Open invitation
Visit Britain has valued tourism in the UK at £129bn, with £27bn of that coming from overseas visitors. In the context of the UK's changing political climate, what is the future for UK tourism and which groups are the key target segments?
The Government's proposed new skills and salary assessed system may categorise many tourism jobs as low skilled, which may make many overseas workers illegible for visas, so employment is certainly one challenge.
Understanding the different needs of multiple customer segments is another. Visit Britain have identified four main global segments to target:
Buzzseekers – the younger, free-spirited and spontaneous traveller which like holidays full of action and excitement
Mini-breakers – similar to buzzseekers, this younger domestic audience love the opportunity to take short breaks where they can either let loose or unwind
Explorers – older, they enjoy the outdoors, sightseeing and embracing local culture at a more relaxed pace
Culture buffs – image and brand-conscious, travel is seen as a status symbol; they like well-known safe destinations
EU tourists
Attracting European tourists, (likely to be categorised as buzzseekers and culture buffs) will be a challenge in the coming years. A survey conducted in September 2019 suggested 45% of European travellers expressed some degree of concern about the uncertainty caused by Brexit, and an additional 9% are very concerned.
Prioritising communication is a key defence to the uncertainty surrounding Brexit. In addition to this, the benefits of visiting regional destinations in the UK needs to be promoted, to drive inward investment. Encouraging city breaks and attracting events are also key strategies to increase travel throughout the low season, making the industry less reliant on peak times.
Outside the EU
In contrast to the European market, the current weakness of the pound is a selling point for those outside the EU. Key opportunity groups that have been identified by Visit Britain are tourists from the USA, North East Asia and Arab States. These groups are most likely to be characterised as explorers and culture buffs.
In 2019, The Washington Post noted that bookings from the USA to Britain were up 31% between January and June last year, with tourists no doubt taking advantage of a pricing advantage on hotels and tours. A strategy already being employed is an increased number of business events to attract American visitors.
Growth markets such as North East Asia and the Arab States are a key opportunity for the UK due to the concentration of high net worth individuals in Arab States and the increased interest in group travel from South Korea and Japan. Furthering this by strengthening the appeal to students, who are the tourists of tomorrow, is a key opportunity.
Visit Britain has an ambition to attract 49 million visits by 2025, increasing spending from £27bn to £35bn. We do not know for sure how Brexit will impact UK tourism, but it seems likely there will be both winners and losers.
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Tish Hewitt