§ 29. Sir Sydney ChapmanTo ask the Secretary of State for Culture, Media and Sport if he will make a statement on the balance of payments relating to earnings from tourism. [105965]
§ Janet AndersonThe Office for National Statistics has estimated, using data from the International Passenger Survey and other sources, that the direct contribution to the UK balance of payments arising from tourism is as shown in the table:
£ million 1996 1997 1998 Exports: earnings from overseas visitors to UK 13,770 13,805 14,366 Imports: expenditure by UK residents going abroad 16,729 17,443 20,194 Balance of trade in services -2,959 -3.638 -5,828 Source:
The UK Trade in Services (Balance of Payments)—Office for National Statistics 1996, 1997 and 1998
This is not a full account of the balance of payments effects of tourism; such an account would need to include, for example, overseas trade in tourism goods and the international investment flows of tourism companies.
In 1998, UK tourism recorded a deficit—£5,828 million on its balance of payments. For the third quarter of 1999 there was a continued deficit of £2,019 million in the balance of payments for tourism.
The upward trend in tourism by both overseas residents to the UK and by UK residents abroad continued in 1998. Exchange rate movements have had significant effects on both overseas and UK residents' travel.