Think tank predicts cut to UK’s tourism trade deficit

The boom in ‘staycation' holidays will provide respite for the UK's travel and hospitality sectors with West Wales, Devon, Cornwall and the Lake District benefitting the most, research by the Resolution Foundation shows.

With 60 countries on the Government's red list, including UK tourist hotspots Turkey and Tunisia, and many more on the amber list, many Brits are expected to swap their foreign holiday for a domestic one.

If everyone in Europe did this, annual spending on tourism in the UK would increase by one sixth to a total of £30.5 billion, equalling the tourism trade deficit seen in 2019 and creating up to 300,000 jobs.

However, the Resolution Foundation notes some individuals will still travel abroad, while domestic holidaymakers are likely to spend less than they would have abroad so a deficit will remain, but not as large as before the pandemic.

Cities like London and Manchester are meanwhile less likely to benefit from a lack of foreign holidays, the report added, as they tend to be more popular with overseas tourists than the UK public.

Talk to us about your finances.

Bland Baker Blog

Read our latest posts

Publications

Download a copy of our Insider Newsletter or Active Practice Update

21 Lodge Lane
Grays
Essex
RM17 5RY

Tel: 01375 383888
Fax: 01375 391672
E-mail: info@blandbaker.co.uk