Travel and Tourism - UK Tourists

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Source Market Insights: UNITED KINGDOM

Code

TT0028MI 2015

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Table of Contents

• Snapshot • Outbound Trips by Purpose • Outbound Spending • Exchange rates • Demographic Breakdown • Mode of Transport • Main Destination Markets • Destination Focus: The US • Destination Focus: The Netherlands • Destination Focus: Ireland • Visa Policies • Market Data • Definitions • Methodology • About Canadean

SOURCE MARKET INSIGHTS UNITED KINGDOM

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Snapshot Although the UK outbound market performed well in 2014, average spending per trip has become stagnant in the last two years • The UK outbound market performed well in 2014, growing at

4.7% to 59.6 million trips. This is partly due to a growing economy and falling unemployment rates. VFR is the fastest-growing segment, with EU-born residents being the main contributors to this growth

• Although total outbound expenditure grew in 2014, average spending per trip remained stable. Holiday budgets are still very tight, due to the fact that inflation has been growing faster than wages in recent years

• The Euro has been declining since the start of 2015, which makes it cheaper for British citizens to go to Europe. Family travel has been picking up as well; the fastest growth was seen in the 0-15 age group, with package deals becoming more popular in 2014

• The US, Ireland, and the Netherlands were the fastest-growing outbound destinations in 2014. The US benefited from a favourable USD-GBP exchange rate, while Ireland saw a 25% increase in UK leisure tourists in 2014. The Netherlands remains popular for a short city break, with 45% of all visits having a duration of three nights or less in 2014

Table 1: Key Statistics, 2014

Total Population 64.4 million

GDP per capita US$43,438

GDP growth 2.6%

Total outbound trips 59.6 million

Total outbound expenditure US$99.3 billion

Average length of outbound trip 10.5 nights

SOURCE MARKET INSIGHTS UNITED KINGDOM

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Outbound Trips by Purpose A flourishing UK economy is beneficial to outbound tourism The UK outbound market performed well in 2014, with outbound trips increasing by 4.7% to 59.6 million. This pattern reflects the strong economic performance over the last year with Britain’s GDP now back to its pre-recession peak. The UK economy grew 2.6% last year, which is the strongest level of annual growth since the financial crisis began, making it the fastest-growing G7 economy in 2014 (see Table 2). On top of that, the unemployment rate dropped from 7.2% in January 2014 to 5.7% in December 2014. UK consumer confidence has also been increasing, with the Lloyds Bank Spending Power Index hitting its highest score in November 2014 since the launch of the index in 2011.

EU born residents are the driving force of VFR growth VRF is the fastest-growing segment, increasing from 12.1 million in 2013 to 13.2 million trips in 2014 (9.1% growth) and outpacing all other segments. One of the reasons for this growth is the large settlement of EU-born residents in the UK. In recent years, the growing economy and low unemployment rate has attracted EU citizens (who have the freedom to live in other EU member states) to look for employment in the UK . According to the Migration Observatory (an institution that provides analysis of immigration and migration issues affecting the UK), there were two million EU-born residents in the UK in 2011, while this increased by 18% to 2.4 million in 2014.

Figure 1: Outbound trips, by purpose of visit, (in 000s)

Source: Canadean, World Bank

Source: Canadean, ONS

UNITED KINGDOM SOURCE MARKET INSIGHTS

Table 2: Growth in GDP across the G7 nations, 2014 (in%)

United Kingdom 2.6%

United States 2.4%

Canada 2.3%

Germany 1.6%

France 0.2%

Italy -0.3%

Japan -0.5%

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Outbound Spending The UK is the fourth biggest outbound tourism spender in the world Both outbound trips and outbound spending accelerated in 2014, with the latter witnessing 5.2% growth and representing a total value of US$99.3 billion. Canadean expects outbound expenditure to grow to US$132.2 billion in 2019 (average annual growth of 5.9%), due to a growing economy which will result in higher disposable incomes in the coming years. The UK comes fourth in the top global outbound spenders behind only the US, China, and Germany.

Average spend per trip stagnated in recent years Although there was growth in both volume and value terms, average spending per trip remained stable in 2014, where spend per day fell slightly. However, when measured in local currency both spending indicators showed a decline. One of the reasons is that inflation has been outpacing wages in the UK in recent years, which means that individual holiday budgets were affected as a result. Secondly, most of the growth was seen in the VFR segment, where visiting friends and relatives mostly happens on a small budget. Finally, traveling to mainland Europe is becoming cheaper, with the number of seats sold on LCCs growing by 5.9% in 2014. However, it is expected that UK tourists will loosen up their budget and that long-haul destinations will gain popularity in the near future.




