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Business Plan  2012  -­‐  2015  

  Destination  Dumfries  &  Galloway   Business  Plan      

Final Draft   June  2012    

        This  Business  Plan  draws  on  work  done  by  the  McVicar  Walden  on  behalf  of  Destination   Dumfries  &  Galloway  Board  and  has  been  substantially  revised  by  the  Board  of  DD&G  

Destination Dumfries  and  Galloway    

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Business Plan  2012  -­‐  2015  

Content    

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DD&G SWOT  ANALYSIS    

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VISION

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DD&G STRATEGIC  AIMS  

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DD&G APPROACH  

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DD&G OWNERSHIP/GOVERNANCE    

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ORGANISATION

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CURRENT DD&G  STRUCTURE  

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DD&G ACTIVITY  YEARS  1  AND  2  

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ACTION PLAN  YEARS  3  TO  5  

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BUDGETS AND  FINANCE:    FUNDING    

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APPENDIX 1:  REORGANISED  DD&G  (EXAMPLE)      

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APPENDIX 2:  BOARD  (AS  OF  FEBRUARY  2012)    

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BACKGROUND

APPENDIX 3:  STRATEGIC  ADVISORY  GROUP  (AS  OF  FEBRUARY  2012)     16   APPENDIX  4  -­‐  MARKET  RESEARCH:  VISITORS  AND  PRODUCT  

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Destination Dumfries  and  Galloway    

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Business Plan  2012  -­‐  2015  

Background   Destination  Dumfries  &  Galloway  (DD&G)  was  established  in  November  2009  after  the  decision  was  taken   by  a  steering  group  of  Area  Tourism  Partnership  (ATP)  and  Association  of  Dumfries  and  Galloway   Accommodation  providers  (ADGAP)  to  create  a  private  sector  led  Dumfries  and  Galloway  Destination   Development  Organisation  (DDO).  This  decision  was  informed  by  a  six  month  feasibility  study  funded  by   Dumfries  &  Galloway  Council  (DGC)  with  ATP.     DD&G  secured  VisitScotland  (VS)  Growth  Fund;  DGC;  Scottish  Natural  Heritage  (SNH);  LEADER;  and  private   sector  funding.     DD&G’s  Company  Objects  are:     (a) Know  and  understand  the  ‘Business  of  tourism’  in  the  destination,  from  the  uniqueness  of  the   product  in  the  destination  to  the  existing  and  potential  customer  base.   Keeping  ahead  of  the   competition  in  customer  service  and  in  product  development  and  being  informed  by  the  most   up  to  date  market  information  including  trends  and  national/  international  best  practice.     (b) Develop  a  bold  and  confident  brand  strategy  and  identity  for  the  destination  with  strong  brand   values   and   positioning   based   on   the   area’s   unique   selling   point   and   informing   all   tourism   investment,  community  and  environmental  development  opportunities.     (c) Promote,  support  and  represent  Dumfries  and  Galloway  as  a  region     (d) Continue  to  work  together  to  measure  the  success  of  projects  and  tactical  campaigns  aiming  to   achieve  the  ambitious  destination  vision  through  a  positive  and  collaborative  approach.     DD&G’s  overarching  aim  is  to  work  in  collaboration  to  attract  more  visitors  to  Dumfries  and  Galloway.  It   aims  to  achieve  this  by:   § Being  a  central  hub  for  strategic  alliances  between  the  private  sector  tourism  industry  and  public,   local  authority,  sector  and  niche  specific  tourism  organisations  and  other  related  organisations   and  groups   § Providing  independent  and  objective  leadership  for  the  region’s  tourism  industry   § Supporting  industry  to  raise  quality  of  the  visitor  experience     DD&G  was  involved  in  the  creation  of,  and  a  key  signatory  to  the  Dumfries  &  Galloway  Regional  Tourism   Strategy  2011-­‐2016:   § Vision:  To  establish  Dumfries  and  Galloway  as  a  world-­‐class  destination  in  which  our  visitors   receive  a  superb  quality  of  service,  where  our  products  and  services  exceed  their   expectations.  This  will  maximise  the  long-­‐term  economic  and  social  benefits  which   sustainable  tourism  can  bring  to  the  region.   § The  ambition  is  to  achieve  an  annual  worth  of  £340  million  into  the  local  economy  by  2015    

DD&G SWOT  Analysis       Strengths  (internal)  

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Business Plan  2012  -­‐  2015  

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There is  a  recognised  need  for  this  group  -­‐  passion  from  industry  and  DGC  councilors   Commitment  -­‐  from  DGC  as  a  funder  and  from  the  DD&G  Board     Ability/experience/networks  of  Board  and  Steering  Advisory  Group  (SAG)   DGC  and  VS  tripartite  partnership   Knowledge  of  product  which  is  good  enough  to  promote  (&  believe  in)   More  than  1000  signed  up  to  newsletter   Have  learnt  from  early  experiences   Pilot  VS  regional  consumer  website   Assets  include:  D&G  Tourism  Audit;  Research  projects  undertaken  to  date;  Tourism  Industry   facing  website  

