Essex - 2015 Economic Impact of Tourism Produced by: Destination Research Sergi Jarques, Director
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Essex - 2015
Economic Impact of TourismProduced by:
Destination Research Sergi Jarques, Director
2014 2015 Variation
Average length stay (nights x trip) 3.46 3.29 -5.0%
Spend x overnight trip 171.43£ 164.56£ -4.0%
Spend x night 49.54£ 50.04£ 1.0%
Spend x day trip 36.39£ 36.76£ 1.0%
Total number of trips (day & staying)
50,305,616
8,238,000
Associated spend
Total staying spend £191,269,150
Economic Impact of Tourism – Headline Figures Essex - 2015
Total staying trips Total day trips
2,505,000 47,800,616
Total staying nights
Total day trip spend
£412,213,000 £1,757,071,063
Total visitor spendAdjustments made to avoid double-
counting (e.g spending on retail and
catering at attractions or
accommodation, or travel spend taking at
the origin of the trip.
£2,239,091,150
Indirect / induced spend
£787,068,000
Percentage of all employment
8.5%
Economic Impact of Tourism – Year on year comparisons
Day Trips 2014 2015
Total Tourism Value
£3,026,159,150
Full time equivalent jobs
43,970
Total actual tourism related employment
59,024
-2.9%
Annual variation
Day trips Volume 46,377,716 47,800,616 3.1%
Day trips Value £1,687,487,682 £1,757,071,063 4.1%
Overnight trips
Number of trip 2,452,000 2,505,000 2.2%
Number of nights 8,486,000 8,238,000
Actual Jobs 57,266 59,024 3.1%
Trip value £420,355,000 £412,213,000 -1.9%
Total Value £2,934,394,150 £3,026,159,150 3.1%
Includes maintenance spending on second homes, boats, static vans and household spending linked to VFR.
6%
31%
38%
11%
14%
Breakdown of expenditure
Accommodation
Shopping
Food and drink
Entertainment
Travel
51%49%
Type of Accommodation
PaidAccommodation
Friends / relatives/ second homes
72%
20%
8%
Type of employment
Direct (tourismindustries)
Indirect
Induced
51%
16%
28%
5%
Trips by Purpose
Holiday
Business
Friends / relatives
Other
Study
Jan feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Day trips 7.1% 5.8% 8.1% 7.2% 6.8% 9.0% 10.9% 11.8% 10.0% 7.0% 6.4% 10.0%
Day spend 6.9% 3.9% 10.8% 4.8% 5.1% 7.9% 5.6% 6.4% 13.7% 7.9% 6.8% 8.3%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
Seasonality - Day visitors
Jan feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Overnight trips 6.8% 5.9% 6.8% 8.8% 9.1% 9.2% 9.4% 10.2% 7.8% 7.8% 7.3% 10.7%
Overnight spend 5.6% 2.9% 5.2% 8.7% 8.8% 9.5% 12.1% 15.1% 8.0% 6.9% 6.6% 10.4%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
Seasonality - Overnight visitors
Contents
Contextual analysis
Volume of Tourism
Staying Visitors - Accommodation Type
Trips by Accommodation
Nights by Accommodation
Spend by Accommodation Type
Staying Visitors - Purpose of Trip
Day Visitors
Value of Tourism
Expenditure Associated With Trips
Employment
Full time equivalent
Estimated actual jobs
Indirect & Induced Employment
Full time equivalent
Estimated actual jobs
Total Jobs
Full time equivalent
Estimated actual jobs
Tourism Jobs as a Percentage of Total Employment
Appendix I - Cambridge Model - Methodology
Trips by Purpose
Nights by Purpose
Spend by Purpose
Trips and Spend by Urban, Rural and Coastal Area
Direct Expenditure Associated with Trips
Other expenditure associated with tourism activity
Direct Turnover Derived From Trip Expenditure
Supplier and Income Induced Turnover
Total Local Business Turnover Supported by Tourism Activity
Direct
Contextual analysis
How accurate is the Regional data?
The Cambridge Model makes use of data from nationla surveys (GBTS, IPS, GBDVS). The
regional data extracted from these national surveys has to be interpreted with lots of caution,
as it has never been designed to be able to produce highly accurate results at regional level or
be disaggregated to County level.
Whilst the survey gives good precision at the national level, regional breakdowns of the data
will almost inevitably lead to less reliable results as margins of error for visits can be as high as
40%. The national survey data is a key driver for the Cambridge model and as outlined above,
needs to be used with caution when looking at regional level data. We have applied a 3 year
rolling average to this data to help smooth out short term market fluctuations and highlight
longer-term trends. We also combine the demand data with supply-side results (occupancy
levels, visits to visitor attractions).
