United Kingdom
United States
Asia Pacific
UKInbound predictions gloomy
UKInbound is reporting sharp drops in visitors to Britain for May compared to last year with forward bookings plummeting dramatically.
The association which represents 230 companies concerned with tourism in Britain says that the combined effects of economic uncertainty, poor exchange rates, soaring fuel prices and ever higher cost of living has “eroded consumer confidence in virtually all our key long haul markets.â€
May 2008 saw a -3.8% growth in arrivals compared to the same period last year while forward bookings were down by 9.5% compared to May 2007.
The organisation goes on to say that visitors from the US have shown the greatest reluctance to visit the UK. It says: “With all outbound leisure tourism from the USA being severely curtailed we estimate this could mean up to 500,000 fewer American visitors to the UK this year.
However, visitor numbers from the Eurozone remain strong, thanks to the favourable exchange rate, with particularloy good business being done with accession countries.
The association adds: “However, beyond that it seems likely the Euro will ease off its current high-water mark. The trend this year has been declining long haul demand being partially offset by modest growth in short haul traffic producing relatively flat visitor numbers and a drop in revenue.
“This scenario looks set to continue for at least the rest of 2008 and most likely well into 2009. In these trading conditions price becomes increasingly the prime determining factor for potential customers and, despite rising costs, there is extreme pressure to discount prices. Already it is clear that 2008 is going to be another tough year for export tourism.â€
By Dinah Hatch
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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