Britain’s tourism economy will grow faster in the next decade than retail, chemicals, transport, and manufacturing, according to an independent report.
Only construction and financial and business services look more promising, says research by Deloitte and Oxford Economics commissioned by VisitBritain.
It forecasts that the total value of tourism to the UK is set to rise by more than 60% to £188 billion over the next decade.
Thanks to the favourable exchange rate and the lure of the 2012 Olympic and Paralympic Games, the sector is predicted to grow at an above-average 3.5% per annum between now and 2020.
Deloitte and Oxford Economics predicts spending by overseas visitors will almost double from £16 billion now to £31 billion in 2020.
The number of jobs supported by tourism over that period is predicted to rise from 2.63 million now to 2.89 million.
But the in-depth 102-page report warns that Government intervention will be the ‘’key’’ to success because a range of market failures need to be tackled.
These include:
– co-ordinating marketing to help small and medium sized tourist businesses who cannot afford to do it themselves
– enabling rural firms who face higher costs of operating to adopt innovative technology
– and supporting the many districts across the UK that rely disproportionately on tourism as an important source of jobs for low skilled and part time workers.
Marcus Simmons, managing director from iknow-uk, the independent tourism and accommodation directory, said: “Responding quickly and effectively is key.
“We can’t expect the business to just drop into our lap – companies in the sector need to be pulling together to ensure maximum impact, and to enable us to show the rest of the world just how great Britain is as a holiday destination.”
The report also found that England is the cornerstone of Britain’s tourism industry, contributing 84% to the total visitor economy.
By Bev Fearis
