Europe's Numbers Show Increases Over 2011

As the end of the year draws ever closer, we're getting some reports about how U.S. travel to Europe has changed over 2012. And while there were some increases and strong numbers, airline issues (and a hurricane) have had an impact on the overall figures.  

According to the Trans-Atlantic report, U.S. traffic to Europe increased just 1 percent in October, totaling 852,344 visits, according to the latest figures from the Dept. of Commerce. Hurricane Sandy was a factor, shutting down flights from New York, Newark and other airports Oct. 29-31. For the year through October, U.S. visits to Europe are up 4.3 percent, to 9.89 million. The lowest trans-Atlantic fares have dropped again for the winter on some major routes. The lowest midweek New York-London round trips are down 13.5 percent to $773 for December through March (Christmas week excepted). 

The lowest New York-London fares have dropped 13.5 percent in a month for December–March travel. Of the other two routes we watch, Chicago-Paris fares are down 8 percent and San Francisco-Frankfurt fares are unchanged. 

Scandinavian Airlines continued to fly, after winning quick agreement from its eight unions for more asset sales, layoffs, pay reductions, pension revisions and work schedule changes. Chief Executive Rickard Gustafson praised “these very big sacrifices and a great amount of responsibility from the unions.” That cleared the way for new financing from the Swedish, Danish and Norwegian governments (which own 50 percent of the carrier) and from banks. The following week, SAS said that it would open 45 new routes next year, including the previously announced San Francisco-Copenhagen route (April 13). SAS’s other U.S. gateways are Newark, Chicago and Washington.

Good to know: Iberia ground workers, agents and cabin crew say they will strike December 14-17 to protest job cuts planned by parent International Airline Group. Willie Walsh, the IAG chief, said earlier that it was necessary to eliminate 4,500 jobs and reduce the fleet to stave off further losses. Iberia pilots can’t join the strike under an unrelated arbitration ruling involving Iberia Express.

The UK's Banner Year

Meanwhile, VisitBritain has launched its 2012 annual review, outlining what it was able to achieve for tourism and the UK economy in 2012 and how it will build on this extraordinary year in 2013 and beyond. With both the Queen's Jubilee and the Olympics boosting the numbers, inbound tourism was the nation’s third biggest earner of foreign exchange, contributing more than $30 billion to Britain’s economy in 2012 alone, a 5 percent rise in nominal terms and a record. In six of the past 12 months Britain has welcomed a record number of holiday visitors from overseas, meaning around 12 million international visitors have chosen Britain as a holiday destination.

A central focus of the year was to use the Games to generate worldwide coverage of Britain’s attractions, a strategy that has resulted in 14,000 positive print and broadcast stories about the UK in the world’s media in the first six months of this financial year, the equivalent of over $2.4 billion in advertising.

Acknowledging that Britain needs growth, VisitBritain also posted that international tourism remains buoyant and has increased by 3 percent in volume and 8 percent in value since May 2010, with the number of people crossing international borders set to pass the one billion mark for the first time this year.

Tourism – both domestic and international – is the country’s fifth largest employer, supporting 2.6 million jobs and contributing hundreds of billions to the economy and in the past two years tourism has accounted for a third of all new employment in the UK.

Visitor figures this year have offered a good foundation for growth, and VisitBritain expects that despite displacement concerns at the beginning of the year, inbound tourism in 2012 will show growth in the value of visits by up to 6 percent.

2013 visitor numbers are inevitably uncertain. The US and Europe remain the UK's biggest source of visitors but face the fiscal cliff and continuing Eurozone uncertainty respectively. VisitBritain’s best estimate is that the volume of international tourism to Britain will grow by 3 percent, meaning almost one million extra visitors will come to the UK in 2013. And their spend is forecast to reach $30 billion for the first time, representing growth of 2.5 percent.