Domestic tourism
In 2015, British residents took 102.7 million overnight trips in England, totalling 300 million
nights away from home, with an expenditure of £19.6 billion. £191 was spent per trip, and
with an average trip length of 2.92 nights, the average spend per night was £65.
The East of England region experienced an increase of 8% in overnight trips during 2015.
Bednights were down 5% on 2014 and expenditure was up by 2%. This resulted in a decrease
in the average length of trips (the number of night per trip) from 3.3 nights per trip in 2014 to
2.9 in 2015. The average spend per night was up from £53.4 per night in 2014 to £57.7 in 2015.
The region received more visitors in 2015 than in the previous year. However, those who did
visit stayed for shorter periods of time, meaning that overall trip expenditure per trip was
down from £178.7 in 2014 to £167.5 in 2015.
However, please note that the Cambridge Model uses three year rolling averages to reduce
some of the more extreme fluctuations which are due to small sample sizes and high margins
or error.
Visits from overseas
The number of visits in 2015 grew 5% to a record 36.1 million, after several years of growth
since 2010. Average spend per visit was £611 in 2015, down from the peak of £650 per visit in
2013 and reflecting the relative strength of sterling in 2015. The number of visitor nights spent
in the UK increased by 3% in 2015 to 273 million, with the average number of nights per visit
standing at 7.6.
Overseas trips to the East of England region were 4% up on 2014 to reach 2.2 million overnight
trips. The total number of nights was down by 1% to reach 16.7 million in 2015. Spend was also
down by less than 1% to £960 million in 2015.
The International Passenger Survey (IPS) is conducted by Office for National Statistics and is
based on face- to-face interviews with a sample of passengers travelling via the principal
airports, sea routes and the Channel Tunnel, together with visitors crossing the land border
into Northern Ireland. The number of interviews conducted in England in 2015 was around
35,000. This large sample size allows reliable estimates to be produced for various groups of
passengers despite the low proportion of travellers interviewed. The IPS provides headline
figures, based on the county or unitary authority, for the volume and value of overseas trips to
the UK. The sample for East of England was 2,450 interviews.
Day visits
The volume and value of Tourism Day Visits in the East of England decreased between 2014
and 2015 from 130 million to 118 million with a 6% decrease in expenditure. The Visits to
Visitor Attractions Survey shows that the volume of visitors to fee paying attractions in the
Norfolk was up by 5% between 2014 and 2015. Results for the East of England show an
increase of 3%.
The Attractions Survey also provides useful volume and value data at regional level. We have
used changes in admission, admission charges as well as gross revenue levels to estimate likely
visitor expenditure levels. The results show a 4% increase in admission fees and a 6% increase
in gross revenue.
Please note that the Cambridge Model uses three year rolling averages to reduce some of the
more extreme fluctuations which are due to small sample sizes and high margins or error.
Volume of Tourism
Staying Visitors - Accommodation Type
Trips by Accommodation
UK Overseas Total
740,000 37% 145,000 29% 885,000 35%
21,000 1% 5,000 1% 26,000 1%
58,000 3% 6,000 1% 64,000 3%
127,000 6% 1,000 0% 128,000 5%
10,000 0% 12,000 2% 22,000 1%
0 0% 2,000 0% 2,000 0%
