Wednesday, February 29, 2012

How important is tourism to the UK economy?

By Lakeshia Eubanks


The Department for Culture, Media and Sport (DCMS) used to, condescendingly, be named 'the ministry of fun' within government. But no one is laughing about its responsibility now, for it is this department which deals with Tourism, digital infrastructure, the arts and other creative industries. And it is all of these industries which are looking to provide Britain with its much needed growth.

Now for the facts and figures. A recent study for Visit Britain, undertaken by Deloitte/Oxford Economics, Tourism generates 4% of the GDP in the UK directly, which translates as 52billion. Indirectly, through the interaction with other sectors, it produces nearly 9% of GDP, or 115billion, as well as 1.36 million jobs. The tourist industry is predicted to outperform other key sectors in the British economy, including that of manufacturing.

There is a particularly vital role for tourism in the rural areas of the UK. The reason behind this is the fact that it is easy in these areas to break into the industry. As a result, in the beautiful places such as Wales and Scotland, there are a disproportionately large number of small and medium sized enterprises (SMEs) taking advantage of the great conditions for entrepreneurial endeavours.

There are, however, great challenges ahead for the DCMS, for there are a lot of things that could stifle this otherwise hopeful part of the UK economy. The most worrying thing is the fact that transport and accommodation cost much more here than in other places on the continent. If this is not taken care of, then many people will be put off spending so much money here, when they could go other places, just as beautiful, for cheaper.

This is vital this year, for it is this year that London Hosts the Olympic Games. If we are to entice foreign travellers to stay in Britain after they have seen the games, and perhaps travel to other parts of the country, we are going to have to make sure that the prices for doing this are competitive.




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