Tourism deficit soars despite record visitor numbers

Wednesday, 03 Jan, 2006 0

Brtain’s international tourism industry has seen deficits soar despite record inbound visitor numbers over the past 25 years, VisitBritain has said.

In a review into the sector, VisitBritain revealed the number of inbound tourists increased by 122% to more than 27 million between 1979 and 2004.

But spending only climbed 40% as visitors spend less time in the UK and are increasingly likely to be visiting friends and relatives rather than coming purely on holiday.

While 45% came for a holiday 25 years ago, that fell to 34% by 2004, the review said. The slump has seen the amount spent by visitors coming on holiday rise only 3% to 4.2 billion.

The Foresight Review goes on to reveal that in 1979, Britain recorded a £2 billion surplus as the amount spent by visitors exceeded the sum spent by Britons abroad. By 2004 however, the deficit hit £17 billion with UK residents spending £2.32 overseas for every £1 spend in Britain by overseas visitors.

VisitBritain chief executive Tom Wright said: “These figures graphically demonstrate both the success of Britain’s visitor economy but also the challenge we face.

“VisitBritains work has helped to double the number of visitors but the figures on the growth of tourism’s balance of payments make sobering reading.

“Britain must do everything it can to stimulate and encourage its visitor economy. We need first class attractions, destinations and hospitality and a compelling brand to prosper in an increasingly competitive global market.

“We cannot ignore the fact that spending by inbound tourists has not risen in any significant way in the past quarter of a century and everyone in the public and private sectors needs to address that.”

The review said that in 1979, visitors stayed an average of 12.5 nights in Britain but by 2004 the average had dropped to eight nights.

The reasons for travelling to Britain have also changed, it said.

The fastest growth in visitor numbers has been in visiting friends and relatives which has risen by almost 249% to eight million.

Business travel has also shown strong growth, up 212% compared to leisure tourism growth of 68%.

Report by Steve Jones