02 January 2009

UK faces fight for foreign tourists in '09

The number of overseas visitors to the UK is forecast to drop in 2009.

National tourism agency VisitBritain expects a fall by 0.7% to 31.7 million with a nominal 2.4% increase in spending to £16.7 billion.

Following a static year for international visits and spending in 2007, VisitBritain expects the value of inbound tourism to reach £16.4 billion in 2008 - a 2.5% increase on 2007, while visits will fall by 2.7% to 31.9 million.

The organisation predicts an ever more competitive international tourism environment for 2009.

The greatest impact will come from the prospect of a prolonged, and potentially deep, global economic slowdown affecting many parts of the world, VisitBritain warned.

There remains a risk that the government will extend the number of countries that require a visa in order to visit Britain from early in 2009, including Malaysia, Brazil and South Africa, it added.

A related risk is that the price of a UK visa may rise further, thereby increasing the current differential between UK and Schengen visas.

Meanwhile airlines are dropping flights and further route cuts are in the offing, with Japan Airlines to withdraw its Osaka-Heathrow route, British Airways axing one of its daily Tokyo-Heathrow flights and Virgin Atlantic dropping one of its daily flights from New York-London.

VisitBritain chairman Christopher Rodrigues said: "With the prospect of a global recession in 2009, tourism will not be immune from the tightening of belts in other sectors of the economy as businesses and consumers alike give careful consideration to their travel plans.

"While the economic importance of this £86 billion industry is often overlooked in times of plenty, tourism delivers employment across the country, supports small businesses and the regeneration of our big cities and rural economies.

"Holidays remain fundamental to many people’s lives. Britain is a top-notch destination, the sixth most visited country worldwide, and the weakening of sterling against the US dollar and the Euro are among opportunities to boost inbound and domestic visits and promote the value that a holiday in Britain offers.

"However, we know our global competitors also see 2009 as the year to promote their tourism industries and we will have to fight to ensure even the standstill position forecast in 2009."

by Phil Davies

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Your Comments (2)

Horses for courses?

Roger's comment is very valid - "Take an empty suitcase to Britain" was a successful marketing concept in Sweden in the late 1970's when the pound's value had plummeted. But note VisitBritain's other pronouncements to other audiences. http://thescotsman.scotsman.com/politics/Pounds-plunge-against-the-euro.4810993.jp "Pound's plunge against the euro is boosting tourism say VisitBritain chiefs" is the Scotsman's headline for this article. Checking VisitBritain's online Press centre I was rather surprised to see that their latest 'corporate' Press release was dated 26 November; their latest 'Britain' Press release was dated 9 October and their latest 'England' Press release was dated a scarecely believable 24 June, 2008!!! http://www.enjoyengland.com/corporate/corporate-information/press-centre/pressreleases/index.aspx If Britain faces a fight to sustain its tourism revenues it is a shame that no-one appears to be leading it.

By Gilbert Archdale, Monday, January 5, 2009
Bargain basement Britain

Currency strengths/weaknesses are historically the biggest influence on visitor numbers, so on the face of it a forecast drop in visitor numbers doesn't make sense as the pound nosedives. The probable fall in US visitors should in fact lead to a reduction in overall spending; but visitors from Europe are surely likely to make up the shortfall in numbers if not spending as Europeans flock to bargain-basement Britain (other than from basket-case economies like Italy and Spain, where euro interest rates are creating havoc). The last time this happened was in the 1970s, when visitor numbers to Britain shot up - curiously enough when another Labour administration was masterminding the economy. Maybe this is the government's way of compensating for the massive cuts they've made in tourism marketing, and the increased costs they keep loading onto anyone who wishes to travel.

By Roger Goodacre, Friday, January 2, 2009