Uk Tourism gets a boost as pound falls

The travel industry has never had so many obstacles to overcome with oil prices rising, bird and pig flu outbreaks and the worst recession in living memory. The pound has fallen to a record low compared to the euro and dollar and the majority financers believe the Bank of England is quite happy to see this happen, as this makes GB more competitive.
The fall in the pound has benefited British export traders, the UK domestic tourist industry and encourages people to choose a holiday at home. Furthermore, the Bank of England has taken a very even stance over this demise and has basically admitted this is not the worst thing that could happen.

Historically, as a percentage of population no other country sees so many travellers taking a foreign holiday and this has already damaged the profits typically seen in such countries as France, Spain, Turkey, America, Norway, Romania, Germany, Ireland, Croatia. Indeed it has been forcast that for 2009 over a million less Brits will venture to Spain and given Spain's high dependency on tourism income this will be a major blow to their economy at all levels, causing businesses to close and increase unemployment.

The main sector in the UK which will be damaged are those which work in foreign tourism such as travel agents, airlines, airport parking companies, airport hotels and the airports themselves who are all noticing decreasing turnover this year with the prospects even worse for 2010 because of the pound. Indeed the fall of the pound will probably have a worse impact than the recent credit crunch, with Brits opting to holiday at home. For those deciding to go abroad there is bound to be some superb discounts available for travellers using UK airports and in reality the cost of East Midlands airport parking or if you are planning on staying over before you fly your East Midlands hotel parking will be significantly cheaper

Another hazard to overcome is how to try and stay one step ahead of the currency markets, for example a foreign hotel might have to announce their prices now, without knowing which way the rates are going to go, but if the price is set in pounds and the pound continues to fall they could be in big trouble. Or conversely the travel company agrees the price in euros they could also be in danger