KPMG’s head of Leisure, Will Hawkley comments on the overseas travel and tourism monthly provisional results.
Commenting on the overseas travel and tourism monthly provisional results from July published by the ONS, KPMG’s head of Leisure, Will Hawkley said:
“July has seen a record number of overseas tourist visits to the UK this summer with an increase of 6% when compared to the same period in 2016. The fall in value of the pound since the EU referendum has enabled hoteliers and other leisure proprietors to feel the benefits of increased inbound tourism, with overseas spend also increasing by 3% compared with the previous year.
“However, as I outlined earlier in the year, there is concern that this boost in overseas spending may be creating a false sense of security throughout the UK leisure sector, as home grown UK customers remain cautious about their own spend. Creeping inflation and a fall in real earnings means that UK consumers have tightened their purse strings and focussed their spending on the essentials rather than the “nice to have”.
Additionally UK Nationals who have holidayed abroad may be suffering from “bill shock” on their return after spending more than they expected to, due to the weak pound, this could again lead to decreased leisure spend at home.
“It will be interesting to see how leisure sector sales fare in the colder months when overseas tourism dips. Leisure proprietors should focus on cost efficiency and increasing spend per head to prevent any nasty surprises. With Christmas fast approaching this is a great opportunity for pubs and restaurants to maximise home grown sales through effective marketing to attract seasonal spenders.”
For further information contact:
Angela Pink, Communications Executive, KPMG UK
T : +44 (0)20 7694 2679
M : +44 (0)7500 100 257
Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.