Domestic tourism spending in Britain falls by £3bn, NEF analysis reveals

Spending on domestic holidays in Britain fell by more than one fifth between 2022 and 2024, leaving some of the most deprived parts of the country facing a huge shortfall in income, latest analysis by the New Economics Foundation (NEF) has found.

As the government prepares to announce its decision on whether to approve expansion at Luton airport today, which would increase the number of people flying abroad for holidays, NEF analysis has revealed the extent to which spending on domestic holidays has declined since the covid pandemic.

Figures show that spending on domestic holidays fell by 21% between 2022 and 2024, meaning losses of £3bn for the sector. The UK’s coastal regions saw the biggest impact, with domestic holiday spending falling by 30% (£1bn) over this period.

Meanwhile, although inbound visitor spending also increased during this period, data suggests this was concentrated in London and was not enough to offset the loss at a national level.

NEF analysis suggests if Luton airport expansion is approved, it will increase outbound holidaymakers by more than 8m, while bringing in just 2.6m visitors from abroad.

Dr Alex Chapman, senior economist at NEF, said:

“After the pandemic the government set out a plan to encourage British people to holiday in Britain. Government did this, recognising the economic benefit domestic tourism could bring to some neglected parts of the country.

“But since then, the government has appeared determined to add as much air travel capacity as possible, despite the economic downsides of doing so.

“Airport expansion comes at a great cost to some of the UK’s least affluent areas. We all love a holiday overseas, but we already have the capacity for 300m passengers to fly in and out of the UK every year. Adding more risks further undermining our domestic tourism industry and fueling regional inequality, as well as the major climate damage air travel causes.”

ENDS

Contact

James Rush – james.rush@neweconomics.org

Notes

NEF has analysed data published by VisitBritain from the Great Britain Tourism Survey (GBTS), an official statistic. Figures cited relate to overnight trips taken for a ​‘holiday’ purpose (i.e. day trips and business trips are not included) entirely within the UK. Figures have been adjusted for inflation using the ONS CPI inflation index and are presented in 2024 prices. Further information on the survey is available from VisitBritain

Figures regarding the growth of leisure air travel resulting from Luton airport’s proposed expansion derive from NEF analysis of Civil Aviation Authority airport data and data presented by Luton airport in its planning application.

In December 2024, the government announced the application decision deadline for Luton airport’s expansion had been extended to 3 April 2025.

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