Positive thinking

When people talk about how tough it is out there, for some of us who are ‘out there’ (thanks to a media that likes to focus on the gloom), it’s easy to fall into the death ground scenario. We need to pull back, look at the facts and plan accordingly. Sterling’s value has dropped by 25% since last July, and by 13% since last November. At the time of writing this article, £1 was worth $1.39 or €1.06, diesel cost around 99p a litre (down from £1.33 in last July), and interest rates were at 0.5% – the lowest point in the history of British banking. If you feel insecure in your job then things are not looking good. Around 400,000 homes look set to be repossessed this year. If you depend on savings you will be feeling the pinch, and reluctantly dipping into capital reserves.
 

However, not all of our customers are going to hell in a hand cart. The impact of the economic situation is very mixed. This recession is indiscriminately targeted. If you have a secure job then your spending power is very much improved. Backed by 15% VAT, lower commodity costs and a tracker mortgage windfall, some customers are able to enjoy themselves. Some West End shows are selling extremely well, and it’s true for concerts too – Madonna has made light work of selling £175 tickets here in the UK. If you run a project, a museum or gallery with free admission, then footfall will certainly be up this year. Family-friendly low-cost days out are going to be very attractive. The Euro price will boost UK domestic tourism, and good summer weather will really help. Staying in the UK is also the low-carbon choice, which increasingly affects customer choices. Barbara Follett, the new Minister for Culture, Creative Industries & Tourism, has a great opportunity to make something very positive happen. Her intention to establish an inter-ministerial group on tourism has to be a welcome addition to the argument. Culture is a vital part of the tourism offer, with 59% of visitors including cultural visits on their itineraries.
We shall see how well the minister succeeds. Like every previous recession, this one will end at some point. UK Gross Domestic Product is expected to return to a positive rate of growth in the last quarter of this year. Much of the government policy that has been triggered by the economic downturn will not noticeably appear for a few more months yet. I believe things will keep getting worse economically until around November when the watery light of day might begin to appear. This is not to say we should all hide in a bunker until then. Market disruption is always an opportunity and now more than ever we have to apply self belief, courage and hard graft. In the end I firmly believe success will be a leadership choice. We can emerge strongly from the current trading conditions if we don’t give up. Despair remains a poor ally. Survival is about determination and leadership and seeing the market disruption as an opportunity.
 

1. We can use low-cost communications to market, by exploiting online social networks as far as possible and encouraging audiences to act as online ambassadors. Folk are impressed by what you do, not what you say, so be clear about the quality you offer.
2. Look to Europe for a new audience. Is there anything that can be done to raise your profile in Ireland or Europe? Challenge your own assumptions, and aim high.
3. Train your staff. If you aren’t busy enough to afford to pay for staff training, contact your local Business Link to access their training funds under the Train to Gain banner. £500m is being ploughed in to skills development in the hospitality and tourism sector. The one thing more expensive than training is ignorance.
4. Hotels and airlines need to fill their rooms and seats. Can you link to these locally and help create a one-click offer? Time bound festivals and great offers will help your destination.
5. Communicate with the rest of the local arts community. Your combined economic impact is more than the sum of the parts when trying to get media deals, supplier deals, PR, or linked sponsorship deals that are city- or town-wide.
6. Look at the overall package that you offer and strengthen it. Do you provide Internet coverage in your café? Do you offer newspaper, coffee and online packages for a single price?
7. Brief the service team on a regular basis, to ensure outstanding service levels. Every interaction creates a personal reaction, and in the current climate good service will be key to loyalty. Unengaged employees do not create engaged customers.
8. Look to create the random acts of kindness that are missing from life at the moment. The arts can put the love back. If greed is over for a while, and sharing really is the new deal, can your venue lead the way? If people are stressed and tense we need to give them an escape. People still need treats to escape the gloom. We create escapes for a living. We cannot let our audiences down in the current climate.