LONDON is expected to bear the brunt of an £11billion revenue loss from international tourists due to continuation of the government’s tough restrictions on travel to England, a study by the Centre for Economic & Business Research (CEBR) revealed.
The capital would suffer a loss of almost £7bn compared with levels of spending in the six-month period leading up to the pandemic, unless there was a marked pick up in the rest of the year.
The report said: “The capital is far more popular with international travellers than domestic visitors. In 2019, it accounted for 63 per cent of England’s total international visitor expenditure, while representing just 16 per cent of expenditure by domestic overnight travellers.”
“This means tourist-dependent businesses in the capital find themselves in an unenviable position, with few foreign visitors arriving and staycationers opting for seaside and countryside spots in other parts of the country.”
According to the consultancy firm, rules for travellers arriving in the UK remained complex, despite the relaxation in quarantine requirements for vaccinated travellers announced on Wednesday (4).
“Compared to many neighbouring countries which have taken a much more relaxed approach, even the best case scenario for international travel is still pretty onerous, meaning many potential visitors are still choosing to stay away,” it said.
As per data from the national tourism agency, Visit Britain, there was an 80 per cent drop in spending by international visitors to England between the second half of 2019 and the same period of 2020.
If the present restrictions remain in place throughout this year, the CEBR said it expected £3.7bn in spending by international visitors, which is higher than the 2020 value but still £10.7bn lower than pre-pandemic amount.
It further said that London would account for almost two-thirds of the shortfall since it was unable to plug the gap with revenue from domestic tourism.
“Tourism-dependent businesses in areas such as Cornwall and Devon are seeing a boost from domestic travellers which is offsetting the lack of international ones. However, tourism-dependent businesses in London and other areas less popular with staycationers, are now at a notable disadvantaged compared to their counterparts across most other industries which have seen nearly all restrictions lifted,” the report said.
Bobby Bawa