VisitBritain forecasts tourism growth in 2010

Recent tourism figures have prompted VisitBritain to forecast a return to growth for British tourism in 2010, with the sector possibly being one of the main economic drivers to lift the country out of recession.

The figures, which show an increase of 3% in spending in the three months to October 2009, show that the tourism industry seems to have reached a turning point, with more people coming to the UK – in particular visitors from North America, who took advantage of improving economic conditions and a favourable exchange rate to cross the ocean to Britain.

VisitBritain’s forecast for 2010 is of a 0.8% growth in the number of visitors to 30.4 million, and a 4% increase in spending to £17.1bn, although growth could be steeper if the sterling remains weak.

Sandie Dawe, chief executive of VisitBritain, says that the recorded figures as well as VisitBritain’s forecast “suggest that Britain’s tourism is now heading back in the right direction and whilst conditions will still be tough, we believe that the exchange rate will make Britain attractive and offer exceptional value for the new year.”

To further capitalise on the popularity of the UK as a holiday destination, VisitBritain will launch several three-year campaigns that will run along three main themes: Classic, based on traditional Britishness; Dynamic, targeting a younger audience; and Luxury, which will focus on high revenue markets.

VisitBritain also identified a number of opportunities and challenges in 2010.

• Growing demand for business travel.
• Sterling remaining weak.
• Stability in the aviation sector if oil prices are steady and consumer confidence returns
• UK being highly rated as nation brand, especially the heritage and cultural offering.
• More activity relating to the Cultural Olympiad and to the Olympic Games in 2012.
• Set piece events such as Glastonbury, Wimbledon, the Ryder Cup in Wales and the Edinburgh Festivals

• Whether the global economic recovery continues to gather momentum.
• Tougher competition from other countries.
• Increases in Air Passenger Duty (in November 2009 and planned for November 2010).
• Exchange rate (an opportunity if it remains favourable, a challenge if not).
• More potentially troubled airlines.
• Visa fees and processes for some markets.