Punitive taxes, not terror harming UK’s inbound tourism
The cost of holidaying in the UK from abroad will be more damaging than the threat of terrorism, warns the trade body representing the inbound tourism industry.
UKinbound says that price competitiveness remains the country’s “greatest weakness” in the wake of the strength of the pound against the dollar hitting a 26 year high.
“The UK remains an attractive destination but the cost of operating an export tourism business here and punitive taxation means we are unable to offer equally attractive prices,” the organisation said.
“In the medium to long term it is almost certain that our lack of international competitiveness will be more damaging than the threat of terrorist activity. Consumers have become inured to the ever-present global risks posed by terrorism but they also see the wide variety of holiday destinations available and compare the prices on offer.”
UKinbound reported “few direct cancellations” following the failed attacks on London and Glasgow airport, although there are “lingering concerns” about forward bookings in the next few weeks.
The organisation’s latest business barometer for May shows a 4.2% rise in visitor arrivals against the same month last year and a 1.7% increase in forward bookings.
But the growth was limited to visitors from short haul markets while numbers from further away countries, who tend to be the highest spenders, have remained stagnant or even declined.
“There is over capacity in nearly all major tourism destinations and the UK’s lack of price competitiveness remains our greater weakness,” said UKinbound.
by Phil Davies
Phil Davies
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