UK hotel sector seeing a ‘post-Brexit boom’ in staycations.
Leave campaigners predicted a surge in UK holidays after the EU referendum, however new findings from the Tourism Alliance highlight not only an increase in Brits opting for staycations, but also a massive rise in visitors from abroad – adding an estimated £1.4bn to the UK economy.
Following the referendum result and the subsequent drop in the value of the pound, travelling overseas has become increasingly expensive for British nationals, leading many to opt for holidays in the UK. In the weeks following the Brexit announcement tourism boards across the UK reported record-breaking numbers of British holiday bookings and enquiries. The Tourism Alliance has estimated that 2016 has already seen a 17% increase in British spending on UK holidays compared with figures from last year. This means that Brits are spending less money overseas, instead putting this money back into the UK.
Alongside the increase in ‘staycations’ the Office for National Statistics have reported that overseas residents made 36.8 million visits in the 12 months to August 2016 – an increase of 4% compared to the same period a year earlier. International visitors spent £22.1 bn in the country – 2% more than the same period last year.
Patricia Yates, Director at Visit England, recently stated: “Britain looks particularly good value at the moment because of the value of the pound. Beach and countryside holidays are growing in popularity.”
Following the referendum, hotel and holiday website Travelzoo reported a massive spike in enquiries into UK holidays, particularly amongst users in China and the USA. This data has been supported by reports of a 60% increase in UK flight searches from the US and China through websites such as Hipmunk and Cheapflights. The increased numbers of overseas visitors, combined with the growing number of ‘staycationers’, has drastically increased demand within the hotel sector, further increasing the investment potential of UK hotels.
With demand for UK hotels dramatically increasing, now is a fantastic time to branch out and expand your property portfolio into this market. As demand rises, so do hotel rates and the sustainability of many hotels – increasing potential returns and capital appreciation.
In light of this, many hotel developers are able to offer assured annual returns, much higher than those offered from traditional buy to let investments.
It is this unrivalled ROI potential which has contributed to the sector’s positon as one of the UK’s fastest growing property investment asset classes.