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The UK Considers Inbound Tourism a Solution for the Industry Recovery

While it is still uncertain when global tourism will be back to normal, countries seek different ways of economic recovery. Recently, UKinbound, the country’s leading tourism trade association, has published a warning. The company thinks that inbound tourism, which was worth £23 billion in 2018, can help the country to recover from the consequences of the coronavirus pandemic, so it is important to support the industry financially.

This warning appeared just in time because the latest survey proves that the industry is suffering. Earlier, the association published the latest issue of its regular Business Barometer. According to this document, one in three tourism companies say that they are experiencing real troubles and are likely to close in the next six months. Current support offered by the government is not enough to save these companies. Only a bit more than a quarter of the respondents (27%) said that their companies were strong enough to survive the pandemic.

As expected the revenue levels are significantly down compared to the same period a year ago. 70% of the surveyed tourism companies reported a decline in business activity in the first quarter of 2020. The fall in the number of guests, orders, or bookings is roughly 55%. Naturally, revenues in Q1 2020 are also down compared to Q1 2019. Three-quarters of tourist businesses reported revenue declines by an average of 56%.

With the coronavirus crisis being nowhere close to its end, tourism companies are not optimistic about their future. Only 11% of the respondents report that they feel confident about this year, and the remaining 89% feel the opposite. This is the lowest confidence level on record.

UKinbound also gave its realistic forecast of the market in the coming months. For now, it is useless to count on international visitors. Perhaps, companies will not be able to receive any revenues from international tourism until spring 2021. At the moment, it is important not to lose the £23 billion inbound tourism market that can help the industry to survive the hard period. Domestic tourism can become that revenue stream that will revitalize the country’s economy and help regional communities. Because of this, it is vital to promote tourism in the UK and maintain tourist infrastructure in the country.

10.05.2020

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