% change vs. Dec ALL VISITS (000) 2,410 12% 7,550 5% 31,148 1% Spend ( million) 1,490 15% 4,370-1% 18,710 4%

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1 HEADLINES FULL YEAR 2012 (PROVISIONAL) 1 Overall visits million visits making 2012 the best year for inbound tourism since 2008 but not a record. 1% increase in visits on 2011 ( visits) slightly surpassing VisitBritain s forecast for 0% growth in Overall spend 4% increase in spend to 18.7 billion (from 18 billion in 2011), a record high in nominal terms. Average spend per visit remains very high at growth driven by Holiday visits almost equalling 2011 record (11.95 million, 0% change on million in 2011) VFR (9 million) and business (7.4 million) visits both with best year since 2008, 2% up on 2011 Record 4.9 million visits from Rest of World markets (outside Europe and North America) Record 2.2 million visits from non EU European markets (e.g. Russia, Switzerland, Norway) N America (3.7 million visits) and A12 European markets (2.8 million) both seeing best year since 2008, although not at record levels But 17.6 million visits from high volume EU15 markets 1% lower than 2011, lowest since HEADLINES DECEMBER 2012 (PROVISIONAL) 2 Overall visits and spend A very strong December, with 2.4 million visits a 12% increase in visits on last December, making December 2012 the best December for four years (since 2008). A record amount (in nominal terms) spent in December, 15% more than in December DEC 2012 % change vs. Dec 2011 LAST 3 MONTHS (OCT - DEC) % change vs. Oct - Dec PROVISIONAL % change vs ALL VISITS (000) 2,410 12% 7,550 5% 31,148 1% Spend ( million) 1,490 15% 4,370-1% 18,710 4% December saw continued growth for all journey purposes Holiday: up 19% in December to a record high of 740,000. VFR: an increase of 7% in December. Business: an increase of 11% in December. December saw growth from all origin world regions From EU15 markets: After changeable recent months 8% growth - best December since From A12 European markets: Continued return to strong growth, up 42% in December. From European markets outside EU27: Record visits, up 16% on December From North America: Following a November downturn December saw a 6% increase in visits. From Rest of World markets: Record visits, 19% increase on December All monthly data is provisional. Final 2012 data will be released in July All monthly data is provisional. Final 2012 data will be released in July 2013.

2 Welcome to VisitBritain s monthly update on inbound tourism Our monthly updates present the latest International Passenger Survey (IPS) data released by the Office for National Statistics (ONS). The Quarterly Release for this period (October- December 2012) which may contain some revisions will be in April The next Monthly Release will be on 14 th March 2013 covering data for January The Insights & Statistics section of the VisitBritain website has much more detail on long term trends, visits from individual markets and to UK regions If you have any questions or feedback please the Research team at VisitBritain via Please note All figures are provisional and subject to revision by ONS, all figures quoted are not seasonally adjusted. Numbers in some tables / charts may not sum due to rounding. Data is based on interviews with a sample of departing visitors. The number interviewed varies but is typically 4,000-5,000 per month. Visit all departing visits from overseas residents (including those who may be UK nationals but live elsewhere, excluding other nationals who have been in the UK for 12 months or longer) Spend the amount visitors report spending in the UK during their stay Please refer to the final page for full glossary. CONTENTS 1. Headlines 2. Latest data October and last three months by journey purpose and world region 3. Rolling 12 months Year to date by journey purpose and world region 4. VisitBritain target markets Percentage change over the last 12 months 5. UK residents outbound 6. Context Influencing Factors International Picture 7. Longer term data Overall trends since 2000 Journey Purpose World Region 8. Detailed trends by month Overall visits and spend Journey Purpose World Region 9. Definitions and Further Information

3 LATEST SHORT TERM DATA - DECEMBER AND LAST THREE MONTHS 3 Monthly data is indicative. Looking at the last three months gives a more reliable picture. Holiday visits were at record highs earlier in 2012, and returned to a record high in December. Looking over the last three months holiday visits were 3% below the same period in VFR visits grew by 7% in December 2012 compared to December 2011 (the best December since 2007), and are 3% up over the three month period. Visits (000) DEC 2012 % change vs. Dec 2011 LAST 3 MONTHS (OCT -DEC) Visits (000) % change vs. Oct - Dec 11 By journey purpose Holiday % 2,520 3% VFR 850 7% 2,360 3% Business % 1,930 6% Miscellaneous % % Business visits continued last month s growth direction and were 11% up on December 2011, the best December since Visits for miscellaneous purposes (e.g. study, looking for work) dropped steeply in early 2012 but recent increases even out at 12% up over three months to December. By world region EU15 1,400 8% 4,410 2% A % % Rest of Europe % 610-5% North America 220 6% 730 5% Rest of World % 1,070 10% ALL VISITS 2,410 12% 7,550 5% Spend ( million) 1,490 15% 4,370-1% EU15 Following growth in spring 2012 but recent variability these important markets showed sizeable growth in December, with visits 8% up in December and 2% up over the October-December period. Visits from A12 countries continue to return to growth, 25% up across the three months to December. Visits from non-eu Europe countries continue record growth, 16% up in December to a record high, although 5% lower across the three months to December reflecting a weak October. N American visits were up 6% in December, and up 5% over the last three months. Rest of World region (those outside Europe / N. America) continued recent growth with visits up 12% to a record high in December. Across the October to December period visits were 10% up on More: Q4 release (Oct-Dec 2012) in April 2013 will provide visits by markets and UK region visited. 3 These figures give an indication of the very latest trends, but should be used with caution. IPS is not designed to report accurately by month, and figures should be treated as indicative. Analysis of the last three months is more reliable.

