From: OECD Tourism Trends and Policies 2014 Access the complete publication at: http://dx.doi.org/10.1787/tour-2014-en United Kingdom Please cite this chapter as: OECD (2014), United Kingdom, in OECD Tourism Trends and Policies 2014, OECD Publishing. http://dx.doi.org/10.1787/tour-2014-40-en
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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 2008. 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 685 000 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
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, 2014. 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
Tourism budgets Core funding from DCMS to the British Tourist Authority over the fiscal years 2011/12 to 2014/15,* is GBP 128.6 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 2012. 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
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 200 000 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 2013-2020, on 17 June 2013. 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 40 000 jobs. The aim is to double tourism s contribution to the economy by 2020. 321
Statistical profile Table 1. United Kingdom: Domestic tourism Unit 2008 2009 2010 2011 2012 Total domestic trips Thousand...... 1 668 635 1 836 019 Overnight visitors (tourists) Thousand 114 442 122 537 115 711 126 635 126 019 Same-day visitors (excursionists) 1 Thousand...... 1 542 000 1 710 000 Trips by main purpose of visit Business and professional Thousand 17 625 17 453 16 341 18 572 18 944 Holiday, leisure and recreation 2 Thousand 93 413 102 250 96 297 104 158 102 832 Nights in all means of accommodation Thousand 367 635 387 448 361 398 387 329 388 240 Hotels and similar establishments Thousand 102 666 105 312 100 819 106 996 113 514 Other collective establishments 3 Thousand 112 993 128 956 118 726 128 467 123 941 Domestic travel receipts 4 Million GBP 20 168 20 971 19 797 22 666 23 976 Note: Excludes Northern Ireland. 1. Same-Day Visitor Surveys only took place in 2011 and 2012. 2. 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. 1 2 http://dx.doi.org/10.1787/888932989589 Table 2. United Kingdom: Inbound tourism Unit 2008 2009 2010 2011 2012 Total international arrivals Thousand 31 888 29 889 29 803 30 798 31 084 Overnight visitors (tourists) Thousand 30 142 28 199 28 296 29 306 29 282 Same-day visitors (excursionists) 1 Thousand 1 746 1 690 1 508 1 492 1 802 Top markets France Thousand 3 636 3 784 3 618 3 633 3 787 Germany Thousand 2 900 2 780 3 004 2 947 2 967 Ireland Thousand 2 950 2 877 2 711 2 846 2 840 Netherlands Thousand 3 070 2 948 2 629 2 574 2 453 Spain Thousand 1 818 1 715 1 758 1 789 1 735 Nights in all means of accommodation Thousand 245 775 229 391 227 960 234 363 230 149 Hotels and similar establishments Thousand 61 633 60 050 65 082 66 005 65 388 Other collective establishments 2 Thousand 41 577 42 882 40 012 42 458 40 225 Total international receipts 3 Million GBP 24 699 24 076 26 569 28 296 29 271 International travel receipts 3 Million GBP 19 598 19 353 20 969 21 888 23 178 International passenger transport receipts 3 Million GBP 5 101 4 723 5 600 6 408 6 093 1. 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, 2004-12; Balance of Payments data (Pink Book). 1 2 http://dx.doi.org/10.1787/888932989608 Table 3. United Kingdom: Outbound tourism Unit 2008 2009 2010 2011 2012 Total international departures Thousand 69 011 58 614 55 562 56 836 56 538 Overnight visitors (tourists) Thousand 66 850 56 750 53 759 54 946 54 604 Same-day visitors (excursionists) Thousand 2 161 1 864 1 803 1 890 1 934 Total international expenditure 1 Million GBP 44 937 39 524 40 225 40 686 41 893 International travel expenditure 1 Million GBP 37 256 32 188 32 360 31 830 32 585 International passenger transport expenditure 1 Million GBP 7 681 7 336 7 865 8 856 9 308 1. 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, 2004-12; Balance of Payments data (Pink Book). 1 2 http://dx.doi.org/10.1787/888932989627 322
