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