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1. Economic Growth
The benefits of tourism range from the income generated for businesses to infrastructure improvements. Of the 99.1 million stays in England registered by Visit Britain, a total of £19.5 billion was spent by British residents alone in 2019. This was even before the rise of staycations following the pandemic!
According to Visit Britain’s 2019 data, regional spending ranges from £4.5 billion in the North East to an unsurprising £33.2 billion in London. Other key takeaways are Yorkshire with £8.8 billion, the South West with £10.4 billion, and the North West with £12 billion.
Regular events attract tourism numbers and create strong economic growth. Some events and tourist attractions even give back to their local communities in infrastructure investments, like local football stadiums. The Premier League even contributed £7.6 billion to the UK economy in 2022. Another prime example of the impact of tourism can be found in Liverpool. Tourism greatly benefits Liverpool. It makes up 60% of its economy – and this was before the impact of hosting this year’s Eurovision. Since the event, an economic increase of £250 million is forecast before 2025.
Such an increase in spending in tourist cities and certain hotspots creates a ripple effect on the surrounding property market, increasing demand and prices with it. Tourism greatly benefits the economy, big or small. In turn, a strong economy can invest in community development and improve infrastructure. Homes can be built, the public realm expanded, and transport improved. All in all, it creates desire, which attracts more visitors and builds on an already resilient, sustainable economy.
2. Improving Infrastructure
As a location increases its tourist hotspot status and strengthens its economy in the process, it can invest in regeneration projects. Community development and improving existing infrastructure create many social benefits. The likes of improving transport links, like road and rail networks and direct connections to airports, make visiting such locations far easier and more enticing.
Some of the best regeneration projects in North England revolve around improving the public realm, transport, and the business sector. Such funding from a local economy can build on preserving its heritage like Hull’s Fruit Market, improve the environment to create greener cities, and craft better public realms to strengthen community pride. In this way, tourism benefits the quality of living in these locations, as making a city more desirable does not just attract more tourists. It also improves the lives of residents.
3. Rental Demand
Tourist hotspots see high rental demand from both visitors and residents. This is mainly due to infrastructure improvements to transport and the public realm, making a city more desirable and easily accessible. Demand is high for both assured shorthold tenancies and short-term rentals for this reason.
In 2019, according to Visit Britain’s figures, 99.1 million stays were registered in the UK. Of these, only 46.4 million were holidays. The remaining amount accounts for the likes of business trips and those visiting family or friends. Each of these visits required accommodation. What is more, these numbers come from before the pandemic. This means that the total visits would now be far greater due to the rise of short-term lets as staycations following lockdown.
Tourism benefits residents by creating more employment opportunities. According to 2019 data from Visit Britain, tourism supports approximately 2.6 million jobs in the UK. Whether in existing permanent roles, like accommodation and hospitality, or in more temporary roles for pop-up events, like construction or attractions. Liverpool Eurovision created over 5,000 jobs for the event earlier this year.
It is not just the tourism industry that benefits, though. Or industries linked to tourism, like travel agents. As the local economy grows, more investments can be made to create more workspaces. This is already being seen in Leeds South Bank and Liverpool Waterfront. This creates various opportunities for construction jobs as cities expand, as well as attracting working professionals looking to fill these high-quality spaces. The North is already rife with such regeneration, even seeing business giants migrating to call these cities home.
5. Property Value
Tourist hotspots can be misconstrued to have a negative effect on the property market. As the desirability and demand to visit certain areas increase, so does the value of a property. And, as demand and supply for short-term rentals rise, the higher the constraints on hotels and traditional long-term rentals.
However, tourism greatly benefits property investors thanks to growing rental demand and prices. While property prices may grow in these areas, there is fantastic potential to take advantage of a growing market to profit while the current house price growth rate is low.
Property values vary between city centres and their suburbs, depending on their investments and desirability. But tourist hotspots can offer some of the best rental yields in the UK. Especially if investing off-plan, buyers can purchase the property below its market value before receiving instant equity once construction is complete. One of the many benefits of off-plan investments!
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