Figure 2: Outbound expenditure (in million US$)

Figure 3: Average outbound spending per resident (in US$)

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Exchange rates A falling Euro could be beneficial for British citizens, although other currencies are strong The Euro has been in downfall since the beginning of the year, which makes it cheaper for British citizens to go to Europe. In March 2015, the pound reached a seven year high against the Euro, which means that UK tourists will have 15% more spending power in Europe than a year ago. Furthermore, the pound has made significant gains against other European currencies outside of the Eurozone. For example, the Turkish lira has also been declining since the start of 2015. However, the US is looking expensive this year as the US dollar is currently the strongest it has been against the pound for five years.

UK tourists are attracted to favourable foreign exchange rates Based on our consumer survey, which was conducted in January 2015, 37% of all respondents find it neither important nor unimportant whether a country has a good exchange rate, while 28% considers it important. This result, combined with the weak Euro, makes Europe a prime destination for British tourists in 2015. Conversely, the US seems to be less appealing for UK citizens this year. Consequently, Canadean only predicts marginal growth in outbound trips to the US in 2015 (2.2%), while there was 5.8% growth in 2014.

Source: Canadean, World Bank

Source: Canadean, Australian Bureau of Statistics

SOURCE MARKET INSIGHTS

Figure 4: Exchange rate; EUR per GBP

UNITED KINGDOM

Table 3: Foreign exchange rate When choosing which country to visit for your holiday abroad in 2015, how

important are the following when deciding where to visit? - It is a country

that has a good foreign exchange rate -

Not at all important 8%

Not important 10%

Neither important nor unimportant 37%

Important 28%

Very important 16% Source: Canadean

Base: 935 UK tourists that are taking a holiday abroad in 2015 Survey was conducted in January 2015

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Demographic Breakdown Family travel is picking up In 2015, 54.2% of all outbound tourists were male, while female travelers hold a 45.8% share. The largest age group that traveled in 2014, were the 25-34 year olds with 19%, which is similar to the previous year, followed by the 35-44 and 45-54 age segments. However, the fastest growth was seen in the 0-15 age group, which indicates that family travel is picking up, due to higher consumer confidence levels. Following this trend, package deals grew by 3.5% in 2014 and are now holding a 19.8% share, as they remain very popular among families.

Domestic overnight trips are declining, but the ‘staycation’ remains popular

The number of domestic trips have been in decline for the last two years and fell by 5.8% in 2014 to 115.8 million; however, overall domestic spending is rapidly increasing. British citizens are making fewer overnight trips in their own country, but are taking increasingly more daytrips; the so called ‘staycations’ where people participate in leisure activities near their homes while sleeping in their own bed. When people were asked why they will not be going abroad this year, 46% said they couldn’t afford it. However, the second most selected answer (21%) was that they prefer to holiday within the UK, which underlines the popularity of domestic holidays and staycations.


SOURCE MARKET INSIGHTS

Figure 5: Demographic breakdown per age group (in %)

UNITED KINGDOM

Source: Canadean

Base: 1056 UK citizens that are not taking a holiday abroad in 2015. Survey was conducted in January 2015

Table 4: No holiday abroad in 2015

Why will you not be going on holiday abroad in 2015?

Cannot afford it this year 46%

I prefer to holiday within the UK 21%

I have got other priorities that I am going to be

spending on (house maintenance, weddings etc.) 15%

Other 11%

Concerns over terrorism 7%

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Mode of Transport Rail and water trips are lagging behind Air is the dominant segment, representing 81% of total outbound trips. Travel by rail (i.e. the Channel Tunnel connecting France and the UK) and water only showed marginal growth in 2014 (2.9% and 1.9% respectively), while the air segment increased by 7.5%. The rail and water segments are heavily dominated by Groupe Eurotunnel, which owns the complete rail link and three ferries on the Dover route. However, in June 2014 Eurotunnel was barred from operating its ferry service from Dover to protect competition on the route. More competitors on the same route could lead to lower ticket prices ,which should encourage rail and water growth in the long run.

