"The year of the staycation" could bring £22bn in boost to domestic tourism

Monday, May 31, 2021

The unprecedented demand for a holiday in the UK this year could help boost tourism back home to the tune of £22bn, according to a new study.

The new trend of luxury stays represents a unique situation for British hoteliers, who argue that domestic tourism would enjoy a boost of £22 billion this year, with potential long-term benefits of around £5.5 billion per year, according to the report.

Marc Finney, director of hotels and resorts consultancy Colliers, said: 'Our research shows that UK citizens spent £54.8b in 2019 on overseas leisure travel, and we estimate that if just 40% of that is instead spent in the UK this year it would represent an additional £22b for domestic tourism.

The report, UK Staycations 2021: a Year of Opportunities, highlights that prior to the Covid 19 pandemic began, when 65% of overnight stays were booked in 2019, the UK had a high proportion of domestic recreational trips worth a total of £96.6 billion, and by 2020, this figure rose to 71%.

Ben Godon, head of Colliers Hospitality asset management team, said the report's forecasts were already strengthened by increased trades on the books of luxury hotels he manages to run.

The report, UK Stayings 2021: a Year of Opportunities, shows that by 2021 the key UK locations to deliver lingering demand for places to call home will be Bournemouth, Eastbourne, Plymouth, Brighton, Bath, Norwich, Blackpool and Southampton.

These cities and towns were all popular excursion destinations in 2020, and it is expected that local visitors will also have a taste of this year again.

While the trend over the last year has shifted towards coastal and inland destinations, the report forecast there will be an increase in interest in city breaks in 2021 in response to re-opening cultural attractions such as theatres and museums and also the return of sporting events and concerts.