29 January 2009

Incoming tourism down as customers wait for prices to drop

Bookings for incoming escorted tours are down by about 40%, according to a straw poll by the European Tour Operators Association.

London-based ETOA found bookings by independent travellers are also down, wholesale trade is down by 20%, while bookings for educational tours have remained at 2008 levels.

The association believes the drop in bookings is largely because customers want to wait and see if prices come down closer to the time.

In the first of a series of briefings to its members, ETOA said the scale of the economic downturn and its effects on the tourism industry will underlie discussions at its forthcoming Hoteliers European Marketplace, being held on February 27 at the Hilton Metropole, London, 9am-5.30pm.

The event is a workshop hosted by ETOA bringing together tour operators, online intermediaries, wholesalers and hoteliers.

"More than ever, it is important that buyers and suppliers talk to each other," said ETOA executive director Tom Jenkins.

"This is a key opportunity to do business for the coming year. HEM is the only ETOA event open to non-members and is timed to coincide with the height of the contracting period, giving an even greater opportunity to do business with the right people in one day.

"Our principal markets are America and Japan. Both continue to represent the best opportunity for attracting visitors. They have - they continue to have - vast reserves of people who can afford and want to come to Europe.

"Both have seen their currencies surge. The dollar has jumped by 25% and the Yen by 45% against the Euro. If it holds then Europe will be the best buy for a decade."

This year's HEM has more buyers attending than in previous years, with spending power of over Ã¢'š~¬5bn for inbound tourism to Europe in 2009.

By Bev Fearis