UK suffers inbound visitor slump

The number of travellers visiting the UK has fallen for the first time in six years.

The combined effects of a strong pound, fuel and commodity price inflation and “storm clouds” over financial markets of the developed world, contributed to the decline, according to VisitBritain.

The national tourism agency’s annual review of 2007-08 showed a 150,000 annual drop in visitor arrivals to 32.6 million.

Domestic holiday taking in England also dropped, with a “slight decline” in both numbers and spend.

This was blamed on poor weather last summer. Open-air attractions were hit particularlyl hard as Britons abandoned plans for domestic travel or travelled overseas to escape the weather, VisitBritain said.

The slump in visitors comes as VisitBritain fights against government budget cuts.

Chairman Christopher Rodrigues said: “‘We were extremely disappointed by the Department for Culture, Media and Sport’s decision at the end of 2007, to reduce our three-year funding settlement by over 20% (in real terms) just at the time the industry faces increased competitive and economic challenges.

“VisitBritain will continue to focus its efforts on increasing the efficiency of its operations and improving the effectiveness of its marketing partnerships with the travel industry and the regions and nations. 

“But it is difficult to avoid the conclusion that this uniquely severe budget reduction reflects, at best, evidence of other priorities and at worst a continued lack of support for the very significant contribution made by nearly 200,000 businesses large and small both to the visitor economy and to the British economy as a whole.”

VisitBritain said that for the first time in a number of years the decline in visitors from the developed world was not offset by growth in numbers from emerging markets. 

Despite the drop, inbound tourism remains a “significant contributor” to the British economy, resulting in nearly £16 billion in foreign exchange earnings, according to VisitBritain.

The organisation is to make further efforts to work with partners in the nations and regions “to get the British value message across at home and abroad against the growing challenge of new low cost destinations”. 

VisitEngland launches a tactical £1.5 million marketing campaign this autumn promoting offers on short breaks and experiences in England.

In the key growth market of India VisitBritain will work with British Airways on a £500,000 campaign to promote Britain’s “modern and dynamic brand values” with fares starting at £126 return.

“The visitor economy in Britain continues to deliver great product and great service and our best tourism businesses win accolades and prizes around the world,” said Rodrigues.

“We want to continue to flourish as a world-class destination and are working with industry leaders to address the challenges of our visa process and improve our welcome at ports of entry.”

“With the global magnifying glass of the 2012 Olympic and Paralympic Games looming on the horizon we need to step up the pace of change.”

Recruitment has started for a new chairman of VisitEngland to replace Hugh Taylor, whose term finishes at the end of the financial year, and for the new post of chief executive, VisitEngland. 

by Phil Davies