Archived decisions

ITEM 8

HAMPSHIRE COUNTY COUNCIL.

SIR GEORGE STAUNTON COUNTRY PARK.

JOINT MANAGEMENT COMMITTEE.

TUESDAY 27^th NOVEMBER 2007.

2008/09 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 3% is proposed, a full breakdown of charges can be seen at Appendix A. The following considerations have been borne in mind when proposing the charges;

· Anticipated 2008/09 budget pressures (increased staffing costs as a result of the delayed 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. We have been successful in clearing our reserves deficit one year ahead of schedule. Despite significant national challenges, including two outbreaks of foot and mouth disease, visitor number increases have also been 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. A key impact on next years revenue budget is likely to be the long awaited implementation of the remuneration and benefits project. This, in conjunction with annual pay awards, and higher employers contributions to Superannuation will have a significant impact. With the nature of Staunton's business placing a high focus on providing a quality visitor focussed attraction the additional cost of weekend enhancements to staff (formerly operating on inclusive salaries) is significant.

2.3. Premises and infrastructure costs are also forecast to increase due to increased visitor usage, increasing utilities costs and the need to begin restoring elements of the glass houses and walled garden in particular.

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 2007.

Table 3.1: Competitor Attraction Charges

3.3. The proposed 2008/09 maximum adult charge at Staunton is already below (by 28%) the overall averaged competitor charge for the current year. It is also below the current averaged farm charges by more than 20% on the current year and 36% lower than the averaged garden attractions charge for 2006.

3.4. When compared to the principal local competitors of Manor Farm and Fishers Farm Park our proposed maximum charge for 2008/09 also sits between 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 (based upon data provided in the Tourism South East - Regional Tourism Trends Survey). 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 price increases have been kept to a minimum to enable these further development and promotion of these areas.

4.4. Following our initially successful period of membership building through low charges it is proposed to stabilise prices with only a modest increase to the general membership rate of 50p (3%). A lower rate will still be provided for local members who make up approximately 55% of membership.

4.5. Membership forecasts for 2008/09 allow for minimal new growth but by lessening the gap between annual membership and `casual' entry then the former will become a more attractive option. An on site marketing drive is also planned in order to convert casual visits to memberships on the day of visit through discounting membership by the individual cost of entry.

4.6. Changes to the family ticket structure have also been made following its introduction two years ago. From monitoring feedback from customers and actual uptake it has been decided to revise the ticket to offer entry to two adults and two children or one adult and three children.

5. Recommendation

5.1. That the 2008/09 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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