7 key findings from Lichfields’ latest research into rural tourism

Gordon Thomson 26 May 2017

Lichfields has published its most recent insight Rural estates: economic benefits of rural tourism. This time we have turned our attention to rural areas and the potential for country estates to diversify their existing operations, to include provision of tourist accommodation. With the political and economic backdrop in flux, we consider that this is a market in which landowners and estate managers could make gains, while at the same time providing jobs and stimulating investment in the rural economy.

Some of our key findings are set out below.

The tourism industry throughout the UK is flourishing

It grew at a rate almost double that of the rest of the UK economy between 2000 and 2016. This trend looks set to continue.
This equates to significant economic gains

It is anticipated that some 630,000 additional jobs in tourism will be generated between 2013 and 2025, at a value to the tune of £130.5 billion. That’s more than double its present value.
The countryside looks set to benefit

Visits to rural areas have consistently accounted for 20% of all domestic tourist trips. If this proportion is maintained, as it is expected to be, then the growth forecasted in the sector as a whole presents significant opportunities for rural landowners.
There are many business models open to those seeking to tap into this market

From relatively ‘intensive’ operations such as hotels and guesthouses through to ‘lower commitment’ options such as camping, there is a range of different products which could be matched to any given country estate. Which one is right for will depend on locational and site specific attributes.
Hotels are the most popular model for visitors

Hotels, along with guesthouses, B&Bs and self-catering properties, attract 86% of stays in Scotland. Hotels also attract the highest spend per person per night and present the best opportunity for year-round bookings. However, these models also entail the greatest ‘commitment’, property-wise.
Other niche accommodation types may be better suited to some country estates

While hotels and other traditional types of accommodation may be the most popular in the round, camping, glamping and AirBnB can also present profitable diversification models, with lower start-up and maintenance costs. While these models may result in fewer direct employment opportunities, they still make contributions to the local economies that they operate within.
Planning is key to unlock the value in rural estates

Economic impact is a material consideration in the determination of planning applications. Due to the remote nature of the majority of rural areas, making a compelling planning case for development that clearly articulates the positive economic impact of any proposal and balances this against any locational disadvantages is paramount to success.

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