The UK has ranked *23 out of 34 in a global country list assessing tourism spending as a contributor to gross domestic product (GDP), according to research from accountancy firm UHY Hacker Young.

Tourist spending in the UK accounted for 1.6% of its economy in **2016, trailing the likes of Malta (12.9%), Portugal (6.8%), Spain (4.9%), Belgium (2.5%), Poland (2.3%), Denmark (2.3%), Italy (2.2%), The Netherlands (1.8%) and France (1.7%).

UHY Hacker Young points to an inability to respond quickly to the need for tourism infrastructure capacity compared to many emerging markets as an influencing factor.

Martin Jones, Partner, UHY Hacker Young comments: “Tourism is a major battleground in the global economy – and the UK is lagging behind.

“The drop in sterling has helped to attract tourists to the UK since the Brexit vote. However, unless the Government quickly builds the capacity needed to welcome large numbers of tourists the country will not be able to take full advantage of the impact of the fall in sterling.”

TOURISM EXPENDITURE -9%

UHY Hacker Young’s research shows that the UK’s result positions it 24% (almost one quarter) below the 2.1% average European country contribution to GDP.

Despite the drop in sterling following the UK’s Brexit decision in June 2016, the UK declined in its annual tourism expenditure (-9%) between 2015 and 2016 from $45.53bn to $41.45bn, placing it 34 among a list of global nations.

However, Hacker Young says Visit Britain is forecasting tourists to spend ‘a record level’ in 2018.

 

Last week, the British Government finalised proposals for a third runway at London Heathrow Airport, with ministers expected to vote on an Airports National Policy Statement (NPS) in the coming weeks.

The long-awaited move has airlines such as easyJet ‘waiting in the wings’ for more capacity to become available.

Fruition of the plans will expect to deliver a shot in the arm to pax footfall, which in turn would hope to lift commercial spending.

“As globalisation continues and more people get the opportunity to travel more widely, tourism is likely to become an even more important source of jobs and a catalyst for business creation and growth,”added Jones. “Governments need to recognise the opportunities it brings.”

**Includes travel to the country

*Latest data available