Demand for Foreign Holidays Takes a Sharp Dip

Lots of coverage in the press today of some significant data released by the ONS. The data shows a record 15 per cent decline in the number of trips abroad by UK residents in 2009 compared with 2008. In total, Britons last year spent £5.1bn less abroad than they did in 2008.

In part the decline is attributable to fewer business trips overseas (a decline that must be closely linked to the impact of the recession on business travel). However, there has also been a sharp decline in the number of tourist trips to previously popular destinations like Spain and Mexico. The concept of “staycation” (UK holidaymakers prefering to take holidays in the UK rather than travel overseas) looks to be supported by the data.

The article linked above provides some useful business studies material - particularly on the factors that influence the demand for foreign holidays. Factors such as exchange rates, household disposable income, changes in fashionable destinations etc should all be identified and explained by students.

The tougher question to answer from the article is - why did British holidays to Iraq grow so much in 2009?