Us Brits are no strangers to holidaying in the UK rather than taking off on a flight abroad. In recent years, it has become increasingly popular as the cost of living rises, geopolitics grow in intensity and a desire to support local businesses triumphs over year-round sun, sea and sand. Of course, the COVID-19 pandemic also played a big part in this shift towards home holidays.
With English Tourism Week around the corner (March 14-23), now is as good a time as ever to not just celebrate the vibrant excitement of this diverse sector, but also look at how it can continue to adapt to the modern world’s demands.
There are few more exciting occasions for a family, a loved up couple or a group of friends than planning that trip abroad together — frantically scrambling to make sure the flights are right, the hotels are booked and the passports are in date. According to Finder, there were more than 86 million trips to a foreign country by UK residents in 2023, representing the closest thing we’ve seen to a return to pre-COVID-19 numbers since the pandemic started in 2020.
Despite this, there still appears to be a demand for trips to the United Kingdom, whether it is domestic travel for a nearcation or inbound tourism by foreign nationals. VisitBritain has estimated record highs for both inbound visits to the UK (41.2 million) and money spent on those visits (£31.5 billion) in 2024 — and it predicts the figures to rise even further in 2025.
Caravanning, camping and utilising holiday homes is a thriving sub-division of the tourism sector, bringing in some £12 billion a year for the UK economy and supporting over 200,000 jobs for the country’s workforce. It is an opportunity for holidaygoers everywhere to soak in the beautiful British landscape and be at one with their surroundings, in locations we often take for granted given they are right on our doorstep.
Another element playing a role in the expected rise in UK breaks are the increased tensions geopolitically, with conflicts in Ukraine and the Middle East creating a sense of anxiety for potential travellers. This, alongside inconsistent global economic performance, will likely make the market quite unpredictable for the foreseeable future.
Following a turbulent few years economically, which saw purse strings tighten for everyday families, holidayers have had to consider new cost-saving measures when planning their holidays. However, despite the soaring costs of UK holidays, Brits are still keen to holiday here. An online survey from January 2025, published by the Statista Research Department, reveals that finding cheaper accommodation and looking for ‘free’ activities to do are the key considerations being made by families booking their travels.
The sector itself has a lot to prepare for, with operational costs and staffing being concerns for many leisure and tourism businesses. Employer National Insurance contribution rates will rise from 13.8% to 15% in April 2025, while National Minimum Wage thresholds increase at the same time. This will impact profit margins and require a greater output to make up for the additional staffing costs, which could well manifest into increased costs for the customer.
Thankfully, with technology advancing at a rapid rate, the scope is there to lean into generative AI to maximise efficiency, free up staff time or even analyse customer sales data at a much quicker rate. It is important to strike a balance, though, as too much automation can risk poor customer relations if there is limited human interaction. The best guidance is to use AI as a tool to make operations more efficient, rather than a crutch to lean upon at all times.
Ultimately, leisure and tourism businesses need to ensure they are maximising their opportunities for success in this fiercely competitive field - whether it’s through more efficient tax planning, acquisitions or succession planning.
If you own a leisure and tourism business and would like more information about our services, why not visit our service page or get in touch - we’d love to hear from you.
