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Home , Tourism in England, Tourism Northern Ireland

II. OECD COUNTRIES PROFILES –

United Kingdom

Tourism in the economy 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 , Germany, the United States, the Irish Republic and Spain. The top five by value were the United States, Germany, France, Australia and Spain. received the largest number of overseas visitors with 17.4 million, while the rest of received 14.2 million, 2.7 million and 0.9 million. 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 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 . DCMS retains responsibility for 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: , which is in charge of product development and marketing to visitors from the island of Ireland, and , 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 (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 strategy for inbound tourism 2012-20. It calls for industry and Government to unite behind a long- term ambition for growth that would see Britain welcome 40 million overseas visitors by 2020, spending GBP 31.5 billion and supporting an additional 200 000 jobs across the United Kingdom. The strategy is built around 4 key objectives:

● Building on Britain’s improved international image: by playing to its strengths such as heritage, traditional and contemporary culture, and building on the Olympic legacy,

● Increasing engagement with the travel trade to ensure that Britain is packaged and sold,

● Broadening Britain’s strong product offering so that it continues to meet the expectations of visitors,

● Making it easier to get to Britain by addressing limiting factors such as aviation capacity and the current visa process. Other work to improve the sector’s productivity includes helping the industry to improve staff and management skills, cutting red tape and improving welcome. Scotland has also pursued an active programme of marketing. Following the very successful year of Homecoming in 2009, a series of themed years were introduced from 2010 to 2013 to celebrate Scotland’s reputation as a land of food and drink, as an active nation and a place of culture, creativity and natural beauty. A second Homecoming event was held in 2014 and a further series of themed years have been announced to 2018. Wales saw in 2013 the launch of Partnership for Growth, the Welsh Government Strategy for Tourism 2012-20. This is built around five key areas: promoting the brand; product development; people development; profitable performance; and place building. The strategy identified a product-led approach to developing and marketing . The focus is on high quality reputation-enhancing experiences such as all year round attractions, activities and cultural experiences, and innovative, unusual and distinctive products. Northern Ireland will see the production of an updated tourism strategy, following one of the key recommendations of the independent review of tourism structures published in 2014. The review had four key themes: setting the strategic direction for tourism; building relationships within the sector; closer alignment with Invest NI; and cultural change within Tourism Northern Ireland to develop a more customer focussed approach. Events have continued to play an important role in tourism promotion.

OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 295 II. OECD COUNTRIES PROFILES – UNITED KINGDOM

Statistical profile

Table 1. United Kingdom: Domestic, inbound and outbound tourism

2010 2011 2012 2013 2014 TOURISM FLOWS, THOUSAND Domestic tourism Total domestic trips .. 1 668 635 1 836 019 1 710 910 1 699 240 Overnight visitors (tourists) 115 711 126 635 126 019 122 910 114 240 Same-day visitors (excursionists) .. 1 542 000 1 710 000 1 588 000 1 585 000 Nights in all types of accommodation 361 398 387 329 388 240 373 610 349 550 Hotels and similar establishments 100 819 106 996 113 514 107 450 103 990 Specialised establishments ...... Other collective establishments 118 726 128 467 123 941 113 570 106 220 Private accommodation ...... Inbound tourism Total international arrivals 29 803 30 798 31 084 32 692 34 377 Overnight visitors (tourists) 28 296 29 306 29 282 31 064 32 613 Same-day visitors (excursionists) 1 508 1 492 1 802 1 629 1 764 Top markets France 3 618 3 633 3 787 3 974 4 114 Germany 3 004 2 947 2 967 3 048 3 220 United States 2 711 2 846 2 840 2 778 2 976 Ireland 2 629 2 574 2 453 2 350 2 486 Spain 1 809 1 836 1 716 1 746 1 986 Nights in all types of accommodation 227 960 234 363 230 149 245 412 264 367 Hotels and similar establishments 65 082 66 005 65 388 77 553 78 428 Specialised establishments ...... Other collective establishments 40 012 42 458 40 225 56 643 51 858 Private accommodation ...... Outbound tourism Total international departures 55 562 56 836 56 538 57 792 60 082 Overnight visitors (tourists) 53 759 54 946 54 604 56 088 58 364 Same-day visitors (excursionists) 1 803 1 890 1 934 1 704 1 718 Top destinations Spain ...... Italy ...... Belgium ...... United Kingdom ...... Germany ...... TOURISM RECEIPTS AND EXPENDITURE, MILLION GBP Inbound tourism Total international receipts 26 022 27 973 29 775 34 238 38 112 International travel receipts 21 338 22 301 23 617 26 708 28 341 International passenger transport receipts 4 684 5 672 6 158 7 530 9 771 Outbound tourism Total international expenditure 43 151 43 800 45 202 46 984 48 445 International travel expenditure 36 042 35 363 36 115 37 391 38 428 International passenger transport expenditure 7 109 8 437 9 087 9 593 10 017