London’s secondary airports are the top performers London is the main hub for all departures with four London-based airports in the top five of all international passenger traffic in the UK. In particular, London’s smaller airports such as London City Airport (23.8%) and Stansted Airport (16.8%) are growing fast. Stansted Airport’s expansion is partly because of the growth of Ryan Air, which launched 12 new routes and increased services to 17 destinations in 2014. London City Airport is mainly used by business travelers, although leisure destinations (such as ski resorts in Switzerland and Italy) have increased in recent years. However, much of the growth concerning airport capacity in the coming years will depend on the expansion of either Heathrow Airport or Gatwick Airport, which will be decided by the government later this year.

Source: Canadean, Civil Aviation Authority


Figure 6: Outbound trips by mode of transport

Table 5: International passenger traffic UK airports (in millions)

2013 2014 Growth in %

Heathrow 53.95 54.97 1.9%

Gatwick 21.03 23.12 10.0%

Stansted 12.33 14.40 16.8%

Manchester 11.53 12.23 6.1%

Luton 5.86 6.63 13.1%

Birmingham 4.80 5.33 11.0%

Edinburgh 2.94 3.08 4.7%

Bristol 2.64 2.84 7.4%

London City 1.88 2.33 23.8%


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Main Destination Markets


Table 6: Outbound Trips (in 000s)

Country 2012 2013 2014 2015f 2016f 2017f

Spain 11,109.9 11,749 11,977.5 12,329.6 12,672.2 13,006.1

France 7,888.4 7,953.8 8,059.4 8,163.9 8,288.4 8,382.5

The US 3,011.4 3,047 3,224.6 3,296.5 3,344.5 3,374.8

Ireland 2,539.3 2,562.9 2,905.6 2,936.7 2,995 3,074.8

Italy 2,630.5 2,829 2,965.7 3,135.1 3,307.7 3,474.8

Germany 2,306.6 2,423 2,451 2,529.3 2,601.1 2,678

Portugal 1,900.3 2,111 2,206.3 2,295.7 2,378.1 2,457.2

Netherlands 1,706.7 1,771.5 1,951.5 2,000.7 2,064.3 2,123.9

Greece 1,824.4 1,824 1,836.9 1,884.1 1,925.7 1,971.7

Poland 1,573.2 1,666 1,712.6 1,769 1,823.1 1,889.8

Belgium 1,494.6 1,458.9 1,514.6

Turkey 1,418.8 1,361 1,370

Source: Canadean, ONS f=forecast

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Outbound Tourist Expenditure


Table 7: Outbound Tourist Expenditure (in US$ Millions)


Country 2012 2013 2014 2015f 2016f 2017f

Spain 14,772.8 15,480.7 16,149.5 16,797.8 17,485.4 18,199.4

France 9,650.5 9,433 9,749.7 10,154 10,578 10,890.2

The US 12,003.9 11,590.5 12,511.6 13,174.2 13,820.7 14,334.3

Ireland 2,202.5 2,261.8 2,615.4 2,724.6 2,817.7 2,973.3

Italy 2,952.6 2,905.8 3,106.3 3,316.4 3,519 3,725.3

Germany 2,697.7 2,885.3 2,991.6 3,148.7 3,330.8 3,484.4

Portugal 2,952.6 2,905.8 3,168.2 3,346.6 3,519.5 3,771.3

Netherlands 1,882.7 1,795.3 2,017.3 2,112.9 2,195.3 2,268.7

Greece 3,015.6 3,078.6 3,296.9 3,489.1 3,646 3,797.4

Poland 1,028.4 1,065.7 1,119.3 1,163.8 1,2060 1,260

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Average Spending Per Trip


Table 8: Average Spending Per trip (in US$)


