Tourism boosted as Brits opt for holidays closer to home
THE tourist industry is benefiting from a rise in staycations and the fall in the value of the pound, with businesses in the accommodation and food services sector seeing an 8.3% rise in turnover in the first half of this year.
Figures from Barclays Business also reveal that three-quarters of adults in the UK either have been on or are planning a UK staycation this year, up from 70% in 2016.
Wales is the most popular destination for both UK and international visitors, with 20% of UK tourists and 29% of international ones choosing to come to the country.
Seaside resorts such as Conwy in north Wales benefit particularly from tourism, with accommodation and food services SMEs accounting for 12.7% of total SME income in the town. Despite the increased appetite for a United Kingdom staycation, holiday budgets have been feeling the pinch, with the average staycation spend this year just £530, 14% less than in 2016 when holidaymakers spent an average £613 on staycations.
A quarter (23%) of those who are spending less say this is because they have less money than a year ago, while one in 10 (11%) say they can’t afford to spend any more because the cost of living has increased.
A further one in 10 (10%) are cutting back on all holidays to save money for the future.
Despite this, the fall in the value of the pound has helped to boost UK businesses in accommodation and food services, with the UK becoming an attractive holiday destination for many overseas tourists this year, a statistic which appears to be helping to plug the gap in spending by Britons.
Three and a half million overseas residents chose to holiday in the UK in June, up 7% from the same period in 2016, and these inbound tourists are willing to spend more.
Visitors to the UK this year have an average budget of £3,4436, while in June alone international tourists spent a total of £2.2bn – 2% more than the year before.
Mike Hayden, head of SME banking for Barclays in south Wales, said: “While it’s good news for the Welsh economy that more Brits are opting to spend their holidays in the UK, our poll shows purse strings are being tightened and domestic spend is down. However the weak pound is attracting growing numbers of inbound tourists, which is having a healthy impact on SME businesses in the accommodation and food services sectors.
“It is essential that Welsh businesses plan ahead and carefully position themselves to take advantage of the opportunities both domestic and overseas tourists can offer.
“Our research shows the value of both and it’s crucial businesses market their products and services to cater for a global market and diversify between seasons.”
The increase in demand is not just boosting business income. British entrepreneurs have also been quick to respond, with 25,000 new accommodation and food services SMEs opening last year.
The most popular reasons Britons give for holidaying in the UK include the fact that they like exploring the country (42%) and because there are so many fun things to do in the UK (31%).
Cutting down on travel time by staying local is another important factor for 24%, while one-fifth (20%) simply want to keep costs down and 6% prefer the British weather.
Brexit has also influenced the number of Brits taking a staycation this year.
Fourteen per cent changed their holiday plans as a result of the vote, with 6% saying they were more likely to stay local.
Nearly one in 10 adults planning a staycation (9%) say they were influenced by the falling value of the pound following the UK’s decision to leave the EU.