Peak international spending returns to pre-pandemic levels, ONS finds
For cardholders from the USA, annual spend per card has increased between 2019 and 2023, from £72.43 to £83.60
Spending by international visitors in August, the traditional UK high season, has largely recovered since the Covid-19 pandemic, according to the latest figures from the Office for National Statistics (ONS) and Visa.
The ONS found that places in the UK with the highest concentration of seasonal spend by international tourists in the summer months are in South West England, western Wales, and the Scottish Highlands and Islands.
Up to a quarter of total annual spend occurred in August 2023 for areas with a high amount of seasonal spend from international travellers visiting the UK.
Spending into the UK from all countries decreased in August 2020 because of the pandemic. Spending in August from the Republic of Ireland recovered the quickest, likely because of the closeness between it and the UK, and the lack of restrictions under the arrangements of the Common Travel Area.
Meanwhile, Spending in August from China recovered the slowest and, as of August 2023, remains slightly below pre-pandemic spending. Spending from Australia was the most affected by the pandemic but has had the strongest recovery in August 2023.
The USA accounted for 24% of international spending within the UK at the start of the time series in 2019, while the Republic of Ireland and China accounted for 9% and 7%, respectively.
It also found that pre-pandemic, cardholders from the USA had higher peaks in spending compared with those of international cardholders as a whole. Cardholders from the Republic of Ireland had a similar pattern of spending compared with all international cardholders. However, spending by cardholders from the USA decreased significantly during the pandemic, alongside spending by cardholders from China.
Spending by cardholders from the Republic of Ireland was less affected by the pandemic than the total spend by international cardholders, likely because of the Common Travel Area. Post-pandemic, spending by USA cardholders has returned to the pattern of large peaks during the summer months. Spending by Chinese cardholders largely followed the international total spending at the start of the time series, but experienced smaller peaks than the international total in 2022 and 2023.
In addition, it found that for cardholders from the USA, annual spend per card has increased between 2019 and 2023, from £72.43 to £83.60 (not adjusted for inflation). However, over the same period, annual spend per card has decreased slightly for cardholders from the Republic of Ireland, from £61.69 to £58.33, and more significantly for cardholders from China, from £120.42 to £107.13.
The ONS said reduction over this period supports the suggestion that overall spending by Chinese cardholders has dropped because of a change in consumer behaviour, rather than notably fewer visitors from China to the UK.
