaire returns £1 = €0.84 Almost £665K discretionary spend in local economies by TC customers

  11. The Local Label Effect UK Customer Spend – All excursions

  12. The Local Label Effect In summary: The Local Label has certainly proved that sustainability sells and that customers want it, perhaps they just didn’t realise The positive impacts reach a wide ranging audience and also support many community initiatives in destinations We would like to continue this approach and strengthen the quality and range of measurements in future seasons

  13. THANK YOU Jo HendrickxSustainable Destinations ManagerThe Thomas Cook GroupJoanne.Hendrickx@thomascook.com

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