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Inbound Tourism - UK - November 2011

Inbound Tourism - UK - November 2011

“The aviation sector’s forthcoming inclusion in the Emissions Trading Scheme (EU-ETS) presents a further opportunity for train operating companies. Mintel’s exclusive consumer research consistently shows that while people often feel concern over the environmental issues around travelling, they are unwilling to pay some sort of charge as a result. So as airlines increase ticket costs to offset the EU-ETS, train operators can promote the fact that their passengers not only escape the environmental charge but do so by travelling greener anyway.”...

£1,750.00

“The aviation sector’s forthcoming inclusion in the Emissions Trading Scheme (EU-ETS) presents a further opportunity for train operating companies. Mintel’s exclusive consumer research consistently shows that while people often feel concern over the environmental issues around travelling, they are unwilling to pay some sort of charge as a result. So as airlines increase ticket costs to offset the EU-ETS, train operators can promote the fact that their passengers not only escape the environmental charge but do so by travelling greener anyway.”

– Tom Rees, Senior Travel and Tourism Analyst

Some questions answered in the report include:


  • What do aviation trends signify for the UK-inbound market?

  • How important are ‘non-traditional’ inbound markets for the UK?

  • Will the 2013/14 expansion of international rail services make a difference to inbound tourism?

  • Is there potential for non-London UK holiday tours in 2012?

  • Can operators outside the accommodation sector directly benefit from the Olympics?

Introduction


Definition


Abbreviations


Executive Summary


The market


Figure 1: Forecast of overseas residents’ holiday visits to UK, 2006-16

Independent trips most likely

Figure 2: Percentage of overseas residents’ holiday visits to the UK that are independent visits, 2006-10

Four in 10 are short breaks

Figure 3: Overseas residents’ holiday visits to the UK, short breaks vs longer holidays, 2006-10

EU top for inbound holidays

Figure 4: Top ten source markets for UK, by holiday visits, 2010

Market factors


Holidays head reasons to visit

Figure 5: Overseas residents’ visits to the UK, by purpose of visit, 2005-10

Sterling’s weakness boosts holidaymakers

Figure 6: Monthly average exchange rates for Sterling against the US Dollar and euro, January 2007-September 2011

UK sixth placed for tourism

Figure 7: International tourist arrivals (overnight visitors), by country of destination, 2010*

Olympics issues

Companies, brands and innovation


VisitBritain and ‘founding partners’

Great campaign

You’re invited

Rail options to expand

The consumer


Heritage and culture are draws

Figure 8: Agreement with statements ‘I am fascinated by Britain’s heritage (eg Royal Family, historic buildings etc)’ and ‘I am attracted to Britain by its culture (eg theatre, music etc)’, by country, October 2011

Scenery scores highly

Figure 9: Agreement with ‘I am attracted to Britain by its scenery’, by country, October 2011

Expense vs exchange rates

Figure 10: Agreement with statements ‘Britain is too expensive as a destination’ and ‘Exchange rate changes have made it more likely for me to visit Britain’, by country, October 2011

2012 plans

Figure 11: Agreement with ‘I will/may visit Britain in 2012 because of the Olympics in London’, by country, October 2011

What we think


Issues in the Market


What do aviation trends signify for the UK-inbound market?


How important are ‘non-traditional’ inbound markets for the UK?


Will the 2013/14 expansion of international rail services make a difference to inbound tourism?


Is there potential for non-London UK holiday tours in 2012?


Can operators outside the accommodation sector directly benefit from the Olympics?


Future Opportunities


Trend: Patriot Games


Trend: Transumers


Internal Market Environment


Key points


Holiday high


Figure 12: Overseas residents’ visits to the UK, by purpose of visit, 2005-10

Spend still rising


Figure 13: Overseas residents’ spending in the UK, by purpose of visit, 2005-10*

Figure 14: Overseas residents’ average spending in the UK, by purpose of visit, 2005-10*

Hotels head accommodation


Figure 15: Type of accommodation used by inbound holiday visitors staying in the UK for at least one night, 2006-10

Riots seen worldwide


‘GREAT’ invitations


Olympics looms large


Taxing times ahead


Figure 16: Air Passenger Duty, at November 2011

Broader Market Environment


Key points


The cuts


Pound stays weak


Figure 17: Annual average exchange rates for Sterling, 2007-11

Figure 18: Monthly average exchange rates for Sterling against the US Dollar and euro, January 2007-September 2011

Figure 19: UK consumer price index, retail price index and VAT rate, 2006-11

Online world keeps growing


Figure 20: Top 20 countries, by number of internet users, June 2011

Figure 21: Internet penetration of top 20 countries (by number of internet users), 2009 and 2011

Rail service expansion on track


Competitive Context


Key points


UK takes sixth in arrivals…


Figure 22: International tourist arrivals (overnight visitors), by country of destination, 2006-10

…and seventh in expenditure


Figure 23: Inbound tourism expenditure, 2006-10

Who’s Innovating?


