UK Tourism Industry Gaining Because Of Weak Pound

According to the latest figures from United Kingdom, there has been an almost a fifth increase in the number of tourists visiting the UK from China this summer. There was also a 6 per cent year on year increase in the summer flight bookings from long-haul markets, showed data from the travel data firm ForwardKeys.

The increase in the spending power of tourists was credited to the weakness of the pound. Amid increasing speculation the UK could leave the EU without a deal, the sterling hit a 31-month low against the dollar this week.

“This summer is likely to see the highest number of Chinese tourists to the UK ever,” said ForwardKeys spokesman David Tarsh. He also predicted a 20 per cent rise in the number of Indian tourists to the UK, while also predicting 10 per cent increase from Japan and 5 per cent from the United States.

The lower value of the pound meant visitors would be able to get more from their currency in exchange, said Sarah Hewin, chief economist for Europe and the Americas at Standard Chartered. “The fall in the value of the pound against China’s currency [the renminbi] means that Chinese tourists coming to the UK have seen their spending power increase by around 5% in the past three months.”

These numbers tally with the situation on the ground as seen by Patricia Yates, a director at the UK’s tourism promotion agency Visit Britain. “The UK is offering great value for inbound visitors right now which gives us a valuable opportunity including in Europe, where we are already running a campaign to promote travel to the UK during the summer.”

Thriving tourism was also noted by the regional tourist office Welcome to Yorkshire. “We’re hearing from lots of our accommodation members, especially cottages, lodges and other self-catering properties, that business is booming with some already fully booked until October,” said its Commercial director Peter Dodd.

However the concerns about the impact of the uncertainty of Brexit has affected the flow of tourists from Europe, says Visit Britain. Between January and March this year, there was an increase of just 2 per cent year on year in the number of tourists visiting UK from Europe, showed latest statistics from the latest ONS on tourism. They are running a campaign in Europe to persuade people that the UK will still be a good place to visit after it leaves the European Union.

(Adapted from BBC.com)



Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability, Uncategorized

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