Country 2012 2013 2014 2015f 2016f 2017f

Spain 1329.7 1317.6 1348.3 1362.4 1379.8 1399.3

France 1223.4 1186 1209.7 1243.8 1276.2 1299.2

The US 3986.2 3803.9 3880 3996.4 4132.4 4247.4

Ireland 867.4 882.5 900.1 927.8 940.8 967

Italy 1122.5 1027.2 1047.4 1057.8 1063.9 1072.1

Germany 1169.5 1190.8 1220.6 1244.9 1280.5 1301.1

Portugal 1553.8 1376.5 1436 1457.8 1480 1534.8

Netherlands 1103.1 1013.4 1033.7 1056.1 1063.4 1068.2

Greece 1652.9 1687.9 1794.8 1851.8 1893.3 1926

Poland 653.7 639.7 653.6 657.9 661.5 666.7

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Destination Focus; The US New York is the most favored destination of UK tourists The US was the fastest-growing top three destination in 2014, increasing by 5.8%, from 3.1 million to 3.2 million visitors. A reason for this growth can be attributed to the exchange rate between sterling and the US dollar, which reached a five-year high in June, increasing the spending power of British tourists in the US. However, slower growth is predicted for 2015 due to a less favorable exchange rate (see section: Exchange Rate). VFR and business trips grew in 2014, while fewer trips were leisure-oriented. Shopping is the main purpose for visits, with 88% of all UK tourists taking up this activity while in the US, according to 2013 figures from the US National Travel and Tourism Office. Due to the favorable exchange rate, New York overtook Paris as the most favored destination for British tourists, according to an annual report based on bookings made during the first six months of 2014 via the website Hotels.com.

LCCs have started to fly the UK-US route The UK-US route has become territory for LCCs. In 2014, budget airline Norwegian Air started offering no-frills flights from London to three US destinations — New York, Fort Lauderdale, and Los Angeles — which are considerably cheaper than all other airlines. LCC Ryanair also announced that it has future plans to launch transatlantic flights from the UK to the US.



Figure 7: Outbound trips (in millions)


Table 9: UK tourists visiting the US, by purpose of visit (in %)

2013 2014

Leisure 48.8 46.2

VFR 23.5 26.8

Business 18.7 19.5

Others 9 7.5

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Destination Focus; The Netherlands The Netherlands is a popular destination for a short city break Outbound trips to the Netherlands grew by 10.2% in 2014, increasing from 1.8 million to two million in 2014. A major reason for this growth is that Dutch promotional campaigns in the UK were mainly focused on city breaks, which are still very popular among British tourists. According to data from the ONS’ International Passenger Survey, 45% of all visits were between one and three nights in 2014, while 88% of the total number of trips had a maximum duration of 13 nights. This indicates that British tourists are staying for less time in the Netherlands, as in 2013 only 83% of all trips had a duration between one and 13 nights. Moreover, leisure was the only segment that saw growth in 2014, increasing from 49% in 2013 to 54.1% in 2014. The average spend per trip in the Netherlands stood at US$1033.7 in 2014.

NBTC is one of the first tourism boards that acknowledges the power of the sharing economy In late 2014, the Dutch Tourist Organization (NTBC) and AirBnB set up a campaign in the UK, Germany, and Scandinavia promoting AirBnB rooms in second tier cities The Hague and Utrecht. The main purpose of this promotion was to respond to the increasing number of travelers that are interested in the ‘living as a local’ experience. It is the first time that a tourism board and AirBnB co-operated in a campaign.




Figure 8: Outbound trips (in 000s)

Table 10: UK tourists visiting the US, by purpose of visit (in %)

2013 2014

Leisure 49.0 54.1

VFR 25.9 24.6

Business 19.8 17.2

Others 5.2 4.1

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Destination Focus; The Netherlands London-Amsterdam is the largest international airline market in Europe The London–Amsterdam route is the largest, international airline route in Europe and attracts over three million business and leisure passengers annually. The main operators on this line are EasyJet, British Airways, Ryanair, and KLM. In 2014, Indonesian airline Garuda joined this list as it began offering flights from Amsterdam to London. Garuda has a cost advantage as it has to pay lower wages than the European companies, which will increase competition on this route.

Eurostar to compete with budget airlines Despite the heavy competition on the airline route, Eurostar also wants to enter the market as it announced that it will launch a direct service between London and Amsterdam from December 2016. Eurostar is promising competitive prices to compete with low-cost flights. In 2014, 50% of all trips to the Netherlands were by air, while sea had a 37% share. Rail only had a 13% share; however, with Eurostar entering the market in 2016 this is likely to grow over the coming years.


