TOURISM
Air passenger duty is deterring UK inbound tourists KEN ROBINSON
Thirty years ago, there was no internet, no easyJet and Britain had a positive tourism balance of payments. Tourism Alliance chair Ken Robinson CBE looks at the dramatic changes seen by the industry
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he last 30 years have seen radical, unforeseen and unprecedented growth and change in tourism. International tourism arriv-
als have increased by more than 300 per cent from around 280 million in 1980 to around 900 million this year. Why? Because tourism is aspirational. When people can travel (because the transport links are available, they can afford it, are allowed to, and it is safe to do so), they will. Tourism growth is powered by rising disposable income, the removal of political and trade barriers and greater awareness and expectations among travellers. Back in 1980 Britain was in reces- sion. GDP had fallen 2 per cent that year and unemployment was rising. The government responded by cut- ting spending and increasing taxes. A determined Prime Minister, then Margaret Thatcher, was “not for turn- ing”. History repeats itself! Tourism was very different in 1980:
there were US$2.33 to £1 and Britain made net gains from international tour- ism. Overseas package holidays were booked through travel agents and from
media advertisements at fi xed prices. Available capacity sold out months in advance; after Christmas the coming season’s holidays went on sale and bookings fl ooded in.
THE INTERNET REVOLUTION
In the last 15 years the internet has completely reshaped consumer travel choices. In 1990 there were two million internet users worldwide; now there are two billion. The diversity of opportuni- ties has exploded since booking engine software and online commerce became reliable. Dynamic pricing followed, with
‘yield management’ software spreading demand, reducing seasonality and max- imising revenue for hotels, airlines and other tourism products. Trips are more frequent and much shorter. Bookings are made much closer to travel dates, except where limited by capacity. These changes are very recent. Lastminute. com, Expedia, product comparison sites and internet travel companies have all emerged in the last decade. Low cost airlines have acceler- ated the revolution. In 1985 Ryanair had just one route from Waterford to Gatwick; now it has 1,100. After the
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liberalisation of European fl ights in 1997, low cost carriers opened up regional airports and made direct holi- day fl ights affordable and convenient. Cross channel tourism was boosted by the opening of the Channel Tunnel in 1994, and rising competition caused the uncompetitive ferries to cut fares.
NOT JUST ABOUT FAMILY LEISURE
In 1980 most leisure activities and holidays were taken by families. Until the Sunday Trading restrictions were lifted in the mid-1990s, Sunday was the main day for a family day out. Now young people expect to enjoy leisure separately with their contemporaries. The older generations have become a key market for frequent holiday breaks. A 2010 household may have two or even three cars, with individual leisure activities being followed. Road con- gestion and the cost of travel are now limiting day visit activity. Even before the Lottery pumped millions into Britain’s museums and heritage attractions, the sector was booming; two out of three visi- tor attractions having fi rst opened since 1980. The number of attractions
ISSUE 1 2011 © cybertrek 2011
PHOTO:
ISTOCK.COM/©; DAVID JOYNER
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