Current value of cruise passenger visiting Isle of Man

Summary

A request for the calculated value of a cruise passenger visiting the Isle of Man was initially withheld under a future publication exemption but was subsequently disclosed following an internal review.

Key Facts

• The Department for Enterprise initially withheld the information citing Section 41 (information for future publication).
• An internal review concluded that no public harm would result from releasing the data.
• The disclosed figure comes from a Deloitte report submitted in July 2017 regarding a deep water berth.
• The average gross spend per passenger was calculated using data from 2012-2015.
• The methodology included historic Isle of Man figures, other comparable islands, and Rest of World data.

Data Disclosed

• £44.48
• 2017-10-31
• 2017-11-27
• 2017-11-30
• 2017-12-28
• 2012-2015
• July 2017
• Section 41
• Section 42

Exemptions Cited

• Section 41 (Information for future publication)

Data Tables (1)

Full Response Text

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Our Ref: IM108837I

Date: 28 December 2017

Dear

REQUEST FOR REVIEW UNDER THE FREEDOM OF INFORMATION ACT 2015 (“the Act”)

I write in reference to your request dated 30 November 2017 for an internal review application pursuant to s 42 of the Act regarding the response disclosed to your Freedom of Information request, reference number IM108837I, dated 30 November 2017. An internal review of the response to your application has now been completed by an independent officer who was not involved in the original request. Original FOI request Your original FOI request was as follows: “Can you please confirm that the Department has carried out analysis to determine the current value of a cruise passenger when visiting the Isle of Man. If so please advise what that figure is and how it is calculated.”

Internal Review Request Your request for internal review was as follows: “The DoE asserts that the information is "qualified exempt information", but do not justify why that specific piece of information cannot be released. They claim it is still being used to develop policy. But the specific piece of information requested exists, and will not change, so there can be no justification for withholding it. It is in the public interest to release it. It is not reasonable for the information to be withheld. The factors for withholding the information do not outweigh the factors for its release.

Department for Enterprise Rheynn Gastid Dellal

Steven Tallach Freedom of Information Co-ordinator 1st Floor St Georges Court Upper Church Street Douglas Isle of Man IM1 1EX

Telephone: (01624) 685375 Website: www.gov.im/ded Email: steven.tallach@gov.im

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Despite the assertion that the Dept requires further time to consider the information does not alter the fact of a cruise passenger spend. No public harm would result in providing this information.”

Upon review the Department accepts that no public harm will result in providing this information and considers that it should be released. Therefore we are disclosing the following information relating to the value of a cruise passenger when visiting the Isle of Man. The Deloitte report on development of an Isle of Man cruise ship deep water berth, submitted to the Department in July 2017, states “We have calculated an average of £44.48 as the average passenger gross spend in the economy per head”. In terms of the methodology, the report states that “We have obtained the average passenger gross spends from a number of reports, including historic Isle of Man figures , other comparable islands and Rest of World (ROW) from 2012-2015, resulting in a calculated average gross spend of £44.48”. Your right to request a review
If you are unhappy with this response to your Freedom of Information Internal Review request, under s42(1) of the Act you have the right to apply to the Isle of Man Information Commissioner for a review of either our response or any decisions and/or justification we have used if there was a refusal to supply information. You can contact the Information Commissioner at: Isle of Man Information Commissioner PO Box 69 Douglas Isle of Man IM99 1EQ Telephone: 01642 693260 Email: ask@inforights.im Website: https://www.inforights.im/complaint- handling/how-to-make-a-complaint-to-the- information-commissioner/freedom-of- information-complaints/

Should you then wish to appeal against the Commissioner’s decision, there is a right of appeal to the High Court on a point of law only. Yours sincerely

Steven Tallach FOI Co-ordinator

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Our Ref: IM108837I

Date: 27 November 2017

Dear

REQUEST UNDER THE FREEDOM OF INFORMATION ACT 2015 (“the Act”)

Thank you for your request dated 31 October 2017. Your request You request was as follows: “Can you please confirm that the Department has carried out analysis to determine the current value of a cruise passenger when visiting the Isle of Man.