Weaknesses  (Internal)   § At  an  early  stage  of  the  organisation’s  evolution:  funding  commitments/applications  were   defined  before  the  organisation  found  its  own  role  and  defined  its  own  priorities   § Lack  of  core  funding   § Tension  within  the  tripartite  agreement  not  always  healthy:  lack  of  common  understanding   of  roles,  responsibilities  and  authority   § Not  all  of  the  DD&G  buy  into  the  LEADER  project  and  DGC  Service  Level  Agreement.  Some   specifics  agreed  with  funders  have  also  not  proved  to  be  a  priority/within  the  best  interests   of  the  industry   § Too  many  targets/issues  –  trying  to  be  everything  to  all  people   § Too  much  time  required  from  Chair,  Vice  Chair  and  Treasurer,  especially  in  dealing  with   funders  –  danger  of  fatigue   § A  small  Board  within  which  there  is  an  uneven  distribution  of  workload   Industry  engagement  has  not  been  a  key  priority  because  of  focus  on  outcomes  of   LEADER/SLA  project,  which  has  led  to  a  low/middling  profile     § Resources  –  esp.  people  to  deliver  the  organisation’s  aims     Opportunity  (external)   § Become  truly  representative  of  industry  (the  only  organisation  in  the  region  to  do  so)   § Influence  DGC  and  VS  on  marketing   § Baseline  research   § Lobbying  government  -­‐  engage  with  local  and  national  politicians   § Priority  of  networking  and  social  media   § Canvass  business  feedback   § Tourism  is  Everyone’s  Business  –  local  community  engagement  to  stimulate  pride   § Ambassadors  –  encourage  local  residents  to  promote  D&G  -­‐  family/organisations   § Biosphere  Reserve  and  other  regional  attack  brands   § Strengthen  political  links  (&  VisitScotland)   § Media  influence   § Media  campaign   § Satisfy  ‘hunger’  for  promoting  the  region  –  getting  business  financial  buy  in   § Build  on  current  market     Threats  (external)   § Losing  the  passion  and  support  –  business  apathy  and  going  in  different  directions   § Recession  and  fuel  costs   § Windfarms   § Lack  of  power  

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Business Plan  2012  -­‐  2015  

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Lack of  focus   Competition  (DDOs  in  rest  of  UK)   Micro  management  by  funders   Disparate  industry  with  a  differing  vision  for  DD&G   Disengaged  local  community   Regional  product  and  service  inconsistencies   Industry  is  made  of  businesses  who  tend  to  be  smaller,  therefore  there  is  no  lead  from  larger   businesses  with  personnel  and  spare  capacity     Industry  made  up  of  small  businesses  also  means  a  lack  of  private  sector  financial   contributions  (for  example,  sponsorship)  unless  there  is  a  tangible  return   Lose  trust  of  industry     Lose  trust  of  partners  and  funders   Lack  of  public  funding  available   Funding  agendas/commitments  may  change  and/or  differ  from  the  needs  of  private  sector   industry    

Vision   As  an  organisation:   To  develop  DD&G  as  a  bold,  strong,  sustainable  DDO,  managed  by  and  with  the  authority  to   represent  the  region’s  private  sector  tourism  industry,     The  region:   DD&G  is  committed  to  establishing  Dumfries  and  Galloway  as  Scotland's  premier  rural  tourism   destination;  attracting  new  and  return  visitors  through  collaborating  on  innovative  approaches  to   marketing,  product  development  and  the  delivery  of  unique  visitor  experiences.  

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Business Plan  2012  -­‐  2015  

DD&G Strategic  Aims       The  work  of  DD&G  is  based  upon  eight  strategic  aims:     1) Improve  the  visitor  experience  through  raising  quality   2) To  represent  the  region’s  tourism  industry  through  lobbying  and  advocacy   3) Encourage  industry  engagement  with  DD&G  (collaboration)  through  networking  and  linking   of  businesses   4) Provide  signposting  to  and  opportunities  for  training   5) Dissemination  of  information  to  industry   6) Marketing:  to  tackle  the  region’s  low  profile  as  a  tourism  destination  through  industry  led   initiatives,  while  working  with  and  influencing    DGC  and  VS  marketing  of  Dumfries  &   Galloway   7) Explore,  deliver  and/or  support  standout  private  sector  led  tourism  projects   8) Develop  and  nurture  the  tripartite  partnership  with  DGC  and  VS    

DD&G Approach       §

Private sector  led:  A  DDO  managed  by  Dumfries  and  Galloway’s  tourism  industry  

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Strategic: Fulfill   DD&G’s   role   within   the   Dumfries   &   Galloway   Regional   Tourism   Strategy   2011-­‐2016,  in  partnership  with  DGC,  VS  and  other  key  public  and  private  sector  stakeholders   in  the  region  

