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Don’t forget domestic tourism!
First the good news: latest VisitBritain figures show that the number of overseas visitors to the UK are at a record high – more than 28 million in 2005. But here’s the bad news: between 1985 and 2004, length of stay dropped from 11.5 to 8.5 nights.
Spend is down too, at £13.1bn in 2004. Valued at nearly £700 per visitor in 1985 (at 2004 prices), it fell to £450 in 2004.
At the same time, the number of UK residents holidaying abroad rose with a £18bn imbalance in 2005, meaning that for every £1 an overseas visitor spends in the UK, UK residents spend £2.32 overseas.
If these figures reflect general international trends they do not lessen the challenges faced by individual countries. In the UK’s case, the creditable 92 per cent increase in the number of overseas visitors since 1985 more than makes up for the 30 per cent fall in visitor nights.
But if spend in real terms is down so dramatically – and if so many UK residents are holidaying abroad (64 million visits in 2005 spending more than £30bn) – then UK tourism is having to run faster to make real progress.
Figures for domestic tourism are also cause for concern. Latest statistics appear to suggest that the number of nights spent away from home in the UK by UK residents has declined by more than a quarter since 2001, with expenditure down by 6 per cent in real terms.
The figures highlight the challenge facing the UK tourism and hospitality industry: to attract increasing numbers of overseas visitors and to encourage them to stay longer and spend more, while, at the same time, encouraging more UK residents to holiday in the UK.
The UK government has expressed concerns about the imbalance of payments between inbound and outbound tourism but a draconian fiscal imposition would not only be highly unpopular – it would probably be impossible within the EU.
A much more realistic course of action would be for the industry and the government to invest more in marketing and promotion and for the industry to continue its present (high) level of investment. At the same time, operators must beef up service and product standards to ensure that even greater value is provided.
If this can be achieved, the UK’s reputation as a high cost destination, particularly to the US market, will be counterbalanced by a growing perception of improving value.
So let’s not wring our hands about the imbalance of tourism payments. Let’s instead make our staff even more skilled and more productive so that our service is the best in the world. In that way, we can make the UK a destination that even more visitors – including UK residents – want to visit!
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