Brits splash out abroad

According to Visa UK data published today, British travellers have spent over £2.3 billion in the first three months of this year, 8.7% more than in the same period in 2001.

Despite remaining the most popular destination for the British abroad, the United States is one of the only countries to experience a decline in British spending so far this year; spending on Visa UK credit and debit cards in the US was down by 3.3%.

The twelve Eurozone countries are the main beneficiaries of British travel spending. British visitors spent over £960 million in the Eurozone (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain) between January and March 2002 – £127 million and 15.2% more than last year. Ireland has experienced one of the most marked increases in levels of British spending over the period – with the total value of Visa transactions made rising by 30.4%.

Visa said long haul destinations have also benefited from the strength of the pound, and British spenders have sought Winter sunshine in more exotic locations than usual. Thailand enjoyed a 26.8% rise in spending on UK Visa payment cards and China (28.6%), New Zealand (26.8%), South Africa (23.1%) and Australia (16.7%) and all experienced significant increases. This contrasted sharply with the situation in the Caribbean and Bahamas, where spending volumes were down. The Bahamas suffered a decline in British spending levels with transaction values falling by 8.1% and Trinidad and Tobago was the worst hit of the other major island destinations, experiencing a decline of 17.7 in the total value of Visa transactions.

In fact the whole of the American continent appears to be suffering with the USA and much of Latin America also experiencing a decline in British spending levels. This is in sharp contrast to American behaviour on this side of the Atlantic as US travellers spent 19.1% more in the UK over the same period – a total of £400m. The decline has not affected the United States’ status as the favourite destination of British spenders, however, with the total value of transactions still almost double that of its nearest competitor, France.

Colin Grannell, Managing Director of Visa EU commented: “These figures are further indication of a more general rise in spending, in particular on debit cards, as British spenders use the strength of the pound to explore more far-flung, exotic destinations. Payment cards also appear to be providing a convenient means of managing the transition to the Euro. Far from putting people off, many British travellers have in fact embraced their first opportunity to explore the new currency and are continuing to spend more than ever abroad.”

The Top 10 Long Haul destinations
Country Jan-Mar 2002 Visa transaction values (£) Jan-Mar 2001 Visa transaction values (£) % change
USA 466.4m 482.7m ( – 3.3%)
Australia 147.7m 126.6m 16.7%
S. Africa 63.7m 51.7m 23.1%
N.Zealand 51m 40.3m 26.8%
Thailand 39.8m 50.5m 26.8%
U.A.E 35.6m 36.4m 2.2%
Singapore 22.8m 24.8m 8.8%
India 23.2m 22.6m ( – 2.7%)
Hong Kong 20.8m 21.8m 4.9%
Malaysia 15.5m 14.5m ( – 6.1%)
Barbados 13.1m 13.9m 6.0%
Japan 11m 11.4m 3.1%

Top 10 Short Haul destinations
Country Jan-Mar 2002 Visa transaction values (£) Jan-Mar 2001 Visa transaction values (£) % change
France 286.2m 263.3m 8.7%
Spain 224.9 182m 23.5%
Ireland 149m 114.2m 30.4%
Germany 72.1m 65.4m 10.3%
Italy 70m 63.3m 10.8%
Netherlands 51.3m 49.4m 4.0%
Switzerland46m 47.7m 3.7%
Belgium 33.9m 34.1m 0.8%
Austria 23.3m 30.6m 31.6%
Portugal 23.5m 27.2m 15.9%