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Collaborative: Work   collaboratively   with   all   stakeholders   in   the   public  and   private   sectors   to   deliver,  through  product  development,  and  promote,  through  marketing,  this  vision  

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Market Research:  utilise  market  research  gathered  2011/2012  to  inform  product   development  and  marketing  activity     Competitive  Positioning:  Ambassador  and  support  the  region’s  tourism  industry,  and   DD&G’s  partners,  to  create  a  collective  voice  when  marketing  the  region,  through  the   regional  tourism  brand,  in  order  to  address  the  region’s  low  tourism  profile    

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Lead, Inspire  and  communicate:    to  ensure  the  widest  possible  industry  and  community   buy-­‐in  for  the  vision  

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Product Development:  in  collaboration  with  partners  and  industry,  deliver  the  action  plan   from  the  forthcoming  Product  Development  Strategy    

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Marketing: advise  and  influence  VS  and  other  regional  marketing.  Deliver  industry  led   consumer  marketing  campaigns  to  compliment  and  add  weight  to  regional  and  individual   business  marketing  campaigns  ,  with  a  focus  on  raising  the  region’s  profile  via  the  tourism   brand    

 

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Business Plan  2012  -­‐  2015  

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Support industry  to  manage  the  Visitor  Experience:  encourage  businesses  and  staff,  sector   product  groups  and  community  initiatives  to  deliver  high  quality  visitor  experiences  in  a  way   that  complements  the  region’s  tourism  brand  

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Environment –  create  a  strong  environmental  action  plan  working  in  close  collaboration   with  DGC/SNH/FCS  to  ensure  development  is  in  line  with  the  destination  brand  and   positioning  

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Test and  Measure:  the  success  of  projects  implemented  by  DD&G  particularly  in  line  with   achieving  the  destination  vision    

DD&G Ownership/Governance    

DD&G  is  a  company  limited  by  guarantee.  It  is  led  by  a  Board  of  private  sector  individuals  from  the   region’s  tourism  industry,  who  have  expressed  an  interest  in  joining  the  Board.  Invitations  to  join  the   Board  are  based  on  the  experience  and  skills  each  individual  is  offering  to  DD&G.  As  a  general   standard,  DD&G  invites  individuals  to  the  Board,  not  representatives  of  organisations  (private  or   public).    This  has  the  disadvantage  that  it  is  difficult  to  ensure  that  all  the  various  sectors  of  the   region’s  tourism  industry  are  fully  represented.    There  are  also  no  clear  lines  of  communications   between  Board  Members  and  the  sector  of  the  industry  that  they    are  involved  in.     DD&G  has  a  Strategic  Advisory  Group  of  the  region’s  leading  private  sector  businesses  to  give   strategic  support  and  guidance.       DD&G  has  close  relationships  with  (in  alphabetical  order):   § 7Stanes  Community  Interest  Company   § Association  of  Dumfries  and  Galloway  Accommodation  Providers  (ADGAP)   § Dumfries  and  Galloway  Chamber  of  Commerce   § Dumfries  and  Galloway  College   § Dumfries  and  Galloway  Council   § Forestry  Commission  Scotland   § The  Mountain  Bike  Business  Network   § RSPB   § Savour  the  Flavours   § Scottish  Enterprise   § Scottish  Natural  Heritage   § South  of  Scotland  Business  Solutions   § Southern  Uplands  Partnership   § Springboard  Scotland   § VisitScotland   § Wigtownshire  Chamber  of  Commerce   § The  Wild  Seasons  group  (nature  based  tourism)   § And  other  tourism  related  groups  and  business  associations  across  the  region,  including:   • Heritage  sector  

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Business Plan  2012  -­‐  2015  

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Mountain biking  /  cycling   Wildlife/nature   Creative  industries   Outdoor  adventure  activities   Country  sports   Walking   Golf   Gardens   Food  and  Drink   Business  tourism    

