Rising pound sparks fears of downturn in domestic tourism

The rise in the value of the pound could be bad news for domestic tourism, according to consultancy PricewaterhouseCoopers (PwC).

Following news that the pound has risen above $1.60 for the first time since November, David Trunkfield, director at PwC, said the news was a “mixed blessing” that meant good news for those wishing to travel abroad but bad news for the domestic tourism sector.

He added that the UK hospitality industry should not panic as the value of the Euro was more relevant to UK holidays than the dollar.

He said: “While those still desperate for warmer climes and a change in culture are heading to medium-haul, non-Euro zone destinations such as Turkey and Egypt, we still expect to see crowded UK beaches this year.

“Every consumer is a bargain hunter in a recession, choosing their destinations on the value of the pound and the cost of getting to their destination. In fact, we should see a flurry of late summer holidays as travellers sit tight waiting to monitor UK weather and currency.”

Hopes that the weak pound will boost domestic tourism failed to materialise in the first quarter of the year, while visits from foreign tourists to the UK fell by 13% compared with the same period last year.

By Gemma Sharkey

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By Gemma Sharkey

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