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Britain’s tourism machine is grinding into autumn 2025 with one foot on the accelerator and the other on the brake. Foreign visitors are pouring in, and non-London airports are suddenly looking like rock stars, but the locals, those hardy domestic trippers who once kept the tills ringing, are staying home, sulking about costs.

Foreign Friends, Welcome Back

Let’s start with the cheery bit. Inbound tourism is on the march. July clocked up a 3% rise in arrivals, August held its ground against last year, and the first half of September was positively sprightly. Continental Europe has rediscovered its fondness for Albion, and non-London airports, those perennial bridesmaids, are finally catching the bouquet.

Manchester, Birmingham, and Glasgow reported 9% growth in arrivals over the past three months, while London’s grand gateways slipped 2%. Heathrow may still be the world’s celebrity airport, but right now it’s the regional cousins who are stealing the headlines.

Shorter Stays, Leaner Wallets

Before anyone pops the champagne, there’s a sting in the tail. The tourists are coming, but they’re not splashing out like they used to. VisitBritain’s data, cross-checked with Visa’s card figures, reveals that spend per visitor is sliding. Stays are shorter, wallets are tighter.

The pound is weak; £1 buys €1.15, its lowest since 2023, which should make Britain irresistible. But tell that to an American tourist when the bill for two coffees and a slice of carrot cake in Covent Garden comes to £18.

Autumn Bookings: Europe Up, Long-Haul Lagging

Looking ahead, the flight booking picture is a patchwork quilt. For September through November, Europe was up 2% last year, but the long haul was down 3%. Still, that’s a better forecast than earlier in the year.

August was a strong booking month, with inbound reservations up 6% on 2024. Even the Yanks chipped in, lifting their bookings by 7%. Some still think a pint in a Cotswolds pub beats another pumpkin-spice latte at home.

After a sluggish summer, China is back in the game, with bookings up 8% for autumn. The Middle East, down 11%, is cooling, but last year was a bumper year.

The American Mood: Champagne or Bust

Talk to operators, and you’ll hear the same refrain. US luxury travellers are going gangbusters, penthouse suites, private cars, and Michelin-starred dining. The mid-market crowd? They’re grumbling. Airfares to Britain are still high, and the US media’s chatter about border chaos on the return doesn’t help.

In short, the rich are coming regardless, the middle classes are hesitating, and everyone mutters that the UK feels “expensive”.

Domestic Tourism: On the Back Foot

While foreigners pack their bags, Brits are leaving theirs in the cupboard. June was flat. The first half of the year saw overnight trips down 7% on 2024, and day trips slid, too.

Yes, spending is up 12% but only because everything costs more. Intentions to take a domestic trip in the next 12 months fell to 74%, the lowest in two years. Meanwhile, outbound intentions held steady at 61%. Translation: more Brits are eyeing up Spain’s sangria than Cornwall’s cream teas.

And the reason? Costs. Concern about the price of attractions is now the highest since records began in 2022. When families start thinking the Tower of London is daylight robbery, you know something’s amiss.

The Wider World: Economics, Politics, and the Pound

Globally, the picture is one of cautious growth. The world economy is forecast to expand 2.7% this year, 2.5% next, with a rebound in 2027. The EU will stumble along at 1.4% this year, the US at 1.9%.

But nerves are jangling. Inflation in the US is rising, employment is weak, and stagflation whispers are back. The Federal Reserve cut rates in September and may wield the scissors again.

The euro has strengthened, making it easier for Europeans to travel abroad—hence the uptick in arrivals. The pound, meanwhile, is weak against both the euro and the dollar, a mixed blessing: Britain is cheaper for visitors but pricier for Brits going abroad.

On the geopolitical front, Iran reopened its skies in July, cutting journey times for flights from India and the Middle East. Should the Ukraine conflict ease, expect prices and nerves to settle further.

Competition: Britain Falling Behind

There’s a warning here. Western Europe is expected to grow tourism 5% this year, the world 8%, while the UK lags at 3%. Britain had a good 2024, but the danger is that rivals pull ahead. Ironically, the US is expected to see inbound tourism fall by 8%. That makes Britain’s middling numbers look almost heroic by comparison.

Industry Pulse: Hospitality’s Uneven Beat

Zooming in on the UK industry, the story is uneven. Accommodation revenues were up 2% year-on-year in July, which sounds decent until you remember inflation is running at 3.8%. On the other hand, arts, entertainment and recreation are up 8%, food and drink by 5%.

Hoteliers are glum about turnover, and theatre owners are less so. Perhaps it’s the prospect of a night at the West End keeping spirits up, while room rates do the opposite.

The Verdict

So where does that leave us? Britain’s inbound tourism is humming nicely, fuelled by Europeans and luxury-loving Americans. Non-London airports are strutting their stuff. But at home, domestic tourism is wobbling, undermined by costs, cautious households, and competition from sunnier shores.

The challenge for Britain is clear: keep wooing inbound visitors while finding ways to tempt its own citizens to holiday at home. Otherwise, we risk being a nation of innkeepers who never check into our inns.

Tourism remains one of Britain’s significant assets, but unless the industry gets its value proposition right, the queues may be full of foreigners while the locals watch from the sidelines.