Travel agencies hailed for ‘strong contribution’ to UK economic growth
Travel agency services grew by 7.3% during the final quarter of 2016, contributing 0.05 percentage points to the growth in gross domestic product.
Preliminary estimates from the Office of National Statistics for the period from October to December also reveal growth in the hotels sector, with output up by 1.7%, contributing 0.24 percentage points to quarter-on-quarter GDP growth.
The ONS said travel agency services made a ‘strong contribution’ towards the 0.6% rise in UK gross GDP during the last quarter.
"Growth during Quarter 4 was dominated by services, with a strong contribution from consumer-focused industries such as retail sales and travel agency services," it said.
"A particularly strong performer was the travel agency industry, which increased by 7.3%, contributing 0.05 percentage points to headline GDP growth."
Commenting on the figures, ABTA chief executive Mark Tanzer said the figures showed consumers were feeling more confident and ‘value the expertise of travel agencies’.
"The figures reflect the significant contribution that travel and tourism makes to the economy, delivering £127 billion annually," said Tanzer.
"However, there are challenging and uncertain times ahead and for continued growth it is more important than ever that the Government supports the travel industry.
"This includes driving growth through airport expansion, removing barriers to growth such as Air Passenger Duty and ensuring that we secure the best possible deal for Brexit."
UK residents made 18.5 million trips abroad in the three months to November 2016, a 10% increase over the same period of 2015. There was an 18% rise in VFR traffic, 8% increase in holidays and business trips were up by 9%.
During the same period, there were 9.5 million visits to the UK, 3% more than in the same three months of 2015. In November alone, there was a 17% increase over November 2015, making it the best November on record.
Tourism minister Tracey Crouch said: "Our tourism industry is booming as Britain cements its reputation as one of the world’s must-visit destinations. I am particularly pleased that there are an increasing number of visits from important markets like the US, with tourism making a significant contribution to our economy. We are committed to helping the sector grow even further, so the benefits are spread far and wide across the country."
Visits from North America were up by 11%, visits from EU countries rose 5%, but visits from residents of other countries outside the EU fell by 9%.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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