As this year draws to a close and a new year dawns on the horizon, my mind turns to new beginnings; especially with two beautiful baby girls delivered safely for two members of the UKinbound team in the last couple of months. What wonders await them as they grow and flourish in their new lives!
In many ways inbound tourism had its own rebirth in 2022 – a challenging and messy delivery for sure. Government furlough support ended in September 2021 but our borders didn’t open until March, meaning operators could have had a much better season but simply ran out of tarmac. Many businesses lost a significant portion of their staff and accumulated substantial levels of debt, which has hampered their renewal. Inbound tourism was the sector hit first, hit hardest, and hit for the longest, so our recovery didn’t start in the same place as the rest of the economy. The broader political environment has also been challenging, having welcomed several new governments, Prime Ministers, Chancellors and Tourism Ministers in a matter of months.
But as things settle down a more positive future can be glimpsed. Demand for the UK is strong, especially from North America, aided by a weak sterling and a strong dollar. And the prospects of His Majesty the King’s coronation in May next year, and the UK’s hosting of Eurovision, gives the UK the opportunity to demonstrate its strength in heritage and tradition along with a modern, open, tolerant and welcoming culture – a juxtaposition that so many visitors find enthralling.
Of course, there remain many challenges to our recovery. The removal of ID cards for inbound travel from the EU acts as an anchor holding back recovery – especially for the youth and student group travel market. Access to and the cost of visas this year has meant that the UK has missed out to competitors. And our second most valuable market, China, still has not recovered at all.
But perhaps the biggest challenges this year have been on the supply side. A lack of labour across the UK economy, but particularly in hospitality, meant that capacity has been restrained. This was felt especially in the accommodation sector, compounded by the removal of stock for government contracts. And a reliance on direct domestic business for the past two years has meant that the focus on inbound and using the travel trade as an effective and efficient route to market, has been dulled. VisitBritain’s 2022 MIDAS study showed the enduring importance of intermediaries, with over half of all inbound visitors using them to book their trip to the UK, so more work is needed on explaining why and how to leverage the opportunities that the travel trade can deliver.
Rampant inflation, rising energy bills, looming recession and the increased cost of business and living are chipping away at UK consumer confidence and challenging business viability. However, it is well to be reminded of what David Edwards showed at Convention this year – that in the Global Financial Crisis of 2008/2009, whilst overall inbound tourism to the UK stuttered, leisure tourism itself continued to grow.
We recently released a joint study with ABTA in November which supports this growth potential of our industry. Whilst the rest of the UK economy will struggle to grow 5% over the next 5 years, outbound tourism is forecast to grow by 15% and inbound by 20% – delivering tax revenues to the UK government of circa £13.2bn a year. We have been using these figures to educate ministers and officials on the economic value and employment potential of tourism – but only if the government supports the industry to ensure the UK remains a desirable, competitive, and perhaps most importantly, welcoming place to visit.
Talking of new beginnings, we were pleased that the new Tourism Minister Stuart Andrew MP visited the UKinbound stand at World Travel Market this year, just a few days into his post. Whilst we were delighted to show him some of our fantastic members and for him to engage with them directly on the opportunities and challenges facing their businesses, it was an equally crucial opportunity for him to see just how much investment and emphasis foreign governments put on their own tourism industries.
UKinbound continues to ensure that the voice of inbound tourism is heard at the highest levels of government across all our nations and regions. We recently gave evidence at a DCMS Select Committee enquiry into the promotion of Britain overseas, and at the Lords Enquiry into EU/UK relations, with a focus on youth mobility and youth and student group travel. As chair of the Tourism Industry Council’s International Demand working group, I submitted a paper to the Government on group travel and will, this coming year, be working to ensure our visa regime better fits our customers’ needs.
As an association, UKinbound has had its own challenges over the past two years – but membership continues to grow with our second-best year ever for recruitment, and our retention figures remain consistently higher than industry benchmarks. Our events programme continues with a mix of virtual and in-person events, providing ample opportunities for members to network, discover new products and showcase the very best of their offering.
In spring we returned to Dubai for Arabian Travel Market for our first tradeshow post-pandemic, and it was encouraging to see strong interest and demand for the UK as international travel restarted. We will shortly be gauging interest in ATM 2023 – if you would like to exhibit with us or have any questions, please email [email protected].
We had a busy autumn with WTM in November a roaring success, and I daresay we were once again the busiest stand at the show. VisitAberdeenshire warmly welcomed nearly 300 delegates to our Annual Convention in September, where new contacts were made, insights were shared, business was done, and fun was had. We are already working on Convention 2023, which will be held in the wonderful city of Belfast on 20 & 21 September 2023 – so make sure to get the date in your diary now.
We’re pleased to have once again partnered with ETOA to help our supplier members save £200 on their attendance at BIM 2023. This year will also see an additional 100 buyers from target markets such as North America, as part of a VisitBritain hosted buyers programme – full details can be found here.
In addition to the two babies, we also welcomed two new (adult!) members of the team earlier this year. Our new Events Manager Palmira Errico has worked hard to bring you a better forward look at our events whilst driving up quality, and our new MarComms Executive Karolina Dancewicz has brought fresh thinking and a data-driven approach our marketing work, both online and off. We’ll also have a new round of Board elections this coming year – another new start!
As an eventful 2022 bows out and we look forward to 2023, I would like to thank you, the members, for your support and dedication this year. A huge thank you goes to the Board for their counsel and direction; and last but not least, to my wonderful team for their passion, expertise, and tireless commitment to delivering the very best outcomes for our members.
So to end, and thinking to the new beginnings and opportunities for 2023, I am reminded of the words of the writer Munia Khan, “New Year is the glittering light to brighten the dream-lined pathway of future”. Have a very happy holiday and with best wishes for a peaceful and prosperous 2023.
