Business travel income soars

By Christina Golding

Hotels and guesthouses enjoyed a major cash injection last year from an increase in business trips made by UK residents, according to the latest tourism statistics.

Business travel, the second most valuable source of income for the UK hospitality industry after holidays, accounted for £2.5b, an increase of 25% on the previous year, according to a joint report by UK tourist boards.

Almost 70% was spent on hotel or guesthouse accommodation, with the majority of guests staying no more than three nights.

Last week culture secretary Chris Smith urged hotels catering for business people to further increase tourism in the UK by encouraging extended stays and return trips with families (Caterer, 18 September, page 16).

But Peter Glover, head of business travel at the English Tourist Board, said that it was unlikely that business people would return to the same hotel with their families.

"If they plan to come back on a trip at their own expense they would be unlikely to pay the same rates that their company would," he said.

Holidays remained the biggest money-spinner from UK residents for the hospitality industry, with £9.4b spent last year.

Hotels and guesthouses pocketed more than a third of this. However, self-catering was a more popular option, with 38% of holiday-makers compared with 17% who used hotels and guesthouses.

Seaside resorts remain the favourite destination, accounting for almost 40% of all holiday trips in the UK.

The report, UK Tourist Statistics 1996, costs £70 and is available from English Tourist Board Publications: 0181-846 9000.