Thinking Differently for Hospitality and Tourism for 2025 and the Future

2024 presented a mixed bag for the UK's hospitality and tourism sectors. While some regions faced challenges in regaining pre-pandemic momentum, others, notably Scotland, not only recovered but also surpassed previous records. As we step into 2025, it's imperative to reflect on these developments and work strategically for a more resilient and responsive tourism landscape.

Tourism Figures and Trends in 2024

The UK witnessed a shortfall of nearly three million foreign visitors annually compared to pre-pandemic levels, resulting in a £2.8 billion deficit in tourist spending. Cities such as Brighton, Newcastle, Oxford, and Bath were among the most affected, struggling to attract the influx of international tourists they once enjoyed. This decline is attributed to factors like global economic uncertainties, the removal of the UK's tax-free shopping scheme, and heightened travel caution among international tourists. (The Times)

Conversely, domestic tourism experienced a surge, with the August bank holiday of 2024 marking the busiest in nearly a decade but with a different demographic travelling. An estimated 19.2 million leisure car journeys underscored a growing preference for day trips over extended stays. This shift, while beneficial for certain sectors, posed challenges for traditional holiday destinations reliant on longer visitor durations and booking accommodation. (The Guardian)

Cornwall’s Challenge

The summer of 2024 presented significant challenges for Cornwall's tourism and hospitality sectors, marking one of the most subdued periods in recent memory. Malcolm Bell, executive chairman of Visit Cornwall, described 2024 as the "flattest year" he could recall, attributing the downturn to a combination of poor weather, the general election, and cost-of-living pressures.  Traditionally, Cornwall experiences fluctuations in tourism throughout the year, with peaks and troughs balancing the overall visitor economy. However, 2024 deviated from this pattern, with consistent declines observed across all quarters. Bell noted, "Each quarter has been down... This year has been flat all the way through, which is very rare in my 25 plus years experience."  By the end of season all hospitality providers were looking strongly at the bottom line, the change in visitor profile to last minute booking deals and even climate change affecting assumed key months for visitors, ‘Kernowfornia’ does happen with blue skies and stunning beaches but it can no longer be relied upon.

Impact on Local Businesses

The downturn's ripple effect was felt acutely by local businesses. Sue Jewell from the South East Cornwall Tourism Association (SECTA) described 2024 as "absolutely abysmal." Despite efforts to boost interest through social media, the 550-strong membership faced an uphill struggle. Across the sector traditional hero accommodation providers still had accommodation availability in peak season (July and August) and were discounting. The result was no overflow into the rest of the nearby providers. Another notable factor was the decrease in spend on eating out while on holiday, visitors choosing one main night out with packed or shared lunches and meal deals eaten in the accommodation from local supermarkets.

Several elements contributed to the subdued summer:

• Economic Pressures: The ongoing cost-of-living crisis led consumers to cut back on discretionary spending, including holidays, food and drink and visits to tourist attractions (several much loved attractions closed across Cornwall in 2024)

• Weather Conditions: Inclement weather during critical periods dampened the appeal of coastal destinations like Cornwall. Patricia Yates, CEO of Visit England, acknowledged that the weather had impacted visitor numbers, leading many to book last-minute trips in search of better value and deal hunting.

• Political Climate: The 2024 general election introduced a degree of uncertainty, causing potential visitors to postpone or cancel travel plans.

• A Surge for a Different Experience – The ‘week in Cornwall’ everyone enjoyed was now being questioned.

  
  

Cornwall Looking Ahead

Despite the challenges of 2024, there is optimism for the future. Having spoken to several hospitality leaders across Cornwall they are seeing an "intention to book" among potential visitors, suggesting that the downturn can be turned around but strategic changes in pricing, value for money offers, seasonal time changes because of climate change and a resurrection of what Cornwall can really offer as a deep rich experience with new messaging and technology at its heart (check out https://loop.semantic.co.uk who are changing experience websites). Let’s not do what everybody else does and get lost in the bland tourism and hospitality offering that is easy to slide into – Cornwall is unique – lets race back into that.

In my opinion, attractions and experiences need to dig down into heritage and seasonal themes utilising the latest great technology for booking online and bringing experiences to life. There is the opportunity for making memories through traditional (higher profit) food and drink and days out. Investment should be in new storytelling, making current challenges a strength, working in partnership from accommodation to experience digitally bound together and supporting our food and drink offerings by working with local suppliers all on the same growth journey as one.

Scotland's Remarkable Performance

In stark contrast, Scotland emerged as a beacon of recovery and growth. The nation recorded its highest number of international visitors in 2023, with nearly four million overseas tourists—a 15% increase from 2019. This upward trajectory continued into the first half of 2024, with international visits rising by 14% compared to the same period in 2023 and a remarkable 46% increase from 2019 figures. (Visit Scotland)

Several factors contributed to Scotland's success:

• Passion Travel: Visitors sought experiences tied to personal interests, such as attending major events or exploring film locations (Traitors Castles!) —a trend Scotland capitalised on effectively.

• Wellness Tourism: The allure of Scotland's natural landscapes offered tourists opportunities for outdoor therapy and wellness retreats, aligning with the global shift towards health-centric travel. The weather was not a factor as you can just buy the right clothes from Scottish providers.

• Strategic Marketing: Targeted campaigns and collaborations with travel trade and transport partners enhanced Scotland's appeal, ensuring a steady influx of tourists.

The Path Forward in 2025

To rejuvenate the UK's hospitality and tourism sectors in 2025, a multifaceted approach is essential:

1. Diversify Offerings: Embrace emerging travel trends by developing experiences that cater to niche markets, such as hobby-based holidays and wellness retreats.

2. Encourage Digital Nomad Culture – Be on holiday and work at the same time – free up times to stay and experience by being prepared with connection and spaces.

3. Enhance Domestic Tourism: Encourage longer domestic stays by promoting lesser-known destinations and creating attractive packages that offer ‘value for money’ across the year – People will pay if they see the value and the memories.

4. Leverage Digital Platforms: Utilise social media and digital marketing to showcase unique experiences, tapping into platforms where potential travellers seek inspiration.

5. Collaborate Across Sectors: Foster partnerships between local businesses, tourism boards, and government entities to create cohesive strategies that address current challenges and anticipate future trends. Tell the same story – be aligned, don’t jump on each other’s themes and confuse buyers.

   
   

Congratulations to Scotland for adapting to the evolving preferences of travellers and turning weaknesses into strength. The UK and Cornwall especially can transform 2025 into a year of recovery, growth, and renewed vibrancy in its hospitality and tourism industries but it will need investment, a deep breath of history and culture and being open to conversations that can move things at speed.

 For a free discussion about your hospitality or tourism business just drop me an email: karenhoylebbm@gmail.com