Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
- Olympic year saw first inbound decline in a decade
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- Figure 1: Estimated UK inbound tourism market volume, 2008-18
- Tourist expenditure in the UK has increased over 50% since 2008
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- Figure 2: Estimated UK inbound tourism market value, 2008-18
- Market factors
- Tourists have enjoyed a currency advantage, but the Pound is rallying
- Economic growth in key source markets set to stabilise
- Competition in the low-cost airline market is heating up
- Low-cost transatlantic flights will prove a boon to tourism from the US
- VisitBritain and London & Partners at odds over regional tourism drive
- UK government under pressure to relax visa process for Chinese tourists
- Segment Performance
- France dominates with a 14% market share by volume…
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- Figure 3: Top 10 UK inbound tourism source markets, by volume, year ended 30 June 2013
- …but the USA is the most valuable source market
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- Figure 4: Top 10 UK inbound tourism source markets, by expenditure in the UK, year ended 30 June 2013
- Tourists from the Middle East boast the highest average spend per trip
- Tourism from Spain has crashed as its economy continues to suffer
- The consumer
- Consumer demand suggests the market has significant room to grow
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- Figure 5: Holidays taken to the UK, by country, October 2013
- UK heritage is the primary attraction for Europeans and Americans
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- Figure 6: UK attractions, by country, October 2013
- High travel costs dampen demand from both Europe and the US
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- Figure 7: Reasons for not wanting to visit the UK, by country, October 2013
- English language is a key driver behind tourism from Europe and the US
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- Figure 8: Attitudes towards visiting the UK, by country, October 2013
- UK is China’s second favourite European destination, behind France
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- Figure 9: China outbound tourism to Europe, September 2013
- Schengen visa gives member states a distinct advantage
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- Figure 10: China attitudes towards travelling to Europe, September 2013
- What we think
Issues in the Market
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- How have the Olympics and the royal birth affected the inbound market?
- How have APD and high aviation fuel costs impacted inbound tourism?
- What impact are UK visa rules having on tourism from China?
- What are the growth opportunities in promoting regional tourism?
Trend Application
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- Mintel Inspire: Secret, Secret
- Mintel Inspire: The Real Thing
- Mintel Futures: East Meets West
Market Drivers
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- Key points
- Tourists have enjoyed a currency advantage, but the Pound is rallying
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- Figure 11: GBP exchange rate against key source market currencies, % change, January 2008-September 2013
- Economic growth in key source markets set to stabilise
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- Figure 12: Forecast GDP % change for key source markets, 2008-18
- Edinburgh and Belfast offer considerable savings compared to London
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- Figure 13: Post Office City Costs Barometer, 2013
- Competition in the low-cost airline market is heating up
- Low-cost transatlantic flights will boost tourism from the US
- VisitBritain and London & Partners at odds over regional tourism drive
- UK government under pressure to relax visa process for Chinese tourists
Who's Innovating?
