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Key Tourism Trends


Trends in inbound and outbound tourism. The UK's ... Fly in on Ryanair, stay in a Hilton, grab lunch in McDonalds: no neat segments. The future (1) ... – PowerPoint PPT presentation

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Title: Key Tourism Trends

Key Tourism Trends
  • David EdwardsTourism Trends Manager
  • May 2008

Trends in inbound and outbound tourism
The UKs International Tourism Balance of Payments
UKs global market share of international tourism
Inbound visitor spend per visit
Inbound markets contrasting trends 2000-2007 (1)
1.4 million more visits from Spain 1.1 million
more visits from Poland 900,000 more visits from
Ireland 700,000 more visits from Germany 700,000
more visits from Italy
Inbound markets contrasting trends 2000-2007 (2)
346,000 fewer visitors from USA 225,000 fewer
visitors from Japan 66,000 fewer visitors from
Israel 52,000 fewer visitors from Greece 34,000
fewer visitors from Hong Kong
Americans are they still travelling?
Inbound market shares (1)
Inbound market shares (2)
Global picture share of international arrivals
in 2007
4 in 5 are intra-Europe trips
9 in 10 are intra-AP trips
Inbound to Europe trends and forecasts
Length of stay
43 inbound visits are 1-3 nights
Where visitors go
  • 1996 32 of overnight domestic trips were to a
    large city, 2007 39
  • 1996 25 of overnight domestic trips were to a
    seaside, 2007 21
  • London continues to dominate inbound tourism
    half of spend in 2007
  • The South West continues to dominate overnight
    domestic tourism 18 of spend in 2007

Nations and regions inbound shares
Nations and regions - domestic overnight shares
Getting to (and from) Britain
  • Low-cost carriers increase access to regions from
    Europe, and vice-versa
  • No new runways in South East not so in France,
    Holland and Germany
  • Ferries losing market share to low-cost flights
    and the Channel Tunnel
  • Getting a visa to visit the UK has got more
    expensive and more onerous
  • 25 Schengen members by end 2008

Over the past few years...
  • UK population is more diverse (550,000 A12
    nationals live in the UK)
  • More UK residents own a second home abroad
    (around 250,000)
  • More Brits live permanently abroad (IPPR estimate
    is 5.6 million)
  • More foreign students study at UK universities
    (49,000 entered in 2007)
  • More UK based multi-nationals
  • Competition for holiday visitors is more intense
    (Krakow, Dubai, Marrakech)

Leading to a shift in the purpose mix of
inbound trips
Visiting Friends and Relatives trips do they
really matter?
  • 22 of inbound spend in 2007 (137 real growth
    since 1979 17 holiday growth)
  • Regional spread 60 of VFR spend is outside
    London, 40 for holiday visits
  • Seasonality 49 of VFR visits between October
    and March, 38 of holiday visits
  • 1.8m visits to museums/galleries, 2.6m visits to
    a castle, church or historic house
  • 8 million nights in paid accommodation
  • Hosts spend too!

Business Tourism
  • A trading nation (business visits from 137
    markets in 2007)
  • 29 of inbound spend (111 since 79)
  • Trade Fairs/Exhibitions only 4 of business
    spend, attending Conference or Large Meeting
    18 of spend
  • But spend 200 more per visit than other
    business visitors
  • Vital for delivering profitable hotel occupancy
    and event revenue

Socio-demographic drivers
  • Older age groups more important in relative terms
    (12 inbound visits were by the over 55s in 1993,
    17 in 2007)
  • British ex-pats account for one-in-eight inbound
    visits (626,000 from Spain alone)
  • Domestic overnight tourism highly dependent on
    higher social grades (ABs account for 39 of
    spend but 20 of population, DEs 14 spend, 31
  • The family unit is evolving

  • Enabled the low-cost carrier revolution
  • More price transparency / competition
  • Empowered tourists to share opinions with the
    world no hiding place for those offering poor
  • Provides incomparable route to market for
    tourism businesses big or small
  • Only 5 of Indians have access, but that is 60
    million people

  • England 1.1 milllion bedspaces in 31,000
    serviced accommodation establishments
  • 1.3 million bedspaces in 26,000 non-serviced
  • On average 47 of available bedspaces are filled
    in serviced accommodation
  • Owners in it for the lifestyle, not profit
  • Planning rules and old stock hinder
  • The rise of the budget chain

Travel Trade Trends
  • Long-haul markets unfamiliar with UK still highly
    dependent on travel trade
  • 90 book through trade in some markets, whereas
    14 in Nordic area
  • Trade provides reassurance, delivers product
    fit and is culturally sensitive
  • However, even in China increased on-line research
    and engagement with UGC
  • Rise of the DIY package tour

Heritage and culture remains a core UK strength
  • Britain perceived as a world leader (Ranked 3rd
    in NBI behind France and Italy)
  • Potential holiday visitors express desire to
    experience our heritage and culture
  • Among the most popular activities undertaken by
    actual holiday visitors
  • In an increasingly competitive market vital to
    build on USPs and not rely solely on tactical use
    of fashion

UK end of year report the Could do better
  • Visitors expectations of welcome are poor (UK
    ranked 16th by NBI, Canada top)
  • Britain has a high cost base, so the experience
    must offer value for money
  • Potential visitors have poor perception of
    weather and food but neither is a deterrent

Increasingly fragmented market, but with some
common themes
  • what you do more important than where you do
    it experiences not destinations count
  • Authenticity travel-savvy visitors have higher
    expectations than earlier generations
  • Fly in on Ryanair, stay in a Hilton, grab lunch
    in McDonalds no neat segments

The future (1)
  • Economic cycles will ensure good years and bad
  • but is the era of rising disposable income
    (especially for the retired) and falling travel
    costs at an end?
  • New global hubs for business set to challenge
    London (Mumbai, Shanghai)
  • Socio-demographic change will impact why we
    travel and who we travel with

The future (2)
  • Geo-politics matters (China wont have a
    significant balance of payments deficit)
  • Fashions will come and go
  • Technology will alter how we research, book,
    experience and recount travel
  • Climate change will shape government, business
    and consumer behaviour there will be winners and
  • Competition for the tourist , and potential
    tourists attention will intensify

The future (3)
  • The unexpected (9/11) will continue to take us
    by surprise, and the expected (EU expansion)
    will continue to have unexpected implications