’25 per cent more domestic tourist spending’ predicted by 2017

Domestic tourists' annual spend on UK leisure, retail and hospitality is set to go up by a quarter by 2017, a Barclays report predicts.  

Such spending will reach more than £108 billion by that time, it seems.

Barclays says that there is a positive outlook across the United Kingdom, but certain places are going to see more of the benefit.

For example, London is going to see 16 per cent of domestic spending come 2017, remaining number one on the domestic tourist spending chart.

Strong performance is expected for England's south east (at two), the south west (at three) and Scotland (at four).

According to the report, it seems that domestic tourism spending expansion is going to be down, in large part, to pressure remaining in place on living costs – which will cause a lot of people to stay at home rather than go to other countries.

It's said that leisure and hospitality are going to feel the greatest benefit from spending growth. Here, domestic tourist spending will go up to the level of £69 billion come 2017.

Within this sector, restaurants and pubs are going to see the biggest spending growth, 26 per cent, followed by hotels and Bed and Breakfasts (up 25 per cent).

“The economy is improving and confidence is certainly growing, and while this will lead to a gradual rise in the number of consumers looking to holiday abroad again, it is unlikely to precipitate a return to the holidaying habits we were seeing prior to the downturn," Barclays head of hospitality and leisure, Mike Saul, said.

He added that, as domestic tourism will be big business for retail and hospitality in the UK, businesses that have clear, targeted plans and going to see the benefit.

He stressed the importance of operators having an understanding of their customer bases and how they ought to communicate with these people on customers' preferred channels.

Berkeley Scott is a specialist hospitality recruitment agency.