The summer of 2025 saw sunshine and persistent dry conditions across much of the UK. This provided some much-needed good news for outdoor attractions after the wash-out summer in 2024. But with continued pressure on discretionary spend leading families to be selective on where and how they spend their hard-earned income, some operators are experiencing financial pressure.
UK visitor numbers have been slow to overtake pre-pandemic levels, with VisitBritain forecasting that visits to the UK in 2025 will be 3% over 2019 figures (representing a 4% growth vs 2024). Rises in admission prices have helped sector revenue to recover, with forecast spending for 2025 being 122% of 2019 levels. However, when adjusted for inflation, this reduces to 95% of the 2019 figure.
While popular sites or high-profile attractions in London can charge a higher entrance fee with minimal impact on visitor numbers, smaller, more regional attractions do not always have such flexibility. Tourist attractions always face a delicate balance between raising prices to covers costs and discounting to attract customers.
Challenges faced by UK tourist attractions
UK tourist attraction operators face myriad pressures that continue to test their resilience.
Downwards pressure on consumer spend
Total spend on domestic tourism in Q2 2025 decreased by 8% year-on-year to £16.6 billion. Visitors are increasingly selective in their discretionary spending due to a higher cost of living, and are only booking at the last minute which makes planning difficult for operators. Many are prioritising more value-for-money experiences or free attractions which has constrained spending on paid-for sites and reduced ancillary spend. Operators are, therefore, needing to be proactive in considering different, more dynamic pricing models to attract visitors.
Escalating operating costs eroding margins
Significantly higher operating costs is a common theme across the whole sector. The combination of a higher national living wage, increased employer national insurance contributions, and persistent recruitment challenges - particularly in seasonal roles - has significantly raised employment costs. In addition, attractions face rising energy and supplier costs that they struggle to pass fully onto visitors. Margins remain under pressure, leading to a level of stress for some operators.
UK perceived to be less attractive to international visitors
Policies such as the Electronic Travel Authorisation (ETA) scheme, high air passenger duties and the absence of tax-free shopping compared to other European counties continue to dampen competitiveness of the UK as a destination.
Regional attractions under greater pressure
There is a disparity in admission trends by region in the UK. As might be expected, London saw the highest growth in visitor numbers in 2024 (5%), but three regions: the East of England (-3%), West Midlands (-2%) and the Northwest (-1%) experienced an overall decline in visits to attractions. VisitBritain, the organisation tasked with promoting tourism in the UK and making sure the economic benefits extend beyond London, had its budget cut by over 40% in April 2025. This seriously reduces international promotion of regional destinations and smaller operators in particular will be impacted by the loss of coordinated campaigns.
Heading into winter: building resilience
As attractions enter the quieter winter trading period, the focus must turn to building resilience.
Capital expenditure remains vital for maintaining competitiveness
Strategic investment can enhance visitor experience as well as support year-round engagement, for example, by including indoor and all-weather attractions to smooth seasonal fluctuations.
Build financial resilience by undertaking granular forecasting
This can include evaluating the impact of different pricing models, and stress-testing a variety of market scenarios to understand pinch-points in the business. Cashflow forecasts can help manage working capital and liquidity.
Strengthen operational resilience by proactive cost management
Ensuring your cost base is flexible enough to adapt to changes in market conditions. Consider diversification of income streams, for example, via memberships, events, retail opportunities or partnerships.
Maintain relationships with lenders and investors
Debt and interest repayments must be sustainable and companies will benefit from a strong working relationship with both lenders and investors
While the pandemic has cast a long shadow, there are many reasons to be optimistic. Visitor numbers are nearly back to 2019 levels and consumers are increasingly prioritising experiences that give personal connection. Operators of UK attractions must ensure they're in the best position to capitalise on the new season.
We are currently helping many businesses in the UK tourist attractions sector manage these challenges, together with the options available to them.
For more information or guidance, contact Philip Stephenson.
