UK Tourism Sector Report

This assignment presents a report on the tourism sector in the United Kingdom. It examines the country's position as an 8th most visited tourist destination globally, analyzing factors contributing to its popularity and the significant job opportunities it creates for both full-time and part-time workers. The report also discusses popular tourist destinations outside of London, using Edinburgh Castle as an example.

Discuss how tourism
contributes to UK
economy

Table of Contents
INTRODUCTION...........................................................................................................................1
Contribution of tourism of UK towards the economy ...............................................................1
.CONCLUSION...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
In the world UK stands at the 8th biggest tourist destination. In 2015 there were about
36.115 million visitors (Kim, Holland and Han, 2013).By the foreign tourist about US$21.072
billion are being spent. The fantastic range of tourist attractions are being offered by the UK.
From tourism a good amount of GDP is being earned in the UK. In this report the contribution of
tourism sectors in the UK towards the UK economy will be discussed.
Contribution of tourism of UK towards the economy
In most countries across the globe the travel and tourism is an important economic
activity. The internal spending on travel and tourism is being reflected by the direct contribution
of travel and tourism to GDP. In the UK, the travel and tourism industry is nearly 5 times the
size of automotive manufacturing industry. By the tourism economy the three measures that
contributes towards this industry in UK are direct industry, tourism industry and total
contribution. By the visitor spending and tourism economy related government spending with
consistent with the UK TSA the contribution that is made is included in this. In UK GDP the
direct industry is 4.1 percent. To the UK economy the tourism economy has continued to deliver
a significant direct contribution. In GVA it currently delivers about $ 58.0 billion which accounts
for 4 percent of GDP in UK. Over 1.75 million jobs are been supported by the direct industry in
terms of employment. In the travel and tourism sectors the tourism economy includes the direct
industry as well as private and government investment (Komppula, 2014.).
The contribution of tourism economy is 9 percent in the UK GDP. Through the
interaction with other business in the supply chain there are significant indirect impact of the
tourist economy. In the year 2013 the direct and indirect impact of the tourism economy was
equal to be around $127 billion. There was a rise in indirect impacts as in the tourism economy
the activity and output create and support jobs and growth in the wider economy as sectors sell
to buy from other visiting economy. Around 3.12 million jobs are been supported by this tourism
economy. In the UK GDP The contribution of the tourism economy is about 11 percent.
To a wider policy agenda such as economic and social inclusion , sustainable development
impacts the tourism economy contributes (Mowforth and Munt, 2015).
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In the year 2016 the direct contribution of travels and tourism in GDP was GBP66.3 bn. In the
year this forecast to rise in the year 2.9%.The economic that is generated by the hotels, travel
agents, airlines and other passenger transportation is affected by it (ECONOMIC IMPACT 2017
UNITED KINGDOM, 2017). For an instance the activities of hotel industry that supports the
tourist is also included in this. To the GDP the direct contribution .
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The key component of travel and tourism are visitors exports. In the visitors experts UK in the
year 2016 generated about GBP26.3 bn. It is also been expected that these numbers will increase
in the coming years (Pearce, 2014.).
To the GDP the total contribution of travel and tourism industry was GBP209.0bn in
2016.In the year it is expected to grow. In the year 2016 travel and tourism generated about
1,580,500 jobs directly. It is also been expected that in the coming year that is in 2108 it is
expected to increase.
The estimated marginal revenue that is need to create a job in UK is around $53,000.On
the regression analysis it is based on which suggest with respect to the expenditure in hotels and
catering sectors the elasticity of employment is around 0.88.
In the employment terms since 2010 tourism has been the fastest growing sector in the UK. The
estimated marginal revenue that is required to create job in UK tourism is around $ 54,000.In the
UK tourism for every 1% increase in total expenditure it is expected that full-time employment
will also increase to 0.90%.At an annual rate of about 3.7% the sector is predicted to grow in the
coming years .
Inbound tourism in UK
In the year 2016 there were about 37.6 million overseas tourist who visited UK. They
spent about $22.6 billion. In volume these figures presents a 4% increase and in comparison
with 2015 it also present 2% increase in value. In the UNWTO international tourist arrivals
league in the year 2015 UK ranked at the sixth position. In the year 2015 UK accounted for 2.9%
of global arrivals. In the international tourism earning league UK was also at such position .
Repeat visitors to the UK
About 77 % of inbound visitors were repeat visitors in the year 2015 they spend about
$15 billion in the UK. In comparison with the first time visitors the repeat holiday visitors are
