Tag: UKinbound

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Challenges revealed for tourism businesses in 2020 by UKinbound

Challenges UKinbound

Travel association UKinbound has announced that the top challenges for its members in 2020 include a negative perception of the UK resulting from Brexit, alongside recruiting and retaining staff.

These results were revealed during its Annual Convention in Bristol, which took place from 5-6 February at Mercure Bristol Grand Hotel.

The results were collected as part of the association’s January 2020 Business Barometer member survey. The survey was compiled by Qa Research, which also looked at business operating conditions in Q4 2019.

The survey additionally found that only 48% of tourism businesses believe they will be ready for Brexit by the end of the transition period on 31 December 2020. Results showed that visitor numbers, bookings, customer orders and yields remained the same.

One in three respondents said they were experiencing growth from the US market, while Germany and France continue to be the most sharply declining markets.

In Q4, China was the second leading growth market for members, with some suggesting this will be a pivotal market post-Brexit. However, a number of businesses said their 2020 optimism has wavered due to the coronavirus outbreak.

Joss Croft, CEO, UKinbound commented: “It is encouraging to hear that many of our members are experiencing strong forward bookings and that they’re confident about business in 2020.”

Croft continued: “However, there are significant challenges now and ahead for our members due to the impact of the Coronavirus on the Chinese market, negative perceptions of the UK and the looming prospect of the end of Free Movement. Our members are already struggling to recruit employees with foreign language skills and are worried about the administration involved in recruiting non-UK employees post Brexit.”

Croft concluded that UKinbound will work with the government to ensure the new immigration policy “treats the tourism industry fairly and if needed, we will campaign for an extension to the transition period so that businesses have enough time to prepare and adapt.”

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UKinbound research reveals UK tourism business reducing environmental impact

UKinbound has released its latest Business Barometer results, highlighting the measures tourism businesses are putting in place to reduce their impact on the environment. Results also show bookings and yields are holding steady for two thirds of members and confidence levels have picked up.

In its latest survey, the association asked its members to comment on their sustainability practises, revealing that over 81% of tourism businesses think it is important to implement sustainable and environmental policies for their businesses and clients.

These companies are taking proactive steps to minimise the impact of their tourism business on the environment, with 59% reducing single use plastics, 49% reducing their carbon footprint, and over 1 in 5 using renewable energy.

Forty percent of respondents also said that they are working with eco-friendly partners, have ‘green champions’ in the workplace, and are recycling/reducing food waste.

Joss Croft, CEO, UKinbound commented: “It is great to know that our members care deeply about the environment and are taking positive action to minimise the impact of their businesses and clients. After all – it is in all our interests to nurture and take care of our beautiful landscapes, cities, towns and villages, as this is one of the main reasons why the majority of international tourists visit the UK.

“In addition to our research, the Environmental Audit Select Committee is conducting an inquiry into sustainable tourism. We are looking forward to reading their recommendations and supporting these where we can on behalf of our members.”

Andrea Nicholas, managing director, Green Tourism added “Over the last two years we have seen over a 400% increase from tourism and hospitality businesses wanting to explore how to improve their sustainable practises and how to evidence their achievements to their increasingly inquisitive consumers.

“Our significant growth has come from hotel groups and other hospitality businesses seeking validation and accreditation that their practises are being managed efficiently and cost effectively (particularly our new energy audit, which guarantees significant cost savings).”

The July UKinbound Business Barometer also asked members to feedback regarding business operating conditions during May and June, with 75% of businesses saying their bookings/visitor numbers/customer orders were the same or higher than May/June 2018. Yields were also the same or up for 84% of businesses during the same periods.

China and America continue to be the leading growth markets, with 43% of respondents experiencing growth from one of the two.

France and Germany continue to be the two most in decline markets, with 29% of respondents experiencing decline from one of the two.

Confidence also saw a positive increase compared to March/April data, with 57% of businesses stating they are confident about the upcoming 12 months, compared to 49% the previous two months.

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Tourism industry confident despite Brexit, says UKinbound research

The research, which was collected by Qa Research, found that 59% of UKinbound members stated they were confident about business in the upcoming 12 months. This was the highest rate recorded since October 2017.

The increase in confidence was influenced by an influx of forward bookings, the value of the pound, and increased interest from North American and Asian markets.

Business also signalled that the number one activity they’re expecting to be most in demand from inbound tourists are cultural experiences, followed by ‘bespoke activities’.

However, businesses also stated the industry faces a number of problems in the upcoming months, notably the uncertainty around Brexit.

Staff recruitment and retention, improving the UK’s product offering and offers for visitors, attracting visitors from new markets, and currency fluctuations were also cited as general concerns.

A review of 2018 found a few interesting statistics:

  • Throughout 2018 China and the US remained the two top growth markets
  • Less than a third (28%) of members felt that over-tourism has a negative impact on their business
  • A key challenge for many members continued to be the reduction of available EU workers

UKinbound CEO Joss Croft commented: “It is encouraging that even with the uncertainty surrounding Brexit, our latest Business Barometer shows that forward bookings are strong and that there is an increase in confidence levels amongst some of our members.

“However, we remain concerned about the Government’s proposed immigration strategy post-Brexit, which will look to restrict employing EU nationals to those only earning over £30k. 

“Recruitment and retention of staff in the industry is already a challenge – due in part to Brexit, and this proposed restriction could have a real impact on the industry, which relies heavily on its EU employees due to their language and customer service skills.”