Press releases

• Visitors to Birmingham up to 32.6m in 2009 from 32.2m in 2008

• Accommodation sector enjoys £12m increase in expenditure to £168m

• Average number of days spent in city up by 2%

• Total revenue from budget-conscious visitors drops by 4%

Birmingham’s visitor numbers increased by 0.4m in 2009 according to annual figures released today, which also reported the accommodation sector enjoying a boost from visitors opting to lengthen their stays in the city.

The STEAM report, compiled by research group Global Tourism Solutions, revealed that visitors coming to the city rose to 32.6m in 2009, an increase of 1% on 2008.  Figures also revealed an increase in the amount of time visitors spent in the city, with the average number of days up by 2%.  However, the total revenue from visitors dropped by 4% as budget-conscious consumers become keen to drive down costs in areas such as retail, transport and recreation.

One area of the visitor economy which has benefitted from an increase in expenditure is the accommodation sector.  The STEAM research, using a method employed by the UK’s major cities to assess the impact of visitors, outlined an overall increase in accommodation expenditure from £156m in 2008 to £168m during 2009.   Within this, non-serviced accommodation experienced an 11% increase in the volume of guests in contrast to a 1% increase in the serviced accommodation offer.

The hotel and conferencing industry in the city continues to grow apace with nearly 29,000 bed spaces, four more hotels in the pipeline during 2010/2011 and a total of 22 at planning or pre-construction stages. 

Hotel occupancy in Birmingham saw a boost recently with occupancy in May the highest since the start of the year at 72%[1]. The month of May is the highest since 2007, and can be largely attributed to Ipex – an international exhibition for the print, publishing and media industries, which attracted more than 50,000 visitors when it was staged in May, with almost half of those from overseas. The average room rate (ARR) for Birmingham in May was above the national average at £91[2], compared to £89.35 for the UK as a whole.

The STEAM figures have been released against the backdrop of a renewed vigor from central government to acknowledge the importance of the tourism industry to the UK economy.  John Penrose, the MP to take up the newly-created role Minister for Tourism, will be traveling the UK to audit the industry and look at ways to increase tourism spend by UK residents in the UK from 36 per cent to 50 per cent.  Nationally, the industry is the 5th biggest, worth £115 billion annually in direct and indirect spend.  

Marketing Birmingham’s Chairman Paul Kehoe said:

“The figures are encouraging for the city’s visitor economy which has experienced a robust performance regarding primary expenditure benefitting from a rise in visitors who are also staying longer.  However, the tourism industry is operating in a climate where there is less money in people’s pockets and that has certainly impacted upon secondary spend not just in Birmingham but nationally.”

Tim Manson, Policy and Operations Director, Marketing Birmingham said:

“Our policy within promotional campaigns for Birmingham is to focus on encouraging overnight leisure stays rather than day trippers, as well as what is called in the industry ‘business extenders’, those who come on business but extend their stay with family often joining them.  I’m glad to see that the figures show we are moving in the right direction in this area and we will continue to target these visitors within our public relations and marketing campaigns which support a valuable sector of the city’s economy.”

Michael Mason, General Manager of Crowne Plaza Hotel Birmingham said:

“Birmingham’s hotel sector has experienced a boost, particularly from the recent major conferences and events the city has hosted. Although Birmingham is operating in a challenging economic climate, its visitor economy continues to grow with more people expected in the city for forthcoming events such as the Conservative Party Conference.”