Manchester Monitor: Visitor offer remains strong, even in uncertain economic times

New Economy has released the October 2011 edition of the Manchester Monitor, which provides a monthly snapshot of the economic wellbeing of Greater Manchester.

This month’s analysis by New Economy, whose purpose is to create economic growth and prosperity for Manchester, highlights that GM’s profile remains strong and the conurbation is continuing to attract visitors. In particular, average hotel occupancy rates in Manchester city centre and GM are growing on an annual basis and they reached 70.0% in August 2011.

The Conservative Party conference being held this week in Manchester shows that key events are being attracted to GM. Estimates suggest that the conference could be worth as much as £27 million to Manchester’s economy.

Numbers at Manchester Airport grew for the fifth consecutive month and stood at 2.1 million in July 2011. With Ryanair restarting services from the Airport in October, and with airlines such as Etihad and Emirates increasing the number of flights to the Middle East, the Airport should be well placed to attract passengers over the coming months.

Other indicators are less positive this month and reflect the ongoing economic challenges facing the UK. In particular, the number of people claiming Jobseekers Allowance (JSA) in GM grew by more than 6,000 in the 12 months to August 2011 to reach 81,000, while youth (16-24) JSA claimant numbers stand at nearly 26,000 – close to their September 2009 peak of 28,000.

The housing market remains subdued, with people unable to find the high deposits required to purchase properties. The issue is being exacerbated by the fact that rental levels houses in GM have increased year-on-year as a result of increased demand and a lack of properties on the market.

These are also difficult times for the construction industry. The total value of new orders obtained by contractors in GM between January and June 2011 was £930.7 million. This was £8.1 million down on the figure for the same period in 2010 and was £77.0 million less than the value of new orders obtained in the second half of last year.

John Holden, deputy director of research at New Economy, said: “The economy remains in an extremely fragile state and the continuing increase in unemployment in Greater Manchester is a real worry. The fact that the number of young people unemployed is getting close to its September 2009 peak is extremely concerning and the coming months are likely to prove just as challenging for people seeking opportunities in the labour market.

“Despite this, the year-on-year growth in hotel occupancy levels shows that Greater Manchester’s external profile remains strong and with events such as the Conservative Party Conference being attracted to Manchester, this should have a positive impact on the economy in terms of boosting visitor numbers and trade.”

ENDS

Notes to Editors
For further information please contact Mark Coleman, Communications Manager, Marketing Manchester on 0161 238 4586. Email: Mark Coleman

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