4 MEDIUM TERM ROLLING 12 MONTHS (2012) Holiday: holiday visits in 2012 are less than 1% below the same as the 2011 record (12 million). VFR: visits are slightly up, by 2% in 2012 compared to 2011, but are not at a record high. Business: the overall picture for business visits continues to be gradual recovery, with a 2% increase in 2012 reflecting the best year since Miscellaneous: slightly above the previous 12 month period, following growth in early 2012 and in the last few months. EU15: million visits represents a 1% decrease in 2012 compared to 2011 (the lowest for since 2005). Even a small percentage decrease from these high volume markets significantly affects overall visit numbers. A12: at 2.8 million visits from EU Accession countries rose by 10% in the past year, with growth in the first months of 2012 and recently but they remain below records set in PROVISIONAL 2012 Visits (000) % change vs By journey purpose Holiday 11,953 0% VFR 9,013 2% Business 7,385 2% Miscellaneous 2,796 3% By world region EU15 17,577-1% A12 2,822 10% Rest of Europe 2,242 7% North America 3,657 2% Rest of World 4,859 2% ALL 31,148 1% Spend ( million) 18,710 4% Rest of Europe: non-eu countries generated record levels of visits again in 2012, 7% higher than North America: there has been a slight 2% increase in the number of visits, the best year since Rest of World: this region (Central and South America, Africa, Middle East and Asia Pacific) has delivered around 4.86 million visits in 2012, a record high 2% more than in More: Data on longer term trends broken down by journey purpose, origin market, and season or UK region visited are available in our Quarterly files

5 VISITBRITAIN TARGET MARKETS NB. Charts show percentage not absolute changes so growth from smaller markets will be magnified (e.g. a change of around 1% from France equates to around 35,000 visits whilst a 1% change from China equates to just c.1, 000 visits). Percentage change in visits from World Regions Americas: North America (USA, Canada) - Latin America (Argentina, Brazil, Mexico) Asia Pacific: Australasia (Australia, New Zealand) - Greater China (China, Hong Kong) - South East Asia (Singapore, Malaysia, and Thailand) - North East Asia (Japan, South Korea) India MEA: (UAE, South Africa) Europe: Iberia (Portugal, Spain) - Mediterranean (Italy, Greece) - Atlantic (France, Ireland) - Nordic (Denmark, Finland, Norway, Sweden) - Benelux (Belgium, Netherlands, Luxembourg) - Germany, Austria, Switzerland - Central Europe (Czech Republic, Hungary, Poland) Russia

6 Percentage change in visits from European Markets

7 Percentage change in visits from Asian Markets

8 Percentage change in visits from American, Oceanic, Middle Eastern, African Markets More: Absolute data showing changes to actual visit numbers by market will be available in the Quarterly release for this period in April 2013

9 TRAVEL OVERSEAS BY UK RESIDENTS December saw overseas visits by UK residents almost in line with December 2011 (just 1% lower). LAST THREE MONTHS: OCT - DEC 2012 % change vs. Oct Dec 11 Visits (000) 11,530-1% Looking across the last three months there were increases in VFR trips (up 7%) whilst Spend ( million) 6,330-1% business visits were flat and holiday visits were down (-3%). Trips to European destinations continue to grow, although slower (up 1%) whilst trips further afield continue to drop, visit to North America down 8% and Rest of World by 6% compared to October December In the rolling year ending December 2012 Britain s international tourism balance of payments deficit stood at 13.85bn, 1% higher than the year before. More: VisitBritain attracts inbound visitors to Britain. For outbound travel from the UK visit ONS website CONTEXT - Influencing Factors Consumer confidence in the Eurozone fell to its lowest level since April 2009 in October (Eurostat). Exchange rates for those visiting from Euro countries are also becoming less favourable. The cost of sterling against the Euro in December 2011 was 1.18 whilst by December 2012 it had risen to 1.23, a 4% year on year increase. Snow in early December and fog in late December disrupted small numbers of flights. More: Tourism Trends Quarterly analyses influence of factors such as capacity, exchange rates, and the economy. Trends Update - fortnightly summary of economic and transport news shaping tourism. The International Picture 4 As shown the UK s main competitors report mixed results with UK growth broadly in line with France and Italy. Germany and USA are showing higher growth than other major UK competitor destinations. Most other major destinations showed growth in the first half of Alongside S Africa, Asian destinations are amongst the highest growers so far in 2012 especially Singapore and Thailand. There are also signs of recovery for Egypt and Japan after poor 2011 figures. More: Competitor Trends UK and major competitors Year to date growth (%) Period (from January to ) Germany 8% November USA 6% August Australia 4% November Spain 3% December France 2% October Turkey 2% December UK 1% December Republic of Ireland 0% December Switzerland 0% November Italy 0% October 4 Periods for which we have data available varies by country, so figures are indicative and necessarily directly comparable.

