United Kingdom
United Kingdom
Tourism in the economy Tourism in the United Kingdom is worth around GBP 86 billion (in 2007), 2.7% of UK
gross value added (down from 3.0% in 2005). Tourism directly supports over 1.4 million jobs and indirectly supports around 2.7 million jobs. It is the fifth largest industry in the United Kingdom. The sector comprises around 289 000 businesses.
In 2008, there were 31 888 000 international arrivals in the UK, 2.7% below the 2007 figure of 32 778 000. The five largest markets for the UK enjoyed mixed fortunes in 2008. Increases were recorded from France (3.64 million arrivals, 6.8% more than in 2007) and arrivals from the Irish Republic were up by 3.4% (to 3.1 million compared to 3.0 million in 2007), but the other three leading international markets recorded declines. Arrivals from the USA fell by 16.9% (to 2.95 million from 3.55 million in 2007), arrivals from Germany were 14.1% lower (at 2.9 million compared to 3.4 million in 2007), and arrivals from Spain were down by 11.4% (at 1.97 million compared to 2.22 million).
International travel receipts (excluding transport receipts) stood at GBP 19.6 billion in 2008. Outbound travel from the UK in 2008 fell slightly from 2007 levels – to
69.0 million trips from 69.5 million – but spending abroad rose by 4.4% to GBP 37.3 billion, and thus the UK’s travel account was in deficit to the tune of GBP 17.7 billion.
Domestic tourism in 2008 also showed a slight fall to 378.4 million trips, down by 4.1% on the 2007 total of 394.4 million trips.
Tourism organisation Public sector support for the tourism industry in the United Kingdom is largely
provided through the following organisations (Figure 4.30):
Figure 4.30. United Kingdom: Organisational chart of tourism bodies
Scottish Executive
Welsh Assembly
Department for Culture,
Media and Sport
(DCMS)
Department for Business, Innovation
Greater London
and Skills
Tourism Advisory
Cross-Government
Authority (GLA)
Council
Ministerial Group
on Tourism
London Development Agency
Regional Development
Agencies (RDAs) VisitScotland
(LDA)
VisitWales
VisitBritain VisitEngland
VisitLondon
Regional/Local Marketing and Tourist Information Centres
Source: OECD, adapted from Department for Culture, Media and Sport, 2009.
OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010
Tourism budget The Department for Culture, Media and Sport (DCMS) provides support to VisitBritain
and VisitEngland, but that is only one aspect of public funding support for UK tourism – the contributions from the Welsh Assembly, the Scottish Executive, the Regional Development Agencies, the London Development Agency and local authorities need also to be taken into account. The overall level of public sector investment in tourism from local, regional and national sources is likely to exceed GBP 2 billion significantly in the current spending review period – 2008-09 to 2010-11. That includes over GBP 130 million which DCMS is committed to providing to VisitBritain and VisitEngland for marketing Britain overseas and England domestically.
The government is also investing heavily in one of the most potent visitor attractions any country can stage, the 2012 Olympic Games (Box 4.36), and at the same time is spending very large sums of public money annually to improve skills within the tourism and hospitality sector in order to improve the quality of the tourism product. The government is also spending money on sustaining other important tourism products like free-museums, major cultural attractions and heritage attractions.
Tourism-related policies and programmes In 2007, DCMS asked VisitBritain to carry out a strategic review of British tourism in
order to ensure better co-ordination of the funding invested in tourism and to identify ways to improve the efficiency and effectiveness of public sector support for tourism. The British Tourism Framework Review was published by VisitBritain on 11 February 2009 and set out recommendations aimed at better co-ordination of national, regional and local public investment. The Review also proposed a fundamental restructuring of VisitBritain and further development of the role of VisitEngland.
Following the Review, VisitBritain is now consolidating Britain’s position in its traditional international markets and investing in emerging markets, building on its overseas networks. The effective and efficient co-ordination of the overseas marketing efforts of VisitEngland, VisitScotland, VisitWales and VisitLondon, the Regional Development Agencies and some local authorities is also a leading goal of VisitBritain. Visit Britain also takes a leading role in the co- ordination of industry research, and is an important source of advice for DCMS to inform policy development and the formulation of strategy.
VisitEngland’s key tasks are to market England to the British successfully and efficiently and establish partnerships for the purpose of marketing England to the British. They also co- ordinate support for the domestic industry with the Regional Development Agencies, the London Development Agency (VisitLondon) and local authorities.
The government is confident that these new arrangements will make for significantly strengthened strategic leadership and better representation of private and public sector stakeholders, and will provide a more robust and more responsive vehicle to grow and sustain the UK industry in the long-term.
