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Exchange Rates: A Weaker Pound Boost Demand for UK Tourism in 2017
One consequence of the fall in the value of the Pound following Brexit has been to make the UK a more attractive location for tourism.
Data released by for the first 7 months of 2017 suggests that demand for UK tourism was boosted by increased spending by overseas visitors to the UK, with a rise of over £800m in that period.
This is a classic example of cause and consequence.
A weaker pound means that overseas visitors enjoy greater spending power with their own currencies here. It makes a leisure trip to the UK more attractive, thereby boosting demand.
Similarly, the weaker pound has made overseas holidays more expensive for UK residents. So an increasing number are taking domestic holidays, whose price is not directly affected by the exchange rate.