Table 11: Busiest UK-Netherlands routes (in millions passengers)

2013 2014

Heathrow Amsterdam 1.15 1.23

Gatwick Amsterdam 0.60 0.71

Manchester Amsterdam 0.57 0.65

Edinburgh Amsterdam 0.43 0.47

Birmingham Amsterdam 0.36 0.41

London City Amsterdam 0.29 0.37

Luton Amsterdam 0.33 0.35

Newcastle Amsterdam 0.30 0.31

Glasgow Amsterdam 0.28 0.31

Bristol Amsterdam 0.23 0.27

Aberdeen Amsterdam 0.23 0.24

Stansted Eindhoven 0.25 0.24

Source: Canadean, Civil Aviation Authority

Figure 9: Mode of transport, the Netherlands (in %)


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Destination Focus; Ireland Irish diaspora main contributor of outbound trips from the UK Ireland saw the fastest growth of the top 10 outbound destinations in 2014, increasing from 2.6 million in 2013 to 2.9 million in 2014 (13.4% growth). Traditionally, VFR has been the largest segment (39.9% of all trips in 2014) due to a large number of Irish immigrants living in the UK. The ONS estimates that there were 403,000 Irish-born people in the UK in 2012, which makes the Irish the fourth largest group of immigrants in the UK. Moreover, it is estimated that 10% of the UK population have a least one Irish grandparent.

Ireland is still a cheap option compared to other European destinations However, the fastest growth was seen in the leisure segment, which grew by 25% and now stands at 1.1 million. One of the reasons for this growth is that Ireland still remains a relatively cheap option compared to European destinations. Nevertheless, according to the Hotel Price Index, hotel prices in Ireland have been growing by 10% between 2014 and 2015. This is partly due to the Irish economy, which was the fastest-growing in Europe. Nevertheless, the weak Euro will still make Ireland an attractive place for British tourists in 2015.



Figure 10: Outbound trips (in 000s)


Table 12: UK tourists visiting Ireland, by purpose of visit (in %)

2013 2014

VFR 38.4 39.9

Leisure 32.7 36

Business 19.6 16.6

Other 9.3 7.6

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Visa Policies


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Market Data

Source: Canadean Analysis,National statistics


Source: Canadean Analysis,National statistics

Table 13: International departures by region (in 000’s), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Africa 2,567 2,293.8 2,315.3 2,427 2,458.9 2,484.8 2,503.8 2,528.8 2,547 2,559.3

Asia-Pacific 4,355.5 4,394.6 4,222.4 4,272.6 4,415.1 4,465.7 4,551 4,622.9 4,668.5 4,734.9

Europe 40,564.6 42,175.5 42,359.2 44,262.1 46,385.2 48,388.8 50,271.1 52,032.7 53,675.7 55,203.4

Middle East 1,007.8 1,015.3 1,061.2 1,096 1,155.2 1,206.4 1,250.1 1,287.6 1,319.7 1,347.3

North America 3,967 3,966.5 3,693.088 3,878 4,192.1 4,346.6 4,459.6 4,572.7 4,690.3 4,795

South and Central America 1,100 1,100.5 1,028.2 918 945.6 958.6 972.6 981.8 989.7 995.6

Total 53,561.9 54,946.3 54,679.4 56,853.7 59,552.1 61,850.8 64,008.2 66,026.5 67,890.8 69,635.5

Table 14: International departures by purpose of visit (in 000’s), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Business 6,400 6,618.4 6,727.1 6,637.5 6,679.9 6,781.2 6,882 6,980.5 7,071.8 7,170.4 Leisure 35,110.7 35,594.9 34,984 36,527.9 38,118.3 39,594.6 40,935.9 42,187.7 43,314.7 44,369.6

VFR 10,459.4 11,208.5 11,409.9 12,123.4 13,221 13,923.7 14,621.1 15,272.8 15,898.6 16,468.3 Other Personal 1,591.8 1,524.5 1,558.4 1,564.9 1,532.9 1,551.4 1,569.3 1,585.5 1,605.7 1,627.2 Total 53,561.9 54,946.3 54,679.4 56,853.7 59,552.1 61,850.8 64,008.2 66,026.5 67,890.8 69,635.5

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Market Data


Table 15: International departures by country (in 000’s), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Spain 10,382.6 10,653.9 11,109.9 11,749 11,977.5 12,329.6 12,672.2 13,006.1 13,294.1 13,502.6

France 8,136.7 8,024 7,888.4 7,953.8 8,059.4 8,163.9 8,288.4 8,382.5 8,457.9 8,508.9

USA 3,240.3 3,230.6 3,011.4 3,047 3,224.6 3,296.5 3,344.5 3,374.8 3,398.2 3,413

Italy 2,247.9 2,334.1 2,630.5 2,829 2,965.7 3,135.1 3,307.7 3,474.8 3,671.7 3,858.4

