Risk & Crisis Management in Tourism Sector:
Recovery from Crisis
in the OIC Member Countries
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5.2. Case Study 2 – United Kingdom (Desk study)
5.2.1. History and Development of Tourism in Britain
Britain was one of the first countries to develop a modern tourism industry with people
travelling away from home for leisure purposes rather than for business, health or religious
reasons, as had previously been the case.
The industry began in the mid-19th century and was stimulated by two factors: increasing
numbers of people with sufficient disposable income to spend on consumer interests in addition
to the basics of food, shelter and warmth; and the spread of the railways across the country.
These connected the newly expanded cities of the Industrial Revolution with less developed and
less polluted areas, especially along the coast, and these places gradually became viewed as
destinations for spiritual fulfilment and relaxation (Page, 2015). In 1841 the entrepreneur
Thomas Cook organized the first package tour – a one-day trip along a railway line between two
towns just 12 miles apart - and subsequently began to organize tours all over Britain (and later
to mainland Europe), taking advantage of the new networks of railways and steamships. The
industry expanded throughout the 19 th and 20th centuries, interrupted only by the two World
Wars.
The current product offer is based on Britain’s diverse and well-managed cultural heritage,
varied scenery, excellent facilities for activity tourism, and good quality accommodation and
catering. There is a robust domestic market in addition to the international market. In both
cases, there has been an increase in consumers taking shorter holidays which allow them to
accumulate experiences and memories rather than tangible souvenirs whilst on holiday (Mintel,
2016).
By 2000 Britain was one of the major source markets for tourism as well as one of the largest
destinations. It ranked 5th in the world for receipts from tourism and 6th in terms of arrivals. In
2015 it was still in 5th place for receipts but had slipped to 8th place in arrivals (although it had
sometimes seen slightly lower positions in the intervening decade). The principal markets are
France, Germany and the USA. Over the 12-year period 2004-15 there was a 23% increase in
arrivals overall, although around the time of the global financial crisis in 2008 arrivals stagnated
and then declined for a time. The peak of 30.7 million in 2007 was not surpassed until 2013; in
the previous year the Olympics were held in Britain, with its attendant international profile.
Other measures were taken to stimulate demand. Since then, numbers have climbed steadily to
reach 34.4 million in 2015 (see Table 5.2).
By 2015 the service sector in Britain contributed around 78% of GDP, and tourism is the fourth
largest industry within that sector. It accounts for around 9% of GDP (£127 billion per annum)
and 10% of employment, with around 3.1 million jobs (CMSC, 2015). According to figures cited
by the UK’s tourist board VisitBritain, the tourism multiplier is 2.8, so that for every £1,000
generated in direct tourismspend, a further £1,800 is created elsewhere in the economy through
the supply chain and consumer spend (Oxford Economics, 2013).