FOREIGN holidays, a slow down in consumer spending and poor weather have been blamed for a mixed summer season for the South West region's Tourism industry - but overall the picture has been one of growth.
Survey results among outlets in the main summer period from July to September reveal that while 33 per cent of tourism businesses in the region perceived an increase in business activity during the third quarter of 2004, compared to the same period last year, 36 per cent reported a decrease and 31 per cent reported similar levels to last year.
In total those questioned reported a five per cent increase in business volume compared to the third quarter of 2003.
The majority of businesses (43 per cent) reported an increase in turnover and a further 27 per cent reported a similar turnover to last year. However, the industry continues to report rising business costs, resulting in operating margins being squeezed further.
When questioned about their optimism for the final quarter of 2004, again the industry painted a mixed picture with 23 per cent of businesses looking forward to an increase compared to October to December 2003. However, 33 per cent are anticipating a decrease and 38 per cent are expecting levels to remain the same.
The weather and an economic/consumer spending slow down remain as the main factors perceived as likely to limit sales for the South West's tourism industry. Other concerns include: local competition, a poor transport network and competition from low cost airlines and other domestic and overseas destinations.
Malcolm Bell, chief executive of South West Tourism, said: "The Business Barometer supports growing evidence during the year that the industry has had a variable summer season.
"Overall I think that 2004 has been a reasonably successful year, following the two bumper years of 2002 and 2003."
South West Tourism has announced that it will be launching a major marketing campaign in Spring 2005, based around some of the region's most attractive holiday experiences.
First published: November 4
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