Commerce & Altruism: Getting the Balance Right Jude Leitch Northumberland Tourism jude.leitch@northumberlandtourism.co.uk FB: visitnorthumberland @visitnland

Background to Northumberland’s Decision 2010 Funding cut 90% 2 month’s notice Board initiated closure of company We were a company set up to spend money. Without that funding we had to totally rethink our reason for being.

Business reaction Wanted DMO to continue (mostly) Valued marketing, product development & lobbying Couldn’t agree on best membership model High service expectations in return for mship fee Wanted direct involvement on board Surveyed our businesses Many have very long memories and were not unhappy to see the back of the RDA

Options 1. Close down 2. Generate new income/cut costs Find new funding  Membership organisation  Commercial Model  Really only had two choices Although the ‘altruism’ message was important at this stage – ‘support us and work together’ , especially in convincing the council to continue to support a company now in a perilous financial situation, we were really forced to go commercial – and fast.

Implementing Commercial Focus New board with commercial expertise New business plan Stopped – Business Support, Group Travel, International Marketing. Reduced costs – redundancies, reduced overheads, new systems. Launched suite of new products – value for money marketing opportunities for business. Recruited new board – no room for business representation though! Business plan focused on Marketing. Product Development and Comms & Engagement Cut costs – redundancies – had to lose any positions that didn’t generate income Slashed overheads – found free accommodation etc

6 years on….. For our businesses Major culture shift: Then: Hobby businesses Perhaps not main income Form of retirement Reluctant to change Relied on visitor habits Promoted for free Significant Govt/LA support Now: New proprietors Run as ‘businesses’ Entrepreneurial Forced to adapt Embracing new technologies Changing visitor habits Reduced destination funding Pay for DMO services

6 years on….. for Northumberland Tourism Positive New DMP Support from LA retained Treat businesses with respect & trust Businesses value marketing products Achieving significant ROI Reintroduced services Tourism funding on horizon Negative: Uncertainty remains ‘Value of tourism’ message still to cut through Marketing spend sig reduced Reduced relevance for some businesses Not engaging with all businesses Attractions 80% Accom 60% Actvities 40% Food & drink 30% ? Reduced relevance – businesses becoming more media savvy, successfully using social media, some buy products but don’t engage beyond this and many others don’t contribute but benefit from DMO & partner activity. Conclusion from negative points is that we’ve gone too far towards commercialism and could benefit from moving back towards a ‘partnership’ approach The key message should be ‘We’re stronger together’, but this is being lost.

Action plan – addressing the balance Engagement around DMP Regional ‘Case for Tourism’ New Digital strategy Strong Social Media pships Engagement with TAs & other destination associations Corporate Comms Champions programme