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ANNUAL REPORT 2015
FRASERS HOSPITALITY TRUST
Tourism Market
The UNWTO ranks the UK eighth
in their international tourist arrivals
league. A destination in itself and
a gateway city to the rest of the
UK, London was ranked first in the
MasterCard Global Cities Index,
an indicator of a destination’s
popularity.
There were a record 35 million visits
in YE July 2015, the highest rolling
twelve month period on record for
visitors to the UK according to the
International Passenger Survey of the
Office of National Statistics. For the
whole of the UK, 3.7 million visitors
entered the UK in July 2015, the
highest figures for July on record.
According to VisitBritain, in the
first quarter of 2015, 3.4 million
international arrivals visited London,
a 0.16% increase on the same period
of 2014, a slower growth rate than
0.96% for the rest of the UK. London
international arrivals represent 51.3%
of total international arrivals to the
UK.
LONDON
Tourism receipts for the first quarter
were GBP2.11 billion (USD3.2 billion),
at a significant decrease of 12.2% on
the same period last year. Leisure
spending was the main depressor
with a 7.15% decrease while business
spending increased by 1.88%.
Domestic travel is increasing as
in YTD June 2015, VisitEngland’s
domestic travel survey indicated
London experienced double digit
growth in all surveyed performance
indicators. Trips increased by 18%
to 6.3 million trips, overnight stays
increased by 20% to 12.6 million
nights and expenditure increased by
17% to GBP1.5 billion compared to
the YTD June 2014.
In 2014, a record 34.4 million
overseas visitors visited the UK and
spent GBP21.8 billion (USD33.5), a
5% increase in volume compared to
2013. London accounted for 54% of
all UK inbound visitor expenditure.
Given the political and economic
volatility around the world, many
businesses are investing in stable
economies. London continues to
be a world class business hub due
to its transparent legal system and
maintains its ‘safe haven’ status.
In 2014, the top three inbound
source markets in descending order
were France, Germany and the USA,
representing nearly one third of total
arrivals. The top three markets for
tourism receipts in descending order
were USA, Germany and France,
representing just over a quarter of all
tourism receipts to the UK.
According to VisitBritain, the average
length of stay returned to 2009
levels in 2014 at 7.7 nights. The
average spend per visit was GBP636
(USD977). The ratio of domestic
visitors to international was 40:60.
A major victory for tourism
stakeholders is the visa facilitation
changes allowing Chinese visitors
to enter the UK without applying for
a separate visa to mainland Europe.
The policy change sends a more
welcoming message to potential
Chinese tourists, ameliorating
Chinese visitor perception regarding
the difficulty of obtaining a tourist
visa.
MARKET OVERVIEW