Organisation     DD&G  has  a  proven  need  to  develop  how  it  manages  and  organises  its  activities.  While  DD&G  is  led   by  a  committed  and  enthusiastic  voluntary  Board,  experience  gained  to  date  has  emphasised  that  a   voluntary  Board  alone  will  not  achieve  DD&G’s  vision,  nor  its  current  and  future  commitments  to   funders  (private  sector  and  public  sector).  DD&G  has  brought  in  contractors  to  deliver  Project   Management,  Research  and  specialist  services  (including  website  creation),  but  there  are  still   unsustainable  demands  on  the  Board  which  will  lead  to  Board  fatigue.     When  originally  proposed  DD&G  was  intended  to  be  the  strategic  lead  drawing  on  a  number  of   specialist  groups  dealing  with  inter  alia  accommodation,  activities,  product  development  and   training.    In  a  sense  what  we  have  at  present  is  half  an  organisation.    DD&G  is  also  not  a  membership   organisation.  This  was  a  strategic  move  to  ensure  inclusivity,  and  to  allow  for  almost  complete  focus   on  delivery  of  commitment  DD&G  had  made  to  its  funders.  Consideration  now  needs  to  be  given  to   creating  some  form  of  membership  in  order  to:-­‐     a) Have  a  demonstrable  mandate  of  authority  when  representing  the  industry  and     b) Provide  businesses  with  a  tangible  means  to  be  part  of  DD&G.     c) Develop  potential  revenue  streams  to  assist  with  long-­‐term  sustainability.     Membership  will  allow  for  an  additional  level  of  accountability  for  the  Board,  increasing  the  ability   for  DD&G  to  be  responsive  and  responsible  to  private  sector  industry  as  well  as  to  funders.     There  are  many  forms  that  membership  can  take  and  DD&G  does  not  underestimate  the  scale  of  the   task  involved.    Businesses  will  want  to  understand  what  the  value  proposition  of  membership  is   before  they  will  commit.    There  are  a  large  number  of  organisations  and  businesses  looking  for   annual  payments  or  regular  membership  fees  and  to  convince  a  significant  number  of  businesses  to   sign  up  will  take  some  time.    It  is  also  important  that  these  businesses  are  directly  involved  in   building  the  membership  case  and  also  determining  how  it  will  be  financed  i.e.  regular  annual   payments  or  payments  for  services  used.         The  Board  therefore  proposes  to  carry  out  a  strategic  consultation  with  the  industry  to  establish     a) The  need  for  expert  groups  dealing  with  specific  industry  sectors  and  the  relationship  these   will  have  with  the  Board   b) Support  for  and  details  of  a  membership  scheme  and  how  it  will  be  funded   c) The  role  for  the  Strategic  Advisory  Group  

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Business Plan  2012  -­‐  2015  

Current DD&G  Structure       § § § § § § § §

DD&G Chair  -­‐  Wilma  Finlay  (Cream  o’  Galloway)  to  28/06/12   DD&G  Chair  –  Stephen  Manion  (Drumlanrig  Castle)  from  28/06/12   DD&G  Vice  Chair  -­‐  Duncan  McConchie  (Laggan  Outdoor)   DD&G  Treasurer  -­‐  Janet  Butterworth  (Whithorn  trust)   DD&G  Accountant  -­‐  A&S  Business  Services   DD&G  banks  with  The  Royal  Bank  of  Scotland   The  Board  of  Directors  -­‐  Appendix  2     DD&G  currently  contracts  specific  project  delivery  to:   § DD&G  Company  Secretary  -­‐  Kate  Nutt,  services  supplied  by  Keystone     § DD&G  Project  Manager  –  Inga  McVicar,  services  supplied  by  McVicar  Walden  

DD&G  has  so  far  been  supported  predominantly  by  the  public  sector  with  less  that  7%  of  its  income   from  the  private  sector.    Given  the  nature  of  the  industry  within  the  region  with  a  high  proportion  of   very  small  businesses  spread  throughout  an  extensive  geographic  area  it  would  not  have  been   possible  to  make  the  progress  achieved  to  date  without  this  clear  and  substantial  commitment  by   the  public  sector.    On  the  same  basis  it  will  be  essential  for  the  public  sector  to  continue  some  level   of  assistance  going  forward  –  there  are  no  examples  of  DMO’s  in  the  UK  being  entirely  funded  by  the   private  sector.     There  needs  to  be  recognition  that  public  expenditure  has  reduced  and  will  continue  to  reduce  for   the  next  three  years  at  least  and  that  the  private  sector  must  be  prepared  to  assist  either  directly  by   funding  some  of  the  work  of  DD&G  or  indirectly  by  increasing  its  cooperating  in  promotion,  branding   and  product  development.     Informal  discussions  with  Council  staff  have  indicated  that  the  Council  will  consider  a  proposal  on  3rd   July  at  the  Planning  Housing  and  Environmental  Services  Committee  to  provide  £45,000  per  annum   for  the  next  three  years.    The  proposal  is  that  this  cash  will  be  ring  fenced  within  the  PHES  budget.     This  will  provide  a  stable  base  for  the  organisation  and  enable  it  to  recruit  a  permanent  full  time   Manager  to  drive  the  organisation  forward.     This  appointment  will  enable  the  organisation  to  continue  to  progress  some  of  the  elements  in  the   Regional  Tourism  Strategy  over  a  longer  period  of  time  than  was  initially  envisaged.    It  will  also  allow   the  strategic  consultation  with  the  industry  to  be  carried  out  but  will  limit  the  number  of  face-­‐to-­‐ face  meetings  that  can  be  carried  out.    It  is  likely  that  this  will  result  in  fewer  businesses  signing  up   to  the  new  structures.       In  an  attempt  to  increase  the  number  of  elements  in  the  RTS  that  can  be  taken  forward  DD&G  has   lodged  an  application  for  funding  from  Leader  to  cover  the  period  to  December  2013.    This   application  if  approved  would  enable  a  second  (temporary)  member  of  staff  to  increase  the  contact   levels  and  to  assist  in  developing  the  sector  groups.    They  will  also  require  some  additional   administration  and  finance  support.     Some  initial  discussions  have  taken  place  with  Dumfries  and  Galloway  Chamber  of  Commerce  over   possible  sharing  of  resources.    The  admin/finance  support  for  example  based  on  one  day  a  week  

