More than 250,000 new tourism-related jobs are expected to be created in the UK over the next decade, a new study has predicted.
The jobs boost – from 2.63 million now to 2.89 million – will come on the back of growing value of the tourism sector by 2020.
The total value of tourism to the UK is set to rise by more than 60% to £188 billion over the next decade, according to the independent report commissioned by VisitBritain.
The total economic contribution that domestic and overseas visitors make to the UK is currently £115 billion a year. The study predicted that “if all goes well” the figure is set to rise to £188 billion a year in 2020.
Spending by overseas visitors will almost double from £16 billion to £31 billion by 2020. This will make tourism Britain’s fifth biggest industry and third largest foreign exchange earner.
The report by Deloitte and Oxford Economics suggested that a further 10% depreciation in the pound relative to other international currencies could attract an extra one million international visitors to the UK in 2011 and 2012. These visitors would be expected to spend an extra £300 million in both years.
The favourable exchange rate, the 2012 Olympic and Paralympic Games in London and the appeal of world-renowned attractions, should ensure the sector grows at an above-average 3.5% a year between now and 2020, the research forecast.
The total economic contribution of the ‘visitor economy’ – covering firms directly and indirectly involved in tourism – is poised to expand faster than retail, chemicals, transport, gas and electricity utilities and manufacturing.
Only construction and financial and business services look more promising, the 102-page report suggested. But it warned that Government intervention will be the ‘key’ to success because a range of market failures needed to be tackled.
These included:
• Co-ordinating marketing to help small and medium sized tourist businesses which cannot afford to do it themselves;
• Enabling rural firms which face higher costs of operating to adopt innovative technology;
• Supporting many districts across the UK that rely disproportionately on tourism as an important source of jobs for low skilled and part time workers.
The industry also needs help to improve its ability to predict what tourist facilities will be needed, to ensure the modernisation of hotels and venues is carried out in a way that retains their original appeal and authenticity and to adapt more swiftly to new trends such as the growth in older ‘grey pound’ tourists.
The report revealed that tourism is disproportionately important in rural areas and for part time female workers.
VisitBritain chairman Christopher Rodrigues said the research demonstrated that the industry has the power to deliver a “huge amount” of extra wealth and jobs in the coming decade.
“This makes it clear that tourism, already Britain’s fifth largest industry and third biggest earner of foreign exchange, is going to be central to the health of the British economy for years to come,” he said.
“The continuing low level of the pound and the approaching Olympics in 2012 give us a tremendous opportunity to promote Britain’s attractiveness as a destination to the rest of the world.’’