Our 2018 forecast: strong growth ahead for North Wales leisure sector. Camping, caravan & holiday park investment opportunities ahead! The growing popularity of the staycation for us Brits has been well-documented, and it’s a trend that shows no sign of slowing down.
The UK holiday sector is currently worth around £130 billion per annum, but by 2025, it is likely to be worth over £257 billion – the equivalent of around 10% of the UK’s GDP (figures from Deloitte via Visit Britain).
What’s interesting about those figures is the growth trajectory they would represent.
The UK holiday sector is predicted to grow at an annual rate of 3.8% through to 2025 – significantly faster than the overall UK economy (currently languishing at 0.4%) and much faster than sectors such as manufacturing, construction and retail.
And where there’s growth, there’s opportunity. One of the sectors we see performing consistently well in this part of Wales is caravan, camping and holiday parks.
UK-wide, this sector grew its turnover to £2.67 billion in 2016, up 9% from five years ago. That’s pretty impressive. And there are a few factors at play that convince us that this will be a buoyant sector for some time yet.
Compared with before the Brexit vote in June 2016, sterling is still down around 13% against the euro and 11% against the dollar. That means travelling abroad has become more expensive – at a time when average weekly earnings are static at best. Holidaying at home is an increasingly attractive option for a growing number of us.
Ongoing investment in world-class attractions
Another reason to be confident in the sector is the ongoing investment we see in world-class attractions which are bringing ever increasing visitor numbers to North Wales. Places like Zip World and Surf Snowdonia are the headline grabbers, but there are plenty more besides. In the last year there has been around £100 million invested in adventure tourism projects across North Wales.
Marketing North Wales
Finally, it’s all about positioning. North Wales is enjoying somewhat of a golden era as a prime UK holiday destination – not just for staycationers but for travellers visiting the region from all over the world. Lonely Planet named it as one of the world’s top regions to visit in 2017 and a slew of media coverage – and visitors – has followed.
Capitalising on opportunity
So how might you tap into this growth potential? Continued investment and innovation is essential for any business that wants to grow and maintain a lead position in the marketplace, but especially in a competitive sector like travel and tourism.
At Baileys and Partners we work with both established holiday park owners who are looking to upgrade and extend their facilities as well as retained clients who are considering investment opportunities at the estates which we manage on their behalf. We also work with investors from the energy and rural sectors who are eyeing this market as an opportunity for income diversification. Since the end of 2016 we have seen an increase of over 55% in our leisure related business.
If it’s a sector that you’d like to get some expert insight on we’d delighted to start a conversation. Drop us a line at firstname.lastname@example.org