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may be  difficult  to  achieve  in  practice.    The  Chamber  Board  has  expressed  a  willingness  to  act  as  the   host  organisation  for  the  staff  and  provide  the  additional  support  where  required.    The  staff  will  be   employed  by  DD&G  but  based  in  the  Chamber  office  with  access  to  the  chamber  support  services.    In   this  way  the  two  organisations  will  be  able  to  offer  tourism  business  the  usual  range  of  Chamber   services  as  well  as  the  more  specialised  requirements  that  tourism  businesses  need.       If  leader  funding  is  approved  then  this  grant  is  paid  retrospectively  with  the  final  payment  delayed   until  all  invoices  have  been  paid.    For  such  a  small  organisation  this  can  create  a  significant  cash  flow   problem.    The  Chamber  of  Commerce  will  provide  the  financial  monitoring  information  and  are  in   the  process  of  setting  up  a  new  accounting  system  that  will  provide  advance  warning  of  potential   cash  flow  issues.    This  is  an  issue  that  will  require  to  be  closely  monitored  by  the  Board.      

DD&G Activity  Years  1  and  2       The  following  is  a  broad  overview  of  DD&G’s  activity  Years  1  and  2.  Full  details  to  be  available  on   completion  of  LEADER  project,  June  2012.     DDG  Objective  1:  Undertake  a  full  audit  of  the  region's  tourism  product   § Audit  complete   § Accommodation  Audit  commissioned  and  complete     DD&G  Objective  2:  Ongoing  measurement  and  research   § Baseline  figures   § Visitor  Research:  visitor  perceptions  and  expectations  –  informing  marketing,  product   development  and  tourism  brand     DD&G  Objective  3:    Creative  Destination  Marketing  Plan,  Marketing  Services  and  Communications   § Consumer  Marketing  Strategy  and  Plan   § Input/influence  regional  marketing  activity   § www.visitdumfriesandgalloway.co.uk  partnership   § Filming  and  Photography  project   § D&G  community  engagement,  PR  and  communications     DD&G  Objective  4:  Industry  engagement   § Intranet   § Online  business  toolkit   § Email  newsletters   § Training/employment  ambassadors     DD&G  Objective  5:  Product  Support  and  Development   § 5  tourism  industry  roadshows   § 3  tourism  industry  conferences   § 3  product  development  workshops   § Supported  and  promoted  partner  training  opportunities   § Product  development  strategy  

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§

Trail

DD&G  Objective  6:  Strategy     § Regional  Tourism  Strategy   § Exit  Strategy/Business  Plan    

Action Plan  Years  3  to  5       Representation   With  a  diverse  industry  comprising  around  1,500  individual  businesses  spread  throughout  the  rural   area  it  is  essential  that  there  is  a  good  flow  of  information  out  to  these  businesses  and  back  to  policy   makers.    To  achieve  this  DD&G  will:-­‐   1. Carry  out  a  review  of  the  structure  and  governance  of  the  organisation  through  a   structured,  facilitated  workshop  using  external  (UWS)  facilitator.    The  revised  structure  will   enable  better  representation  of  each  sector  and  area  of  the  region  within  the  decision   making  process  of  the  organisation.   2. Consult  widely  with  the  industry  on  the  new  operating  structures  before  implementing   them.   3. Provide  both  technical  and  administrative  support  to  each  of  the  industry  groups   4. Manage  effective  communications  systems  to  ensure  that  the  industry  is  informed  and  kept   up  to  date   5. Create  a  new  network  to  link  niche  web  sites  together  and  into  VS  web  site.   6. Seek  the  views  of  industry  on  current  issues  and  communicate  these  to  the  relevant   decision  makers     7. Promote  the  value  of  tourism  within  the  community  and  the  wider  business  community     Community  Engagement   Based  around  the  theme  of  ‘Tourism  is  everyone’s  business’  DD&G  will  seek  to  engage  with   community  groups  including  community  councils  to   1. Gain  a  wider  understanding  of  the  importance  of  tourism  to  the  local  economy  and  in   supporting  local  services   2. Highlight  examples  of  good  practice  of  local  initiatives     3. Promote  the  ‘Naturally  Inspiring’  theme  to  the  wider  community   4. Identify  local  people  who  can  act  as  tourism  ambassadors/local  guides  and  maintain  a   register  to  make  this  available  to  accommodation  providers  etc.     Promotion   Marketing  the  region  is  the  prime  responsibility  of  VisitScotland  and  DD&G  will  seek  to  assist  in  this   work  and  to  complement  it  through   1. Continue  to  work  on  the  attack  brands  and  themes  to  extend  the  season   2. Assist  and  encourage  the  development  of  packages  around  events  and  existing/new   products   3. Contribute  to  the  Marketing  Action  Plan  gathering  intelligence  from  the  tourism  industry   and  cascading  the  agreed  Marketing  Action  plan  to  the  wider  industry   4. Coordinate  private  sector  advertising  to  encourage  the  use  of  the  naturally  inspiring   branding  and  joint  promotion  work  

