13.03.07
Hotel projects attracts millions of pounds of investment

An Objective One project that has encouraged millions of pounds of private investment into Newquay has been praised by South West tourism chief Malcolm Bell.

HONEY, a project that combined expert advice with investment to raise the quality of hotels and guests houses in Newquay and therefore attract more visitors, held a celebration event yesterday (Monday March 12th) at the town's Bay Hotel.

At the event, which was timed to coincide with the first British Tourism Week (March 12th to 18th), it was estimated that HONEY had encouraged hotel and guest house owners to invest about £4 million of their own money into transforming their properties and marketing techniques.

Other significant successes during the project's life include:

As well as job creation and a dramatic rise in quality, many environmentally friendly features have also been introduced, including solar panels and grey water harvesting systems; disability issues have been tackled, for instance larger print has been used on menus; and local sourcing has been encouraged.

Malcolm Bell, chief executive of South West Tourism and chair of the HONEY project since it began in 2003, said: "Ten years ago people were writing Newquay off but now Newquay is heralded as the way that coastal resorts should go. HONEY should be given credit for helping to lead that transformation."

Carleen Kelemen, Director of the Objective One Partnership, said: "With HONEY we were encouraging businesses to make a step change in the quality of by offering the hook of capital investment tied closely with support from experts.

"These businesspeople in Newquay had the confidence to pick up this challenge and invest for a stronger economic future. They helped to make HONEY so successful that it has now been rolled out across Cornwall as the honey2cornwall project."

And Ruth Vincent, HONEY and honey2cornwall programme director, added: "The combination of support with investment has given businesspeople confidence to invest in their futures. Some small and some really ambitious projects have happened with the support of HONEY and these have dramatically raised the quality of accommodation in and around Newquay.

"The support from public and private sector has helped to make the HONEY programme a huge success and is ensuring that there is now high demand for honey2cornwall."

HONEY was run by private company Newquay for Excellence Training Ltd and Restormel Borough Council. Hotels that signed up were offered one-to-one mentoring to improve all aspects of their business and the customer experience, focusing on five key themes: marketing, guest service, support services, pricing strategy and physical environment.

The celebration event included a presentation about HONEY's success by business mentor Chris Wikeley, fund manager Anthony Vage, and various hoteliers who had taken part in the project.

Mr Wikeley said: "This wasn't just a gateway fund handing out money, HONEY was an holistic programme and the support and advice was fundamental to its success.

"One of the key words that has come out from HONEY is 'confidence'. I estimate that, on top of the £2.5 million that these businesses contributed to match the HONEY project grants, a further £1.5 to £2 million was invested by the businesses."

One hotelier who used HONEY is Will Hatfield of the 34-room Carnmarth Hotel. Following work that has included rebranding, a total bar refurbishment and transforming the website, the number of staff at the Carnmarth has grown from nine to 24.

Mr Hatfield said: "We have completely transformed the hotel and we have created a stand alone bar and restaurant where non hotel trade has gone absolutely through the roof."

Jamie Alexander, manager of the 101-room Bedruthan Steps Hotel, at Mawgan Porth, said that when he started work there in 2002 there were about 150 summer staff, dropping to 20 in the winter. The hotel shut from November to Easter. Following HONEY support the hotel opens year round and employs 145 permanent staff.

Andy Burbidge , owner of the smaller 20-room Whipsiderry Hotel, said that following HONEY support bedrooms were upgraded so customers are now happy to pay more for those rooms. "We put in wide screen televisions, DVDs, king size beds and new en suites and furniture. HONEY inspired confidence in our product," he said.

The hotel also installed double glazing, central heating and new kitchen equipment and now opens for 10 months of the year where previously it would have been too cold for guests in the winter.

The 97-room Bay Hotel itself, where the HONEY event took place, has invested in huge improvements including a massive new luxury spa, due to open shortly, and a new bar and restaurant. A full time marketing post was also created.

Owner James Nettleton said: "Following this we have had the busiest season that we have ever known. HONEY was a really helpful and proactive set up."

Editor's notes:

HONEY was a £3.7 million project, of which £1.3 million came from the Objective One European Regional Development Fund. The three-year business improvement programme offered investment of up to £30,000 to upgrade hotel facilities.

Clare Morgan
Media Relations Manager
Objective One Partnership Office
Castle House
Pydar Street
Truro TR1 2UD
Mobile: 07973 813647
Telephone: 01872 223439

cmorgan@cornwall.gov.uk

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