The UK inbound tourism industry expects bookings and revenue yields to largely hold steady or grow in the last quarter of the year.
Almost half (45%) of 105 UKinbound members polled in September expected revenue yields to be about the same in the final three months of 2024 compared to the same period last year.
Meanwhile 41% of respondents projected that revenue yields to be higher by an average of 13%.
The poll found that 45% of businesses expect booking/visitor numbers to be about the same year-on-year, while 26% forecast levels to be higher by an average of 19%.
The US continues to be one of the best performing source markets for the UK, with 30% of respondents continuing to see growth. However, this has slowed down over the course of 2024.
China is showing signs of recovery, with 12% of members reporting growth from the country.
Confidence amongst businesses has risen by three per cent compared to July, with 63% feeling confident about the impending 12 months, citing a steady influx of business across the year as a key driver of confidence. However, this is lower than the 73% high of 2023.
When asked to consider key barriers to growth, 59% of respondents stated economic conditions, such as rising costs, while 29% cited the UK’s international competitiveness. Staff recruitment and retention also ranked highly, with 23% saying it was a key concern.
UKinbound chief executive Joss Croft said: “2024 is shaping up to be a stable year of growth for the UK’s inbound tourism industry.
“We are continuing to see international visitors choose the UK and visit destinations up and down the country in all seasons of the year.
“By the end of 2024 inbound visitor numbers to the UK are forecast to be 95% of pre-pandemic levels and spend at 92% (when adjusted for inflation) but we really want to see our industry exceed these figures and sustainably grow into 2025 and beyond; although there are challenging headwinds such as rising costs, staff recruitment and retention, and the UK’s international competitiveness.
“We are encouraged by the positive interactions we have had with new ministers and MPs across a variety of government departments, and we have our sights set on a range of policy changes such as introducing a new low cost visitor visa, expanding passport-free travel schemes for under 18-year-olds and introducing a new VAT RES Scheme; that if rolled out would really support businesses and jobs across the country.”
It is forecast that 38.7 million international visitors will visit the UK, spending £32.5 billion this year.