Impact of exchange rate on tourism to Britain
Foresight – issue 147
VisitBritain Research
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Contents
1. Introduction
2. Knowledge of GBP exchange rate
1. Visitor types
2. Markets
3. Impact of exchange rate on likelihood to travel to Britain
1. Markets
2. Level of knowledge of the UK exchange rate
3. Visitor types
4. Key points
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Introduction
The following report is based on two questions that were asked to respondents in the GFK-Anholt
Nation Brands Index in July 2016. These questions were sponsored by VisitBritain and do not form
part of the regular Nation Brands Index.
The two questions are as follows:
“How well would you say you know the current exchange rate of the British pound (£) to your own currency?”
“Does the current exchange rate make you any more/less likely to visit Britain?”
These questions are particularly pertinent, as they were asked several weeks after the EUreferendum result in the UK, and therefore the value of GBP was more affordable for most countries.
The survey was conducted online amongst respondents from Argentina, Australia, Brazil, Canada,
China, France, Germany, India, Italy, Japan, Mexico, Poland, Russia, South Africa, South Korea,
Sweden, Turkey and USA.
Respondents are representative of the online population in each market.
Icon on front page made by Madebyoliver from www.flaticon.com
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Knowledge of GBP
exchange rate
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Knowledge of UK exchange rate
Currency
Following the result of the EU-referendum in late June,
the value of UK currency fell against most currencies
around the world. The fall in value of GBP meant that
in most cases the UK became a more affordable
destination to visit compared to several months earlier.
The table on the right shows the value of GBP versus
different currencies in July, the month directly following
the EU-referendum, compared to July the year before.
For most markets, spending in UK currency is more
affordable following the referendum.
Overall, 72% have some awareness of the exchange
rate, with 38% having a high or good knowledge.
GBP value change July 2016
v July 2015
Japanese Yen
-29%
Australian Dollar
-17%
US Dollar
-16%
Euro
-16%
S. Korean Won
-16%
Brazilian Real
-14%
Indian Rupee
-11%
Chinese Yuan
-9%
Turkish Lira
-7%
Russian Ruble
-5%
S. African Rand
-2%
Mexican Peso
-1%
How well would you say you know the current exchange rate of the British pound to your own currency?
13%
25%
I know it very well
34%
I know it fairly well
I have a vague idea
Source: GFK-ANHOLT/VISITBRITAIN. Q68a. How well would you say you know the current exchange rate of the British pound (£) to your own currency?
Base: All respondents=18306
28%
I have no idea
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Knowledge of UK exchange rate
Visitor types
Those who have visited the UK are more likely to be aware of the exchange rate of GBP to their own
currency, than those who have not visited. 89% of previous visitors have some level of knowledge,
whilst 67% of non-visitors have some knowledge.
A quarter of those who have visited the UK, have a strong knowledge of the exchange rate, and this
rises even higher amongst those who have travelled to the UK for business. Amongst UK business
travellers, 36% have a strong knowledge, and a further 42% have a good knowledge of the exchange
rate. A fifth (21%) of UK leisure visitors have a strong knowledge of the exchange rate, and a further
36% have a good knowledge.
I know it very
well
I know it fairly
well
Non Visitors
Visitors
9%
11%
12%
24%
33%
21%
Business Visitors
5%
17%
21%
28%
I have a vague
idea
I have no idea
Leisure Visitors
36%
31%
37%
36%
42%
37%
Source: GFK-ANHOLT/VISITBRITAIN. Q68a. How well would you say you know the current exchange rate of the British pound (£) to your own currency?
Base: Non visitors=6650, Visitors=2508, Leisure=2072, Business=740
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Knowledge of UK exchange rate
Markets (1)
Level of knowledge of the GBP exchange rate varies widely by market. Countries where there is a
good knowledge of the exchange rate include India, South Africa, followed by Poland, Sweden, and
China (taking into account both high and good knowledge).
Almost half of USA travellers have no knowledge, which is likely to be due to a lower incidence of
international travellers in the population. France and Germany also have low knowledge compared to
other EU nations, whilst Italy has a good knowledge.