17,000 1% 6,000 1% 23,000 1%
7,000 0% 0 0% 7,000 0%
37,000 2% 103,000 21% 140,000 6%
986,000 49% 222,000 44% 1,208,000 48%
Total 2015 2,004,000 501,000 2,505,000
Comparison 2014 1,971,000 481,000 2,452,000
2% 4% 2%
Nights by Accommodation
UK Overseas Total
1,213,000 24% 557,000 17% 1,770,000 21%
27,000 1% 97,000 3% 124,000 2%
237,000 5% 14,000 0% 251,000 3%
504,000 10% 4,000 0% 508,000 6%
20,000 0% 140,000 4% 160,000 2%
0 0% 28,000 1% 28,000 0%
41,000 1% 163,000 5% 204,000 2%
14,000 0% 0 0% 14,000 0%
124,000 2% 160,000 5% 284,000 3%
2,850,000 57% 2,045,000 64% 4,895,000 59%
Total 2015 5,030,000 3,208,000 8,238,000
Comparison 2014 5,491,000 2,995,000 8,486,000
-8% 7% -3%
Spend by Accommodation Type
UK Overseas Total
£134,735,000 56% £27,835,000 16% £162,570,000 39%
£2,349,000 1% £7,309,000 4% £9,658,000 2%
£6,460,000 3% £542,000 0% £7,002,000 2%
£18,997,000 8% £2,000 0% £18,999,000 5%
£1,021,000 0% £5,584,000 3% £6,605,000 2%
£0 0% £860,000 1% £860,000 0%
£1,034,000 0% £6,528,000 4% £7,562,000 2%
£689,000 0% £0 0% £689,000 0%
£1,673,000 1% £10,375,000 6% £12,048,000 3%
£73,765,000 31% £112,455,000 66% £186,220,000 45%
Total 2015 £240,724,000 £171,489,000 £412,213,000
Comparison 2014 £260,171,000 £160,184,000 £420,355,000
-7% 7% -2%
Other
Friends & relatives
Difference
Serviced
Self catering
Camping
Static caravans
Group/campus
Serviced
Boat moorings
Other
Friends & relatives
Difference
Serviced
Self catering
Camping
Static caravans
Group/campus
Paying guest
Second homes
Boat moorings
Paying guest
Second homes
Boat moorings
Other
Friends & relatives
Difference
Self catering
Camping
Static caravans
Group/campus
Paying guest
Second homes
Serviced accommodation includes hotels, guesthouses, inns, B&B and serviced farmhouse accommodation. Paying guest refers to overseas visitors staying in private houses, primarily language school students. Other trips includes nights spent in transit, in lorry cabs and other temporary accommodation.
Staying Visitors - Purpose of Trip
1,164,000 58% 122,000 24% 1,286,000 51%
302,000 15% 102,000 20% 404,000 16%
485,000 24% 211,000 42% 696,000 28%
53,000 3% 61,000 12% 114,000 5%
0 0% 4,000 1% 4,000 0%
Total 2015 2,004,000 501,000 2,505,000
Comparison 2014 1,971,000 481,000 2,452,000
2% 4% 2%
3,193,000 63% 661,000 21% 3,854,000 47%
586,000 12% 340,000 11% 926,000 11%
1,149,000 23% 1,712,000 53% 2,861,000 35%
103,000 2% 371,000 12% 474,000 6%
0 0% 124,000 4% 124,000 2%
Total 2015 5,030,000 3,208,000 8,238,000
Comparison 2014 5,491,000 2,995,000 8,486,000
-8% 7% -3%
£124,069,000 52% £35,162,000 21% £159,231,000 39%
£67,523,000 28% £29,768,000 17% £97,291,000 24%
£43,053,000 18% £77,703,000 45% £120,756,000 29%
£6,079,000 3% £16,574,000 10% £22,653,000 5%
£0 0% £12,282,000 7% £12,282,000 3%
Total 2015 £240,724,000 £171,489,000 £412,213,000
Comparison 2014 £260,171,000 £160,184,000 £420,355,000
-7% 7% -2%
Total 2015
Comparison 2014
Trips by Purpose
Other
Study
Difference
Nights by Purpose
UK
UK Overseas Total
Holiday
Business
Friends & relatives
Study
Difference
Spend by Purpose
UK Overseas
Overseas Total
Holiday
Business
Friends & relatives
Other
Difference
Day Visitors
Trips and Spend by Urban, Rural and Coastal Area
Trips Spend
Total
Holiday
Business
Friends & relatives
Other
Study
Coastal visits 7,800,616 £258,507,063
47,800,616 £1,757,071,063
46,377,716 £1,687,487,682
Urban visits 27,983,000 £1,116,594,000
Countryside visits 12,017,000 £381,970,000
Difference 3% 4%
Value of Tourism
Expenditure Associated with Trips:
Accomm. Shopping Food and Drink Attractions Travel Total
