UK tourism lagging behind – high costs a key concern

The UK’s tourism business is forecast to grow at a rate of more than 3% a year over the next 10 years – 1% lower than global rates.

The prediction came from the World Travel & Tourism Council and Accenture which estimated that travel and tourism now represents 9.4 per cent of the UK’s gross domestic product and accounts for 2.6 million jobs.  

But the UK is lagging behind worldwide growth levels. Global travel and tourism is expected to grow by 4.6% this year, continuing at a rate of 4.2% per annum over the next ten years, the WTTC said. 

Concern about the perceived high cost of the UK and London in particular could be dampening demand, despite the one-off opportunity offered by the 2012 Olympic Games in the capital.

WTTC president Jean-Claude Baumgarten called for a co-ordinated and well-funded marketing effort to assure visitors that they will receive value for money. 

He also emphasized that better regulation, “intelligent taxation” and a wider understanding of travel and tourism’s economic value amongst ministries and Regional Development Agencies would further support the industry’s growth.

Speaking at a special meeting of industry leaders on board the Silversea ship Silver Cloud in London, he said: “Most importantly, if the full potential of travel & tourism growth in the UK is to be realized over the coming years, it is crucial that infrastructure is developed accordingly. This includes airport capacity, accommodation stock and transport infrastructure. 

“It is clear that the Olympics will provide a huge opportunity for the UK.  Nevertheless, clear planning and resource allocation are necessary to ensure that an Olympic legacy for tourism is created.”

Baumgarten added: “Our research shows UK travel and tourism is in a strong position and is poised to do well over the coming decade. However, there is no room for complacency. As more and more governments appreciate travel and tourism as a key social and economic driver, competitive stakes will rise.”

Paul Deighton, chief executive of the London organising committee of the Olympic and Paralympic Games said: “Hosting the Games in 2012 is a huge opportunity for the UK tourism trade.  It will be a catalyst for the industry as a worldwide global event, with millions of visitors expected to the UK. The event will showcase London and the UK and we will provide a fantastic welcome for the world. Hosting the Games is a once in a lifetime opportunity that should not pass us by.”

Report by Phil Davies