10 LONGER TERM TRENDS IN VISITS, SPEND, AND SPEND PER VISIT SINCE 2000 The chart below shows year-on-year change in headline IPS results based on a rolling twelve month basis. Presenting the data in this way enables us to spot emerging trends and helps to smooth out erratic results for any single month. It clearly illustrates the dips in inbound tourism seen post foot and mouth and 9/11, and subsequent recovery to peaks in the mid- 2000s, as well as the impact of economic situation in 2008 followed by slow but reasonably steady recovery. The last two years have seen more stability, with changes far less dramatic than those seen at several points over the last twelve years. SHARE OF VISITS The following two charts show that there have only been slight changes in the proportion of visits accounted for by any particular journey purpose or any origin world region over the last five years. The first charts shows the greatest change was a step change in the proportion of visits accounted for by holidays in the rolling year to December 2009, when it grew to from 34% to 38%. VFR visits have accounted for around 30%, business for around a quarter and miscellaneous for around 10% over the last five years. The second chart shows that European markets account for just under three quarters of all visits, the bulk (just under 60%) from the EU15. Visits from North America account for around one in nine visits (12%) and the Rest of World region for around 15%. More: Long term trends in visits from individual origin markets and world regions available here

11 LONGER TERM TRENDS JOURNEY PURPOSE Holiday visits were far more resilient to the economic downturn in the late 2000s and showing modest growth over the last couple of years although this has been more changeable in recent months. Business visits suffered a significant downturn in 2009, then a sustained recovery although this has slowed recently. Trips to visit friends and relatives received a distinct boost with very strong figures earlier in 2012 making this category one of the strongest for recent relative growth over the longer term. Trips for other (miscellaneous) purposes show the most variation recently almost returning to growth earlier in 2012 and boosted by Olympic participants in late summer LONGER TERM TRENDS WORLD REGION The chart below shows the downward trend in visit numbers from all regions that began in the autumn of 2008, and the subsequent slow recovery from most regions followed by fewer dramatic changes recently. As of the year ending December 2012 only the EU15 markets were delivering negative growth. Rest of Europe has been delivering fastest relative growth over the last 18 months although this has slowed recently. A12 European markets are also now delivering stronger growth. More: Data on long term trends are available here

12 DETAILED MONTHLY TRENDS IN OVERALL VISITS AND SPEND 5 More: Monthly data is replaced by the more accurate Quarterly data. Long term trends showing percentage change annually by and more is available here 5 IPS is not designed to report accurately by month, and figures should be treated as indicative. The Quarterly Release for this period (October - December 2012) which may contain some revisions will be in April 2013.

13 DETAILED MONTHLY TRENDS IN VISITS BY JOURNEY PURPOSE Please note that different scales are used on these charts to allow differences to be identified

14 DETAILED MONTHLY TRENDS BY REGION OF WORLD Please note that different scales are used on these charts to allow differences to be identified

15 Definitions EU15 - Austria, Belgium, Denmark, France, Finland, Germany, Greece, Irish Republic, Italy, Luxembourg, Netherlands, Portugal, Spain and Sweden. A12 - Bulgaria, Cyprus (South), Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia Rest of Europe European countries outside the EU (including Russia, Norway and Switzerland) Rest of World Countries outside Europe and North America (Africa, Asia, Central America, Middle East, Oceania, South America) VFR - Visiting Friends and Relatives Miscellaneous includes visits where the main purpose is short-term study, shopping, looking for work, getting married, accompanying others and many more. More The Insights & Statistics section of the VisitBritain website has much more detail on long term trends, data for individual markets and UK regions Refer to the ONS website for more on IPS methodology and UK outbound travel Make sure you get all the latest figures and reports by signing-up for VisitBritain's e-newsletter If you have any questions or feedback please contact the Research team at VisitBritain via

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