28 October 2008

Some hope, but more worries for inbound operators

The slump in the value of sterling against the dollar and reduced oil prices have provided glimmers of hope to hard-pressed UK inbound tour operators.

But the "onerous" procedure of applying for a visa to visit the UK from countries such as China and Russia is making travellers from those countries consider alternative destinations in Europe.

Trade organisation UKinbound said it would persist in lobbying government on issues such as biometric visas as market conditions continue to become tougher.

Monthly statistics compiled through an online poll of members found a Ã¢â¬ÅâœsurprisingÃ¢â¬~ 1.2% increase in visitor numbers to the UK in August over the same month last year plus a marginal rise in forward bookings, the first since April.

The increases were attributed to the resilience of group bookings, particularly from other EU nations, with many travellers making use of the poundÃ¢â¬â¢s weakness against the euro, the organisation said.

Ã¢â¬ÅâœHowever, 2008 has overall been a disappointing year for inbound tourism and many of our members are worried at what 2009 could bring,Ã¢â¬~ UKinbound said.

The weakening pound against the US dollar has brought some good news, with anecdotal evidence suggesting that some US agents are referring the UK to their customers as an affordable destination.

But the reality of the current economic climate and the build up to the US presidential election will probably mean fewer Americans travelling long haul.

The other ray of light is falling fuel prices which has led to some airlines reducing fuel surcharges. Yet any significant boost to passenger numbers looks unlikely in the short term, UKinbound predicted.

by Phil Davies