Credit Crunch

Credit crunch may be good news for UK tourism

In recent reports, tourism experts have predicted that the current financial crisis may in fact be good news for British tourism as they expect more Britons to take holidays within the UK next year rather than going abroad.

With the costs of flights and holiday accommodation rising, and amidst fears about tour operators and flight companies going bust – and taking customers money with them – the reports suggest that many of us now prefer to holiday at home.

An example of this has been the sharp decline in Britons traveling to Thailand for holidays this year. Bangkok’s main airport reported arrivals from the UK in August were down by 33% when compared to the same time the year before.

In September, arrivals were down by 21%, and industry experts expect a continued decline as the global credit crunch prompts consumers worried about their jobs and mortgages to stay at home.

Philip Riddle, chief executive of Visit Scotland, told Scottish parliament earlier this year, “I think one of the things that will arise from that nervousness will be people considering staying closer to home for holidays. I think it’s a good time to capitalise on that.”

However, Mr Riddle also urged the government to renew a fund that was originally established to encourage more direct flights in and out of Scotland, the Press and Journal reports.

The route development fund provided £14.4 million over four years to help Scotland’s aviation industry and vicariously the general tourist industry of Scotland would benefit.