I predict the riot – has little impact on the UK tourism industry

Coverage of the recent UK riots travelled around the globe but, with the Olympics under a year away, what impact will the images have on the tourism industry?  To get an idea, we analysed the latest data, spoke to our clients and examined the impact of other riots to better understand the potential impact.

All the data and commentary we studied suggested there was little impact.  Our clients reported occasional concern, but not cancellations, a sentiment backed by the European Tour Operator Association, (ETOA) which reported a cancellation rate of just 0.17%.  The ETOA said a ‘sick dog’ or a ‘flooded bathroom’ could be as much to blame for the cancellations as the riots and there is evidence that a number of the cancellations had already rebooked.
Experts suggested a number of factors for such a low rate. Two of the most intriguing were: no famous landmarks were pictured suggesting to inbound tourists that the riots occurred in anonymous locations and the perceived low-key police response was, unlike domestically, viewed positively abroad as no people were damaged, “just “ buildings.

With the immediate impact minimal, are there any longer term implications for the sector?

While the images of destruction have seemingly not dented inbound trade, the reporting of the riots in important source destinations such as Germany, France and the US have all focused on the sociological aspects of the riots. Whether you agree with the robust sentencing strategy or not, tackling the issue head on is sound in terms of reputation management by drawing a line under the trouble, discouraging future troublemakers and moving on.  Researching other disturbances in Paris 2005, LA 1992, Vancouver 2011 and even Thailand 2010 highlighted that while the immediate impact was dramatic, within 3-6 months of the riots, inbound tourism had rebounded to previous levels.

In conclusion, the evidence is encouraging in that both short and long term impact is marginal. That said, there are, unfortunately, plenty of tourism companies already on a knife edge where even a 90 day dip can tip the balance and once any short-term impact has passed, the current economic climate remains challenging. We advise a number of clients in such a position and have been assisting them with a variety of issues around improving operational efficiencies and cashflow.

This article by Andrew Burnham appeared in the September 2011 edition of Destination UK.

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