According to the latest stats tourists renting holiday accommodation pump over £4 billion into the UK economy. These staggering figures come from a recent report commissioned by holiday rentals website HomeAway and put together by financial experts at the London School of Economics. The insightful study is the first of its kind and offered fascinating insight into the economic importance of the national holiday rentals market.
Self-catering accommodation on the rise
While hotels remain a popular option the report revealed that tourists are showing a growing preference for the convenience and cost effectiveness of self-catering accommodation. In 2014 this category grew at a faster rate than any other alternative! So why is self-catering accommodation so popular? One of the key factors is its inherent affordability compared to hotels. While paying for six beds in a hotel room could cost hundreds of pounds, self-catering accommodation can house large groups for a fraction of the cost. Guests also enjoy access to a range of amenities, creature comforts and living space that hotels simply can’t recreate. Kitchens are one of the major perks, allowing guests to cook the occasional at-home meal and avoid the expense of having to fork out for cafes or restaurants three times a day.
Holiday rentals double as UK cash cows
On top of base accommodation rates guests staying in self-catering accommodation spent a net additional figure of £2.2 billion per year. The industry also accounts for £100 million worth of tax revenue for the UK government and generates owners a gross rental income of £950 million. It’s a lucrative business that mutually benefits British citizens, the UK government, the national economy and Britain’s tourism reputation as a whole.
Nick Varney of leading English attractions company Merlin Entertainment put the success down to the nation’s abundance of world class scenery, activities and attractions. “We have a fantastic tourism product in this country, with the most beautiful countryside, beaches, landscapes and premier league attractions,” he explains.
While renting out self-contained holiday accommodation can be a fantastic source of income it’s also important to protect your investment and your guests with a comprehensive insurance policy. This should cover everything from on-site accidents and injuries to fire, theft and weather induced disasters. In the case of any incidents you can rest assured that your insurance company will deal with it quickly and efficiently so you can get your business back on its feet ASAP.