FORESTRY COMMISSION ANNOUNCES FIRST PPP IN THE HOLIDAY SECTOR
30/07/2004
The Forestry Commission has invited the private sector to inject capital into modernising its thriving holiday business as it moves towards creating the first Public Private Partnership (PPP) in the UK’s tourism sector.
Plans to raise £25 million private sector funding represents the next step in the Forestry Commission’s timetable to develop its Forest Holidays business and, with it, the opportunity to join forces with a private sector partner to:
• Modernise the current touring caravan and campsite network
• Develop a new 100-cabin site
• Create permanent holiday let units on 300 pitches over five campsites.
Teresa Garnett, PPP Project Manager said: ‘This offers the opportunity to transform Forest Holidays from a wholly Forestry Commission owned and controlled business to a PPP. The partnership would enable us to benefit from much needed capital, whilst we continue to meet the Forestry Commission’s wider social and recreational objectives. We want to encourage people of all ages to enjoy the forests and woodlands of Great Britain’.
Forest Holidays is a unique brand and is ideally placed to maximise its recreational facilities including public woodlands and peace and tranquillity of its sites for the benefit of holidaymakers up and down the country.
This announcement comes against the backdrop of increased engagement between the UK public and private sectors across the whole range of public sector activity. This saw the Forestry Commission and Partnerships UK (PUK) enter into a Development Partnership Agreement in March 2003. PUK, itself a PPP, is playing a pivotal role in offering practical assistance at all stages to bring this PPP to fruition.
Teresa Garnett continued: “An important part of the process of selecting suitable partners will be evaluation of their proposals for adding value to the Forest Holidays business. Last year it had an operating profit of £1million. The PPP will give Forest Holidays access to much needed capital as well as complementary business resources, guaranteeing a secure future for its future direction.”
Michael Gerrard, Deputy Chief Executive of Partnerships UK said: “PUK is delighted to make available assistance to the Forestry Commission on such a worthwhile project. This is an imaginative way of using public assets and extracting value from them and we are confident that we can help to develop a thriving holiday business which meets the aspirations of holidaymakers.”
The process is timetabled to reach financial close by June 2005. The Invitation to Submit Outline Proposals (ISOP), already issued, has a closure date of the end of 13th September.
Forest Holidays currently operates three self-catering log cabin sites and 21 campsites throughout Great Britain, providing 141 self-catering units and over 5,000 touring pitches. The three cabin sites have recently been modernised - all cabins have been replaced by brand new units - funded by the Government’s Capital Modernisation Fund and by the Scottish Executive. This however was a one-off support and PPP funding is now required to take the business forward.
Market conditions are very favourable for developing the holiday business. The short break market is buoyant and sustainable tourism and increased appreciation of the environment and conservation issues are growing trends. People are looking for self-improvement and development whilst on holiday and the natural forest environment addresses the aspirations of an increasingly health conscious public.
The Forestry Commission is confident that, not only will it retain its existing customers, but that its extra capacity created will draw new customers into its holiday business to take advantage of the new cabins, modernised touring caravan and camping facilities and create permanent new holiday let units at some sites.
NOTES TO EDITORS
1. Potential partners are being asked to submit their initial proposals by 13th September 2004. The Forestry Commission expects to announce their Forest Holidays partner in summer 2005.
2. PUK is itself a PPP, established by HM Treasury to provide guidance, best practice advice and practical assistance at all stages of the implementation of a PPP. PUK signed a Development Partnership agreement with the Forestry Commission in March 2003 to assist in bringing this to fruition.
3. For further information on the PPP, contact Teresa Garnett at the Forestry Commission on 0131 314 6283 or Malcolm Graves at Partnerships UK on 020 7270 5161
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