The Royal family brings in well over £500 million a year from overseas tourists, according to new VisitBritain research.

This figure is generated, directly and indirectly, by tourists who visit sites related to the Monarchy. Popular such attractions are the Tower of London, The Palace and Holyroodhouse in Edinburgh.

Of the 30 million overseas visitors who came to Britain last year, 5.8 million visited a castle, 5 million an historic house and 6.4 million a religious monument such as a cathedral.

A poll of 25,000 potential foreign visitors to Britain revealed that visiting ”Royal locations”, ”castles” and ‘’stately homes” were among the top three activities that would-be tourists said they would like to do. Respondents were also asked to pick a postcard picture that they would send home to communicate that they were in Britain, the most popular was a double decker bus (24%) coming in second was a stone castle by the sea (20%) and third was a picture of Queen Elizabeth II.

VisitBritain chief executive Sandie Dawe said: ‘’This fascinating research shows Britain’s monarchic heritage draws foreign tourists to just about every corner of the country from Scotland to Cornwall. Her Majesty the Queen celebrates her Diamond Jubilee in 2012, a feat last accomplished back in 1897 by Queen Victoria. This report suggests that year she is going to generate a bonanza for British tourism.’’

UKinbound has challenged the findings of the VisitBritain commissioned report on Britain’s tourism industry reported on this blog last week.

The trade association said that the report ignores the real threats that are currently causing decline in visitor numbers. The report forecast that tourism revenue will increase by over 60% by 2010, but UKinbound believe that this is far too optimistic.

“We do not dispute the real potential for substantial growth in inbound tourism but this potential will pale into insignificance if there are no plans to increase capacity and to address urgently the real barriers to growth,” said UKinbound chief executive Mary Rance.

“With no plans to increase capacity at Heathrow or any other London airport and in the absence of a strategy to restore the competitiveness of the UK as a destination by addressing the barriers to growth, it is fantasy to suggest that such huge growth is attainable.”

The organisation said the UK is still experiencing a 3% decline so far in 2010 even with the benefit of a weak pound. It blamed APD and VAT and an overcomplicated visa system that puts travellers off visiting the UK as part of the problem that is restricting growth of tourists visiting the UK.

Britain’s tourism economy will grow faster in the next decade than retail, chemicals, transport, and manufacturing, according to an independent report by Deloitte and Oxford Economics commissioned by VisitBritain.

It forecasts that the total value of tourism to the UK is set to rise by more than 60% to £188 billion over the next decade and  predicts spending by overseas visitors will practically double from £16 billion now to £31 billion in 2020. Jobs supported by tourism over that period is predicted to rise from 2.63 million to 2.89 million.

However; the reports warns that Government intervention will be the ‘’key’’ to success because a range of market failures need to be tackled.

These include:

- Marketing co-ordination to help small and medium sized tourist businesses who otherwise couldn’t afford to do it themselves

- Rural firms who face higher costs of operating should be enabled to adopt new technology

- Districts across the UK that rely on tourism as a main source of jobs for low skilled and part time workers should also be supported.

Marcus Simmons, managing director from iknow-uk, the independent tourism directory, said: “Responding quickly and effectively is key. We can’t expect the business to just drop into our lap – companies in the sector need to be pulling together to ensure maximum impact, and to enable us to show the rest of the world just how great Britain is as a holiday destination.”