If so please advise what that figure is and how it is calculated.”

Response to your request
The most recent information that the Department holds on the value of a cruise passenger when visiting the Isle of Man is contained in the report prepared by Deloitte this year on the proposed deep water berth for cruise ships. This report has not yet been published as the Department and Government requires more time to consider the report. However we are aiming to release the report by the end of 2017. We are therefore currently withholding the information under section under section 41(information for future publication) of the Act. Section 41 provides:

“Information is qualified exempt information if — (a) it is held with a view to its being published, by a public authority or any other person, at some future date (whether determined or not);

Department for Enterprise Rheynn Gastid Dellal

Steven Tallach Freedom of Information Co-ordinator 1st Floor St Georges Court Upper Church Street Douglas Isle of Man IM1 1EX

Telephone: (01624) 685375 Website: www.gov.im/ded Email: steven.tallach@gov.im

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(b) when the request for information is made the information is already being held with that view; and (c) it is reasonable in all the circumstances that the information be withheld from disclosure until that future date.”

Factors in favour of release are:  disclosure of factual information used to provide an informed background to decision- taking;  transparency and informing the public as to options being considered by Government. Factors in favour of withholding are:  the information is still being considered by Government and decisions on the next steps have not yet been taken;  release of the information at this stage outwith the context of the wider report may lead to incorrect assumptions being made about Government policy;  it is intended that the information will be published at a future date.

In assessing the weight to be attributed to each of the factors in favour of disclosing the information and maintaining the exemption, the Department has taken the following into consideration:  the Department (and Government) requires further time to consider the information and report; and  the Department intends to release the information in the context of the full report in the near future.

On balance the Department considers that the public interest lies in withholding the information requested in response to this request.

However we do hold information on the the value of a cruise passenger when visiting the Isle of Man calculated in 2013 by the Economic Affairs Team in the Treasury. A copy of the report is appended to this letter.

Your right to request a review If you are unhappy with this response to your Freedom of Information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post to me at the above address. An electronic version and paper version of our complaint form can be found by going to our website here: www.gov.im/foireview

Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.
If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1 Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act; or 2 Whether we are justified in refusing to give you the information requested.

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In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your rights to review is on the Information Commissioner’s website at: www.inforights.im/

Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about Freedom of Information requests can be found at www.gov.im/foi.

Yours sincerely

Steven Tallach Freedom of Information Co-ordinator

Cruise Passenger Survey 2013 Report Commissioned by Julie Colquitt Business Development Manager – Tourism Undertaken by Economic Affairs – Treasury www.visitisleofman.com We know from the ongoing Isle of Man Passenger Survey that currently there are around 300,000 visits to the Island by non residents, generating spending of around £100m, each year. However, the survey only covers passengers on scheduled flights and sailings and so excludes the relatively small numbers who arrive on chartered craft, cruise ships etc.

