A report by David Edwards on the prospects for domestic, inbound and outbound tourism in 2023 has been released. The report, for ALVA (the Association of Leading Visitor Attractions), analyses health, the global and national economic climate and geopolitical factors before discussing what these factors will mean for the tourism industry next year.
Some key points with regards to the domestic tourism outlook (p20 onwards) are:
- The volume and value of domestic tourism is unlikely to be manifestly impacted by Covid-19 in 2023
- Demand will be highly price sensitive, with consumers adapting their choices while still keen to protect their holiday and leisure time experiences
- A key determinant will be the extent to which financial pressures entice those who would otherwise holiday abroad to opt for a domestic break instead
- Leisure demand has the potential to be at pre-pandemic levels (whereas anaemic economic growth and a pivot to virtual meetings will limit the volume of business tourism)
The report highlights the “3 M’s” that are the foundations of a successful tourism industry – Motivation to travel, Money to spend and a Meansof transport – and concludes that 2023 looks set to be an exceptionally tough year for the UK tourism industry. Contributing factors include the cost of living crisis, the energy crisis and rapidly rising inflation, which all look set to continue, supressing tourism demand. While these financial constraints continue, holidays and days out will still be enjoyed but it will make the provision of value for money offers more important than ever.