Argentina Australia
11%
9%
Brazil
Canada
China
14%
12%
12%
France Germany
5%
14%
17%
7%
27%
Italy
12%
Japan
5%
Mexico
Poland
12%
12%
South
Korea
30%
13%
17%
United
States
10%
16%
39%
32%
26%
39%
29%
38%
56%
32%
38%
40%
33%
34%
46%
30%
15%
4%
42%
41%
40%
28%
Turkey
36%
17%
11%
7%
35%
28%
18%
12%
I know it
fairly well
I have a
vague idea
35%
48%
21%
42%
39%
I know it
very well
27%
31%
34%
42%
Sweden
43%
31%
37%
38%
South
Africa
6%
19%
35%
30%
Russia
12%
17%
17%
26%
India
26%
12%
Source: GFK-ANHOLT/VISITBRITAIN. Q68a. How well would you say you know the current exchange rate of the British pound (£) to your own currency?
Base: Each market=1000
14%
16%
I have no
idea
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Knowledge of UK exchange rate
Markets (2)
Level of knowledge of the GBP exchange rate also varies by market amongst visitors to the UK, and
amongst non-visitors. In all markets, those who have previously visited the UK (for business or
leisure) have a higher knowledge of the GBP exchange rate.
Knowledge is strong amongst visitors from India and South Africa and increases significantly for
visitors from China, compared to non-visitors.
Argentina Australia
Non-Visitors
Visitors
17%
Brazil
15%
Canada
25%
42%
39%
China
31%
France
Germany
5%
11%
23%
22%
54%
38%
15%
8%
5%
10%
15%
18%
11%
4%
7%
13%
8%
24%
28%
4%
8%
34%
34%
4%
12%
5%
4%
23%
26%
South
Korea
Sweden
20%
18%
23%
28%
33%
12%
5%
3%
7%
12%
4%
13%
11%
7%
6%
29%
18%
25%
29%
11%
3%
United
States
20%
48%
46%
39%
36%
6%
6%
15%
0%
11%
2%
9%
11%
15%
5%
11%
32%
26%
38%
30%
41%
34%
61%
34%
46%
36%
37%
44%
18%
10%
21%
23%
28%
27%
39%
43%
48%
Turkey
45%
38%
34%
10%
21%
45%
44%
30%
25%
South
Africa
57%
35%
36%
62%
44%
19%
Russia
57%
26%
36%
44%
19%
32%
Poland
40%
34%
15%
26%
13%
41%
21%
12%
17%
Mexico
50%
31%
16%
3%
Japan
38%
43%
30%
Italy
57%
30%
49%
34%
India
37%
24%
31%
36%
18%
15%
28%
Source: GFK-ANHOLT/VISITBRITAIN. Q68a. How well would you say you know the current exchange rate of the British pound (£) to your own currency?
Base: Each market=1000
23%
16%
58%
I know it
very well
I know it
fairly well
I have a
vague idea
I have no
idea
I know it
very well
I know it
fairly well
I have a
vague idea
I have no
idea
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Impact of exchange rate on
likelihood to travel
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Impact of exchange rate on likelihood to travel
Markets
Knowledge of the GBP exchange rate doesn’t necessarily translate to an increased likelihood to travel, as for some
markets their own currency exchange rates are volatile, or they are experiencing economic difficulties – Russia, South
Africa, Mexico and Brazil are examples of this. However, the favourable exchange rate has had a positive impact on
intent to travel to Britain amongst those from India, China, USA and Canada in particular.
A high proportion in Japan are unsure (28%), and over half in the following markets say that it makes no difference to
their likelihood to visit – Australia, Germany, and Sweden. Europe is a more mixed picture, but overall positive with
Italy the most positive, followed by Sweden, then France and Germany.
Argentina Australia
8%
16%
10%
16%
Brazil
Canada
9%
11%
China
18%
France
Germany
12%
9%
India
Italy
4%
14%
18%
22%
Mexico
Poland
Russia
11%
9%
7%
18%
South
Africa
11%
South
Korea
Sweden
6%
9%
Turkey
United
States
15%
15%
10%
18%
29%
18%
Japan
16%
11%
16%
21%
21%
16%
26%
26%
20%
39%
27%
31%
33%
33%
52%
48%
43%
43%
Balance
(Pos – Neg)
9%
7%
7%
5%
4%
6%
9%
16%
7%
9%
8%
20%
5%
1%
6%
8%
13%
7%
13%
11%
10%
4%
3%
3%
4%
-13% 10% -11% 16% 51% 20% 14% 48% 27%
28%
7%
44%
19%
40%
12%
6%
4%
-8%
10%
15%
1%
4%
1%
7%
10% -16% -35% 11% 25%
Source: GFK-ANHOLT/VISITBRITAIN. Q68b. Does the current exchange rate make you any more/less likely to visit Britain?