£74,788,000 £29,949,000 £61,861,000 £24,811,000 £49,316,000 £240,725,000
£46,202,000 £49,562,000 £37,885,000 £20,888,000 £16,952,000 £171,489,000
£120,990,000 £79,511,000 £99,746,000 £45,699,000 £66,268,000 £412,214,000
29% 19% 24% 11% 16% 100%
£0 £589,717,000 £726,330,000 £203,632,000 £237,391,000 ##############
0% 34% 41% 12% 14% 100%
Total 2015 £120,990,000 £669,228,000 £826,076,000 £249,331,000 £303,659,000 £2,169,284,000
6% 31% 38% 11% 14% 100%
Comparison 2014 £125,539,000 £644,852,000 £799,397,000 £241,473,000 £296,583,000 £2,107,844,000
-4% 4% 3% 3% 2% 3%
Boats Static vans
£11,541,500 £26,676,650
UK Tourists
Overseas tourists
Total Staying
Total Staying (%)
Total Day Visitors
Direct Expenditure Associated with Trips
Other expenditure associated with tourism activity - Estimated spend
Second homes Friends & relatives Total
£7,011,000 £146,040,000 £191,269,150
Total Day Visitors
%
Difference
Other expenditure associated with tourism activity
Spend on second homes is assumed to be an average of £2,000 on rates, maintenance, and replacement of furniture and fittings. Spend on boats assumed to be an average of £2,000 on berthing charges, servicing and maintenance and upgrading of equipment. Static van spend arises in the case of vans purchased by the owner and used as a second home. Expenditure is incurred in site fees, utility charges and other spending and is estimated at £2,000. Additional spending is incurred by friends and relatives as a result of people coming to stay with them. A cost of £175 per visit has been assumed based on national research for social
0%
10%
20%
30%
40%29%
19%24%
11%16%
Breakdown of expenditure
Total Staying (%)
0%
20%
40%
60%
34%41%
12% 14%
Breakdown of expenditure
Total Day Visitors
Total Direct 2015
Comparison 2014
Difference
Total 2015
Comparison 2014
Difference
Total Value 2015
Comparison 2014
Difference
Retail £78,716,000 £583,820,000 £662,536,000
Catering £96,753,000 £704,540,000 £801,293,000
Direct Turnover Derived From Trip Expenditure
Staying Visitor Day Visitors Total
Accommodation £122,985,000 £14,527,000 £137,512,000
Non-trip spend £191,269,150 £0 £191,269,150
Attractions £47,492,000 £216,793,000 £264,285,000
Transport £39,761,000 £142,435,000 £182,196,000
£571,629,150 £1,596,329,000 £2,167,958,150
1% 4% 3%
£576,976,150 £1,662,115,000 £2,239,091,150
Non trip spending £40,166,000 £0 £40,166,000
Income induced £127,762,000 £95,371,000 £223,133,000
Supplier and Income Induced Turnover
Staying Visitor Day Visitors Total
Indirect spend £121,024,000 £402,745,000 £523,769,000
£288,059,000 £478,377,000 £766,436,000
0% 4% 3%
£288,952,000 £498,116,000 £787,068,000
Indirect £288,952,000 £498,116,000 £787,068,000
Total Local Business Turnover Supported by Tourism Activity – Value of Tourism
Staying Visitor Day Visitors Total
Direct £576,976,150 £1,662,115,000 £2,239,091,150
1% 4% 3%
£865,928,150 £2,160,231,000 £3,026,159,150
£859,688,150 £2,074,706,000 £2,934,394,150
Business turnover arises as a result of tourist spending, from the purchase of supplies and services locally by businesses in receipt of visitor spending and as a result of the spending of wages in businesses by employees whose jobs are directly or indirectly supported by tourism spending.
Adjustments have been made to recognise that some spending on retail and food and drink will fall within attractions or accommodation establishments. It is assumed that 40% of travel spend will take place at the origin of the trip rather than at the destination.
Income induced spending arises from expenditure by employees whose jobs are supported by tourism spend.
