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UK tourism sector thrives despite 'double-dip'

By Tom Walker    15 Jan 2013

The UK's tourism sector has outperformed the economy on the whole after racking up a 12.6 per cent increase in total revenue between 2007 and 2011.

A report, commissioned by budget hotel chain Travelodge and compiled by specialist consultant Kurt Janson, shows that total revenue increased to £40bn during the period. The economy in general only grew by 8 per cent during the period.

The study has been described as the first comprehensive report into how the UK tourism industry has performed during the longest double dip recession since WWII.

The industry grew job numbers by 2,000 between 2007 and 2011.

Although relatively modest, the growth makes the sector one of few to have added jobs in the period. At the same time the number of manufacturing jobs fell by -17 per cent, construction by -15 per cent, finance by -7 per cent and transport by -6 per cent.

The UK's appeal as a tourist destination has remained strong during the recession, with overall visitor numbers increasing by 3.1 per cent to 157.4m.

Staycations now form the backbone of the UK's tourism economy, with domestic trips and holidays increasing by 5.6 per cent to 126.6m. This shows that Britons have reacquainted themselves with holidaying at home, and city breaks emerge as particularly popular, accounting for almost a quarter (23 per cent) of all domestic breaks.

The number of trips taken by Britons overseas has declined by 12.6 million (-18.1 per cent), from 69.4m to 56.8m.

Grant Hearn, Travelodge CEO said: "As the UK's fifth largest sector we are creating jobs and providing long lasting career opportunities, something very few industries in the economy can say at present.

"The issue we face is that tourism is quite low on the agenda for the Department for Culture, Media & Sport, therefore it is essential that the Government takes action and moves our industry to where it belongs - the Department for Business, Skills and Innovation. It is in our national economic interest and this has to happen now. We need to be treated as a series business sector."

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