Tourism: Retrench and Rebound

Insight

Tourism: Retrench and Rebound

05 Aug 2020
Tourism is big business for UK plc. Since 2010 until this year it has been the fastest growing sector in the UK in employment terms. In 2016, its economic output (direct GVA) in the UK was £68 billion, 6% of total UK economic output, and tourism employment was 1.5 million, 5% of all employment.
However, the sector faces unprecedented challenges as a result of COVID-19 and the global recession. Whilst the easing of lockdown and social distancing has provided some respite, the 2020 tourism season has been devastated and the economic outlook remains uncertain. The scale of the impact and enduring uncertainty means the time for action from Government at all levels is now, to build confidence in the sector and establish a framework that encourages private sector businesses to invest. These businesses, large and small, will be responsible for driving the sector forward.
This Insight focus explores the dynamics of the tourism sector. It considers those industries and areas of the country that are likely to be most affected by the virus restrictions, and the response needed by Government and public agencies involved in tourism to confront the challenges created by the virus and address pre-existing issues in the sector, to help the recovery.