Key points


Inspiration and ‘greatness’


Transport – sea and tunnel


Limited and exclusive


Britain’s got celebrities


Flying in


Smartphones and social networks


Floating hotels


Market Size and Forecast


Key points


Inbound increases


Figure 24: Overseas residents’ holiday visits to/spending in UK, 2006-16

Four in five are independent holidays


Figure 25: Overseas residents’ holiday visits to the UK – inclusive tours and independent visits, 2006-10

Figure 26: Overseas residents’ holiday spend* in the UK – inclusive tours and independent visits, 2006-10

Short breaks second choice


Figure 27: Overseas residents’ holiday visits to the UK – short breaks vs longer holidays, 2006-10

Figure 28: Overseas residents’ holiday expenditure* in the UK – short breaks vs longer holidays, 2006-10

Forecast


Figure 29: Forecast of overseas residents’ holiday visits to UK, 2006-16

Figure 30: Forecast of overseas residents’ holiday spending in UK, 2006-16

Forecast methodology


Segment Performance


Key points


Europe ascendant as ‘other’ spend grows


Figure 31: Overseas residents’ holiday visits to the UK, by region of origin, 2006-10

Figure 32: Overseas residents’ holiday spend* in the UK, by region of origin, 2006-10

French and Germans flock, US citizens’ spend stays top but shrinks


Figure 33: Top ten source markets, by holiday visits, 2006-10

Figure 34: Top ten source markets, by holiday spend*, 2006-10

Holidays from India up to almost 120,000


Figure 35: Top 15 fastest-growing inbound markets (by number of holidays to the UK), 2009-10

Flights stay top choice, but tunnel use surges


Figure 36: Overseas residents’ holiday visits to the UK, by mode of transport, 2006-10

London dominates visits


Figure 37: Visits (all purposes*) from overseas to areas of UK, 2005-10**

Figure 38: Number of UK regional visits, by inbound holidaymakers, 2010

Market Share


Key points


France top for tourists…


Figure 39: International tourist arrivals market share, 2006-10

…with US top for spend


Figure 40: Inbound tourism expenditure market share, 2006-10

Companies and Products


VisitBritain


Strategy

Campaigns

VisitScotland


Figure 41: Key financials of VisitScotland, 2009 and 2010

Inbound breakdown

Figure 42: Top origins of overseas tourists to Scotland, 2010

Strategy

Campaigns

Figure 43: Main marketing campaigns, VisitScotland, 2010-11

Visit Wales


Inbound breakdown

Figure 44: Top origins of overseas tourists to Wales, 2010

Strategy and campaigns

London & Partners


Inbound breakdown

Figure 45: Top 10 inbound markets for London, by volume, 2010

Northern Ireland Tourism Board


Figure 46: Key financials for Northern Ireland Tourist Board, 2009 and 2010

Strategy

Campaigns

Inbound breakdown

Figure 47: Northern Ireland estimated visitors, nights and expenditure, by country of residence, 2010

UKinbound


Figure 48: Key financials, UKinbound, 2009 and 2010

British Airways


Figure 49: Key financials, British Airways, 2009 and 2010

easyJet


Figure 50: Key financials, easyJet, 2009 and 2010

Ryanair


Figure 51: Key financials for Ryanair, 2010 and 2011

Figure 52: New routes from/to the UK, Ryanair, 2011/12

Eurostar


Figure 53: Key financials for Eurostar, 2009 and 2010

Attitudes Towards the UK as a Destination


Key points


British heritage


Figure 54: Agreement with ‘I am fascinated by Britain’s heritage (eg Royal Family, historic buildings etc)’, by country, October 2011

Figure 55: Agreement with ‘I am fascinated by Britain’s heritage (eg Royal Family, historic buildings etc)’ – Americans, 2009 and 2011

Coming for culture


Figure 56: Agreement with ‘I am attracted to Britain by its culture (eg theatre, music etc)’, by country, October 2011

Scenery at the summit


Figure 57: Agreement with ‘I am attracted to Britain by its scenery’, by country, October 2011

Getting here, getting around


Figure 58: Agreement with ‘Britain is too far away/too hard to get to’, by country, October 2011

Figure 59: Agreement with ‘I’d be interested in visiting several places in Britain in one trip’, by country, October 2011

Figure 60: Agreement with ‘I am mainly interested in visiting London’, by country, October 2011

Figure 61: Germans’ agreement with ‘I am mainly interested in visiting London’ vs Germans’ agreement with ‘I’d be interested in visiting several places in Britain in one trip’, October 2011

Food reputation flounders


Figure 62: Agreement with ‘Britain does not have a wide range of food and drink’, by country, October 2011