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5. Promote Tourism  Intelligence  Scotland       Co-­‐operation   The  Tourism  product  development  strategy  has  identified  a  number  of  gaps  in  the  current  tourism   offer  and  DD&G  will  work  with  partners  to  encourage  innovation  and  development  aimed  at   meeting  these  gaps.    This  will  include:-­‐   1. Develop  a  programme  of  internal  events/conferences  to  allow  networking  and  to  raise   awareness  of  potential  opportunities  for  investment   2. Work  with  the  training  providers  to  develop  region  specific  training  for  staff   3. Encourage  and  support  the  roll  out  of  this  training  and  to  encourage  the  uptake  of  this  and   other  relevant  training  programmes   4. Organise  two  FAM  trips  between  business  operators  to  encourage  the  sharing  of  good   practice   5. Promote  cross  selling  to  the  industry  through  joint  marketing,  promotion,  ticketing  etc.   6. Promote  the  delivery  of  quality  services  within  the  industry  and  encourage  the  take  up  of   the  VisitScotland  QA  schemes       Collaboration   Central  to  the  work  of  DD&G  will  be  the  Tourism  Development  Strategy  (RTS)  that  will  be  kept  under   review  and  will  form  the  basis  of  the  organisations  Business  Plan.    DD&G  will   1. Prepare  and  keep  under  review  a  three  year  Business  Plan  which  it  will  agree  with  the  key   partners     2. Monitor  the  RTS  and  ensure  that  the  organisation  delivers  on  the  required  outputs  and   cooperate  with  others  as  required     3. Joint  working  with  VisitScotland        

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Business Plan  2012  -­‐  2015  

Budgets and  Finance:    Funding         Previous:  2010-­‐2012  (Years  1  and  2)     Expenditure  (NET)     Core  Costs   £   Board  member  Expenses   6,909   Professionals/Subscriptions   5,000   Total   11,909     Activity  Costs   Creation  of  DD&G   LEADER/SLA  project:  Project  Manager  (Executive  -­‐  contractor)   LEADER/SLA  project:  Research  Officer  (Executive  –  contractor)   LEADER/SLA  project:  Research  Consultancy   LEADER/SLA  project:  Executive  Expenses   LEADER/SLA  project:  Recruitment/Meetings/Admin   LEADER/SLA  project:  Industry  Workshops   LEADER/SLA  project:  Intranet/Exhibitions   LEADER/SLA  project:  Consumer  marketing   LEADER/SLA  project:  Office  Setup  &  Running  Costs   Wildlife  Festival  project   VS  Growth  Fund  project   TBC  DGC  Project   Leaflet  drop   Total     Funding  Income  (NET)     Funding  for  Years  1  and  2   £   Private  sector   19,670   VisitScotland’s  National  Growth  Fund   31,208   DGC   125,000   LEADER   100,000   SNH   19,948   Sales/Core     1,190   Sustainability  (income  to  be  held  to  year  3)   700   Total   297,716*     Profit/Loss     Turnover   297,176   Profit/(Loss)   800   Reserves   800    

Destination Dumfries  and  Galloway    

£ 12,406   60,000   25,000   30,000   10,000   1,500   8,000   10,000   38,000   3,500   9,148   63,833   12,500   1,120   285,007  

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Business Plan  2012  -­‐  2015  

Draft  budget  for  2012  -­‐  2015     Expenditure      Tourism  Development  Executive     Project  animateur     Admin  Support   0.2fte     Oncost    (Includes  board  expenses)   12.80%   NI  &  Pension  (included  in  salary   costs  for  Leader)   15%  

  Aug  -­‐  Dec  12    £12,500.00      £9,166.67      £1,484.00      £4,443.00      £1,977.00        

Representation   Community  Engagement   Promotion   Co-­‐operation   Collaboration   inKind  

  Income    Dumfries  and  Galloway  Council   Leader   Private  sector   In  Kind  

     

 

          Jan  -­‐  Dec  13   Jan  -­‐  Mar  14   2014/15    £30,000.00      £7,500.00      £30,000.00      £22,000.00              £3,676.00      £2,250.00      £5,000.00      £10,662.00      £1,500.00      £4,480.00      £7,680.00        

 £3,800.00      £9,200.00        £3,500.00      £8,500.00        £3,000.00      £7,000.00        £7,500.00      £17,500.00        £3,250.00      £7,750.00            £9,562.00          £50,620.67     £133,530.00             £184,150.67                            £24,000.00      £58,514.00        £20,000.00      £72,076.00                  £3,000.00      £6,562.00          £47,000.00     £137,152.00             £184,152.00       Leader Application è        

£1,800.00    

£5,250.00    

                         

 

 

 

£13,050.00              £8,486.00          £5,000.00        

£53,730.00              £44,000.00          £10,000.00        

£9,000.00                        

£13,486.00      £54,000.00             Long term sustainability è  

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Business Plan  2012  -­‐  2015  

Appendix 1:  reorganised  DD&G  (example)      

Board

Tourism Development   Execulve  

Partners

Project Anamateur  

Admin/Finance support  

Sector Group  -­‐ Accommodalon  

Sector Group   Training  

Destination Dumfries  and  Galloway    

Sector Group   Aclviles  

Etc.

