US visitors are leading a resurgence in UK inbound tourism this summer along with couples and older adults, according to the UKinbound trade association.
But UKinbound warns staff shortages are limiting supply chain capacity and could slow the recovery following a survey of members.
UKinbound chief executive Joss Croft warned “we can’t assume this boom will continue” and called on whoever leads the government from September to “implement policies and funding that support the recovery”.
The association commissioned research among its more than 300 member businesses in its latest quarterly business barometer survey in June and July.
This found the US market demonstrates the strongest recovery with more than one in three inbound businesses reporting growth from the US on 2019.
Couples and ‘empty nesters’ – older adults whose children have left home – were among the international visitors to return fastest, closely followed by families.
One in five inbound business respondents said they expect international visitor numbers and bookings in July, August and September this year to be higher than pre-pandemic, although mere than half (54%) said lower.
Almost one third expected higher revenues than pre-Covid, although there was a split between tour operators and attractions with 71% of attractions expecting lower revenues than pre-pandemic compared with 57% of tour operators.
Looking forward, four out of five (78%) expressed confidence about the next 12 months.
But when asked to consider the obstacles to recovery, respondents identified supply chain capacity as the leading concern, followed by staff recruitment and retention.
They also highlighted concerns about the extent of UK competitiveness with rival destinations, alongside rising inflation and energy costs.
UKinbound chief executive Joss Croft said: “It’s fantastic to see international consumers returning to experience the UK’s diverse tourism offering.
“The opening of the Commonwealth Games in Birmingham this week is just one of the many reasons international visitors are choosing to holiday in the UK this year.
“We’ve also seen pent-up demand from the US, with people taking their deferred 2020 and 2021 holidays in the UK this summer.”
But Croft warned: “International tourism is competitive, and we can’t assume this boom will continue.
“Our industry is facing challenges, with supply chain capacity heavily affected by businesses’ ability to secure the skilled staff they need, alongside inflation and rising energy costs.”
He argued: “If we’re to retain our crown as a world-leading destination and the economic benefits that come with this, we need to ensure the UK has competitive visa, immigration and border systems, invests in the promotion of Britain abroad and visitors receive a first-class welcome.”
Croft insisted: “It’s critical the impending new government implement policies and funding that support the recovery and growth of businesses across this sector.”
The UKinbound business barometer survey was conducted by Qa Research.
The UK drew 40.8 million international visitors in 2019, who spent £28.4 billion. UKinbound estimates international visitor numbers should reach about 60% of the 2019 figure by the end of this year.