Cost concerns


Figure 63: Agreement with ‘Britain is too expensive as a destination’, by country, October 2011

Figure 64: Percentage of respondents agreeing* that ‘Britain is too expensive as a destination’, by country, 2009 and 2011

Figure 65: Agreement with ‘Exchange rate changes have made it more likely for me to visit Britain’, by country, October 2011

Olympic allure


Figure 66: Agreement with ‘I will/may visit Britain in 2012 because of the Olympics in London’, by country, October 2011

Multiculturalism appreciated


Figure 67: Agreement with ‘Britain’s multiculturalism appeals to me’, by country, October 2011

Riot impact receding, but real


Figure 68: Agreement with ‘The August 2011 riots in London have put me off visiting the UK’, by country, October 2011

European Countries Considered as an Alternative Holiday Destination


Key points


Figure 69: Wordcloud denoting relative preference of European destinations to Britain by the French, Germans, Spanish, Italians and Americans, October 2011*

French choose Spain and Italy


Figure 70: European destinations preferred to Britain by the French, October 2011

Half from Spain go for Italy


Figure 71: European destinations preferred to Britain by the Spanish, October 2011

Germans rank Spain first


Figure 72: European destinations preferred to Britain by the Germans, October 2011

Almost six in ten Italians choose Spain


Figure 73: European destinations preferred to Britain by the Italians, October 2011

US likes Italy, but cooler on Spain than Europeans


Figure 74: European destinations preferred to Britain by the Americans, October 2011

Appendix – Market Size and Forecast


Figure 75: Inbound holidays market volume and forecast, best and worst case scenarios, 2011-16

Figure 76: Inbound holidays market value* and forecast, best and worst case scenarios, 2011-16

Appendix – French Attitudes Towards the UK as a Destination


Figure 77: Agreement with the statements ‘I am fascinated by Britain’s heritage’ and ‘I am attracted to Britain by its culture’, by demographics – French, October 2011

Figure 78: Agreement with the statements ‘I am attracted to Britain by its scenery’ and ‘I’d be interested in visiting several places in Britain in one trip’, by demographics – French, October 2011

Figure 79: Agreement with the statements ‘Britain does not have a wide range of food and drink’ and ‘Britain is too expensive as a destination’, by demographics – French, October 2011

Figure 80: Agreement with the statements ‘I will/may visit Britain in 2012 because of the Olympics in London’ and ‘Britain’s multiculturalism appeals to me’, by demographics – French, October 2011

Figure 81: Agreement with the statements ‘I am mainly interested in visiting London’ and ‘Exchange rate changes have made it more likely for me to visit Britain’, by demographics – French, October 2011

Figure 82: Agreement with the statements ‘Britain is too far away/too hard to get to’ and ‘The August 2011 riots in London have put me off visiting the UK’, by demographics – French, October 2011

Appendix – Spanish Attitudes Towards the UK as a Destination


Figure 83: Agreement with the statements ‘I am fascinated by Britain’s heritage’ and ‘I am attracted to Britain by its culture’, by demographics – Spaniards, October 2011

Figure 84: Agreement with the statements ‘I am attracted to Britain by its scenery’ and ‘I’d be interested in visiting several places in Britain in one trip’, by demographics – Spaniards, October 2011

Figure 85: Agreement with the statements ‘Britain does not have a wide range of food and drink’ and ‘Britain is too expensive as a destination’, by demographics – Spaniards, October 2011

Figure 86: Agreement with the statements ‘I will/may visit Britain in 2012 because of the Olympics in London’ and ‘Britain’s multiculturalism appeals to me’, by demographics – Spaniards, October 2011

Figure 87: Agreement with the statements ‘I am mainly interested in visiting London’ and ‘Exchange rate changes have made it more likely for me to visit Britain’, by demographics – Spaniards, October 2011

Figure 88: Agreement with the statements ‘Britain is too far away/too hard to get to’ and ‘The August 2011 riots in London have put me off visiting the UK’, by demographics – Spaniards, October 2011

Appendix – German Attitudes Towards the UK as a Destination


Figure 89: Agreement with the statements ‘I am fascinated by Britain’s heritage’ and ‘I am attracted to Britain by its culture’, by demographics – Germans, October 2011

Figure 90: Agreement with the statements ‘I am attracted to Britain by its scenery’ and ‘I’d be interested in visiting several places in Britain in one trip’, by demographics – Germans, October 2011

Figure 91: Agreement with the statements ‘Britain does not have a wide range of food and drink’ and ‘Britain is too expensive as a destination’, by demographics – Germans, October 2011

Figure 92: Agreement with the statements ‘I will/may visit Britain in 2012 because of the Olympics in London’ and ‘Britain’s multiculturalism appeals to me’, by demographics – Germans, October 2011

