- The public as the taxpayers, as the DCMS is spending our money.
- Customers of tourism in the UK.
- Businesses, which benefit from the work of the DCMS.
- Employees of the DCMS civil servants.
- NGO`s (Non Governmental Organisations), which are not elected and have no political bias.
Non-Governmental Organisations
- These are non-elected organisations, which advise the main government departments or ministries and through them advise the elected Minister of the day.
- NGO`s:
- Advise the department on policy.
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Do research for example research numbers for such websites as . Here they have interviews and surveys for the public, especially travel and tourism students to look at.
- Co-ordinate activities.
- Produce strategic plans such as Tomorrows Tourism Today.
- Allocate government funds to all organisational and activities connected with tourism.
- VisitBritain
- English Heritage
- Countryside Agency
- Sport England
Case Studies
1.VisitBritain
Who they are
- VisitBritain are the strategic body for tourism in England. They produce plans and policies for the future, which explains Tomorrows Tourism Today policy. VisitBritain markets Britain to the rest of the world and England to the British. Their mission is to “build the value of tourism by creating world class destination brands and marketing campaigns.” VisitBritain also builds partnerships with - and provides insights to - other organisations, which have a stake in British and English tourism.
Funding
- Funding comes from the DCMS. They get £10 million per annum.
Objectives
- “Tourism is a vast and fragmental Industry”- their job is to “draw threads together.”
- To provide a focus
- Standards and quality
- Research on behalf of the Government and Tourism Industry.
- Policy advice (Tomorrows Tourism Today policy)
- Allocate funds to the regional tourist boards.
Stakeholders for VisitBritain
- The Government
- Tourism Industry and their trade associations, for example, ABTA ( Association of British Travel Agents).
- 10 regional tourist board which are funded by VisitBritain e.g. Heart of England.
- Local authorities e.g. T.I.C ( Tourist Information Centre). This is funded by local authority (council tax) and VisitBritain.
- Tourists, including domestic and incoming.
- Taxpayers.
- Employees.
2. English Heritage
Who they are
- The English Heritage is the NGO responsible for historic environment e.g. Stone Henge. English Heritage is the Government's statutory adviser on the historic environment. Officially known as the Historic Buildings and Monuments Commission for England, English Heritage is an Executive Non-departmental Public Body sponsored by the DCMS. “Our powers and responsibilities are set out in the National Heritage Act (1983, amended 2002) and today we report to Parliament through the Secretary of State for Culture, Media and Sport.” English Heritage also work closely with the Office of the Deputy Prime Minister, which is responsible for planning, housing, transport and the constitutional framework within which most decisions affecting the historic environment are made, and the Department for Environment, Food and Rural Affairs on rural issues.
Objectives
- To protect, conserve and enhance historic environment.
- To promote historic environment by marketing e.g. brochures and leaflets.
- Advise the Government.
- Broaden public interest.
- Educate by increasing people’s knowledge and understanding of the past.
- Look after monuments, archaeology, places of worship, listed buildings, parks and gardens.
- Give grants for ALL conservation/ repairs, which can go to any owner.
- Own 400 properties themselves.
- GENERATE INCOME FROM ITS PROPERTIES.
Funding
- Donations/ gifts from the public and include tax incentives.
- Membership- admission free.
- Secondary spend- retail/ catering at their properties.
- In 2002 this was the income:
- Government grants - £120 million
- Admissions - £8.2 million
- Retail/ food - £6.9 million
- Membership - £3.3 million
- Donations - £5.8 million
- From the graph, I can see that most of the funding significantly comes from Government funding. The other ways in which the NGO gets its money have little value and shows how much it relies on the government grants.
2. The Voluntary Sector
- These organisations have been formed by groups of like-minded people with a common cause.
- They are usually non-profit making or charitable.
- They are often operated by volunteers.
- They may be small local group’s e.g. local conservation, involving little money and few people. For example Shropshire Wildlife Trust.
- Alternatively, they may be huge, national organisations employing a large number of people and with turnovers of millions of pounds e.g. The National Trust.
- RSPB ( Royal Society for the Protection of Birds). They own many bird reserves, which have now become tourist attractions.
Case Study – The National Trust ( huge property and land owner).
Who they are
The National Trust is:
- A registered charity.
- Independent of Government.
- Was founded in 1985 to preserve places of historic interest or natural beauty permanently for the nation to enjoy.