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Business Plan  2012  -­‐2015  

Appendix 2:  Board  (as  of  February  2012)        

Name Janet  Butterworth  (Treasurer)   Fred  Findlay   Wilma  Finlay  (Chair)   Duncan  McConchie  (Vice  Chair)   Stephen  Manion   Gordon  Mann   Sean  Paul  O’Hare   Morag  Paterson   Graham  Smith   Emily  Stair   Tim  Stephenson   Chris  Walker  

Business Telephone  no   Whithorn  Trust   01998  500508     Rickwood  Guest  House   01776  810270   Cream  o’  Galloway   01557  815222     Laggan  Outdoor   01557  840217     Drumlanrig  Castle   01848  331555   DG  Chamber  of  Commerce     Glenkens  Community  &  Arts   01644  420374   Trust   Leeming  +  Paterson  Photography   01644  430  004   The  Mill  Forge   01461  800344   Castle  Kennedy  and  Gardens   01776  702024   Creetown  GemRock  Museum   01671  820357   Selkirk  Arms  Hotel   01557  330402          

                     

Appendix 3:  Strategic  Advisory  Group  (as  of   February  2012)       Douglas  McMillan/McMillan  Hotels   Mark  Coombs/Drumlanrig  Castle  &  Country  Estate   Alasdair  Houston/Gretna  Group   Tom  Gillespie/Gillespie  Leisure  

Appendix 4  -­‐  Market  Research:  Visitors  and   Product       Early  research  undertaken  as  part  of  the  establishing  of  a  DDO  for  Dumfries  and  Galloway  identified   that  the  region’s  key  tourism  product  and  tourism  USP  was  its  creative  offering.    DD&G  secured  a  VS   Growth  Fund  to  focus  on  a  consumer  marketing  campaign  specific  to  this  Creative  offering.  Appendix   3  summarises  the  results  of  this  campaign.    

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Business Plan  2012  -­‐2015   DD&G  commissioned  a  Visitor  Research  project  in  2011  in  order  to  look  at  UK  based  visitors’   expectations  and  perceptions  of  the  region.  This  research  found:     § The  Dumfries  &  Galloway  Visitor  tends  to  be  older  and  more  upmarket;  their  tripe  type   varies  by  season;  groups  are  typically  ‘adults’  only;  England  is  an  important  market;  repeat   visits  in  majority;  and  attractions/events  are  an  important  pull  in  the  winter   § 66%  take  2-­‐3  or  more  short  rural  breaks/and  or  holidays  to  rural  locations  in  the  UK,  the   remaining  34%  one  a  year   § D&G’s  competitive  set  is  The  Scottish  Highlands;  The  Lake  District:  Scotland’s  West  Coast  &   Islands;  and  Yorkshire   § 91  %  of  previous  visitors  to  Dumfries  &  Galloway  rate  their  experience  as  Good/Very  Good   § But  31%  of  non-­‐visitors,  25%  who  have  considered  and  26%  who  have  not  considered   visiting  the  region  could  not  say  how  Dumfries  and  Galloway  rates  as  a  holiday  destination:   suggesting  a  lack  of  defined  identity  amongst  significant  minority  of  non-­‐visitors.  Overall,   significant  percentages  of  previous  visitors  and  non-­‐visitors  were  not  familiar  with  the   individual  aspects  of  the  region’s  offer   § Of  the  region’s  offer,  Outdoor  activities  were  rated  best  (bird  and  Wildlife;  walking  and   hiking;  outdoor  sporting   § Visitors  rate  their  visit  to  Dumfries  and  Galloway  as:  93  %  Good/Very  Good  in  summer,  with   68%  reporting  expectations  met;  95  %  Good/Very  Good  in  winter,  with  91%  expectations   met   § Shopping  and  Eating  out  were  the  most  frequently  undertaken  activity,  but  both  achieved   the  lower  ratings  for  range/availability   § Walking/Hiking;  visiting  towns  and  villages;  and  visiting  historic  attractions  were  the  next   most  frequently  undertaken  activities,  with  both  achieving  the  higher  ratings  for   range/availability   § Dumfries  and  Galloway  is  perceived  first  and  foremost  as  a  get-­‐away  from  it  all  break,  with   82%  of  summer  visitors  and  88%  of  winter  visitors  likely/very  likely  to  revisit  within  the  next   2  years     In  summary:  this  research  has  highlighted  a  very  positive  picture  amongst  those  who  know  about   the  region  –  especially  from  visitors  during  their  stay;  Dumfries  &  Galloway  is  often  not  well  known   and  understood  by  target  audiences  –  lacking  identity  ...yet  it  has  much  that  is  looked  for  from  a   rural  break.   The  challenge  will  be  positioning,  defining  and  communicating  the  offer  and  distinguishing  Dumfries   &  Galloway  from  the  very  strong  rural  brands  it  competes  with     DD&G  will  be  creating  a  Product  Development  Strategy  in  collaboration  with  its  partners  from  the   full  findings  of  this  Visitor  Research  project.  From  the  interim  findings:      Product  development/investment  required:   § Shopping  and  eating  out  are  important  elements  of  the  break  but  Eating  out  and  shopping   are  not  achieving  the  high  ratings  attributed  to  (for  example)  outdoor    products   § Where  D&G  being  perceived  as  uncommercial  is  a  potential  advantage,  it  is  also  suggestive   of  the  inconsistent  standard  of  quality/service  visitors  experience     More  effective  marketing  of  product  required:   § Evidence  of  lack  of  knowledge  of  many  areas  of  product  offer  –  especially  cultural  aspects   • There  are  strong  ratings  from  visitors  for  the  offer  generally,  especially  outdoor   aspects.  Coast  and  beaches  has  a  lower  profile  than  countryside    -­‐  but  where  it’s   known,  it  performs  well  

