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United Kingdom II. OECD COUNTRIES PROFILES – UNITED KINGDOM United Kingdom Tourism in the economy Tourism is a major part of the United Kingdom economy. The Office for National Statistics (ONS) Tourism Satellite Account shows that in 2014 tourism directly contributed an estimated GBP 59.6 billion in gross value added (GVA), or around 4% of the total United Kingdom economy. Economic analysis by Deloitte in 2013 suggests that when indirect economic effects are included, GVA for 2014 could be as high as GBP 133.6 billion, or 9% of GDP. Tourism also makes a substantial contribution to employment. Employment in UK tourism industries increased at almost twice the rate (5.4% compared to 2.8%) of the non-tourism related industries between 2009 and 2013, from 2.7 million to 2.8 million jobs. Deloitte estimates that 3.2 million employees worked in tourism associated industries in 2014, equivalent to almost one in ten of jobs. Of this, 1.8 million jobs were estimated to be directly related to tourism. Data from the ONS show that 34.4 million visits were made to the United Kingdom in 2014 (5% increase on 2013), with a spend of GBP 21.8 billion (3% increase on 2013). The top five markets by volume were France, Germany, the United States, the Irish Republic and Spain. The top five by value were the United States, Germany, France, Australia and Spain. London received the largest number of overseas visitors with 17.4 million, while the rest of England received 14.2 million, Scotland 2.7 million and Wales 0.9 million. Northern Ireland received 2.2 million external visitors, including those from elsewhere in the United Kingdom. There were 16.8 million inbound visits to the United Kingdom between January- June 2015, up 3% on the same period in 2014. Provision estimate indicate spend from these visits was up 2% to GBP 9.5 billion for the same period. Domestic overnight tourism trips numbered 114.2 million in 2014, a 7% drop compared to 2013, with domestic spending of GBP 22.7 billion down by 3%. However, in the period January to June 2015, domestic Great Britain trips were up 12% to 56.8 million from 50.6 million in the same period in 2014. Expenditure was also up 15% for the period at GBP 10.9 billion. In 2014, 1.6 billion domestic tourism day visits were made, with an associated spend of GBP 53.8 billion, down slightly on 2013 levels. The volume of day visits in Great Britain for January to June 2015 declined by 4% when compared with the same period in 2014, to 711.2 million. The value of those visits decreased by 2% during the same period to GBP 23.6 billion. Tourism governance and funding The Department for Culture, Media and Sport (DCMS) is the sponsoring government department for tourism in the United Kingdom. Tourism is a devolved competence in Scotland, Wales, Northern Ireland and Greater London. DCMS retains responsibility for tourism in England and overseas promotion of Great Britain as a destination. 292 OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 II. OECD COUNTRIES PROFILES – UNITED KINGDOM VisitBritain is a public body responsible for promoting Britain worldwide and developing its visitor economy. Funded by DCMS, it works with a range of partners to grow the value of inbound tourism to Britain. VisitBritain aims to increase visitor spend in all parts of Britain and improve Britain’s ranking in the eyes of international travellers. It also has a statutory function to advise the Government on matters affecting tourism. VisitEngland is an advisory body which works to grow the value of tourism in England. England has no formal regional tourism structures. VisitEngland works with destinations directly through the Destination Management Forum, as well as with organisations on an ad hoc basis and through its corporate communications, promotional activity, partnerships and enterprise support teams. In 2015, the Triennial Review of VisitBritain and VisitEngland made recommendations on the form and function and how to improve the effectiveness, efficiency and corporate governance of both bodies. VisitScotland is a public body responsible to the Scottish Government. Its main role is to market Scotland in the United Kingdom and internationally, encourage the highest quality standards within the industry and operate an events strategy to support tourism and raise the country’s international profile. Scotland’s enterprise agencies provide business support and investment to encourage growth in the tourism sector. VisitWales sits within the portfolio of the Welsh Department for Economy, Science and Transport. It is responsible for formulating tourism policy, encouraging investment in, and improving the quality of the visitor experience in Wales. VisitWales is also responsible for marketing Wales in the United Kingdom and internationally. In