Onshore winds blowing - Ed’s letter

It’s been a big week for emotions as we look at the global financial markets and realise that, when we had thought there was no I in team, in fact there was still great potential for one person to influence a world.

And you can take this as positively or negatively as you like, depending on your own ambitions, but the current mood seems to be that having a world king is not as much fun as it could be.

Global travel is suffering in the wake of the every-shifting trade war, with the most striking data around Canada, where future bookings between it and its southern neighbour were down by over 70% on the year for every month up to September, according to OAG.

We are already seeing calls for boycotts of US brands and likely recessions and other financial pressures mean that long-haul travel is likely to be impacted.

While no industry can be insulated from a trade war, we can at least lean on a strong domestic tourism business. According to the latest government figures, in 2023 British residents made 117.4 million overnight visits within Great Britain and spent £31.3bn. That was about the same as spending by international tourists. 

They also made 1.2 billion tourism day visits, spending £50.8bn. As such, domestic tourism spending is more valuable than inbound spending.

The government has set an ambition for visitor numbers to the UK to reach 50 million by 2030, and has established a new Visitor Economy Advisory Council to work with industry on tourism and design and deliver a new growth strategy. The government plans to publish a tourism growth strategy later in 2025 and, as you can imagine, we’re all excited about that.

A key part of the growth strategy for the tourism sector is increasing visitor numbers outside of London, but while we wait for that, London mayor Sadiq Khan is taking part in a pilot project in London which could see more alfresco dining and later opening hours in the capital, as he is granted new “call in” powers to review blocked licensing applications in nightlife hotspots.

Khan said he was “delighted that the government is looking to grant London greater powers over licensing.

“This significant decision would allow us to do more to support the capital’s pubs, clubs, music venues and other parts of the visit and tourist scene. It would boost tourism, stimulate growth and deliver new jobs both in London and across the country.’

And that does indeed all sound delightful. The proof will be in how he deals with the notorious Westminster City Council. In the meantime, this is a very promising sign that the government has realised the dangers in having a world king whose attention to detail means tariffs for penguins. More power in the hands of local leaders can only mean better, more tailored strategies for markets around the UK.