In 2017 Britain is expected to see the biggest rise in tourist spending in four years and a surge in visitor numbers, partly thanks to the slump in the value of the pound since the Brexit vote.
Overseas visitors are expected to spend £24.1bn next year, up 8% on 2016, according to VisitBritain, the government-backed national tourism agency.
Just over 38.1 million tourists are expected to enter the UK, up 4%, drawn by celebrations such as the 20th anniversary of the publication of the first Harry Potter book and the 200th year since the death of Jane Austen, as well as the potential to snap up luxury bargains.
“These figures not only underpin a longer-term pattern of growth for inbound tourism, one of our fastest growing export industries, but also demonstrate its growing importance as a key driver for economic growth and jobs.
“With our hotels, shops and attractions all offering excellent value for overseas visitors right now, it’s a great time to come to Britain,” said VisitBritain’s chief executive, Sally Balcombe.
While tourist spending will be boosted by a 2.7% rise in inflation next year, the group said the 10%-plus fall in the value of the pound against the euro and the dollar since the EU referendum in June meant tourists’ budgets would now stretch further.
The currency depreciation triggered by the result of the June referendum has left sterling hovering at its lowest level against the dollar for more than 30 years.
Hotels, restaurants and some retailers have already been enjoying a boost from the increased tourist spending since the Brexit vote. Tax free spending by visitors from outside the EU soared 41% in October and November, according to retail tourism group Global Blue, as spending by Chinese tourists, who make up a quarter of non-European visitors, rose 63% while Americans spent 88% more.
Gordon Clark, managing director of Global Blue, said: “Overall we expect total UK international tax free spend for 2016 to finish on double digit growth, due to the visitor and spend surge in the second half of the year.”
The Ritz said it had enjoyed a 12.5% rise in room reservations in December compared with last year. That was partly thanks to its restaurant being awarded its first Michelin star but also part of a 9% rise in visitors to the Piccadilly and St James’s areas of central London compared with December last year.
Independent hotel group Best Western Great Britain has also said that bookings from the US and China increased after the Brexit vote with hotels in Edinburgh and the Lake District all reporting double digit growth in the number of international bookings in early July.