Northern Ireland, the Department of Enterprise, Trade and Investment is responsible for tourism strategy and policy and has oversight of two tourism organisations: Tourism Northern Ireland, which is in charge of product development and marketing to visitors from the island of Ireland, and Tourism Ireland, which markets the island of Ireland in Great Britain and overseas. In addition Invest NI administers accommodation grants and provides business support and advice to tourism businesses. United Kingdom: Organisational chart of tourism bodies Northern Ireland Scottish Welsh Government UK Government Assembly Government and Visit Wales (DCMS) Greater London Local Enterprise Authority (GLA)* Partnerships* Policy and Finance Policy and Finance Policy and Finance Policy and Finance Tourism Northern Visit VisitBritain Ireland and Tourism London and Partners Scotland VisitEngland Ireland (work with)(work Destination Management Organisations (DMOs) * Separate funding relationships apply. Source: OECD, adapted from the Department for Culture, Media and Sport (DCMS), 2016. OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 293 II. OECD COUNTRIES PROFILES – UNITED KINGDOM DCMS funds VisitBritain and VisitEngland through a grant-in-aid funding settlement under which funding for top priority programmes is protected as far as possible. In 2015-16 this amounted to GBP 19.6 million for VisitBritain and GBP 7 million for VisitEngland. This includes funding for VisitBritain’s core international marketing and PR activities, which is provided on the basis that it is match-funded by the private sector. It also includes funding to VisitEngland for investment and support for destination organisations, businesses, enterprise partnerships and local authorities involved in tourism. Additional public funding has also been made available for specific purposes, including: ● GBP 19.8 million between 2012-15 from the Regional Growth Fund for the Growing Tourism Locally programme, aimed at creating over 9 000 new jobs and administered by VisitEngland. (This funding has now closed). ● A Northern Tourism Growth Fund of GBP 10 million and South West Tourism Growth Fund of GBP 5 million in 2015-16 to support inbound tourism to these areas, largely through marketing. ● GBP 51.5 million by 2014-15 for VisitBritain’s GREAT campaign aimed at shifting perceptions of the United Kingdom and GBP 10 million since 2012 for VisitEngland’s Holidays at Home are GREAT campaign. Tourism funding in Scotland, Wales and Northern Ireland is determined by the devolved governments. The grant-in-aid funding from Scottish Government to VisitScotland over the financial years 2011/12 to 2014/15 was GBP 195.8 million. Tourism policies and programmes In July 2015, DCMS published a document entitled Backing the Tourism Sector: a Five Point Plan, which sets out to boost tourism right across the United Kingdom, spread the benefits of one of the fastest growing sectors beyond the capital and help to create jobs and rebalance the economy. A new Inter-Ministerial Group has been formed to co-ordinate and align action across government to ensure that the right infrastructure is in place to make it easy for visitors to discover the best of what the country has to offer (Box 1.6). Since hosting the Olympic and Paralympic Games in 2012, the United Kingdom has sought to build on the legacy of these and other events, notably through showcasing Britain and enhancing its image around the world, particularly in tourism’s new growth markets. In 2013-14, VisitBritain entered the third year of its match-funded GBP 100 million “GREAT Britain You’re Invited” programme, which aims to capitalise on the international interest generated by major events. It is also running a GREAT image campaign in selected cities around the world as part of the broader government initiative to show the world that Britain is a GREAT place to visit, study, invest and do business. This is tightly integrated with the work of other government agencies and departments such as United Kingdom Trade and Investment, Foreign and Commonwealth Office and British Council. VisitBritain’s marketing programme has three simple aims: build awareness of the country’s attractiveness as a tourism destination amongst those who have not yet visited Britain; encourage prior visitors to return; and provide a series of opportunities and incentives to visit Britain now, working in partnership with the private sector. Domestically, VisitEngland works with VisitScotland, VisitWales and Tourism Ireland/ Tourism Northern Ireland to promote the GREAT campaign to domestic markets. 294 OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 II. OECD COUNTRIES PROFILES – UNITED KINGDOM In April 2013, VisitBritain launched its Delivering a Golden Legacy: a growth
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