Ireland 2,670.2 3,029.4 2,539.3 2,562.9 2,905.6 2,936.7 2,995 3,074.8 3,134.2 3,203.7

Germany 2,081.9 2,234.3 2,306.6 2,423 2,451 2,529.3 2,601.1 2,678 2,743.2 2,813.9

Portugal 1,867.4 1,939.7 1,900.3 2,111 2,206.3 2,295.7 2,378.1 2,457.2 2,528.5 2,602.8

Netherlands 1,579 1,678.3 1,706.7 1,771.5 1,951.5 2,000.7 2,064.3 2,123.9 2,195.5 2,276

Greece 1,671.6 1,935.2 1,824.4 1,824 1,836.9 1,884.1 1,925.7 1,971.7 2,030.5 2,073.6

Poland 1,443.2 1,446.4 1,573.2 1,666 1,712.6 1,769 1,823.1 1,889.8 1,951 2,010.9

Source: Canadean Analysis, National statistics

Table 16: Overnight stays (in million), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Overnight stays 407.1 417.6 404.6 426.4 450.4 472.3 492.3 513.8 533.2 550.4


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Market Data


Table 17: International departures by mode of transport (in 000’s), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Air 42,658.2 44,217.4 44,363.7 46,076.6 48,883.9 50,920.2 53,007.1 55,010.4 56,877.5 58,599.3

Sea 7,154.2 6,959.3 5,996 6,453.4 6,353.6 6,377.7 6,456.1 6,503.8 6,552.4 6,609.2

Rail 3,749.5 3,769.6 4,319.8 4,323.7 4,314.6 4,391.5 4,508.2 4,612.3 4,734.4 4,872.4


Table 18: Average length per outbound trip ( number of nights spent), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Average length 10.9 10.5 10.3 10.5 10.5 10.6 10.6 10.7 10.7 10.8


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Market Data


Table 19: Total outbound tourism expenditure by category (in GBP millions), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Accommodation 7,630 7,594 7,882.6 8,278 8,619.7 9,012.5 9,527.5 9,982 10,414.7 10,806.5

Entertainment and sightseeing 2,561 2,546 2,654.9 2,799.3 2,893.6 3,017.1 3,188 3,341.2 3,481.8 3,614.7

Foodservice 5,256 5,272 5,396.2 5,696 5,943.3 6,164.9 6,491.6 6,800.9 7,080.9 7,332.4

Retail 13,664.7 13,699 14,083.9 14,866.3 15,464 16,089.8 17,001.3 17,885.3 18,724.8 19,533.3

Transportation 17,593 18,780 19,270 20,303.2 21,015.9 22,084.7 23,392 24,629.5 25,702.1 26,651.5

Travel intermediation 1,517 1,586 1,640.6 1,740.3 1,806.6 1,889.3 1,995.8 2,097.2 2,191.4 2,278.9

Other categories 6,247.3 6,358 6,608.6 7,112.5 7,367.2 7,654.7 8,029.4 8,423.1 8,850.7 9,280.5

Total 54,469 55,835 57,536.9 60,795.6 63,110.3 65,913 69,625.6 73,159.3 76,446.5 79,497.9

Source: Canadean analysis, UK Tourism, WTTC

Table 20: Total outbound tourism expenditure by category (in US$ millions), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Accommodation 11789.6 12167.1 12451.9 12860.2 13565.9 14399.6 15437.5 16375.2 17297.5 17977.7

Entertainment and sightseeing 3957.2 4079.2 4193.8 4348.9 4554.1 4820.6 5165.5 5481.1 5782.8 6013.5

Foodservice 8121.4 8446.8 8524.2 8848.9 9353.8 9849.9 10518.5 11156.7 11760.5 12198.2

Retail 21114.3 21948.6 22247.8 23095.4 24337.7 25707.3 27547.4 29340.2 31099.4 32495.7

Transportation 27184.1 30089.4 30440.1 31541.9 33075.4 35285.7 37902.4 40403.9 42687.8 44337.5

Travel intermediation 2344 2541.1 2591.7 2703.6 2843.2 3018.6 3233.8 3440.3 3639.7 3791.2

Other categories 9653.1 10186.8 10439.4 11049.6 11594.7 12230.2 13010.1 13817.9 14699.8 15439

Total 84163.7 89459 90888.8 94448.5 99324.7 105311.9 112815.2 120015.3 126967.6 132252.8