In addition, DCMS has set up the Tourism Advisory Council and the Cross-Government Ministerial Group on Tourism – these two groups were also part of the recommendations in the British Tourism Framework Review published in 2009.
The Tourism Advisory Council is ensuring that during these difficult economic times, DCMS Ministers are receiving timely and accurate information directly from leading tourism
OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010
Tourism is dependent on all parts of government, across departments, for it to function and thrive as an industry. The cross-government Ministerial Group on Tourism has been established to form a more effective partnership with the tourism industry and to help promote cross-government and cross-national understanding of the needs and requirements of the industry in dealing with the immediate challenges posed by the global downturn.
Box 4.36. Winning: A tourism strategy for 2012 and beyond Following the widest-ever consultation of the UK tourism sector in 2006, DCMS produced
Winning: A Tourism Strategy for 2012 and Beyond and is working closely with VisitBritain, VisitEngland, the Regional Development Agencies and industry on this comprehensive tourism strategy for the Olympic Games. The Strategy aims to maximise the financial benefits of the 2012 Games for the tourism industry. The vision is to use the Games to:
● engage all UK tourism businesses; ● improve international perceptions of Britain; ● deliver a first-class welcome to all visitors; ● improve the skills of the workforce; ● drive up quality in accommodation; ● maximise the opportunities for increasing business visits and events; ● spread the benefits; and ● improve sustainability.
Research published by VisitBritain and VisitLondon estimates an additional GBP
2.1 billion benefit from the 2012 Games, with over half the gains predicted for the post- Games period.
It is considering what actions government should be taking in order to support the industry through these challenging times. It is also looking at the longer term opportunities on offer, including from the 2012 Olympic Games and the Cultural Olympiad, the decade of UK sporting events between now and 2019, and the UK City of Culture.
Statistical profile Table 4.180. United Kingdom: Domestic overnight tourism
2008 Number of trips
378.39 1. Pure holiday not including other forms of tourism; changes in methodology from 2005 to 2006.
Million Trips
Source: Department for Culture, Media and Sport, 2009. 12 http://dx.doi.org/10.1787/771857022802
OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010
Table 4.181. United Kingdom: Inbound tourism – International arrivals and receipts
2008 Total international arrivals
31 888 Top 5 markets United States
1 974 Number of same-day visitors
1 746 International travel receipts
19 598 International passenger transport receipts
Million GBP
4 796 Source: International Passenger Survey, 2008.
Million GBP
12 http://dx.doi.org/10.1787/772007423212
Table 4.182. United Kingdom: Outbound tourism – International departures and
expenditure
2008 Number of tourism trips
69 450 69 011 International travel expenditure
35 692 37 256 International passenger transport expenditure
Million GBP
7 944 7 747 Source: International Passenger Survey, 2008.
Million GBP
12 http://dx.doi.org/10.1787/772042314411
Table 4.183. United Kingdom: Enterprises in tourism
19 395 Restaurants, bars and canteens
Hotels and other tourist accommodation
54 905 Travel agencies and tour operators
11 815 Recreation services
289 090 1. Break of series.
Sources: Department for Culture, Media and Sport and Office for National Statistics, 2009. 12 http://dx.doi.org/10.1787/772073705156
Table 4.184. United Kingdom: Employment in tourism
2008 Hotels and other tourist accommodation
245 Restaurants, bars and canteens
145 Travel agencies and tour operators
121 Recreation services
87 90 93.3 92.7 100 Rest of economy
Thousands
225 Total tourism employees
1 318 Total tourism self-employed
146 Total tourism employment
1 464 Source: Department for Culture, Media and Sport, 2009.
12 http://dx.doi.org/10.1787/772086006271
OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010
Table 4.185. United Kingdom: Tourism in the national economy – Total tourism
Domestic tourism
Inbound tourism
consumption Accommodation services
consumption
3 382 Food and beverage serving services
Million GBP
3 124 Passenger transport services
Million GBP
3 955 Travel agency, tour operator and tourist guide services
Million GBP
52 Recreation, cultural and other entertainment services
Million GBP
299 Other services
Million GBP
887 Non tourism products
Million GBP
4 379 Total
Million GBP
16 077 Source: Pilot survey, 2000.
Million GBP
12 http://dx.doi.org/10.1787/772103450187
Table 4.186. United Kingdom: Other economic indicators
2007 Tourism gross value added
33.0 33.6 33.9 Tourism share of total gross value added
Million GBP
3.0 2.9 2.7 Source: Department for Culture, Media and Sport, 2009.
Percentage
12 http://dx.doi.org/10.1787/772143346612
OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010