Luxury

There are 15.4 million High Net Worth Individuals (HNWI) worldwide and they are of growing interest to international tourism destinations as their appetite for luxury travel translates into increased visitor spend and, thereby, economic growth.

 

 

Source: Knight Frank, 2015

High spending visitors in the UK

The vast majority of the 36.1 million visits by overseas residents that the UK welcomed during 2015 will have been by those on ‘average’ incomes, but it is interesting to examine which source markets generate the highest spend per visit and the highest spend per night.

It makes sense to look at both these metrics as some markets may display a high spend per visit but this is thanks to an above average length of stay or an atypical journey purpose distribution.

Table 1 below covers the top seven markets in terms of spend per visit during 2015 while Table 2 deals with spend per night high fliers.

Both tables feature several Gulf countries, with Saudi Arabia in first place as both the country spending the most on average per visit (£3,769) and also per night (£206). This is well above the average for 2015 of £611 per visit and £81 per night. Kuwait, China, Qatar and Singapore feature in both lists, due to their high standard of living, especially amongst international travellers. Pakistan and Nigeria both have high average spend per visit, but not per night and this is due to a high average nights per visit in both cases. For Pakistan the average number of nights per visit is 38, well above the average of 8, and for Nigeria it is 22, which in both cases inflates the overall spend per visit.

Market Spend per visit
Table 1: Average spend per visit
Saudi Arabia £3,769
Kuwait £2,898
China £2,174
Qatar £2,148
Pakistan £2,078
Nigeria £1,626
Singapore £1,523
Market Spend per night
Table 2: Average spend per night
Saudi Arabia £206
Singapore £169
Israel £167
Kuwait £160
Qatar £155
China £149
Luxembourg £134

Only countries with a base size larger than 100 have been included

Find out more about the trends in the number of millionaires and where they are to be found (PDF, 1.31MB). Published February 2015

Our research tells us that to appeal to the luxury market, Britain needs to offer a cocktail mix of traditional luxury and modernity. A luxury holiday is all about status and reward so whilst it needs to be expensive to give it credibility, value is crucial. Find out more in a summary covering key findings arising from a luxury leisure market study (PDF, 395KB) conducted in 2010 (i.e. key motivators, barriers, perceptions of Britain, and the decision-making process).