Business News Round Up (25/05/2021)
UK tourism spending ‘worth just half of pre-pandemic level’
UK tourism is set for a slow recovery from the pandemic, with spending by holidaymakers this year expected to be just half the level of 2019. Forecasts by the VisitBritain agency indicate that domestic tourism will be worth £51.4bn in 2021, down from £91.6bn two years ago. Its forecast for spending by foreign tourists in the UK is £6.2bn, less than a quarter of the £28.4bn in 2019. The predictions come as UK tourism chiefs prepare for a summit on Tuesday. VisitBritain and VisitEngland are bringing industry leaders together – some in person, some virtually – to discuss priorities for helping the sector to recover and rebuild. Last year, the domestic tourism industry shrank by about two-thirds as coronavirus restrictions forced the cancellation or postponement of millions of people’s travel plans. According to the tourism industry, that represented a £58bn loss to the economy. Despite the gloomy forecasts for this year, tourism analysts have predicted that demand for UK holidays is likely to outstrip supply this summer, with many holidaymakers unable or unwilling to brave foreign travel amid continuing restrictions.
https://www.bbc.co.uk/news/business-57230018
Almost half of consumers are willing to pay more to shop on high streets
Almost half (46%) of Scottish consumers say they would be willing to pay more to shop at their local high street, rather than online, so that they can enjoy additional amenities. Deloitte Digital’s research, based on responses from 3,100 British consumers during April, highlights that online services are falling short. Just under a third (30%) of Scottish consumers said that the online service experience is not good enough, with 23% stating that online services have not met their needs during lockdown. While in Scotland, 51% said they are now more likely to buy products directly from a company website, 43% said they are now less tolerant of a poor online service experience, as these channels are more important. Overall, 39% said they are now more likely to spend money at a business that makes it easy for them to shop or interact with them online.
https://www.insider.co.uk/news/almost-half-consumers-willing-pay-24178601
UK borrowing shows first annual fall since start of pandemic
Britain’s massive public borrowing began to head downwards last month for the first time since the start of the COVID-19 pandemic, bolstered by a brightening economic outlook that pointed to a potentially faster improvement in public finances. Public sector net borrowing in April totalled 31.7 billion pounds ($44.9 billion), official figures showed on Tuesday, down from a record 47.3 billion pounds a year earlier when the government finances felt the greatest impact of the pandemic. Britain’s government has spent heavily over the past year on health measures to limit the impact of COVID-19 as well as wage guarantees to stop unemployment rising significantly during the sharpest economic downturn in more than 300 years. Borrowing in the 2020/21 financial year was 300.3 billion pounds or 14.3% of annual economic output, the highest share on this measure since the end of World War Two but slightly below an initial estimate a month ago.
Sharp rise in spending as North West towns and cities reopen
Smaller North West towns and cities are leading the recovery from lockdown, according to new figures which show a sharp rise in spending following the re-opening of pubs, cafes, and non-essential shops last month. The figures – analysed by the insolvency and restructuring trade body R3 – show that spending increased in all locations following the easing of restrictions on 12 April and has remained above pre-pandemic levels everywhere except Manchester and Liverpool. Four North West centres were amongst the top ten nationally in terms of spending recovery: In Blackburn and Birkenhead, spending was at 117% of pre-pandemic levels in the week ending 24 April, while in Warrington it was at 114% and in Preston, 112% of previous levels. Spending was also higher than pre-pandemic levels in the three other smaller centres – Burnley (110%), Blackpool (107%) and Wigan (104%). In line with patterns in recent months, Liverpool (95%) and Manchester (73%) lagged behind, although spending was at the highest level since the pre-Christmas period.