Source: Canadean analysis, UK Tourism, WTTC

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Market Data


Table 21: Average outbound expenditure per resident by category (in GBP), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Accommodation 142.5 138.2 144.2 145.6 144.7 151.3 154 155.9 157.7 159.2


Foodservice 98.1 95.9 98.7 100.2 99.8 103.5 105 106.3 107.2 108

Retail 255.1 249.3 257.6 261.5 259.7 270.2 274.9 279.4 283.6 287.7

Transportation 328.5 341.8 352.4 357.1 352.9 370.8 378.2 384.8 389.3 392.6

Travel intermediation 28.3 28.9 30 30.6 30.3 31.7 32.3 32.8 33.2 33.6

Other categories 116.6 115.7 120.9 125.1 123.7 128.5 129.8 131.6 134 136.7

Total 1,016.9 1,016.2 1,052.3 1,069.3 1,059.7 1,106.8 1,125.7 1,143.0 1,157.8 1,171

Source: Canadean analysis

Table 22: Average outbound expenditure per resident by category (in US$), 2010-2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Accommodation 220.1 221.4 227.7 226.2 227.8 241.8 249.6 255.8 262 264.8


Foodservice 151.6 153.7 155.9 155.6 157.1 165.4 170.1 174.3 178.1 179.7

Retail 394.2 399.5 406.9 406.2 408.7 431.7 445.4 458.4 471 478.6

Transportation 507.5 547.6 556.7 554.8 555.4 592.5 612.8 631.2 646.5 653.1

Travel intermediation 43.8 46.2 47.4 47.6 47.7 50.7 52.3 53.7 55.1 55.8

Other categories 180.2 185.4 190.9 194.4 194.7 205.4 210.3 215.9 222.6 227.4

Total 1571.3 1628.1 1662.2 1661.3 1667.9 1768.4 1824 1875 1923 1948

Source: Canadean analysis

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Definitions


Table 9: Canadean – Travel and Tourism Sector Definitions

Term Definition

International trip A trip taken to a destination outside of the traveler’s country of residence.

Average length of trip The average number of nights spent by residents of a country, segmented by domestic and international trips.

Tourism flow factors Factors that influence the flow of tourists from one location to another.

Number of overnight stays The total number of nights spent by residents of a country on all trips during a given year.

Leisure trips Trips for holidaying, recreation, or visits to friends and relatives.

Business trips Trips involving business as the primary purpose. This includes trips for MICE purposes, events, and conferences.

Other trips Trips for purposes other than leisure or business, such as education, sports, or pilgrimage.

International departures The total number of citizens leaving their home country and arriving in other countries. This will be higher than the total number of citizens leaving their home

country, as a traveler might travel to more than one country.

Accommodation Total direct expenditure on accommodation by inbound, domestic, and outbound tourists within a single economy.

Sightseeing and

entertainment

Total direct expenditure on sightseeing and entertainment by inbound, domestic, and outbound tourists within a single economy

Foodservice Total direct expenditure on food and beverages from foodservice outlets by inbound, domestic, and outbound tourists within a single economy.

Retail Total direct expenditure in retail outlets by inbound, domestic, and outbound tourists within a single economy.

Transportation Total direct expenditure on transport by inbound, domestic, and outbound tourists within a single economy.

Travel intermediation Total direct expenditure via travel intermediaries by inbound, domestic, and outbound tourists within a single economy.

Other categories Total direct expenditure within all other categories by inbound, domestic, and outbound tourists within a single economy.

Outbound tourist

expenditure

The total expenditure by residents of a country for the purpose of, and during, international tourism trips, irrespective of whether these transactions involve

domestic or international providers. This expenditure is categorized in to accommodation, sightseeing and entertainment, food service, retail, transport, travel

intermediation, and others, which includes travel insurance and equipment rental.

Average national tourism

spend per day of trip –

international

The average daily expenditure of a country’s residents during international trips.

Percentage of total resident

income spent on tourism

The percentage of total annual income that a country’s residents spend on Travel and Tourism activities.

Average overseas tourism

expenditure

The average expenditure on Travel and Tourism activities by a country’s outbound tourists, segmented by categories such as accommodation and food service.

Passenger airlines An airline whose primary business is the transport of passengers.

