From: OECD Tourism Trends and Policies Access the complete publication at:

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1 From: OECD Tourism Trends and Policies 2014 Access the complete publication at: United Kingdom Please cite this chapter as: OECD (2014), United Kingdom, in OECD Tourism Trends and Policies 2014, OECD Publishing.

2 This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD or of the governments of its member countries or those of the European Union. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

3 United Kingdom Tourism in the economy Tourism is a major part of the United Kingdom economy. In 2011, tourism directly contributed a gross value added (GVA) of over GBP 50 billion to the UK economy (4%). Further economic analysis by Deloitte suggests that if indirect economic effects are also included, GVA could be as high as GBP 115 billion (9%). Tourism also makes a substantial contribution to employment in the UK, with 2.7 million employees working in tourismassociated industries in 2011, or 9% of all employee jobs, with a further 0.5 million self-employed. An estimated 1.7 million of this employment is directly related to tourism. In 2012, the UK welcomed 31 million visitors from across the world (a 1% increase over 2011), making 2012 the best year for overseas visits since the onset of the global recession in Overseas visitors spent GBP 18.6 billion in the UK in 2012, 4% more than in 2011 and a record in nominal terms. The average overseas visitor spent GBP 600 in the country. Total international passenger transport receipts for the year stood at GBP 6.1 billion. Some visits were primarily related to the London Olympic and Paralympic Games. These visitors spent GBP 925 million in total. Around 38% of overseas visitors in 2012 travelled to the UK for a holiday, 24% for business and 29% to visit friends and relatives. France continued to dominate the visitor arrivals tables in terms of source markets. A record 3.8 million French visitors crossed the Channel in 2012, generating a huge 30% rise in spending (to GBP 1.5 billion). Germany, Ireland, the Netherlands and Spain completed the top five ranking for visitor markets. Outbound travel from the UK in 2012 fell slightly from 2011 levels to 56.5 million trips from 56.8 million, itself a significant fall from 2008 s 69 million. Spending abroad was GBP 32.6 billion. Following a 9% growth in 2011, domestic tourism remained stable in 2012, with 126 million overnight trips (-1% over 2011) and 388 million nights (no change). Expenditure grew by 6% to GBP 24 billion, after having recorded a 14% increase the previous year. Tourism organisation and governance The Department for Culture, Media and Sport (DCMS) is the sponsoring government department for tourism (Figure 1). Tourism is a devolved matter in Scotland, Wales, Northern Ireland and Greater London, but DCMS retains responsibility for tourism in England outside London and for promoting Great Britain overseas. 318

4 Figure 1. United Kingdom: Organisational chart of tourism bodies Northern Ireland Assembly Scottish Executive Welsh Assembly Government Department for Culture, Media and Sport (DCMS) Department for Communities and Local Government (DCLG) Department for Business, Innovation and Skills (BIS) Department for Environment, Food and Rural Affairs (Defra) Greater London Authority (GLA) Funding: Regional Growth Fund Funding: Rural Economy Growth Review NITB and Tourism Ireland Visit Scotland Visit Wales VisitBritain VisitEngland London Partners DMOs Source: OECD, adapted from the Department for Culture, Media and Sport, VisitBritain is the national tourism agency, a non-departmental public body, funded by the DCMS, responsible for promoting the UK worldwide and developing its visitor economy. Its mission is to grow the value of inbound tourism to the country, working with a wide rangeofpartnersinboththeukandoverseas.visitbritainhasastatutoryadvisory function to advise government on matters affecting tourism. Following the British Tourism Framework Review in 2009, the British Tourist Authority (BTA), established VisitEngland an unfunded advisory non-departmental public body. VisitEngland undertakes its role as The British Tourist Authority trading as VisitEngland. In Scotland, VisitScotland is a non-departmental public body responsible to Scottish Ministers. Its main role is to market Scotland in Great Britain and overseas, encourage the highest quality standards within the industry, and operate an event strategy to support tourism. Enterprise Agencies, also responsible to Scottish Ministers, provide business support and investment to encourage growth within the tourism sector. In Wales, the responsibility for promoting and developing tourism now lies with the Welsh government, and these functions are carried out by its tourism division, Visit Wales, which sits within the portfolio of the Department for Economy, Science and Transport. Visit Wales is responsible for formulating tourism policy, encouraging investment in, and improving the quality of the visitor experience, in Wales. Visit Wales is also responsible for marketing Wales within the UK and internationally. International promotion of the island of Ireland (including Northern Ireland) is the responsibility of Tourism Ireland, with the Northern Ireland Tourist Board (NITB) working in strategic partnership with Tourism Ireland. VisitBritain and NITB work together to promote Northern Ireland in international markets. 319

