Bleak picture for UK inbound tourism – UPDATED

The UK’s inbound tourism industry faces a “very real challenge” industry as international travel suffers from the impact of the global economic downturn, VisitBritain warned.

The national tourism agency was responding to new provisional figures from the International Passenger Survey, which monitors international tourism to the UK, which showed a 13% slump in visitor arrivals in the first quarter of the year.

“The figures demonstrate the scale of the task facing the industry and that people won’t just travel to Britain because sterling is weak,” VisitBritain said.

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.

But before adjusting for inflation, there is no change in spending compared to January-March 2008, while the number of visits was down. Sterling was on average 29% weaker against the US dollar and 16% weaker against the euro in March 2009 compared to March 2008, according to VisitBritain.

Rising unemployment in the US and the eurozone contributed to lower consumer confidence which has clearly influenced leisure and business travel.

Visits in the first three months from 15 EU countries were down by seven per cent compared to the same period of 2008.

Arrivals from other regions showed even less resilience to the current economic climate with visits from all world regions falling.

Travellers from North America were down 21%, and from non-EU countries in Europe down 29%.

A fall of 24% in visits from new member countries of the EUis 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, the organisation said.

VisitBritain’s new chief executive Sandie Dawe said: “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.”

by Phil Davies