Table 4. United Kingdom: Enterprises in tourism Number of establishments 2008 2009 2010 2011 2012 Total tourism enterprises 209 308 208 438 206 697 209 657 209 860 Tourism industries.......... Accommodation services for visitors 15 726 15 157 15 075 15 161 15 205 Hotels and similar establishments.......... Food and beverage serving industry 1 120 779 113 953 112 769 115 177 113 623 Passenger transport 12 641 13 603 13 025 12 986 12 692 Air passenger transport 645 746 633 592 584 Railways passenger transport 86 104 83 77 76 Road passenger transport 11 142 12 025 11 599 11 591 11 284 Water passenger transport 768 728 710 726 748 Passenger transport supporting services.......... Transport equipment rental 3 568 3 708 3 504 3 453 3 776 Travel agencies and other reservation services industry 6 804 5 642 6 363 5 519 6 667 Cultural industry 29 880 28 486 28 128 28 369 28 654 Sports and recreation industry 16 899 24 746 24 654 25 672 25 782 Retail trade of country-specific tourism characteristic goods.......... Other country-specific tourism industries 2 3 011 3 143 3 179 3 320 3 461 Other industries.......... 1. 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. 1 2 http://dx.doi.org/10.1787/888932989646 Table 5. United Kingdom: Employment in tourism Thousand jobs 2008 2009 2010 2011 2012 Total tourism employment (direct) 1 713.6 1 771.8 1 549.1 1 666.9.. Tourism industries.......... Accommodation services for visitors 353.7 422.0 330.2 384.3.. Hotels and similar establishments.......... Food and beverage serving industry 510.8 499.7 420.5 458.4.. Passenger transport 191.4 180.6 140.3 139.8.. Air passenger transport 59.3 51.3 40.3 42.6.. Railways passenger transport 25.9 22.9 19.6 19.3.. Road passenger transport 104.6 105.0 78.8 76.6.. Water passenger transport 1.6 1.4 1.6 1.3.. Passenger transport supporting services.......... Transport equipment rental 2.2 2.3 5.5 1.6.. Travel agencies and other reservation services industry 112.4 95.0 86.6 95.4.. Cultural industry 121.0 156.9 123.9 123.9.. Sports and recreation industry 61.9 51.8 87.7 96.3.. Retail trade of country-specific tourism characteristic goods.......... Other country-specific tourism industries 0.3 0.3 0.2 0.3.. Other industries 360.0 363.2 354.1 366.9.. Gender breakdown Male (% of total tourism employment) 51.2 48.8 53.2 51.8.. Female (% of total tourism employment) 48.8 51.2 46.8 48.2.. Source: Tourism Satellite Account, Office for National Statistics. 1 2 http://dx.doi.org/10.1787/888932989665 323
Table 6. United Kingdom: Internal tourism consumption Million GBP, 2011 Domestic tourism consumption Inbound tourism consumption Internal tourism consumption Total 103 827 20 979 124 807 Consumption products...... Tourism characteristic products 69 497 12 458 81 955 Accommodation services for visitors 8 305 4 754 13 059 Food and beverage serving services 26 386 3 242 29 628 Passenger transport services 21 931 3 853 25 784 Air passenger transport services 15 253 2 883 18 136 Railways passenger transport services 3 728 328 4 057 Road passenger transport services 2 077 458 2 535 Water passenger transport services 873 184 1 057 Passenger transport supporting services...... Transport equipment rental services 695 116 810 Travel agencies and other reservation services 2 983 99 3 082 Cultural services 5 528 187 5 715 Sports and recreation services 3 350 152 3 503 Country-specific tourism characteristic goods...... Country-specific tourism characteristic services 1 319 55 374 Other consumption products 2 34 330 8 522 42 851 Tourism connected products...... Non-tourism related consumption products...... Non-consumption products...... 1. 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. 1 2 http://dx.doi.org/10.1787/888932989684 Table 7. United Kingdom: Key economic indicators Percentage 2008 2009 2010 2011 2012 Tourism GDP (direct) as % of total GDP.......... Total tourism employment (direct) as % of total employment 5.2 5.7 5.0 5.4.. Source: Office for National Statistics, Tourism Satellite Account. 1 2 http://dx.doi.org/10.1787/888932989703 For more information Department for Culture, Media and Sport National Tourist Office for Britain National Tourist Office for Northern Ireland Office for National Statistics www.culture.gov.uk www.visitbritain.com www.discovernorthernireland.com www.ons.gov.uk 324