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- Key points
- Virgin Atlantic offers Australian tourists a bonus trip to Edinburgh
- VisitBritain strikes a three-year deal with China UnionPay International
- London & Partners launches month of deals to celebrate Olivier Awards
- Dot London domain launch set to build the London brand
Market Size and Forecast
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- Key points
- The Olympic year saw the first decline in inbound visits in a decade
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- Figure 14: Estimated UK inbound tourism market volume and value, 2008-18
- Tourist expenditure in the UK has increased over 50% since 2008
- Holiday trips to the UK are set to increase a further 8% by 2018
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- Figure 15: Estimated UK inbound tourism market volume, 2008-18
- Tourist expenditure in the UK is expected to exceed £10 billion by 2018
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- Figure 16: Estimated UK inbound tourism market value, 2008-18
- Forecast methodology
Segment Performance
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- Key points
- The air segment contracted 3.1%, but still holds a 65% market share
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- Figure 17: UK inbound tourism, by transport method, by volume, 2012 and 2013
- Short breaks hold a 37% share of the inbound tourism market
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- Figure 18: UK inbound tourism, by length of stay, by volume, 2012 and 2013
- France dominates with a 14% market share by volume…
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- Figure 19: Top 10 UK inbound tourism source markets, by volume, year ended 30 June 2013
- …but the USA is the most valuable source market
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- Figure 20: Top 10 UK inbound tourism source markets, by expenditure in the UK, year ended 30 June 2013
- Trips from the USA stay flat, but low-cost flights could reverse the trend
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- Figure 21: Top 10 UK inbound tourism source markets, by volume, 2012 and 2013
- Expenditure has increased from eight of the top 10 most valuable markets
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- Figure 22: Top 10 UK inbound tourism source markets, by expenditure in the UK, 2012 and 2013
- Tourists from the Middle East boast the highest average spend per trip
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- Figure 23: Top 10 UK inbound tourism source markets, by average spend per trip, 2012 and 2013
- Tourism from Spain has crashed as its economy continues to suffer
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- Figure 24: Best- and worst-performing UK inbound tourism source markets, by volume, 2012 and 2013
- Spending by French tourists has increased by £0.25 billion
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- Figure 25: Best- and worst-performing UK inbound tourism source markets, by expenditure in the UK, 2012 and 2013
Companies and Products
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- VisitBritain
- Background
- Financial performance
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- Figure 26: Grant-in-aid allocation to British Tourist Authority, 2011-15
- Figure 27: Key financials for British Tourist Authority, 2012 and 2013
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- Figure 28: Breakdown of British Tourist Authority’s revenue, by location of sales offices, 2012 and 2013
- Recent activity
- Future strategy
- VisitEngland
- Background
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- Figure 29: Top 10 origins of international holiday visitors to England, by number of trips, 2011 and 2012
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- Figure 30: Top 10 origins of international holiday visitors to England, by total spend, 2011 and 2012
- Recent activity
- VisitScotland
- Background
- Financial performance
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- Figure 31: Key financials for VisitScotland, 2011 and 2012
- Figure 32: Top 10 origins of international holiday visitors to Scotland, by number of trips, 2011 and 2012
- Figure 33: Top 10 origins of international holiday visitors to Scotland, by total spend, 2011 and 2012
- Recent activity
- Visit Wales
- Background
- Financial performance
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- Figure 34: Top 10 origins of international holiday visitors to Wales, by number of trips, 2011 and 2012
- Figure 35: Top 10 origins of international holiday visitors to Wales, by total spend, 2011 and 2012
- Recent activity
- Northern Ireland Tourism Board
- Background
- Financial performance
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- Figure 36: Key financials for Northern Ireland Tourist Board, 2011 and 2012
- Figure 37: Top 10 origins of international holiday visitors to Northern Ireland, by number of trips, 2011 and 2012
- Figure 38: Top 10 origins of international holiday visitors to Northern Ireland, by total spend, 2011 and 2012
- Recent activity
- London & Partners
- Background
- Financial performance
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- Figure 39: Key financials for London & Partners 2012
- Figure 40: Top 10 origins of international holiday visitors to London, by number of trips, 2011 and 2012
- Figure 41: Top 10 origins of international holiday visitors to London, by total spend, 2011 and 2012
- Recent activity
- Heritage Lottery Fund
- Background
- Financial performance
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- Figure 42: Key financials for Heritage Lottery Fund, 2012 and 2013
- Recent activity
- Global Blue
- Background
- Financial performance
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- Figure 43: Key financials for Global Blue, 2011 and 2012
- Recent activity
- Premier Tax Free
- Background
- Financial performance
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- Figure 44: Key financials for Premier Tax Free, 2010 and 2011
- Recent activity
Holidays Taken to the UK
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- Key points
- Consumer demand suggests the market has significant room to grow
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- Figure 45: Holidays taken to the UK, by country, October 2013
- The UK is struggling to attract Europe’s grey gold
- Young Americans are a key demographic for future growth
- High costs have depressed demand from the US
What Attracts Tourists to the UK?
