Economic Impact Study Template

ECONOMIC IMPACT STUDY
CONDOR FERRIES

1.0Introduction

Condor Ferries, with its distinctive vessels has a strong physical presence right in the

centre of Weymouth. It is also a significant local employer and consumer of the products

and services of other firms in the area.

The purpose of this report is to set out the economic impact of the firm and its activities on

the Borough. This will be done by:

(a) Setting out the direct economic impact of the firm: wages paid locally and fees paid.

(b) Setting out the indirect economic impact of the firm: the firms local supply chain and effect on the tourism business.

(c) In addition to the quantitative data in (a) and (b), a qualitative assessment will be made as to the firm’s impact on the town.

2.0Direct Economic Impact - raw data

2.1Monies paid directly to the Borough Council

Fees & Harbour dues:£460,000 per annum

Rent of offices:£ 25,000 per annum

This amounts to approximately one-third of annual revenue for the harbour.

The net cost of servicing the harbour is based on the economy of scale provided by Condor. The loss of the contract would increase costs proportionately more than the loss of income.

2.2Employees

2.2.1The firm employs 174 full-time Staff of whom 104 live in the Travel-To-Work-Area (TTWA)[1]

The firm employs an additional 275 Seasonal Staff of whom 255 live in the TTWA

This gives a Full-time Equivalent figure of 232 (Full-Time + 50 5 Seasonal)

Taking the full-time Equivalent figure this puts the firm at the level of the 17th largest

employer in the TTWA (10th Largest Private Sector)

The total annual wagebill is £7.2m of which £5.8m is paid to staff living in the TTWA.

2.2.2The total annual wagebill for employees living in the Borough is £4,350,000

3.0Indirect Impact - raw data

The indirect economic impact of the firm can be sub-divided into three principle categories:

a) Contractors and Supply-Chain

b) Effect on local tourist businesses of passengers

c) Other indirect spending

3.1.Contractors

3.1.1The principle sub-contractor in the TTWA is Manor Marine at Portland Port which

carries out £800,000 of servicing work: Hull and Engine refurbishment. Condor provides a

large proportion of Manor Marine’s work and has enabled that firm to build a range of

specialist skills, for example, Aluminium Welding on the basis of this contract.

3.1.2Other local contractors and sub-contractors of Manor Marine attribute approximately

£750,000 of work to Condor.

3.2Tourism

The figures for Foot and Car passengers are supplied by Condor. The breakdown

between UK, Channel Island and other nationalities and inclination to stay overnight of for

the day are based on data built up from enquiries to the TIC.

3.2.1Passengers

There were 120,000 foot passengers and 102,000 car passengers.

3.2.2Passenger behaviour, based on figures from Weymouth TIC and Condor, is set out in Appendix I

3.2.3The figures in Appendix 1 for passenger spend per day visit or visitor-night are based on the breakdowns in Appendix 2

3.2.4Total direct tourism spend is therefore worth £1,127,888[2]. The figures for day trippers include visitors whose decision to stay in Weymouth is in part influenced by this facility being available. The value of their stay in the town can be added to the above total.

3.3Other Indirect Expenditure

3.3.1Advertising Spend
The firm spend £1,000,000 per annum on advertising, approximately 10% of this is sourced locally, giving a figure of £100,000. All material published by the company mentions Weymouth.

3.3.2Training Spend

The firm conducts training and issues certification on behalf of the UK Marine and Coastguard Agency. The spend is currently £150,000 per annum on individuals within TTWA, which has an open market value of around £350,000.

4.0Qualitative Assessment

Both in terms of its link to the towns maritime heritage and to the Borough’s contemporary Marine focus, the firm makes a substantial contribution to the Borough. The port has a recorded history of use dating back circa 1900 years to the Romans and in recent centuries a ferry link to the Channrel Islands.

The Condor vessels have a high-profile and dynamic presence in the centre of the Town which reinforces the Town’s status as a working port. Visitors going in and out on the service are able to appreciate the Town and evidence from the TIC and local accomodation providers suggest that this encourages further visits.

5.0Conclusion

The firm is a major employer and contributor to the Borough making a direct contribution of some £7,732,888 to the local economy. In addition, the firm is a vital component of the towns marine dimension. As a ‘live’ and viable marine-sector business, with a strong local supply-chain, the firm makes a substantial contribution to the Borough’s Marine sector ‘Critical Mass’.

Appendix 1 -Tourism Spend - All Passengers

Appendix 2 - Passenger Spend

1

[1] TTWA is the Dorchester-Weymouth Travel-to-Work area, as defined by the DWP

[2] Medium range estimate (see Appendix 1)