The UK tourism market will be worth almost £260bn by 2025, so what impact is Britain’s booming industry having on the country?
When you think of rainy old Britain, you might not instantly think of it as a holiday destination, but very quietly over the last ten years, tourism has been driving the UK economy forward. Indeed, since 2010, it has been the UK’s fastest-growing industry.
So who is coming, where are they going, and what draws so many of them to return?
According to Deloitte, the sector is expected to grow at 3.8% through to 2025, significantly faster than the UK’s overall growth rate of 3% and much faster than other major sectors such as manufacturing and retail. By 2025, the tourism market is expected to be worth £257.4bn annually. It will account for around 10% of GDP and support around 3.8 million jobs.
Deloitte also estimates that for every £1,000 generated by direct tourism, an additional £1,800 will be generated elsewhere.
Inbound tourism is expected to continue its spectacular growth. Back in 2013, this stood at £21bn. By 2025 it is expected to have more than doubled to £51bn.
In 2023, for the first time in 40 years, the UK will report an international tourism balance of payments surplus.
The COVID pandemic predictably reduced inbound tourism, and also saw Britons abandoning the beach for staycations. Even with international travel opening up, many people are continuing to holiday in Britain as they struggle to cope with the rising cost of living.
Traditional top tourism destinations such as London, Cornwall, and the Lake District have obviously faired well, but there has also been a significant increase in tourism to cities such as Liverpool and Manchester.
Many of those inbound tourists are repeat visitors. Data from Deloitte shows that 77% of inbound visitors had been before, spending around £14 billion in total. Repeat visitors are particularly valuable as they are likely to stay longer than first-time visitors and spend more on average.
The data shows the importance of making a good first impression, and the UK seems to be doing that pretty well. The markets most likely to make repeat visits include some of the UK’s closest neighbours; 91% of visits from Ireland were repeat visits, with Iceland (83%) and Norway (82%) close behind.
Going forward, then, tourism is likely to continue to be a stalwart of a British economy that has become increasingly volatile since Brexit. From popular city breaks in London, Manchester and Edinburgh to the beautiful countryside of the Lake District and the rugged coast of the South West, Britain is finding its feet as a popular holiday destination for both domestic and international visitors.
Contact us today to discover our available UK properties.