This survey was requested by the Department of Economic Development (DED) and carried out by the Economic Affairs Division of Treasury (EAD). It is designed primarily to estimate the value to the Island of the cruise ship business we get. It is the first robust study of cruise visitors to the Island and, as such, provides much needed data on the value to the Island of the cruise industry and details of characteristics such as the age profile of our cruise visitors, their level of satisfaction with the Island etc.
Cruise Passenger Survey 2013 Report Sample Size and Methodology A total of 514 interviews were conducted, covering 1,090 cruise passengers and staff. A disproportionate sample was taken of visitors from each of the 13 vessels which arrived at Douglas (1 vessel arrived at Peel and was excluded at the request of DED) and the results have therefore been weighted by the number of visitors on each. The overall response rate was 86%. Data collection was determined by operational considerations relating to access to cruise passengers and the time that would be available for interviewing. The vast bulk of interviews were conducted face to face with passengers at the sea terminal on their way back to the vessel. In a few instances (when we knew that we would have limited time to conduct interviews in this way) we made contact with passengers as they came ashore, explained the survey to them, and offered them a form to complete and hand in on their way back to the ship.
Economic Impact During the year, 14 cruise ships came to the Island. They carried 6,036 passengers and 3,817crew who collectively spent almost £200,000 in the Island (this figure includes the proportion of expenditure for excursions originally paid by passengers to the cruise line which was then paid by the cruise line to local providers). A further £40,000 was spent directly by the cruise lines on provisions, harbour fees and charges etc., bringing total expenditure to around £240,000. Using Treasury estimates of the Island’s tourist income multiplier (TIM) and effective rates of direct and indirect taxes, the total expenditure of cruise visitors generated an estimated £172,500 in national income and around £28,000 exchequer benefit.
Table 1. Expenditure, contribution to national income and exchequer benefit

per pax* Personal expenditure in the Island
£122,354
£20.27 Excursions pre-booked through cruise line
£77,231 £12.80 Other cruise line direct expenditure
£40,034 £6.63 GROSS EXPENDITURE
£239,619
£39.70 CONTRIBUTION TO NATIONAL INCOME £172,526
£28.58 EXCHEQUER BENEFIT
£28,040 £4.65 * Per passenger on all cruise ships which arrived at one of the Island ports during the year. Table 2. Age Profile and Group size • The average group size was 2.1. • The majority (54%) of cruise visitors were aged 65 and over. • A further 28% were aged between 50 and 64 and 3% were under 18.

0-17

3.1% 18-34

6.8% 35-50

7.7% 50-64

28.2% 65+

54.1% TOTAL

100 Opinions of the Island and Intention to Return 94% of passengers interviewed rated the Island as good (69%) or very good (25%) as a cruise destination. Just 1% rated it as poor or very poor, with the remaining 5% saying it was average. When asked if they had any additional comments, 66.1% responded. The vast majority (86%) of these responded positively, citing mainly the Islands beauty and hospitality as positive factors. The few negative responses covered a variety of issues including lack of a market at the sea terminal and lack of or bad information at the harbour. These high ratings and perceptions of the Island were reflected in the large percentage (47% of the total interviewed) saying that they intended to return to the Island at some point in the future. 44% said that they did not have any plans to return and 9% were undecided. Conclusions • Cruise Business presents the Isle of Man with a clear business opportunity to generate income. • It is obvious from the results of the survey that the overwhelming majority of cruise visitors who come ashore in the Isle of Man enjoy their visit and leave with a positive view of the Island. • The high percentage of passengers that indicated an intention to return is also very good. Cruise passengers are often “regular cruisers” and if a particular port has been very enjoyable, it’s presence on a future itinerary could be a selling point both to Cruise Companies and the Isle of Man as a destination. • Cruise Visitors spend is comparable with other UK transit ports and we will continue to increase opportunities to increase their on Island spend. • The figure of Euro 60 per passenger is often quoted by other transit ports, where similar surveys have been carried out. This figure may be slightly inflated to maintain their reputation within the Industry, but the findings for the Isle of Man provide us with opportunities to increase spend through growth in Cruise Business and increased opportunities for cruise passengers to spend money. • Many passengers surveyed commented that there was little opportunity for them to spend money during their transit to and from the Sea Terminal, for example purchasing souvenirs, and that in other ports, their spend in this area is significant. I will be meeting with the Department of Infrastructure to address this issue. • The work underway by the Department to build Cruise Business for the Isle of Man and promote the Island as a quality cruise destination is generating results, both in terms of fiscal and reputation. Various initiatives to increase business in this area are underway, including relationship building with Shore Excursion Companies and hosting familiarisation trips, new shore excursions for passengers, creating a Celtic Partnership with neighbouring ports, promotion of Manx Produce onboard vessels and improvement to our cruise t

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