oxford economics report 11 june
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8/9/2019 Oxford Economics Report 11 June
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11 June 2010
UK TOURISM ECONOMIC LOSSES DUE TO VOLCANIC ASH AIR TRAVEL RESTRICTIONS(Oxford Economics report prepared for VisitBritain)
The results clearly show that the tourism industry was severely affected during the period ofvolcanic ash. Both the actual closure of airspace and the uncertainty of future travel plans had animpact. The latest IPS figures suggest that inbound visits were down 11% in April 2010 comparedto the same month last year.
As the fifth largest industry in the UK, supporting 2.6 million jobs it is no real surprise that tourismwas affected to such an extent. However we still anticipate that the weak pound will mean thatBritain is better value for money than ever, and the lure of the British summer will result in levelpegging by the end of the year.
Detailed results:
The results show that the airspace shutdown cost the UK tourism economy significant losses - atotal loss of 425 million to UK businesses was reported. The effects of the crisis extended farbeyond the impact on the air transport industry - the impact has been felt strongly by travellers,destinations, exporters, those reliant on imports as well as general production and productivity.
Interruption in global air traffic to an extent not seen since 11 September, 2001 and thelargest breakdown in European civil aviation since World War II. Focus of report on initial
week of the crisis.
Just fewer than 2 million potential air passengers through UK airports were affectedthrough 20 May. The majority- 1.1 million- were UK outbound travellers. Another 547,000potential visitors to the UK were deterred from travelling while 291,000 UK domestic airpassengers were kept from flying during this period.
The net visitor spending impact for UK destinations is estimated at 166 million in lostrevenues, primarily to hospitality sectors. This is 45% of the potential destination impact.
The total UK aviation sector potential loss tallied 375 million. The majority (84%) of the
aviation sector impact was driven by declines in UK resident outbound travel given thelarge number of travellers affected as well as the higher proportion of UK airlines used.The net impact on the transportation sector once allowing for deferred travel and modeswitching is estimated at 258m.
UK net GDP loss is estimated to be 466 million when including the indirect and inducedimpacts. This represents 0.4% of tourism-generated GDP which is estimated to tally115.4 billion in 2010.
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The related impact on full time equivalent employment would be 10,231 jobs. These arenot actual job losses but do represent the relationship between lost GDP and the numberof persons this supports.
Mark Di-ToroPress OfficerVisitBritain, 1 Palace Street, London SW1E 5HXT: 020 7578 1098 |M: 07919 392137 |F: 020 7578 1001|E:[email protected] | W:www.visitbritain.org |Twitter: @VisitBritainBiz| Consumer Twitter:@VisitBritain | Facebook:LoveUK
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