Employment
1,957 23% 231 1% 2,188 7%
729 8% 5,409 26% 6,139 21%
1,507 17% 10,972 52% 12,479 42%
746 9% 3,407 16% 4,154 14%
267 3% 956 5% 1,222 4%
3,478 40% 0 0% 3,478 12%
Total FTE 2015 8,684 20,976 29,660
Comparison 2014 8,564 20,145 28,709
Difference 1% 4% 3%
2,896 25% 342 1% 3,239 8%
1,094 9% 8,114 26% 9,208 22%
2,260 19% 16,458 53% 18,719 44%
1,052 9% 4,804 15% 5,857 14%
376 3% 1,347 4% 1,724 4%
3,964 34% 0 0% 3,964 9%
Total Actual 2015 11,644 31,066 42,710
Comparison 2014 11,544 29,836 41,380
Difference 1% 4% 3%
Indirect & Induced Employment
Total FTE 2015
Comparison 2014
Difference
Total Actual 2015
Comparison 2014
Difference
Employment
Direct employment
Catering
Entertainment
Transport
Non-trip spend
Estimated actual jobs
Staying Visitor Day Visitor Total
Full time equivalent (FTE)
Staying Visitor Day Visitor Total
Accommodation
Retailing
Full time equivalent (FTE)
Staying Visitor Day Visitors Total
Indirect jobs 2,931 7,323 10,253
Accommodation
Retailing
Catering
Entertainment
Transport
Non-trip spend
5,237 8,698 13,935
0% 4% 3%
Induced jobs 2,323 1,734 4,057
5,254 9,057 14,310
Induced jobs 2,648 1,977 4,625
5,989 10,325 16,314
Estimated actual jobs
Staying Visitor Day Visitors Total
Indirect jobs 3,341 8,348 11,689
5,971 9,915 15,886
0% 4% 3%
The model generates estimates of full time equivalent jobs based on visitor spending. The total number of ‘actual’ jobs will be higher when part time and seasonal working is taken into account. Conversion of full time equivalent jobs into actual jobs relies on information from business surveys in the sectors receiving
Total Jobs
8,684 62% 20,976 70% 29,660 67%
2,931 21% 7,323 24% 10,253 23%
2,323 17% 1,734 6% 4,057 9%
Total FTE 2015 13,938 30,032 43,970
Comparison 2014 13,802 28,843 42,645
Difference 1% 4% 3%
11,644 66% 31,066 75% 42,710 72%
3,341 19% 8,348 20% 11,689 20%
2,648 15% 1,977 5% 4,625 8%
Total Actual 2015 17,633 41,391 59,024
Comparison 2014 17,514 39,751 57,266
Difference 1% 4% 3%
Tourism Jobs as a Percentage of Total Employment
Comparison 2014
Difference
Total
Total employed 91%
Tourism jobs 9%
17,514
1%
39,751
4%
57,266
3%
Day Visitor Total
Direct
Proportion all jobs 3% 6% 9%
Total
Total employed 690,700 690,700 690,700
Tourism jobs 17,633 41,391 59,024
Direct
Indirect
Induced
Staying Visitor Day visitors
Indirect
Induced
Estimated actual jobs
Staying Visitor Day Visitor Total
Full time equivalent (FTE)
Staying Visitor
Actual jobs are estimated from surveys of relevant businesses at locations in England and take account of part time and seasonal working.
91%
9%
Tourism Jobs as a Percentage of Total Employment
Total employed
Tourism jobs
The key 2015 results of the Economic Impact Assessment are:
50.3 million trips were undertaken in the area
47.8 million day trips
2.5 million overnight visits
8.2 million nights in the area as a result of overnight trips
£2,169 million spent by tourists during their visit to the area
£181 million spent on average in the local economy each month.
£412 million generated by overnight visits
£1,757 million generated from irregular day trips.
£3,026 million spent in the local area as result of tourism, taking into account multiplier effects.
59,024 jobs supported, both for local residents from those living nearby.
42,710 tourism jobs directly supported
16,314 non-tourism related jobs supported linked to multiplier spend from tourism.
Economic Impact of Tourism – Headline Figures Essex - 2015
Appendix I - Introduction about Cambridge Model
This report examines the volume and value of tourism and the impact of that expenditure on the local economy. The figures were derived using the Cambridge Economic Impact Model and the research was undertaken by Destination Research.
The model utilises information from national tourism surveys and regionally based data held by Destination Research. It distributes regional activity as measured in those surveys to local areas using ‘drivers’ such as the accommodation stock and occupancy which influence the distribution of tourism activity at local level.
Limitations of the Model
The methodology and accuracy of the above sources varies. The results of the model should therefore be regarded as estimates which are indicative of the scale and importance of visitor activity in the local area. It is important to note that in the national tourism surveys the sample sizes for each area changes year on year. This is as a result of the random probability nature of the methodology. As such, the results of the Cambridge Model are best viewed as a snapshot in time and we would caution against year-on-year comparisons.
It should be noted that the model cannot take into account any leakage of expenditure from tourists taking day trips out of the area in which they are staying. While it is assumed that these may broadly balance each other in many areas, in locations receiving significant numbers of day visitors from London, there is likely to be an underestimate in relation to the number of overseas day visitors staying in holiday accommodation in London.
Whilst it is important to be aware of these issues, we are confident that the estimates we have produced are as reliable as is practically possible within the constraints of the information available.
RoundingAll figures used in this report have been rounded. In some tables there may therefore be a slight discrepancy between totals and sub totals.
