The Contribution of the Heritage Sector to the Visitor Economy

Heritage-led tourism supports the UK economy

The heritage sector supports visitor-related spending through 2 distinct channels. The first is through domestic tourism (day and overnight), and the second is from inbound international tourists.

• In 2022, heritage tourism surged following the COVID-19 pandemic, with sites seeing their highest-ever visitor numbers. In 2023, there was a slight drop in visitor numbers, however, they remained above the pre-pandemic period
• There were 211 million domestic day visits, 14.9 million domestic overnight trips, and 17.6 million international trips to heritage in 2023
• These visits generated significant visitor spend estimated at £11.5 billion; £4.5 billion and £12 billion respectively (CEBR, 2024)

Domestic overnight trips

The GB Tourism Survey is used to estimate the volume and spend of UK heritage-driven domestic overnight tourism, covering trips taken for any purpose including holidays, business or visiting friends and family (CEBR, 2024).

• There were 15 million domestic heritage-related trips (overnight visits) in 2023. This compares with 16 million in 2022 indicating a robust domestic market, though corrected for the pent-up demand post-pandemic
• Annual spending on domestic heritage-related trips has been increasing. Domestic tourists are estimated to have spent £4.8 billion on overnight heritage-related trips in 2022, which is the highest value ever recorded. In 2023, there was a slight decrease to £4.5 billion, which is still more than double the pre-pandemic levels

Domestic day visits

The analysis of heritage-related day visits draws on Visit England's Day Visit survey. A visit is defined as one that involves 1 of 15 defined leisure activities, lasts at least 3 hours, is not a regular activity and is in a destination outside the respondent's place of residence.

Total heritage-related day visits declined year-on-year from 2016 to 2019. Post-pandemic, there has been a reversal in this trend. Day visits almost doubled from the low numbers of 2021 (119 million) to 211 million in 2023. The same trend is observed in the estimated spending on these day visits. In 2023, the value of day visits was £11.6 billion. This is a significant increase compared to 2019 (£4.6 billion) even after accounting for the fact that visitor numbers were below 2019. This trend is likely due to a combination of potential reasons including:

• Changes in the survey design for data collection in 2021
• Improved data on the share of total tourism that is heritage-related
• Plausibly, increased savings rates during COVID-19 and lockdowns resulted in increased average spend per excursion
• Inflation driving up costs and prices since late 2021

International heritage-related tourism

The analysis draws upon the International Passenger Survey (IPS) which collects information about individuals entering and leaving the UK and is used to produce estimates of overseas travel and tourism (CEBR, 2024).

• Inbound heritage-related visits to the UK grew substantially over the period 2012 to 2019 with heritage-led international tourism experiencing growth of 26%, equivalent to 7 million additional international visits in 2019
• In 2021, the number of international trips fell to 2.7 million. An 85% drop compared to 2019. The spending also saw a similar fall to just £2.7 billion from the highs of £12 billion achieved in 2019. This demonstrates the disproportionate impact of COVID-19-related restrictions on international tourism, relative to domestic tourism, due to constraints on international travel
• There was a strong rebound in 2022, with 14.5 million heritage-related international visits. The trend continued in 2023, with the visits reaching their pre-pandemic levels at 17.6 million
• 2023 also saw heritage-related international tourism spending reach its highest level at £12.5 billion, increasing by 21% or £2.2 billion between 2012 and 2023

England’s rich heritage is a key driver of visits and tourists

Heritage is all around us. Evidence demonstrates that local heritage plays an important role in attracting people to place.

• According to the DCMS Participation Survey over 3 in 5 adults (63%) visited a heritage site in person in the last 12 months (DCMS, 2023)
• The most popular heritage visitor sites include visits to parks/gardens with historic features (40%), followed by towns and cities with celebrated histories (39%) (DCMS, 2023)
• Evidence from the Annual Visitor Attraction Survey shows that in 2023, 7 of the 10 most popular paid visitor attractions in England were heritage attractions, up from 6 in 2022 (Visit Britain, 2024)

Historic Houses, a membership association representing 1,450 independently owned historic houses, castles, and gardens across the UK welcomed over 21 million visits in 2022. They found:

• The visits included over 141,000 educational visits, from primary school children to U3A [1] groups facilitating learning about everything from history and architecture to foraging and filmmaking
• In 2022, Historic Houses hosted over 4,100 days of filming across the country, as the setting for programmes as varied as Apple TV's 'Ted Lasso' to Netflix's 'Bridgerton' (Historic Houses, 2023)

An extensive study that examined visitor motivations amongst international visitors found:

• 78% of 22,840 international tourists surveyed selected 'exploring history and heritage' an important driver in selecting any international destination for a break. The top drivers were that a place 'offers good value for money' (87%) and that 'it is welcoming' (87%)
• When the same respondents were asked about their motivation to visit Britain against the same list of key drivers, 'exploring history and heritage' was ranked first (57%). This indicates just how strongly our national heritage is associated with Britain as a visitor destination (Visit Britain, 2023b)
• On the other hand, Britain was ranked low in terms of ‘offers good value for money’ (only 33% agree, the second lowest driver of visits to Britain) (Visit Britain, 2023b)