5 Tourism budgets Core funding from DCMS to the British Tourist Authority over the fiscal years 2011/12 to 2014/15,* is GBP million. Of this, GBP 94 million is allocated to VisitBritain and GBP 33 million to VisitEngland. This includes funding for VisitBritain s core international marketing and public relations activity, in both leading and emerging markets provided on the basis that it is match-funded by the private sector, and funding for VisitEngland s investment in and support for destination organisations, local businesses, local authorities and enterprise partnerships involved in tourism. England has no formal regional tourism structure. VisitEngland therefore works with destinations directly. It does this through the Destination Management Forum, recognising destinations that have both a management and promotional function, but it also works directly with other destination organisations on an ad hoc basis and through its corporate communications, promotional activity, partnerships team and enterprise support. Other examples of public funding support for UK tourism include the Regional Growth Fund and GREAT campaign. VisitEngland successfully bid for GBP 19.8 million from the Regional Growth Fund. VisitBritain has received GBP 46.5 million for GREAT marketing activity, and VisitEngland has received GBP 6 million for GREAT activity. Tourism-related policies and programmes In 2011, DCMS published a document entitled government tourism policy, setting out the government s strategy to help the tourism industry maximise its potential for growth. The strategy highlights three key goals: Fund the most ambitious international marketing campaign ever in the years following Increase the proportion of UK residents who holiday in the UK to match those who holiday abroad. Improve the sector s productivity to become one of the five most efficient and competitive visitor economies in the world. The global showcasing of the UK in 2012 has done wonders for Britain s image around the world, particularly in new tourism growth markets. The challenge for the UK now is to make sure that the millions who watched the UK on their screens come to experience it first-hand. In 2013/14 VisitBritain entered the third year of its match-funded 100 million GREAT Britain You re Invited programme. VisitBritain s marketing uses the key triggers for travel to the UK culture, heritage and countryside supported by shopping, food, sport, adventure and music. The programme has three simple aims: Build awareness of the UK s attractiveness as a tourism destination among those who have not yet visited the country. Encourage repeat visitation. Provide a series of opportunities and incentives to visit the UK now, working in partnership with the private sector. * The United Kingdom s fiscal year starts on 1 April and ends on 31 March. 320

6 In April 2013, VisitBritain launched a growth strategy for inbound tourism to the UK from 2012 to 2020, entitled Delivering a Golden Legacy. It called for the travel industry and government to unite behind a long-term ambition for growth that would see the UK welcome 40 million overseas visitors by 2020, spending GBP 31.5 billion and supporting an additional jobs across the UK. The growth strategy is built around four key objectives: Building on the UK s improved international image by playing to its strengths, such as heritage, traditional and contemporary culture. Increasing engagement with the travel trade to ensure that the UK is successfully packaged and sold. Broadening the UK s strong product offering so that it continues to meet the expectations of visitors. Making it easier to reach the country by addressing limiting factors such as aviation capacity and the current visa process. Other work to improve the sector s productivity includes helping the industry to improve staff and management skills, cutting red tape and improving welcome. Wales, Scotland and Northern Ireland In Wales, the government launched its strategy for promoting and developing tourism, Partnership for Growth: The Welsh Government Strategy for Tourism , on 17 June The new strategy focuses on five key areas: promoting the brand; product development; people development; profitable performance; and place building. The strategy identifies a product-led approach to developing and marketing tourism in Wales. There will be a focus on more luxury and branded hotels; more well-being facilities such as spas; more heritage hotels that use historic and distinctive buildings; more year-round attractions, activities and cultural experiences; and more innovative, unusual and distinctive products. In Scotland, the Year of Natural Scotland 2013 the final of four focus years highlights Scotland s great natural assets. The aim of Year of Natural Scotland 2013 is to promote Scotland s stunning natural beauty and biodiversity, and promote ways in which visitors can enjoy its beautiful landscapes, wildlife and heritage responsibly. Homecoming Scotland 2014 will position Scotland on the international stage as a dynamic and creative nation. Celebrating the very best that Scotland has to offer, the programme of events will highlight Scotland s food and drink, its fantastic active and natural resources, and its creativity, culture and ancestral heritage. In Northern Ireland, the success of the 2012 Our Time, Our Place initiative and the outstanding programme of events and celebrations including the 100th anniversary of the maiden voyage of the Titanic in 2012 and the opening of the Titanic Museum, the 50th anniversary of the Belfast Festival at Queens, and the completion of several key projects such as the Giant s Causeway Visitor Centre has helped transform the tourism landscape, has enhanced civic pride, and propelled Northern Ireland onto the global stage. Tourism currently contributes 4.9% of Northern Ireland s GDP and sustains over jobs. The aim is to double tourism s contribution to the economy by