Data sourcesThe main national surveys used as data sources in stage one include:• Great Britain Tourism Survey (GBTS) - information on tourism activity by GB residents;• International Passenger Survey (IPS) information on overseas visitors to the United Kingdom;• Day Visits in the annual Great Britain Day Visitor Survey using information on visits lasting
more than 3 hours and taken on an irregular basis
These surveys provide information down to a regional level. In order to disaggregate data to a local level the following information sources are used:
• Records of known local accommodation stock held by Destination Research;• VisitEngland's surveys of Visits to Attractions, which provide data on the number of visitors to
individual tourist attractions ;• Mid- 2014 estimates of resident population as based on the 2011 Census of Population;• Selected data from the 2011 Census of Employment;• Selected data on the countryside and coast including, national designations and length of the
coastline.
coastline.
Staying Visitors
The GBTS provides information on the total number of trips to the region and the relative proportions using different types of accommodation. By matching these figures to the supply of such accommodation, the regional average number of trips per bedspace or unit of accommodation can be derived. The IPS provides information on the total number of trips by overseas visitors to the region. The model uses three year rolling averages to reduce extreme highs and lows which are due to small sample sizes, rather than being a reflection on drastic changes in demand year-on-year.
Day Visitors
Information on day trips at the regional level is available from the Day Visits in Great Britain survey. The survey includes all leisure-related trips from home. It should be noted that a large proportion are local trips made by people resident in the locality. The model uses information from the survey to estimate the number of longer day trips (defined as those lasting at least 3 hours and involving travel of more than 20 miles) and irregular trips lasting more than 3 hours.
Impact of tourism expenditure
This section examines the impact of the tourism expenditure in terms of the direct, indirect and induced expenditure as well as an estimate of the actual jobs (both direct and indirect) supported by tourism expenditure in the district.
The GBTS, IPS and Day Visits to Great Britain survey data on the breakdown of visitor spending.The impact of this initial round of expenditure will be subsequently increased by multiplier effects. These arise from the purchase of supplies and services by the businesses in receipt of visitor expenditure (indirect impacts), and by the income induced-effects arising from the spending of wages by employees in the first round of business and in subsequent expenditure in supplier business (induced impacts).
The New Earnings Survey which provides information on wage levels by industry sector and region; An internal business database which includes data on the structure of business expenditure, local linkages and multiplier ratios drawn from a wide range of business and economic studies carried out by Geoff Broom Associates, PA Cambridge Economic Consultants and others. By applying the breakdown to the estimates of visitor spending, the model generates estimates of total direct spending.
Evidence from national studies suggests that some minor adjustments are required to match visitor spend to business turnover – for example, some expenditure on food and drink actually takes place in inns and hotels that fall in the accommodation sector and within attractions. More significantly, expenditure on travel costs associated with individual trips is equally likely to take place at the origin of the trip as the destination. Therefore the model assumes that only 40% of travel expenditure accrues to the destination area.
Number of full time job equivalents
Having identified the value of turnover generated by visitor spending, it is possible to estimate the employment associated with that spending. Wages for staff and drawings for the proprietors will absorb a proportion of that turnover. By applying these proportions to the overall additional turnover in each sector, the amount of money absorbed by employment costs can be calculated. The New Earnings Survey provides data from which the average costs by business sector, adjusted to take account of regional differences, can be calculated.
business sector, adjusted to take account of regional differences, can be calculated.
After allowing for additional costs such as National Insurance and pension costs, an average employment cost per full time equivalent job can be estimated. The number of such jobs in the local area can then be estimated by dividing the amount of business expenditure on wages and drawings by the average employment cost per job.
Number of Actual Jobs
The model generates estimates of full time equivalent jobs based on visitor spending. However, the total number of actual jobs will be higher when part time and seasonal working is taken into account. The full time equivalent jobs arising directly from visitor spending are converted into actual jobs using information from business surveys in the sectors receiving visitor spending. In general, the conversion factor varies around 1.5 in those sectors.
The indirect and induced jobs arise across a much wider range of employment sectors. Therefore, the average 1.16 for all sectors based on Census of Employment data has been used to convert full time equivalent jobs in this sector to actual jobs.
The employment estimates generated by the model include both self employed and employed people supported by visitor expenditure. The model also includes an estimate of the additional jobs arising in the attractions sector, which are not related to visitor expenditure. However, the numbers do not include other tourism-related employment such as jobs in local authorities arising from their tourism functions, e.g. tourist information staff, additional public health, parks and gardens, public conveniences, maintenance sections and jobs arising from capital investment in tourism facilities.
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