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‘Challenging summer’ for UK inbound tourism
High oil prices and the weak US dollar are having an impact on expected tourists to the UK.
Tourism export earnings are forecast by UKinbound to drop to about £14 billion as a result of full year arrivals rising only slghtly to 30 million over 2005.
The latest UKinbound business barometer shows forward bookings in April being less than one percentage point up on the same month last year. Actual arrivals for the month were up by 3.3% year-on-year despite a late Easter.
The organisation said that with only a modest increase in visitors for the month and little movement in forward bookings, “we are starting to see the drag on inbound business that high oil prices and a weak dollar has produced”.
“The US dollar is expected to remain in the $1.80-$1.90 to the pound for the rest of this year so we can expect little good news from that direction.
“However, oil prices seem to have levelled off and, barring any further disruption to supply, we should see some easing of fuel costs in the months ahead. Nonetheless, this will probably be too late to impact what looks likely to be a very challenging summer for our industry.”
The group also polled its members on suggestions from a former tourism minister that the role of VisitBritain should be reduced to just marketing England, and only 36% supported the idea.
UKinbound called on the government to provide more funding to the national tourist board, particularly in the “crucial period” leading up to the Olympic Games in London in 2012.
Report by Phil Davies
Phil Davies
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