The Blaenavon Industrial Landscape:

first steps in estimating tourism economic impacts

Jane BryanWelsh Economy Research Unit

March 22nd 2010

Background to the 2000 Study

• Tourism – a fast growing sector & a realistic economic development option

• Blaenavon gained World Heritage Site Status in 2000

• Industrial Heritage Tourism poses a number of challenges:> Associated with environmental damage & depressed communities > Niche market & uncertainties re visitor numbers> Needs careful interpretation to ensure visitor satisfaction > Site Issues: spatially extensive, expensive to repair, and Health & Safety concerns

The Objectives of the Blaenavon Study

To estimate the potential socio-economic impacts of the wider Blaenavon regeneration project (2001-2004):

• Big Pit • Blaenavon Ironworks• St Peter’s Church and school• Blaenavon access and townscape• Factory Space on Gilchrist Thomas Industrial

Estate• Interpretation infrastructure

Development Phase (Once-only Construction Spending Impacts)

Selected Construction Spend 2001-04 Blaenavon Industrial Landscape

Project Spend

(£m) Project Spend

(£m)

Big Pit 6.35 Lower Broad St Townscape 0.03

Forgeside community woodland 0.48 Gilchrist starter units 1.76 Town Hall & car park 0.69 St Peter’s School 1.67 Blaenavon Ironworks 0.78 St Peter’s car park 0.11 St Peter’s Church 0.26 Iron works car park 0.30 15-19 Broad St (Listed Buildings) 0.22 Blaenavon access 0.65 Market St Improvements 0.12 Renewal Area Grants 6.00* Total Spend (2001-2004) 19.42

Note* Assuming £1.5m pa to 2004

Development Phase (Once-only Construction Spending Impacts)

Blaenavon Industrial Landscape: Development Phase Output 2001-04 (£m) TOTAL EXPENDITURE 19.4 DIRECT OUTPUT DEMANDED (WALES) 15.5 INDIRECTLY SUPPORTED OUTPUT 8.8 TOTAL OUTPUT (WALES) 24.3 Output Multiplier 1.57

Development Phase Employment EffectsBlaenavon Industrial Landscape: Construction Related Employment

Person Years

2001-04 Direct labour (FTEs) 410

INDIRECTLY SUPPORTED EMPLOYMENT (person-years) Agriculture & food 10 Manufacturing & Energy 15 Construction 50 Retail & Wholesale 30 Accommodation 5 Restaurants & Bars 5 Transport 5 Finance & Business 30 Recreation &Other 20 TOTAL INDIRECT (person- years) 170 TOTAL EMPLOYMENT 580 Multiplier 1.40

Blaenavon Industrial Landscape - Operational

Phase

The economic impact arising from site operations is dependent on visitor demand; in turn determined by complex interactions between:

• Presence (or otherwise) of rival UK industrial attractions (Ironbridge has 8 museums, covers 80 acres and attracts 300,000 visits per annum).

• Attractiveness of associated on-site facilities.• Attractiveness of neighbourhood. • Marketing focus and penetration.

Estimates produced in the report were considered to be conservative, and were based on pre-2000 visits to Big Pit.

Estimated Visitor Numbers

Estimated Visitor Numbers – Blaenavon Industrial Landscape 2000

(Actual) 2001 2002 2003 2004 2005-

2010 Big Pit – Casual Visitors 35300 42900 52300 61700 71100 73000 Big Pit – Educational Groups 38400 45700 54800 64000 73200 75000 Big Pit – Other Groups 4300 5000 5700 6500 7300 7500 Other Blaenavon 5000 8000 11800 15500 19300 20000 TOTAL 83000 101500 124600 147700 170900 175000

Potential Long Term Impacts

Potential for Sustained Employment Impacts (FTEs) - Blaenavon Industrial Landscape

Big Pit

Gilchrist Thomas

Other Projects

Visitor Spending Impacts

All Employment

Direct Employment 48 25 14 n/a 87

INDIRECTLY SUPPORTED EMPLOYMENT Ag &Food * * 2 Man. & Energy * ** * 5 Construction * 2 Retail & Wholesale ** * *** 15 Accommodation * ** *** 9 Restaurants & Bars * *** 8 Transport * * 2 Finance & Business * ** * * 9 Recreation & Other * ** ** 11 Total Indirect 14 14 31 64 Direct + Indirect 62 39 31 151 Employment Multiplier 1.29 1.27 n/a -

Thoughts from 2001: Maximising the benefits of the Blaenavon Development

In the construction phase:• Involving as many local companies in the construction phases

(i.e public sector tendering processes that are local-friendly, in small batches)

Throughout operation, capturing as much visitor spend as possible by:

• Encouraging the development of the town’s retail and food offer,

• Providing the right infrastructure e.g. pedestrianisation to the focal point of the town,

• Sensitively engaging the local community, • Raising the standards of the local accommodation to ensure

fulfillment of expectations created by the all-Wales marketing efforts,

• Coordinated marketing effort between adjacent regional tourism partnerships/stakeholders.