Market Intelligence: Destination Feelgood

Destination Feelgood: Towards a healthier tourism sector Promoting well-being as a destination opportunity

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Overview The National Coastal Tourism Academy (NCTA) and Bournemouth University have collaborated on a new project – Destination FeelGood - focussing on the potential economic benefits to be gained from the health and wellness market.

The NCTA’s new research suggests that holidaymakers – of all ages – increasingly look to “do something” with their down-time, whether that be learning a new language or reading a long-ignored novel, or setting new personal bests in kayaking or road-running.

The project is co-funded by the Economic & Social Research Council (ESRC), and the report provides coastal destinations with an invaluable guide to a fast-growing – and potentially lucrative – market sector.

It can be argued that any holiday involves at least a degree of “wellness” – “a break is as good as a rest” – but for increasing numbers of tourists, “well-being” has become the primary motivation for a holiday.

In the UK, the health and wellness market is calculated to be worth in excess of £877m and is forecast to reach £1bn by 2018*. Furthermore, given the perceived historic links between “health” and “seaside”, coastal destinations are arguably best placed to capitalise on the sector’s potential.

A relatively new concept, “wellness” primarily concerns personal goals. At one end of the scale, it connotes “contentment”, “happiness”, and “pleasure attainment”; at the other extreme, it involves physical, mental and emotional fitness – derived from anything from extreme sports to meditation.

That motivation could centre on anything from spa and beauty treatments, through de-tox and dietary regimes, to engaging in or perfecting pursuits ranging from angling to aqua-aerobics and from snorkelling to surfing.

For further information on the project visit: coastaltourismacademy.co.uk/destinationfeelgood * Euromonitor International: Health and Wellness in the United Kingdom 2014.

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Towards a healthier tourism industry

Aims, objectives and achievements Against that background, the Destination FeelGood report emphasises that “government policy on health is currently seeking to focus on prevention and public health more generally� and suggests that the primary responsibility is being devolved to local authorities.

As an adjunct to that, and in the light of efforts to increase tourism employment growth prospects, the Destination FeelGood project team also explored the potential benefits of promoting health and wellness among the tourism workforce.

A key finding of this report is that while public health and tourism are clearly inter-related, the potential for co-operation between the two sectors has not yet been fully explored, and certainly not realised.

By improving job satisfaction and boosting motivation and productivity, workforce wellness is seen as a means of delivering higher levels of staff retention and raising the profile of the tourism sector as a career option with clear opportunities for progression.

Given greater devolved responsibilities, local authorities would have the opportunity to create a culture in which tourism is seen not only as a revenuegenerator and economic stimulant, but also as a contributor to improving health and well-being among visitors and local residents alike.

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The ideas cafés “Wellness” is – or can be – a differentiator when it comes to holiday choice, but there are challenges to overcome and, in order to explore those challenges and the means to overcome them, the NCTA in conjunction with Bournemouth University, staged a series of “ideas cafés”, held at three-monthly intervals throughout 2014 and 2015.

Guest speakers offered expert insights into various aspects of wellness tourism to focus groups of stakeholders from industry and academia who were then invited to discuss the potential advantages and drawbacks.

The ideas cafés centred on three key themes: the marketing and product opportunities in health and wellbeing tourism; food, innovation and legislation and “healthy staff, healthy profit”.

The Marketing and Product Opportunities in Health and Wellbeing Tourism Stakeholders agreed that wellbeing was “a definite growth area”, concluding that the pace and pressure of contemporary life means that people have increasing desire and need to take time out to relax and recuperate.

Participants also agreed that the tourism industry generally has not – to date – responded as well as it might have done to this trend. They identified a number of areas which they believed could be usefully exploited – “tech-free bars and restaurants”, for example, much like train operating companies’ “quiet zone” carriages.

They recognised a growing interest in healthy eating and drinking and increasing consumer concerns about the provenance of the food and beverage offering, and identified the potential for local businesses (farms and fisheries, for example) to work together to enhance the overall visitor experience.

On the downside, stakeholder participants identified a range of issues, primarily centred on a destination’s ability to provide sufficient diversity of activity with easy access.

Generally poor public transport links deter visitors from travelling between different experience sites and, particularly in the case of families and groups, it was recognised that it could be difficult to appeal to participants of varying ages and abilities.

Small- and medium-sized enterprises, which are the backbone of the UK tourism industry, often lack the capital (and the support, financial or otherwise) to invest in wellness-specific products and services.

As a county, it was also noted that Dorset is seen as pleasantly rural, with rolling countryside and outstanding coastline; residents have a high life expectancy. These factors could usefully be promoted to those in search of a healthy, away-from-it-all experience.

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Towards a healthier tourism industry

Food, Innovation and Legislation The second strand of ideas cafés focussed on food, innovation and legislation. On the one hand, there is a growing trend towards “eating out” with diners becoming increasingly adventurous in sampling “new” foods and cuisines. On the other, diners are becoming more discerning, demanding ever more information on provenance and, in particular, allergens.

While participants generally agreed that food and innovation could present a business growth opportunity, there was less unanimity on other matters.

Some suggested it was largely longer-stay visitors who expressed an interest in their food, while others highlighted the increasing sales of “healthy options” as an indicator that consumers generally are increasingly health-conscious.

