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Turning Tourism into Investment
Attracting investment is about more than just designing a beautiful-looking building in a well-connected city centre. Those things help, of course, but it’s also about allowing investors to develop confidence in the location itself and tourism plays a key role in this.
“A city’s reputation on the global stage has a major impact on how attractive people consider it to be as an investment destination. The more tourists a city can attract, the more its reputation grows, and the more likely it is to charm foreign investors looking for good returns in a well-established area. For investment in buy to let property, UK regional cities’ reputations are key.”
Liverpool and Newcastle Turn Tourism into Investment
Two examples of UK cities that are turning tourism into investment are Liverpool and Newcastle. Both have reported a surge in visitor numbers recently, as well as attracting keen interest in terms of foreign direct investment.
Two major exhibitions have been influential in this respect. Firstly, Liverpool was chosen to host the superb Terracotta Warriors exhibition. The exhibition brought in hordes of tourists over the summer months and generated £78 million for the local economy. Other areas of the city have also thrived, with Royal Albert Dock reporting a 13% hike in visitor numbers for summer 2018.
On the other side of the country, in Newcastle, it was the Great Exhibition of the North that spurred many tourists on to visit the city for the first time. The three-month celebration of the pioneering spirit and creativity of the North led to record level hotel bookings in Newcastle and neighbouring Gateshead, with 32% of visitors citing the exhibition as their main reason for their visit. Meanwhile, Newcastle Airport reported a bumper year, with passenger numbers already passing the five million mark, for the second year in a row.
“Events such as the Terracotta Warriors exhibition and the Great Exhibition of the North attract visitors from around the world. They do much to build a city’s reputation and attract tourists, which in turn impacts positively on the flow of investment money into that city.”
Tourism Key Factor in Investment Opportunities
With tourism opening the door to investment, it’s up to property investment companies to present potential clients with the right development in the right location. In Liverpool, it is The Tannery that is turning heads, with its capital-quality residences and outstanding roof garden available from as little as £85,000.
Over in Newcastle, Hadrians’ Tower – the city’s tallest building – is attracting investors’ interest. The stylish apartments come complete with on-site café and stunning sky lounge, as well as a 7% NET yield assurance.
A host of other factors also impact on investors’ decisions about where to place their capital. From population growth to regeneration programmes, cities have to offer a particular blend of economic success and future opportunity in order to become regional hotspots. However, tourism is – and will continue to be – a key factor in that mix.
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