Low-cost airlines Airlines that generally offer lower fares by eliminating many traditional services. To recover the revenue lost in reduced ticket prices, the airlines may charge for

additional facilities, such as priority boarding, seat allocation, food, and baggage.

Full-service airlines Full-service airlines generally have higher fares, operate long-distance routes, and offer a complete range of in-flight services.

Charter airlines An airline hired by a group or single customer for leisure or business purposes, or as an air ambulance, and flies outside normal schedules. An airline classified

as non-scheduled by civil aviation organizations falls in to this category.

Number of seats available The number of seats available for purchase on all airlines operating in a country. For example, both national and foreign carriers operating on domestic and

international routes.

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Definitions


Table 9: Canadean – Travel and Tourism Sector Definitions

Term Definition

Number of seats sold The number of seats sold to revenue passengers by all airlines operating in a country in a year.

Hotels Establishments that provide paid lodging and full guest services, typically with a continuous staff presence. In the case of motels, this includes off-street parking

facilities, but not necessarily meal services.

Budget hotels Includes hotels that are considered to be budget accommodation, or have a one- or two-star rating, and provide accommodation on a short-term basis at

relatively low prices.

Midscale hotels Includes hotels with a three-star rating. These hotels provide more facilities and comfort than budget hotels, and their services are charged at higher prices.

Upscale hotels Includes hotels with a four-star rating. Upscale hotels include both traditional full-service hotels and smaller select-service hotels with comfortable

accommodation at higher prices than midscale hotels.

Luxury hotels Includes hotels with a five-star rating or higher. Luxury hotels provide top quality accommodation, with a combination of high-class facilities and style, typically at

much higher prices than standard hotels.

Car rental Car rental is the hiring of a passenger vehicle, which includes cars and small vans, by both business and leisure travelers for short term duration. Excludes

leasing and long term rentals.

Business rentals Annual revenue generated by a car rental company under negotiated contractual agreements specific to business trips.

Leisure rentals Annual revenue generated by a car rental company through leisure/personal trips.

Travel agents Businesses that sell travel-related products and services to both leisure and business customers on behalf of suppliers, such as tour operators. These may

include package holidays, sightseeing tours, airline tickets, hotel accommodation, cruise bookings, car rentals, rail travel, and travel insurance. Some travel

agents also serve as sales agents for international travel companies.

Tour operators Tour operators typically combine two or more travel services, such as transport, sightseeing, accommodation, food, and entertainment, and sell them either

directly to customers or through travel agents as a single product, called a package tour, for a single price.

Other providers Any part of the value chain between the direct supplier and traveler (customer), which is not classified as a travel agent or a tour operator.

Online Revenue generated by travel intermediaries by selling travel-related products or services over the internet.

In-store Revenue generated by travel intermediaries by selling travel-related products or services to a customer over the counter.

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Methodology


This report features data derived from market data.

Market Data

In order to create the data for all reports in this series and ensure their robustness, a comprehensive and empirically robust research

methodology has been adopted. This combines both a large-scale program of industry research with the results of extensive primary

industry interviewing and calling. Furthermore, all definitions are standardized across products and countries to ensure comparability.

The two main research methods, secondary research and primary research (the program of interviewing industry contacts), are brought

together and because both sets of research processes have been designed in conjunction with each other they can be combined and

consolidated into the final, integrated data sets.

The secondary research process involves covering publicly available sources, trade associations, specialist databases, company annual

reports, and industry publications. Primary research involves a major program of interviewing leading industry executives for each

category covered in each country – all with local country experts; typically brand, product and marketing managers for major brands

within each country. These processes help analysts in capturing both qualitative and quantitative information about the market.

The final stage of the process is the triangulation of inputs obtained from all the research methods with the analyst’s own understanding

of the market in order to finalize the data. Once the data is finalized, it goes through various top level quality checks prior to publishing.

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About Canadean


About Canadean

Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across

the Consumer Markets Value Chain, covering suppliers, producers, distribution and consumers.

Canadean’s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing,

market research, consulting and advanced statistical expertise. We offer value-added market research, insight and strategic analysis

and our products help companies to make better, more informed, strategic and tactical sales and marketing decisions.

Canadean’s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches, and

actionable insights. In addition Canadean has built a network of consultants and specialist researchers across more than 60 countries,

each with in-depth industry experience and expertise enabling us to conduct unique and insightful research via our trusted business

communities.

Disclaimer

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No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic,

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The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings,

conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and

secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability

whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

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