more likely to stay loner on their trip to the UK .On an average per might and on the overall trip
they spend more. There were about 92% of business visitors in 2015.
Tourism employment
A lot about the tourism industry in the UK economy can be presented by the number of
people that are employed in tourism. About 1.3 million jobs in the UK are being supported by
this sector. When the direct and indirect impacts are being considered this would rise to about 2.6
million (Kim, 2014).
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Jobs in tourism industries
In England about three million people were employed. In this full-time employment was
given to about 1.3 million people. The part-time employment was give to about 1.2 million
people and about 0.5 million people were self employed. Over the past years the tourism have
performed well following the initial shock of the recession. In the UK's tourism economy the
total spending has increased and it is expected to reach up to $ 110.1 billion in the coming years.
In the direct value added in 2013 tourism is worth %56.0 billion. In comparison with the UK
economy in the year 2017 it represents a slightly bigger share as in 2010 it was about 3.9 percent
whereas in the year 2016 it was about 4.1 percent. In value added this sector presents $ 126.9
billion in value added (Iqbal and González, 2014.). About 1.75 billion jobs are being supported
by this sector . In the years 2013 some 5.3 percent employment was given. The support of about
9.5 percent to the employment in UK is being given by this sector. By the favourable exchange
rates as well as the impact on the prolonged slowdown which has brought positive change in the
recent years and this have given confidence to the consumers. To the UK thee established
European markets continue to constitute the majority of visitors. On this market it is essential to
continue the efforts of marketing so that number of visitors do not decrease in numbers.
By the tourism the number of jobs that are supported are set to increase by 260,000 in the
coming years that is till 2020 from 2.767 million to 2.890 million. Either supported directly or
indirectly by tourism one in twelve jobs is there currently in the UK. Tourism in UK comes in
the category of highest export earner leaving behind chemicals and financial services. More than
$ 16 bn annually is been spent by the tourist that are visiting UK (Chen, Chen and Okumus,
2013) In the world at the 5th position the tourism brand is ranked and the rich, historic buildings
and monuments are being praised by the tourists. One of the most popular attraction in the UK
was British Museum .About 5.7 million people were welcome at this museum. About 28.768
people visited Britain in the year 2012 and on average of about $ 568 were spend on each person
and for seven days they stayed. By air in the year 215 about 70 percent of the tourist reached
UK. For the overseas visitors also London museums the key attraction as more than 14.5 billion
dollars are been spent by them. The most well-known place outside London that is Edinburgh
Castle is also visited by the overseas tourist (Carlisle and Tiffin, 2013).Each year about 1.2
million tourist visits this place. The world class hotels, guest houses, holidays ad caravan parks
etc are there in UK which makes it a popular tourist destination for visitors to visit.
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.CONCLUSION
Thus, it can be concluded from the above report that tourism in the UK stands at 8th
position in the world. A large number of tourist both inbound and overseas visitor visit UK as
tourist destination. The job opportunities to the unemployed people is been given by this sector.
Both full and part-time jobs are been provided by this sector. By the overseas tourist the most
well-known place outside London that is Edinburgh Castle is visited by them...
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REFERENCES
Books and journals
Carlisle, S. and Tiffin, S., 2013. Supporting innovation for tourism development through multi-
stakeholder approaches: Experiences from Africa. Tourism Management. 35. pp.59-69.
Chen, H.J., Chen, P.J. and Okumus, F., 2013. The relationship between travel constraints and
destination image: A case study of Brunei. Tourism Management. 35. pp.198-208.
Iqbal, M.S. and González, M.C., 2014. Development of origin–destination matrices using mobile
phone call data. Transportation Research Part C: Emerging Technologies. 40. pp.63-74.
Kim, J.H., 2014. The antecedents of memorable tourism experiences: The development of a scale
to measure the destination attributes associated with memorable experiences. Tourism
management. 44. pp.34-45.
Kim, S.H., Holland, S. and Han, H.S., 2013. A structural model for examining how destination
image, perceived value, and service quality affect destination loyalty: A case study of
Orlando. International Journal of Tourism Research. 15(4). pp.313-328.
Komppula, R., 2014. The role of individual entrepreneurs in the development of competitiveness
for a rural tourism destination–A case study. Tourism Management. 40. pp.361-371.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Pearce, D.G., 2014. Toward an integrative conceptual framework of destinations. Journal of
Travel Research. 53(2). pp.141-153.
Online
ECONOMIC IMPACT 2017 UNITED KINGDOM. 2017. [PDF] Available through:
<https://www.wttc.org/-/media/files/reports/economic-impact-research/countries-2017/
unitedkingdom2017.pdf/>.
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