Historic visitor attractions play an important role in supporting local economy

• A study into heritage and the UK tourism economy, based on a random sample of 62 completed National Lottery Heritage Fund projects funded between 2004 and 2007, estimated that for every £1 spent as part of a heritage visit, 32p is spent on site and the remaining 68p is spent in local businesses including restaurants, cafés, hotels and shops (National Lottery Heritage Fund, 2010)
• Evidence from Historic Houses members shows that in 2022 members supported 32,000 UK jobs with 70% of staff employed living in the local area. Historic Houses generated an estimated £1.3 billion for the UK economy, two-thirds of which was spent locally (Historic Houses, 2023)
• The United Kingdom National Commission for UNESCO found that the UNESCO brand is an important marketing tool, boosting tourist numbers and expenditure, local employment and local house UNESCO designations added £151 million per year in financial benefits to the UK economy. It also promotes educational projects and initiatives, encourages global networks and improves international reputations (UNESCO, 2020)
• In 2015, heritage tourism supported £5.3 billion in tax receipts to the Exchequer, 0.8% of all tax collected by the central government that year. This includes £2 billion the heritage tourism sector paid directly; £2.1 billion from the heritage tourism sector's wage payments and subsequent spending of those wages; and £1.2 billion in tax receipts from the sector's purchases. These estimates are based on the GVA and the number of people employed in the heritage tourism sector (Oxford Economics, 2016)
• A 2015 report into screen tourism estimates that tourists visiting locations featured in film and television programs generated £140 million for the UK economy in 2014. This includes many productions filmed at heritage sites including 'Harry Potter', 'Downton Abbey' and 'Broadchurch'. The study is based on site and online surveys of 1,006 individuals in 8 locations (Olsberg SPI, 2015)

Recent trends suggest a resilient and growing heritage visitor led tourism economy

Evidence on 2023 visitor numbers from the Visitor Attraction Survey demonstrates continuous growth.

• Admissions to historic attractions were 11% higher in 2023 than 2022. All categories of historic attraction saw an increase in visitor numbers in 2023 when compared to 2022, with places of worship seeing the greatest uplift more than doubling their total visitors in 2022 (BVA, BDRC, 2024)
• There was a 76% increase in overseas visits to historic attractions compared to previously. Historic attractions in London reported the highest proportion of international visitors with over 2 in 5 visiting from overseas. The South-West also saw above-average representation of overseas visitors (28%)
• Historic attraction revenues increase by 10% in 2023 compared with 2022, consistent with the wider visitor attractions markets which also showed a 10% rise

England's heritage sector has demonstrated remarkable resilience and adaptability, positioning itself for significant future growth.

With international and domestic tourism rebounding strongly post-pandemic, there are rich opportunities to capitalise on the sector's enduring appeal. The sector's proven economic impact on local communities, coupled with its ability to attract both overseas and domestic tourists, suggests a bright future.

As the industry continues to innovate and adapt to changing visitor preferences, it is well-positioned to not only preserve England's cultural legacy but also to make an even greater contribution to the national economy in the years to come.

References

1. BVA, BDRC (2024). 'Visitor Attraction Trends in England 2023'. (Accessed: 07.2024)
2. CEBR (2024). 'The heritage sector in England and its impact on the economy: An updated report for Historic England'. (Accessed: 13.10.2024)
3. DCMS (2023). 'Main report for the Participation Survey (April 2022 to March 2023)'. (Accessed: 26.10.2023)
4. European Commission (2017). 'Special Eurobarometer 466 - Cultural Heritage'. (Accessed: 09.2018)
5. Heritage Lottery Fund (2010). 'Investing in success Heritage and the UK tourism economy'. (Accessed: 10.2023)
6. Historic Houses (2023). 'Changing Times, Valuing History: Historic houses for the twenty-first century'. (Accessed: 26.10.2023)
7. Olsberg SPI (2015). 'Quantifying Film and Television Tourism in England'. (Accessed: 11.2023)
8. Oxford Economics (2016). 'The impact of heritage tourism for the UK economy'. (Accessed: 11.2023)
9. Radley, Y., (2016). 'GREAT Britain Campaign: Creating impact for Britain around the world'. (Accessed: 23.10.2023)
10. UNESCO (2020). 'The National Value of UNESCO Designations to the United Kingdom'. (Accessed: 26.10.2023)
11. Visit Britain (2024). 'England Visitor Attractions: latest'. (Accessed: 26.09.2024)
12. Visit Britain (2022). 'Motivations, influences, decisions and sustainability research'. (Accessed: 10.2023)

Footnotes

[1] u3a is a UK-wide movement of locally run interest groups that provide a wide range of opportunities to come together to learn for fun. Members explore new ideas, skills and activities together. Visit the u3a website to find out more.