Visits to the UK by overseas residents decreased by 5% during April to June 2008, when compared to the previous quarter, according to the latest figures released today by the Office for National Statistics.
Visitor numbers were down by 4% for the quarter on the year.
During April to June, the seasonally-adjusted number of visits to the
UK by overseas residents decreased to 8.1 million from 8.5 million over the previous three months.
Associated earnings from overseas residents on visits to the UK remained broadly the same at £4.1bn.
Over the same period, the seasonally-adjusted number of visits abroad by UK residents decreased by 1% to 17.7 million, while the associated spending decreased by 2% to £9.1bn.
Tim Helliwell, national head of hotels, Barclays Commercial Bank said:
“This quarter’s 4% fall in the number of overseas tourists visiting the UK suggests the previous quarter’s positive increase was a short-lived boon and traffic figures from the US and Western Europe continue to slow.
Travellers from the US are down 7% thanks to higher transport costs from fuel surcharges, the economic uncertainty and a squeeze on consumer spending. Although the recent gains of the dollar against the pound may ease this slowdown there is definitely a trend in the big spenders reducing their visits.
“Hotels in London are off-setting this fall in occupancy with price increases of around 5% which is protecting their margins for the moment. Some hoteliers have reported good trading in June and July, especially those with up to date product, which is allowing them to buck the downward trend and increase their price premium. However, regionally, prices are standing still and hotels are feeling the cost pressures more keenly.
“The industry has become significantly affected by more short-term behaviour from business and leisure travellers in the last 12 to 18 months as they increasingly book last minute. Both the unpredictable weather and the economic uncertainty are driving this trend and many hoteliers will be looking to quarter four with some nervousness. Nationally there will be increased focus on cutting the cost base, while in London those who are feeling the price pressure less will be focusing on how their marketing strategies can combat this uncertainty.”
