Nation’s ‘second city’, Birmingham, is UK’s fastest growing regional tourist destination, according to figures

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Talented: Ellie Bekalo and Sam Wilson’s firm won £1,000 in an accelerator competition

The nation’s ‘second city’, Birmingham, is the UK’s fastest growing regional tourist destination, according to figures released last week, and its business leaders, who argue it is too often overlooked, are eager to capitalise on opportunities for the investment and growth that visitors are bringing.

According to research consultancy Regional Observatory and tourism researcher Global Tourism Solutions, Birmingham had a record 37.2 million visitors last year. The city has undergone a big regeneration with the opening of Grand Central shopping centre last month and there are hopes that HS2 could revive it further.

John Lewis boss Andy Street, the chairman of the Greater Birmingham and Solihull Local Enterprise Partnership, has urged all stakeholders in the West Midlands to seize the Government’s ‘devolution revolution’ and challenge the Northern Powerhouse.

Street said of last week’s tourism figures: ‘There is a buzz and energy about Greater Birmingham that is attracting more people, who are keen to see and be part of a place that is bounding forward. The feeling of excitement here is contagious and with more investment, innovation and ideas being put in place, we expect this region to become a truly global destination.’

Former Deputy Prime Minister Lord Heseltine and London Mayor Boris Johnson have said the West Midlands has to speak with one voice if it is to be recognised on the national stage. But Chancellor George Osborne was criticised last week after it emerged that he told Chinese president Xi Jinping, who was on a state visit to the UK, to take in Manchester instead of Birmingham, heightening the competition for power and funding between the two cities.

Damien Davenport, founder of 1847, a chain of four vegetarian restaurants, moved from London to open his first outlet in Manchester. But he has found that his second venue, in Birmingham’s Great Western Arcade, benefits from lower business rates and higher footfall.

Meanwhile, retailers are telling Jonathan Cheetham, chairman of promotional body Birmingham Retail and manager of Grand Central, that the centre is exceeding their expectations. He said: ‘It has been a bit of a shock to these guys. They’ve destroyed their targets.’

And he said it is not just larger chains benefiting from the opening of the centre – four of the businesses are independents.

London could be about to witness an exodus of workers as they find they cannot afford to live in the capital and decide to work elsewhere, according to property market analyst Hometrack.

Neil Rami, chief executive of Marketing Birmingham, said the city’s economy has become more diverse since the recession.

He said: ‘We’ve seen much broader and deeper growth in the private sector, because the city has developed the right accelerators and support. The universities are taking a much more proactive role.

‘I also think a lifestyle decision is being made. People are saying, “I’ve got a good idea but if I want to grow this into something meaningful I’ve got to be in an environment that works for me, particularly if I have a family”.’

Brian Donnelly, founder and chief executive of Synapse, which connects spreadsheets via the cloud, said: ‘All of the incredibly smart people we have hired locally have 2:1s and 1sts and we can all commute. My commute is seven minutes. Without being vulgar about money, the cost of the team is half what it would be in London.’

Business accelerator Entrepreneurial Spark said its Birmingham site sees more applications than any other in Britain. One company to have benefited is ‘virtual assistant service’ Virtalent, founded by Ellie Bekalo, 23, and Sam Wilson, 24.

The firm, which matches talented students to entrepreneurs, has free access to the hub’s workspace and mentors for up to 18 months, and won £1,000 in an Entrepreneurial Spark contest.

Meanwhile, Ultimo lingerie founder Baroness Mone is to lead an event in the city next month.

The Mail on Sunday’s Vicki Owen is travelling the UK to explore what small business support is on offer in different regions and to talk to Britain’s small company owners about what issues matter to them most. Contact [email protected] if you think she should visit your area. Tell her what the Government can do to help your firm and what small business support should look like.