Base: Each market=551-899
A little less
likely to visit
Britain
Much less
likely to visit
Britain
10%
16%
14%
8%
12%
20%
8%
6%
30%
43%
58%
8%
6%
31%
18%
17%
53%
22%
20%
47%
A little more
likely to visit
Britain
No more or
less likely to
visit Britain
42%
36%
Much more
likely to visit
Britain
16%
6%
2%
7%
7%
33%
Don't know
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Impact of exchange rate on likelihood to travel
By knowledge of exchange rate
Level of knowledge of the exchange rate has a direct impact on likelihood to visit Britain.
Those who have a high or good knowledge of the conversion of their currency to GBP are, on
balance, more likely to visit Britain. Those who have some knowledge are less likely to visit, versus
those with high or good knowledge of the value of GBP v their own currency.
Knowledge of
exchange rate:
High
knowledge
Good
knowledge
10%
Some
knowledge
4%
14%
36%
A little more likely to visit
Britain
29%
46%
22%
Balance
(Pos – Neg)
11%
8%
11%
10%
12%
3%
10%
4%
14%
37%
17%
-3%
Source: GFK-ANHOLT/VISITBRITAIN. Q68b. Does the current exchange rate make you any more/less likely to visit Britain?
Base: High knowledge=2412, Good knowledge=4629, Some knowledge=6219
No more or less likely to visit
Britain
A little less likely to visit
Britain
37%
20%
Much more likely to visit
Britain
Much less likely to visit
Britain
Don't know
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Impact of exchange rate on likelihood to travel
Visitor types
The favourable exchange
rate is more likely to have
had a positive impact on
previous UK visitors, where
44% say they are more
likely to visit as a result.
This is even higher
amongst UK business
visitors, where 55% would
be more likely to visit as a
result. 40% of leisure
visitors say they would be
more likely to visit.
Does the exchange rate make you more or less likely to visit
Britain?
Non Visitors
9%
17%
Visitors
17%
Leisure Visitors
15%
Business Visitors
Much more likely
39%
27%
A little more likely
38%
25%
23%
40%
32%
No more or less likely
Source: GFK-ANHOLT/VISITBRITAIN. Q68b. Does the current exchange rate make you any more/less likely to visit Britain?
Base: Non visitors=2236, Visitors=4488, Leisure=1832, Business=699
13%
30%
A little less likely
11%
Balance
(Pos – Neg)
11%
2%
8% 6% 4%
30%
8% 6% 5%
27%
6% 6%2%
Much less likely
43%
Don't know
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Key points
•
•
Post-EU referendum, for many markets the UK is now a more affordable destination.
A high proportion (72%) of those asked have some knowledge of the GBP exchange rate versus
their own currency:
–
–
•
•
•
•
13% have a high knowledge of the GBP exchange rate, and 25% have a good knowledge.
Amongst previous UK visitors, 24% have a high knowledge of the exchange rate, and this rises to 36% of
UK business travellers.
Knowledge of the GBP exchange rate varies widely by market. There is a good knowledge of the
exchange rate amongst those in India, South Africa, and China.
France and Germany have low knowledge compared to other EU nations, whilst Poland, Sweden
and Italy show good knowledge.
Almost half of USA travellers have no knowledge, which is likely to be due to a lower incidence of
international travellers in the population, as amongst visitors to the UK 89% have at least some
knowledge.
Knowledge of the GBP exchange rate does not translate to an increased likelihood to travel for all
markets. However, the favourable exchange rate has had the most positive impact on intent to
travel to Britain amongst those from India, China and USA in particular. Higher likelihood to travel
is concentrated amongst those who have visited Britain before and those who are well informed
about the exchange rate.
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Impact of exchange rate on
tourism to Britain
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