Archived decisions

ITEM 7

HAMPSHIRE COUNTY COUNCIL.

SIR GEORGE STAUNTON COUNTRY PARK.

JOINT MANAGEMENT COMMITTEE.

TUESDAY 21^ST NOVEMBER 2006.

2007/08 PRICING STRUCTURE REPORT.

Contact: Lewis Paterson (Telephone: 023 9245 3405).

1. Introduction

1.1. The following report sets out the proposed entrance charges to Sir George Staunton Country Park ornamental farm and gardens.

1.2. The proposed charges are maximum charges and it is hoped that where possible the Park Manager will be able to operate at a lower pricing scale.

1.3. Entrance charges are a key revenue generator at Staunton and as such careful consideration has been given to market forces and competitor pricing scales, both locally and nationally.

1.4. An averaged overall pricing increase of 5% is proposed, and can be seen in Appendix A. The following considerations have been borne in mind when proposing the charges;

· Anticipated 2007/08 budget pressures (increased staffing costs as a result of remuneration & benefits exercise; Increased premises costs, including utilities; and increasing infrastructure costs)

· Comparison with competitor attractions; and

· Market sensitivity.

2. Budget Considerations

2.1. In 2005 an ambitious ten year forecast budget was prepared for Sir George Staunton Country Park. This initially focussed on clearing the budget deficit before going on to develop the Park as a key visitor attraction. The current aim is to have cleared the deficit one year ahead of schedule. Visitor number increases are also one year ahead of schedule. In order to maintain this pace it is vital that future budget pressures can be dealt with as effectively as possible.

2.2. The key impact on next years revenue budget is likely to be the impending remuneration and benefits project. This, in conjunction with annual pay awards, and higher employers contributions to National Insurance will have a significant impact.

2.3. Premises and infrastructure costs are also forecast to increased due to increased visitor usage, increasing utilities costs and the need to begin restoring and replacing specialist equipment within the glass houses.

3. Comparison with Competitors

3.1. A key element of our marketing activity has always been benchmarking with competitors. It has been difficult to identify similar attractions which can offer the diversity of Staunton. We therefore select and compare Staunton to a range of similar garden and farm attractions, from the local area as well as nationally.

3.2. Table 3.1 shows individual and averaged adult charges for eleven other attractions during 2006.

Table 3.1: Competitor Attraction Charges

3.3. The proposed 2007/08 maximum adult charge at Staunton is already below (by 17%) the overall averaged competitor charge for the current year. It also represents an increase of just under 5% of the current averaged farm charges and is already 31% lower than the averaged garden attractions charge.

3.4. When compared to the principal local competitors of Manor Farm and Fishers Farm Park our proposed maximum charge for 2007/08 also sits below or is equal to their 2006 charges.

4. Market Sensitivity

4.1. Market sensitivity is an important consideration when arriving at the maximum proposed charges. Visitor growth at Staunton has been significantly ahead of our own targets and is also significantly ahead of similar regional attractions. It is therefore vital we do not stall this growth through high pricing. Care has been taken to compare favourably with competitor pricing when arriving at this structure.

4.2. In setting a maximum charge the Joint Management Committee will give the Park Manager the flexibility to operate within defined parameters to ensure that Staunton is as competitive as possible whilst ensuring its business viability.

4.3. Where possible prices have not been increased, or have only been marginally increased. This is to enable these further development and promotion of these areas. The most notably categories that this will apply to are;

· group rate senior citizens;

· angling; and

· educational visits.

4.4. Following the highly successful period of membership building through low charges it is proposed to increase these rates by between 19% and 20%. A lower rate will still be provided for local members who make up approximately 50% of membership. This takes into account the increased printing and postage costs associated with newsletters as well as the need to move to a bespoke membership software system. Membership forecasts for 2007/08 allow for minimal new growth in anticipation that some members will not renew.

5. Recommendation

5.1. That the 2007/08 maximum charges as set out in Appendix A be approved.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report. NB this list excluded:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

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