New provisional figures from the International Passenger Survey – the key monitor of international tourism to the UK – out highlight the very real challenge facing Britain’s inbound tourism industry as international travel suffers from the impact of the global economic downturn. The figures demonstrate the scale of the task facing the industry and that people won’t just travel to Britain because sterling is weak…
New provisional figures from the International Passenger Survey – the key monitor of international tourism to the UK – out highlight the very real challenge facing Britain’s inbound tourism industry as international travel suffers from the impact of the global economic downturn. The figures demonstrate the scale of the task facing the industry and that people won’t just travel to Britain because sterling is weak.
The figures show that in the first three months of 2009, overseas residents made 6.3 million visits to the UK and spent just over £3.1 billion. Before adjusting for inflation, there is no change in spending compared to January-March 2008, while the number of visits has fallen by 13 per cent. Sterling was on average 29% weaker against the US dollar and 16% weaker against the Euro in March 2009 compared to March 2008.
Sandie Dawe, recently appointed chief executive of national tourism agency, VisitBritain, commented: “The figures illustrate the continuing challenges of maintaining Britain’s popularity as a destination in the face of the global economic downturn and increasing competition from rival destinations. Although these are traditionally lower months for inbound tourism, we know that a weak pound is not sufficient in itself to offset the full impact of the recession on international travel.
“We have already launched multi-million pound campaigns throughout Europe and the USA to encourage the world’s travellers to come to Britain right now to take advantage of our current affordability as a destination. We are encouraging consumers to explore more of Britain, taking advantage of special offers from hoteliers and carriers and supporting our wealth of attractions, accommodation and destinations. Visitors will enjoy the free museums and galleries that are one of Britain’s major appeals over rival destinations, as well as a summer season of superlative events, contemporary culture, inspiring landscapes and historic attractions. With industry partners eager to work with us and ready to match any public investment in marketing activity pound for pound, additional funding would enable us to spread that message even further and generate rapid returns.”
Unemployment rises in the USA and the Eurozone contributed to lower consumer confidence which has clearly influenced leisure and business travel. Visits in the first three months of 2009 (statistically more reliable than a single month) from EU15 countries are down 7% compared to the same period of 2008. Visits from other regions showed even less resilience to the current economic climate with visits from all world regions falling. Visits from North America are down 21%, and from non-EU countries in Europe down 29% in the first three months of 2009. A fall of -24% in visits from Accession (A12) countries is particularly important as Britain has previously relied on growth from emerging markets in Eastern Europe (as well as China, India and south-east Asia) to offset declines in more mature source markets.
Tourism supports 2.7 million jobs, 200,000 SMEs and is worth £114 billion, according to an independent report by Deloitte. It could be among the first industries to lead the UK out of its recession. Barriers to entering employment in the tourism sector are low, providing a realistic new career for individuals either entering the labour market for the first time or having to search for a new job. Furthermore, adequate investment could deliver an extra 164,000 jobs and a real opportunity to grow to a £133 billion industry by 2018.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