- Relies on the generosity of its supporters, through membership subscriptions, gifts, legacies and the contribution of many thousands of volunteers.
- Now protects and opens to the public over 200 historic houses and gardens and 49 industrial monuments and mills.
- Owns more than 248,000 hectares (612,000 acres) of the most beautiful countryside and almost 600 miles of outstanding coast for people to enjoy.
- Looks after forests, woods, fens, farmland, downs, moorland, islands, archaeological remains, nature reserves, and villages- forever, for everyone.
- Now owns ¼ of all land in the Lake District National Park.
Funding
Comes from:
-
Membership- subscribing members now numbering over 3 million.
- Donations
- Direct property income:
- Primary spend – entrance fees
- Secondary spend – retail-gift shops, food and catering and catalogue sales.
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In 2002 the National Trusts income was £147m. Of this £67m was from membership; £41m from direct property income and £39m from donations. This can be shown more clearly on the graph. As you can see, most of the National Trusts money comes from membership.
Objectives
-
Mission statement: to act as guardian for the nation in the acquisition of threatened coastline, countryside and buildings. The National Trust is against development.
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To protect, repair and conserve the above property and areas.
- To allow public access – Tourism.
- Spend all its income on care and maintenance of the building and land in its protection. – The National Trust is non-profit making.
- To ensure that no land or building valuable to the nation is sold for other developments. ( Respected by us, the public and the Government.)
How does the National Trust do this?
- The National Trust has the unique statutory power (law) to declare land inalienable – such land cannot be voluntarily sold, mortgaged or compulsorily purchased against the Trusts wishes without special parliamentary procedure. This special power means that the protection by the Trust is forever.
Stakeholders
- The public as tourists and consumers of the National Trust land and property.
- Government – (law-alienable-advice).
- VisitBritain will promote National Trust land and properties.
- People who donate and give legacies.
- National Trust members.
- Employees.
3. Private Sector
- The private sector is made up of profit making businesses. It is the most important sector in the Travel and Tourism industry in terms of numbers of organisations, people employed and money generated.
- 2.1 million People are employed in Tourism, which is 7% of working people in the UK. Most of these people work in the private sector.
Types of organisations
Smallest
Business owned by a single person who may have employees. The owner is wholly responsible for the business. There are large numbers of sole traders, e.g. café, ice cream van.
2-20 individuals who contribute to capital and expertise. The `deed of partnership` means profits are shared and there are rules for electing new partners.
These business organisations have a distinct legal identity. They must be registered by the Companies Act. They can have a minimum of 2 shareholders, but they must not sell shares to the general public.
- PLCs (Public Limited Companies).
These are large multi-national and multi-dimensional companies, e.g. Virgin PLC, tour operators, record producers, trains. They are financed by selling shares to the public. A way of raising money is to `float on stock exchange`. Profits are distributed amongst stakeholders as a `dividend`.
Biggest
- The UK Tourism Industry has 127,000 businesses, most of which have a turnover of under £250,000. Most Travel and Tourism Industries are small and medium sized, although the PLCs tend to dominate the market and trends in Travel and Tourism.
Private Sector Businesses.
Objectives
- The business size can range from vast to very small; however, profit is made from goods and services.
Stakeholders
- Shareholders if PLC, e.g. expect a financial return on shares – “dividend”.
- Owners
- Customers
- Employees
- Suppliers (other industries which may interact with the Travel and Tourism Industry).
Case Study – My Travel
- My Travel is a multi-national PLC.
- Its profits come from:
- Retail
High Street Travel Agents, shops with life style zones. These are specific customer groups so you can find the appropriate holiday. In addition, there is coffee and terminal web, where you can find holidays. It is a bit like an Internet café.
- E Commerce Company
This consists of a vast range of Internet offers, ranging from leisure travel products, insurance, air travel (charter or schedule), and hotel virtual tours. Pre-range and package holidays are now the past, customized is now the future, so you can mix and match to suit your wants and needs.
- 49 Aircraft in Europe
- Cruise ships
- 118 resort properties
- Stock exchange to raise capital
NB.
There is no funding from the Government, no voluntary donations, and no membership fees. This differs from the public and voluntary sectors.
Stakeholders
- The Government.
- DCMS.
- Historic environment of England.
- The public, which include consumers and tourists. Also taxpayers.
- Employees
- Private (Queen.) and voluntary owners ( National Trust own historic properties and gain money from the Government for restoration.) of historic sites.