7 Statistical profile Table 1. United Kingdom: Domestic tourism Unit Total domestic trips Thousand Overnight visitors (tourists) Thousand Same-day visitors (excursionists) 1 Thousand Trips by main purpose of visit Business and professional Thousand Holiday, leisure and recreation 2 Thousand Nights in all means of accommodation Thousand Hotels and similar establishments Thousand Other collective establishments 3 Thousand Domestic travel receipts 4 Million GBP Note: Excludes Northern Ireland. 1. Same-Day Visitor Surveys only took place in 2011 and Includes trips classified as visiting friends and relatives (non-holiday) as well as holiday trips. 3. Includes self-catering accommodation and hostels. 4. Overnight visitors only. Source: Great Britain Tourism Survey, Great Britain Day Visits Survey Table 2. United Kingdom: Inbound tourism Unit Total international arrivals Thousand Overnight visitors (tourists) Thousand Same-day visitors (excursionists) 1 Thousand Top markets France Thousand Germany Thousand Ireland Thousand Netherlands Thousand Spain Thousand Nights in all means of accommodation Thousand Hotels and similar establishments Thousand Other collective establishments 2 Thousand Total international receipts 3 Million GBP International travel receipts 3 Million GBP International passenger transport receipts 3 Million GBP Includes nil night visits. 2. Includes self-catering accommodation and hostels. 3. Balance of Payments Exports Data: Includes expenditure by non-tourists and fares to UK carriers on journeys between two non-uk locations. Source: Office for National Statistics; International Passenger Survey, ; Balance of Payments data (Pink Book) Table 3. United Kingdom: Outbound tourism Unit Total international departures Thousand Overnight visitors (tourists) Thousand Same-day visitors (excursionists) Thousand Total international expenditure 1 Million GBP International travel expenditure 1 Million GBP International passenger transport expenditure 1 Million GBP Balance of Payments Exports Data: Includes expenditure by non-tourists but excludes some elements of tourism expenditure included in the International Passenger Survey expenditure data. Source: Office for National Statistics; International Passenger Survey, ; Balance of Payments data (Pink Book)

8 Table 4. United Kingdom: Enterprises in tourism Number of establishments Total tourism enterprises Tourism industries Accommodation services for visitors Hotels and similar establishments Food and beverage serving industry Passenger transport Air passenger transport Railways passenger transport Road passenger transport Water passenger transport Passenger transport supporting services Transport equipment rental Travel agencies and other reservation services industry Cultural industry Sports and recreation industry Retail trade of country-specific tourism characteristic goods Other country-specific tourism industries Other industries Includes restaurants, bars and canteens. 2. Includes tourism related vehicle hire, exhibitions and conferences. Source: Office for National Statistics, Annual Business Survey (ABS), Tourism Satellite Account Table 5. United Kingdom: Employment in tourism Thousand jobs Total tourism employment (direct) Tourism industries Accommodation services for visitors Hotels and similar establishments Food and beverage serving industry Passenger transport Air passenger transport Railways passenger transport Road passenger transport Water passenger transport Passenger transport supporting services Transport equipment rental Travel agencies and other reservation services industry Cultural industry Sports and recreation industry Retail trade of country-specific tourism characteristic goods Other country-specific tourism industries Other industries Gender breakdown Male (% of total tourism employment) Female (% of total tourism employment) Source: Tourism Satellite Account, Office for National Statistics

9 Table 6. United Kingdom: Internal tourism consumption Million GBP, 2011 Domestic tourism consumption Inbound tourism consumption Internal tourism consumption Total Consumption products Tourism characteristic products Accommodation services for visitors Food and beverage serving services Passenger transport services Air passenger transport services Railways passenger transport services Road passenger transport services Water passenger transport services Passenger transport supporting services Transport equipment rental services Travel agencies and other reservation services Cultural services Sports and recreation services Country-specific tourism characteristic goods Country-specific tourism characteristic services Other consumption products Tourism connected products Non-tourism related consumption products Non-consumption products Exhibition and conference services. 2. Includes passenger transport supporting services, personal transport costs, special shopping, maintenance of holiday homes and all non-tourism characterstic products. Source: Office for National Statistics, Tourism Satellite Account Table 7. United Kingdom: Key economic indicators Percentage Tourism GDP (direct) as % of total GDP Total tourism employment (direct) as % of total employment Source: Office for National Statistics, Tourism Satellite Account For more information Department for Culture, Media and Sport National Tourist Office for Britain National Tourist Office for Northern Ireland Office for National Statistics