.. Not available Disclaimer: http://oe.cd/disclaimer

Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933320647

296 OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 II. OECD COUNTRIES PROFILES – UNITED KINGDOM

Table 2. United Kingdom: Enterprises and employment in tourism

Number of Number of persons employed establishments1 2013 2010 2011 2012 2013 2014 Total .. 1 373 370 1 457 450 1 531 850 .. .. Tourism industries 213 460 1 066 570 1 137 550 1 171 750 .. .. Accommodation services for visitors 15 365 273 450 307 830 298 340 .. .. Hotels and similar establishments ...... Food and beverage serving industry 115 953 392 640 414 530 433 590 .. .. Passenger transport 12 746 155 550 153 060 171 220 .. .. Air passenger transport 566 46 880 47 880 54 250 .. .. Railways passenger transport 66 24 090 23 250 25 550 .. .. Road passenger transport 11 370 82 750 80 440 89 570 .. .. Water passenger transport 744 1 830 1 490 1 850 .. .. Passenger transport supporting services ...... Transport equipment rental 3 837 2 130 1 590 1 500 .. .. Travel agencies and other reservation services 6 980 99 230 106 810 106 000 .. .. industry Cultural industry 28 429 62 110 66 040 72 600 .. .. Sports and recreation industry 26 637 81 060 87 230 88 100 .. .. Retail trade of country-specific tourism ...... characteristic goods Other country-specific tourism industries 3 513 400 460 400 .. .. Other industries .. 306 800 319 900 360 100 .. ..

.. Not available Disclaimer: http://oe.cd/disclaimer 1. Data refer to number of enterprises.

Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933320651

Table 3. United Kingdom: Internal tourism consumption Million GBP

2012 Domestic tourism consumption Inbound tourism consumption Internal tourism consumption Total ...... Consumption products 106 628 21 753 128 381 Tourism characteristic products 73 491 12 463 85 954 Accommodation services for visitors 8 709 4 547 13 255 Food and beverage serving services 28 388 3 288 31 675 Passenger transport services 23 513 3 988 27 501 Air passenger transport services 16 372 2 956 19 328 Railways passenger transport services 3 877 329 4 206 Road passenger transport services 2 311 456 2 767 Water passenger transport services 954 247 1 201 Passenger transport supporting services ...... Transport equipment rental services 669 106 775 Travel agencies and other reservation services 2 930 97 3 027 industry Cultural services 5 409 190 5 599 Sports and recreation services 3 615 155 3 770 Country-specific tourism characteristic goods ...... Country-specific tourism characteristic services 258 93 351 Other consumption products 33 137 9 290 42 427 Tourism connected products ...... Non-tourism related consumption products ...... Non-consumption products ......

.. Not available Disclaimer: http://oe.cd/disclaimer

Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933320669

OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 297 From: OECD Tourism Trends and Policies 2016

Access the complete publication at: https://doi.org/10.1787/tour-2016-en

Please cite this chapter as:

OECD (2016), “United Kingdom”, in OECD Tourism Trends and Policies 2016, OECD Publishing, Paris.

DOI: https://doi.org/10.1787/tour-2016-40-en

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