How Much of UK’s Economy Is Tourism?

By Alice Nichols

Tourism has been a significant contributor to the UK’s economy for many years. According to the latest figures from the Office for National Statistics (ONS), tourism accounts for approximately 7% of the UK’s GDP, making it one of the country’s largest industries.

What is Tourism?

Tourism is a term used to describe the activities and services provided to people who are travelling for leisure or business purposes. These activities can include accommodation, transportation, food and beverage services, entertainment, and cultural experiences.

The Importance of Tourism in the UK

Tourism is an essential industry in the UK as it contributes significantly to job creation, economic growth, and regional development. The industry employs over 3 million people across the country and generates billions of pounds in revenue each year.

Domestic Tourism

Domestic tourism refers to travel within one’s own country. In the UK, domestic tourism accounts for around 80% of all tourism activity. This means that most of the money spent on tourism comes from within the country itself.

Inbound Tourism

Inbound tourism refers to visitors coming into a country from outside its borders. The UK is one of the most popular tourist destinations globally, attracting millions of visitors each year. Inbound tourism generates significant revenue for the country in terms of foreign exchange earnings.

Outbound Tourism

Outbound tourism refers to residents leaving their home country to travel abroad. While outbound tourism does not directly contribute to the UK economy, it does impact other countries’ economies where British tourists spend their money.

The Impact of COVID-19 on Tourism

The COVID-19 pandemic has had a severe impact on global tourism, with many countries imposing travel restrictions or outright banning international travel altogether. The UK was no exception with many hotels and attractions closed during periods of lockdown. According to VisitBritain, the UK’s inbound tourism industry saw a 76% decrease in spending in 2020 compared to 2019.

Conclusion

Tourism is a crucial industry in the UK, contributing billions of pounds to the economy and providing millions of jobs. While the COVID-19 pandemic has had a significant impact on the industry, it is expected to bounce back as travel restrictions are lifted and people begin to travel again.