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Business Plan  2012  -­‐2015   • •

To Non-­‐visitors,  Dumfries  &  Galloway  is  an  unknown,  without  outstanding   ‘identifiers’   The  belief  is  it’s  a  scenic,  unspoilt  place  –  but  reason  to  visit  is  lacking    

As  part  of  this  research,  the  regional  brand  Naturally  Inspiring  was  tested  as  a  tourism  brand.  It  has   tested  positively  with  visitors,  and  DD&G  are  in  the  process  of  developing  it  as  a  tourism  brand.       In  2011,  DD&G  also  commissioned  a  study  of  the  region’s  accommodation,  as  part  of  wider  work  to   map  out  the  region’s  tourist  product.  In  hand  with  the  product  audit,  this  study  will  be  compared   with  the  Visitor  Research  in  order  to  identify  where  the  region’s  product  is  not  meeting  visitor   expectations  in  terms  of  range  and  quality;  where  the  region  is  lacking  the  core  product  necessary   for  its  target  visitor  markets;  and  where  key  product  does  exist  for  the  target  markets,  but  is  not   effectively  promoted.     Key  findings  from  this  study:   § 65%  of  notional  bed  stock  capacity  is  within  the  holiday  park  sector;  only  17%  of  bed  stock  is   within  the  serviced  sector     § The  overall  Star  grading  achieved  by  accommodation  is  3.30  (the  national  average  is  3.42).  In   all  instances,  save  the  Guest  House,  the  D&G  average  are  below  those  nationally.  35%  of   serviced  operators  (and  20%  of  non-­‐serviced  operators  are  graded  and  participating  in  the   VisitScotland  Quality  Assurance  scheme.  The  national  participation  average  is  71%     § D&G  must  differentiate  itself  overall  as  a  quality  destination  with  resultant  trading  benefits.   Operators,  by  participating  and  investing  in  improved  grades  can  potentially  gain  dividends   and  help  the  area  project  a  quality,  value  for  money  image.     §  Green  Credentials  –  There  are  currently  only  9  accommodation  operations  which  are  part  of   VisitScotland’s  Green  Tourism  Business  Scheme.  D&G  and  other  destinations  are  seeking  to   use  green  credentials  as  a  differentiator.  Current  participation  levels  are  not  providing  this.  A   ‘greener’  destination  is  one  of  DD&G’s  key  targets.  Encouraging  participation  in  green  policies   will  need  to  be  targeted.     § Self-­‐catering  operators  should  be  encouraged  to  be  more  flexible  in  attracting  /  offering  short   break  packages  of  2/3  nights  to  help  extend  season  and  grow  year-­‐round  demand  and   occupancy  levels   § One  of  the  findings  of  the  audit  is  the  shortfall  in  trading  and  financial  management  practiced   by  many.  The  audit  highlighted  that  many  operators  record  no  or  only  rudimentary  trading   data.  [Occupancy  achieved;  profile  of  demand;  business  turned  away  /  displacement,  etc.  The   latter  (displacement)  is  useful  to  individual  operators  to  help  monitor  potential].     § A  good  business  records  and  measures  its  trading  patterns  and  performance.  These   management  tools  /  skills  are  needed  if  individual  operators  are  to  optimise  their  business   potential  and  ultimately  collectively  that  of  the  wider  destination.  Operators  need  to   understand  and  plan  to  fill  spare  capacity  and  to  understand  where  and  in  what  sectors  they   are  being  successful  and  that  promotional  expenditure  is  paying  off.  Tracking  of  existing   demand  also  highlights  where  opportunities  to  attract  more  demand  may  exist

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Destination Dumfries & Galloway Business Plan June 12  
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