Issue - meetings

To provide an update regarding the Hello SK app and to make a decision regarding the cessation of its use.

Purpose of report

To provide an update regarding the Hello SK app and to make a decision regarding the cessation of its use.

Decision

That Cabinet:

1.    Approves the cessation of the use of the Hello SK app.

2.    Encourages officers to work in partnership with Destination Lincolnshire on some of the features of the app to offset their loss.

Alternative options considered and rejected

The initial set up of the Hello SK app was fully funded through the Government’s ‘Welcome Back Fund’ to support the re-opening of the high street in the aftermath of the Covid pandemic. However, the app had proven to not be financially self-sustaining. Therefore the ‘do nothing’ option had been discounted.

The Destination Management Organisation (DMO) would have an impact upon the Council’s planned Tourism and Visitor Economy Strategy. Members may wish to consider supporting Officers in developing areas to replace some of the Hello SK app activity.

Reasons for decision

Despite the initial opportunities offered in the aftermath of the pandemic, it was difficult to justify the continued use of, or further investment in, the Hello SK app because it no longer provided an appropriate Benefit-Cost Ratio (BCR).

A strategy to replace the app activity should be developed through the creation of a Tourism and Visitor Economy Strategy in the context of the newly formed Destination Lincolnshire Local Visitor Economy Partnership (LVEP).

It was also recommended that officers initiated partnership activities with Destination Lincolnshire to offset some of the features of the Hello SK app. Working with Destination Lincolnshire would help offset the loss of some of the features of the Hello SK app.

During debate, the following points were highlighted:

·       A company called Bubltown was used for procurement of the Hello SK app through a one-off payment of £50,000. It was suggested by Bubltown that the app would become financially self-sustaining – this had not been the case.

·       Revenue had not performed at the level forecast. Bubltown had asked the Council to consider paying for use of the app on a regular basis.

·       Despite the attempts to invigorate the use and functionality of the app, as of January 2024 the Hello SK app had been downloaded by 1,436 consumers and contained 211 business profiles from across South Kesteven. These numbers were insufficient to generate the necessary revenue, and therefore did not justify continuation of the scheme. However, the cessation did not go against the Council’s targets for economic development.

·       There were a small number of businesses that were using the app to its fullest extent. Where this was the case the Council would like to continue to promote events for these businesses where possible.

·       The UK Shared Prosperity Fund (UKSPF) Board had considered a bid for UKSPF monies from Destination Lincolnshire at their meeting on 13 May 2024.

The cessation of the Hello SK app was considered and subsequently endorsed by the Culture and Leisure Overview and Scrutiny Committee at their meeting in March 2024.