A projected rise in the UK domestic tourism market could compensate for the steep drop in visits from tourists from overseas, but government support will be crucial, according to Boodle Hatfield, private wealth law firm.
Plans for a mandatory 14-day quarantine period for those entering the UK is likely to be a deterrent for overseas tourists. However, this could be partly offset by an increase in domestic tourism, with UK residents reticent to travel abroad opting to holiday in the UK instead. UK tourists spent ?47.8bn overseas in 2019 compared to ?25.2bn spent by overseas visitors in the UK.
UK domestic tourism could compensate for the steep drop in overseas visitors, but the government must take urgent measures to support the industry.
Boodle Hatfield said that if domestic tourism is to thrive post lockdown, the Government should consider taking the following measures to support the industry:
- Hospitality and leisure businesses with outdoor spaces should be prioritised for early re-opening
- Extension of CBIL scheme for travel and tourism businesses
- VAT reductions for businesses in the tourism sector
- Subsidise accommodation and travel costs for domestic tourists
If the British government were to follow suit and offer subsidies for domestic travellers, for example, in the form of a free night accommodation for every three-five nights booked, this would be extremely beneficial to UK businesses.
Adam Chamberlain, real estate finance partner at Boodle Hatfield, stated: ?The leisure industry has taken an enormous hit as a result of the pandemic. Despite lockdown restrictions beginning to ease, businesses will have to comply with social distancing guidelines for the foreseeable future. UK tourists have traditionally been high spenders whilst abroad. If the capital they?d have otherwise spent on foreign travel, is redirected to the domestic market, this would help the industry weather the current crisis.?
