The Independent on Sunday reports that 'grounded by the diminishing value of the pound and fears about the recession, record numbers of Britons will choose to holiday at home this summer. New figures suggest that 2009 could be a bumper year for British tourism.' After years of chichi mini-breaks in boutique hotels, the humble self-catering holiday is coming back, with Hoseasons, Butlins and the Youth Hostels Association (YHA) all reporting increased business. "Bookings for 2009 are up 20 per cent on last year," said Peter Joyner of Hoseasons. "Because we are the biggest self-catering firm in the UK we are a good barometer of what is going on in the rest of the industry." "UK holidays are usually cheaper than going abroad. If you go to a cottage in Britain you can just pack the car up and take all your own food. You've got greater control. When you go abroad you've got unknown elements," said Mr Joyner. Butlins also reported that bookings for the school summer holiday are up 15 per cent on last year. The YHA said January bookings were up on 2008. Are self-catering holidays in the UK and the other holidays referred to in the article examples of inferior goods? Think about the income elasticity of demand for such holidays.
2 comments:
Personally I'm not a fan of the British holiday...naf weather and your Bill Oddie types etc...however the more people spending their money here this summer can only be a healthy sign for the economy...especially in the bad times..and as a bonus it would create some confidence in this country with regards to spending...
I agree with Sam, spending the summer here at this time is a very good thing for the UK Economy. It should increase consumer confidence as consumer spending should rise and thats what the UK needs right now, to see consumer confidence go up! Also, If tourists from abroad come here because of the pound weakening then it shall hopefully decrease the balance of payments defecit. Lets hope for a good summer..
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