Figure 93: Agreement with the statements ‘I am mainly interested in visiting London’ and ‘Exchange rate changes have made it more likely for me to visit Britain’, by demographics – Germans, October 2011

Figure 94: Agreement with the statements ‘Britain is too far away/too hard to get to’ and ‘The August 2011 riots in London have put me off visiting the UK’, by demographics – Germans, October 2011

Appendix – Italian Attitudes Towards the UK as a Destination


Figure 95: Agreement with the statements ‘I am fascinated by Britain’s heritage’ and ‘I am attracted to Britain by its culture’, by demographics – Italians, October 2011

Figure 96: Agreement with the statements ‘I am attracted to Britain by its scenery’ and ‘I’d be interested in visiting several places in Britain in one trip’, by demographics – Italians, October 2011

Figure 97: Agreement with the statements ‘Britain does not have a wide range of food and drink’ and ‘Britain is too expensive as a destination’, by demographics – Italians, October 2011

Figure 98: Agreement with the statements ‘I will/may visit Britain in 2012 because of the Olympics in London’ and ‘Britain’s multiculturalism appeals to me’, by demographics – Italians, October 2011

Figure 99: Agreement with the statements ‘I am mainly interested in visiting London’ and ‘Exchange rate changes have made it more likely for me to visit Britain’, by demographics – Italians, October 2011

Figure 100: Agreement with the statements ‘Britain is too far away/too hard to get to’ and ‘The August 2011 riots in London have put me off visiting the UK’, by demographics – Italians, October 2011

Appendix – American Attitudes Towards the UK as a Destination


Figure 101: Agreement with the statements ‘I am fascinated by Britain’s heritage’ and ‘I am attracted to Britain by its culture’, by demographics – Americans, October 2011

Figure 102: Agreement with the statements ‘I am attracted to Britain by its scenery’ and ‘I’d be interested in visiting several places in Britain in one trip’, by demographics – Americans, October 2011

Figure 103: Agreement with the statements ‘Britain does not have a wide range of food and drink’ and ‘Britain is too expensive as a destination’, by demographics – Americans, October 2011

Figure 104: Agreement with the statements ‘I will/may visit Britain in 2012 because of the Olympics in London’ and ‘Britain’s multiculturalism appeals to me’, by demographics – Americans, October 2011

Figure 105: Agreement with the statements ‘I am mainly interested in visiting London’ and ‘Exchange rate changes have made it more likely for me to visit Britain’, by demographics – Americans, October 2011

Figure 106: Agreement with the statements ‘Britain is too far away/too hard to get to’ and ‘The August 2011 riots in London have put me off visiting the UK’, by demographics – Americans, October 2011

Appendix – European Countries Considered as an Alternative Holiday Destination by French Consumers


Figure 107: Most popular European destinations preferred to Britain, by demographics – French, October 2011

Figure 108: Next most popular European destinations preferred to Britain, by demographics – French, October 2011

Figure 109: Other European destinations preferred to Britain, by demographics – French, October 2011

Appendix – European Countries Considered as an Alternative Holiday Destination by Spanish Consumers


Figure 110: Most popular European destinations preferred to Britain, by demographics – Spaniards, October 2011

Figure 111: Next most popular European destinations preferred to Britain, by demographics – Spaniards, October 2011

Appendix – European Countries Considered as an Alternative Holiday Destination by German Consumers


Figure 112: Most popular European destinations preferred to Britain, by demographics – Germans, October 2011

Figure 113: Next most popular European destinations preferred to Britain, by demographics – Germans, October 2011

Figure 114: Other European destinations preferred to Britain, by demographics – Germans, October 2011

Appendix – European Countries Considered as an Alternative Holiday Destination by Italian Consumers


Figure 115: Most popular European destinations preferred to Britain, by demographics – Italians, October 2011

Figure 116: Next most popular European destinations preferred to Britain, by demographics – Italians, October 2011

Figure 117: Other European destinations preferred to Britain, by demographics – Italians, October 2011

Appendix – European Countries Considered as an Alternative Holiday Destination by American Consumers


Figure 118: Most popular European destinations preferred to Britain, by demographics – Americans, October 2011

Figure 119: Next most popular European destinations preferred to Britain, by demographics – Americans, October 2011

Figure 120: Other European destinations preferred to Britain, by demographics – Americans, October 2011

  • AMR Corporation (American Airlines)
  • British Airways Plc
  • British Incoming Tour Operators Association (The)
  • European Tour Operators Association
  • Hard Rock Cafe
  • Iberia, Líneas Aéreas de España SA
  • London Development Agency
  • Northern Ireland Tourist Board,
  • Ryanair Holdings plc
  • Samsung Electronics (UK) Ltd
  • The International Consolidated Airlines Group
  • TripAdvisor LLC
  • VisitScotland
  • Welsh Tourist Board
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