Foreign visitors cut UK spending despite weaker pound

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The Office for National Statistics said earnings from foreign visitors fell by 1 percent in the three months to December to £4.0 billion ($5.7 billion).

Tourism accounts for around 5 percent of British economic output, and the data showed a particularly steep drop in North American visitors despite sterling's sharp weakening against the U.S. <GBP=> and Canadian dollars <GBPCAD=R>.

The weaker pound and slowing economy also discouraged Britons from splashing out while abroad, with spending overseas falling by 6 percent to £8.7 billion in the three months to December compared with the previous three months.

The pound lost around 20 percent of its value against the currencies of Britain's major trading partners in the last three months of last year.

Overseas residents' visits to Britain fell by 5 percent between October and December to £7.4 million, and visits from North America were 27 percent lower than a year earlier at 670,000. Europeans made 10 percent fewer trips at 5.41 million.

Britons also cut back on trips abroad as sterling's fall against the euro <EURGBP=> and dollar made popular holiday destinations pricier.

Overall trips abroad fell by 4 percent to 16.3 million between October and December, with trips to Europe leading the way, down 8 percent on a year earlier at 10.64 million and North American visits 6 percent lower at 1.04 million.

For 2008 as a whole, Britain reported a 20.2 billion pound deficit on travel and tourism, compared to a 19.1 billion deficit for 2007.