Presentation on theme: "The Economic Impact of Tourism David Campbell, Chief Executive Visit London."— Presentation transcript:
The Economic Impact of Tourism David Campbell, Chief Executive Visit London
What is Tourism A ctivities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes World Tourism Organisation Includes all types of visitors, not just traditional tourists Includes both staying and day visitors Despite recent events, tourism is still one of the fastest growing sectors in the world economy World tourist arrivals: 1960 = 70m, 2003 = 700m!! Huge economic impact
Direct spending by visitors is only the tip of the iceberg The indirect impact of tourism is much larger Relatively easy to measure: visitor numbers, expenditure Hard to measure: subsequent spend by suppliers, induced effects, investment etc Huge Economic Impact
Direct Impact Expenditure £bn UKEnglandLondon Overseas Domestic Domestic Day Trips* Fares to UK carriers ** TOTAL % GDP % c10% Employees 2.1m1.7m c0.3m Direct Tourism Expenditure 2002 * These figures represent tourism day trips, these are defined as trips lasting 3 hours or more which are not taken on a regular basis and are estimates based on1998 data ** Londons share of fares to UK carriers Source: DCMS, UKTS, IPS, UK Leisure Day Visits Survey, GLA Economics, VisitBritain
Indirect Impact Indirect effects: generated from economic activity of subsequent expenditure (eg: hotels purchase supplies and use local services) Induced effects: arising from spending of income occurring to local residents from tourism wages and profits Investment activity: arising from capital investment in new facilities for visitors Government: public sector funding Tourism Multipliers used to calculate indirect impacts North East: 1.8x (eg: every direct £1 = another £1.80) Treasury: 1.7x UK: ?? London: ??
Conclusion Direct spending by visitors is only the tip of the iceberg The indirect impact of tourism is much larger What about non monetary items (eg: quality of life)?