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- Key points
- UK heritage is the primary attraction for both Europeans and Americans
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- Figure 46: UK attractions, by country, October 2013
- The appeal of UK attractions differs greatly between source markets
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- Figure 47: UK attractions, by country, October 2013
- Younger tourists favour shopping, food and drink, festivals and sports
Reasons for Not Wanting to Visit the UK
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- Key points
- High travel costs dampen demand from both Europe and the US
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- Figure 48: Reasons for not wanting to visit the UK, by country, October 2013
- High London prices are shaping negative perceptions of the UK
- Half of Americans who do not want to revisit think they have seen enough
- Spanish and Americans are the most likely to not holiday abroad
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- Figure 49: Reasons for not wanting to visit the UK, by country, October 2013
Attitudes towards Visiting the UK
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- Key points
- English language is a key driver behind tourism from Europe and the US
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- Figure 50: Attitudes towards visiting the UK, by country, October 2013
- The impact of the Olympics and royal birth on inbound tourism is limited
- High domestic travel costs are proving a dampener to regional tourism
- Spanish are the most likely to view the UK as more expensive than home
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- Figure 51: Attitudes towards visiting the UK, by country, October 2013
China – Holidays Taken to Europe
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- Key points
- UK is China’s second favourite European destination, behind France
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- Figure 52: China outbound tourism to Europe, September 2013
- High costs are a significant barrier for travel to Europe
China – Attitudes towards Visiting Europe
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- Key points
- Schengen visa gives member states a distinct advantage
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- Figure 53: China attitudes towards travelling to Europe, September 2013
- University institutions are a key driver behind Chinese interest in the UK
- Just 16% of respondents think the UK is lacking in luxury shopping
Appendix – Holidays Taken to the UK
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- Figure 54: Holidays taken to the UK, by country, October 2013
- Figure 55: Holidays taken to the UK – European countries, by demographics, October 2013
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- Figure 56: Holidays taken to the UK – US, by demographics, October 2013
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Appendix – What Attracts Tourists to the UK?
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- Figure 57: UK attractions, by country, October 2013
- Figure 58: Most popular UK attractions – European countries, by demographics, October 2013
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- Figure 59: Next most popular UK attractions – European countries, by demographics, October 2013
- Figure 60: Most popular UK attractions – US, by demographics, October 2013
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- Figure 61: Next most popular UK attractions – US, by demographics, October 2013
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Appendix – Reasons for Not Wanting to Visit the UK
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- Figure 62: Reasons for not wanting to visit the UK, by country, October 2013
- Figure 63: Most popular reasons for not wanting to visit the UK – European countries, by demographics, October 2013
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- Figure 64: Next most popular reasons for not wanting to visit the UK – European countries, by demographics, October 2013
- Figure 65: Most popular reasons for not wanting to visit the UK – US, by demographics, October 2013
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- Figure 66: Next most popular reasons for not wanting to visit the UK – US, by demographics, October 2013
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Appendix – Attitudes towards Visiting the UK
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- Figure 67: Attitudes towards visiting the UK, by country, October 2013
- Figure 68: Most popular attitudes towards visiting the UK – European countries, by demographics, October 2013
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- Figure 69: Next most popular attitudes towards visiting the UK – European countries, by demographics, October 2013
- Figure 70: Most popular attitudes towards visiting the UK – US, by demographics, October 2013
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- Figure 71: Next most popular attitudes towards visiting the UK – US, by demographics, October 2013
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Appendix – China – Holidays Taken to Europe
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- Figure 72: China outbound tourism to Europe, September 2013
- Figure 73: China outbound tourism to the UK, by demographics, September 2013
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Appendix – China – Attitudes towards Visiting Europe
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- Figure 74: China attitudes towards travelling to Europe, September 2013
- Figure 75: Most popular China attitudes towards travelling to Europe, by demographics, September 2013
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- Figure 76: Next most popular China attitudes towards travelling to Europe, by demographics, September 2013
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