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