Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Economic Impact of Tourism

Similar presentations

Presentation on theme: "The Economic Impact of Tourism"— Presentation transcript:

1 The Economic Impact of Tourism
David Campbell, Chief Executive Visit London

2 Includes all types of visitors, not just traditional tourists
Includes both staying and day visitors Activities 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 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 What is Tourism

3 Direct spending by visitors is only the tip of the iceberg
Relatively easy to measure: visitor numbers, expenditure Hard to measure: subsequent spend by suppliers, induced effects, investment etc The indirect impact of tourism is much larger Huge Economic Impact

4 Direct Impact Direct Tourism Expenditure 2002 UK England London 11.7
£bn UK England London Overseas 11.7 10.4 5.8 Domestic 26.7 20.8 2.8 Domestic Day Trips* 34.2 30.9 5.0 Fares to UK carriers 3.3 - 1.3** TOTAL % GDP 75.8 4.4% 62.1 14.9 c10% Employees 2.1m 1.7m c0.3m * 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 ** London’s share of fares to UK carriers Source: DCMS, UKTS, IPS, UK Leisure Day Visits Survey, GLA Economics, VisitBritain Direct Impact

5 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: ?? Indirect Impact

6 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)? Conclusion

Download ppt "The Economic Impact of Tourism"

Similar presentations

Ads by Google