UK tourism spikes as £2.5bn spent in July due to weak pound

As the pound tumbled in the wake of the EU referendum, tourism soared in Britain as July logged its biggest month for visitors, according to the VisitBritain tourism agency.

In July, 3.8m people visited Britain and spent £2.5bn, 4% more than last year.

After the EU referendum in June, the pound slumped to lows against the dollar and fell to 31-year lows in early October after the Prime Minister confirmed she will trigger Brexit negotiations with EU towards the end of March, making Britain a cheap destination for travellers.

The pound is currently down 0.63% to 1.2284 against the dollar and down 0.32% to 1.1063 against the euro not long before 1000 BST on Tuesday.

Of July’s 3.8m visitors, 2.3m were from the EU, which was a 3% increase from last year while sterling currently trades as its lowest level in about seven years against the euro.

Rather than just a sterling effect, VisitBritain said the boon in tourism was part of a long-term trend of growth, as in 2015 there 36.1bn visitors, who spent £22.1bn.

In total, tourism is worth over £26bn to the British economy.

American visitors last year spent £3bn and visitor numbers from China increased by 46% and spending by 18%.

VisitBritain’s chair Christopher Rodrigues, said: “Tourism is a shining star in an uncertain world. As our fourth biggest service export and one of our fastest growing sectors, tourism’s importance as a key economic driver and job creator is clear.

“While the talk is of trade deals with new markets, tourism is already leading the way, competing strongly in our most valuable source markets such as the US and in markets that are crucial for our future, including China.”