2022 was a strong year for the UK visitor attraction sector, as the country continued its recovery from the Covid–19 pandemic. However this was achieved amidst geopolitical turbulence, rising inflation, rising costs of energy, and a cost-ofliving crisis. Not only that but competing national events tend to reduce footfall to visitor attractions and 2022 featured the Commonwealth Games, the Platinum Jubilee, the state funeral, and this was followed by the coronation in early 2023.
Although the UK currently looks likely to avoid a recession in 2023, there is squeeze on discretionary spend with customers giving more thought to value for money, being cautious about spending, and looking for deals, with an uptick in demand for free visitor attractions. Key findings from the 2022 Visit Britain Survey include:
• 42% increase in total visits to visitor attractions from 2021 to 2022, but still 35% lower than 2019.
• Admission fees increased at the rate of inflation when the increases were set.
• 69% of attractions have been affected by increased supplier costs, 64% by rising energy, and 51% by higher wages.
• Gross revenue across the sector increased by 29% in 2022 from 2021.
• The trend of pre-booking continues to be popular with 71% of attractions offering it.
• Over the last year there has been a net increase for all types of staff, in particular unpaid volunteers in 2022.
• In 2022, 1% of English attractions reported a permanent closure, and 3% reported a temporary closure.
Whilst rising operational costs and consumers’ reduced disposable income are reasons to be cautious, increasing visitor numbers and growth in gross revenue offer comfort for the sector. Moving forward, diversification is key to a visitor attractions’ success, especially with the growth of competition for visitor spend. Diversification should consider the effective use of space and initiatives to encourage visitors to stay longer and spend more on site. Accommodation often in the form of caravans, lodges or camping can offer a viable diversification option. Adding on site accommodation can also increase an attraction’s catchment.
As consumers become more aware of the importance of sustainability, many attractions are taking steps to improve their environmental credentials. Over recent years electric vehicles have become more common, with the UK government pledging to stop the sale of new petrol and diesel cars by 2030. Visitor attractions should consider adding EV charging points if they haven’t already. Electric vehicle charging points can also encourage visitors to stay at attractions for longer, with the potential to draw new customers in. The Eden Project in Cornwall for example has installed twenty 22Kw fast chargers in 2022, with an additional 12 ports later installed for their own electric vehicles.
In terms of the market for visitor attractions, buyers are representative of those in the wider leisure market, being more cautious than they were 12-18 months ago due to the economic landscape. In general, buyers are corporate as cost tends to be a deterrent to individuals entering the market.
Overall the outlook looks bright for the visitor attraction operator notwithstanding current headwinds