Contrarily, one beachfront retailer said that holidaymakers prefer familiar, “big, comfort food” options, vegetarian dishes were the least popular option.

Hoteliers noted that guests do want to know what ingredients are being used, partly because of an apparent increase in food allergies, but also because they are interested in produce and ingredients that they cannot normally buy from their local supermarket.

All stakeholders were concerned that new regulations demanding ever more information regarding ingredients to be published on menus lead to “menu clutter” – a brief description of the dishes, the price, a “vegetarian” indicator and possibly a calorie-count is deemed to be more than enough information for most clients.

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Healthy Staff, Healthy Profit In the third ideas café strand, healthy staff, healthy profit, employers confessed this area was not a high priority, because of a perceived low return on investment. Equally, they acknowledged that failure to invest in the health and well-being of employees could result in high staff turnover which is not only costly but also imposes an additional workload on remaining employees.

Participants recognised that concern for employee well-being reflected positively on the business, and that company reputations can be enhanced (or damaged) by word-of-mouth comments about employers.

Adverse publicity surrounding zero-hours contracts was seen as a minor consideration, with one employer noting that staff embraced the flexibility that such contracts permit.

Two key challenges emerged – the lack of affordable accommodation and the “not very positive image” of the hospitality industry as a career.

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Case studies Destination FeelGood case studies demonstrate that few of these challenges are insurmountable.

• The Pine Ridge bed-and-breakfast establishment in Broadstone, Dorset, run by former accountant and pub manager Jill Webber, is at the centre of a network of cycling trails. Having seen a rising number of guests arriving with bicycles, Jill installed cycle racks but, inspired by her ideas café, she is now seeking to connect with cycling groups and form alliances with cycling events in the area.

• O pened by two Bournemouth University graduates in 2013, Monty’s Lounge is a bar/restaurant founded on sustainable principles.

Having attended one of the ideas cafés, the proprietors have adjusted the Lounge’s menus to incorporate and advertise more locallysourced produce and ingredients. They have signed up to a “cycle to work” scheme for staff members. The owners are also now creating connections between businesses and suppliers to encourage ethical sustainable practices.

• P art of the FJB Hotels group, the beachfront Sandbanks Hotel already provides a range of activities for guests of all ages. General manager Andy Woodland shared ideas his hotel practices to promote health and wellbeing to staff. This has improved motivation, productivity and staff retention, but also creates an infectious spirit for wellness among the hotel’s guests. Sharing of these ideas encouraged other SMEs to adopt this approach and develop their own wellbeing programme for staff.

None of these initiatives has involved significant capital outlay, but all complement promotional and marketing activities targeting the wellness tourism market.

By tailoring visitor experiences to particular target audiences, destinations encourage repeat visitation – in the case of Bournemouth, recent research suggests that 35% of the town’s tourists visit more than once a year, and 69% of repeat visitors recommend their experience to others.

The results of these case studies are currently being analyzed.

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Towards a healthier tourism industry

Conclusion The consumer appetite for wellness holidays and breaks is growing, and growing rapidly – current estimates suggest that demand will outstrip supply by 2020 at the latest. Early entrants will reap the greatest rewards from the sector, with a high degree of repeat business potential.

The wellness proposition is an adjunct to, rather than a substitute for, the traditional holiday. Indeed, marketed effectively, the availability of wellness activities could enhance the hedonistic holidaymaker’s experience, raising the prospect of yet more repeat business.

Equally, wellness visitors are generally indulging in “top-up travel” – they are (usually) taking short breaks in shoulder seasons between the traditional summer and winter holidays. Effective marketing could well persuade wellness tourists to re-visit a destination for longer main holidays.

Again, a sizeable proportion of the wellness segment is in the under-35, pre-family age bracket; investment in the wellness market is an investment for the future. The pre-family segment generally has higher disposable income, and is more willing to pay a premium for a quality experience.

Public health policies, predicated on prevention rather than cure, along with intense media interest in promoting “active” and “healthy” lifestyles, are only likely to increase consumer interest in, and demand for, wellness experiences.

Ultimately, as the Destination FeelGood report suggests, meeting the needs of healthier tourists makes for a healthier tourism industry – with spin-off direct and indirect economic benefits for coastal destination communities as a whole.

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Takeaways The NCTA commissioned independent research from BDRC Continental surveying a nationally representative sample of more than 2,000 people. It analysed the value and potential of health and wellness tourism as a growth opportunity to coastal destinations.

• The health and wellness market is estimated to be worth in excess of £877m and is growing, forecast to reach £1bn by 2018* • People are much more likely to pursue “wellness” ambitions whilst on holiday • One in five of all UK residents take at least one wellness-dedicated break a year, rising to nearly one-third among 18- to 34-year-olds • Only 8% of wellness breaks are taken in coastal destinations, but 59% of respondents say they would prefer a coastal setting • Wellness breaks are a shoulder-season business - 38% are taken in the pre-peak months of May and June, and 35% in the post-peak months of September and October • Wellness visitors are significantly more likely to fall into the AB socio-economic group, and to stay in four- and five-star accommodation • This group also tends to spend more than traditional holidaymakers – in the case of Bournemouth, spending is calculated to be more than double that of other visitors • Demand is projected to outstrip supply within the next five years, and early entrants will reap the richest rewards

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