The latest forecasts from VisitBritain show that both the volume and value of inbound tourism to Britain are set to reach record levels in 2016.

In spite of the strength of sterling, spending by overseas visitors is predicted to reach almost £23 billion in 2016, a 4.2% increase on spending in 2015, which is expected to get to £22 billion, a 0.7% increase on 2014.

The number of overseas visitors to the UK is expected to rise in 2016 to 36.7 million visits, up 3.8% on 2015 which is likely to see around 35.4 million visits by the year end, up by 2.8% on 2014.

However, VisitBritain has identified a number of factors which could affect the forecasts.

Although the Eurozone and the US economies are expected to continue to grow at a moderate pace in 2016, the wider global economic outlook is uncertain. In 2015, the Chinese economy slowed, the oil price continued to fall and some major emerging markets experienced recession.

Exchange rates have been volatile in recent years and this affects not only perceptions of destinations but also visitors’ budgets. In 2015, the pound rose in value against many major currencies, which is one reason why VisitBritain expects spending to have grown at a slower rate than visitor numbers.

On the other hand, the fall in global oil prices will not only have a positive effect on reducing transport costs but also on boosting real disposable incomes.

2016 will not see any major international sporting events taking place in Britain (except those held annually) – unlike in many recent years. However, it will be a big year for the arts, with a number of Britain’s musical and literary figures celebrating significant anniversaries and milestones in 2016, including the 400th anniversary of Shakespeare's death and the 100th anniversary of Roald Dahl’s birth.

Janet Redler, Chief Executive of Janet Redler Travel & Tourism, said: “It is good news that VisitBritain is forecasting inbound tourism to continue to grow in 2016 and it will be something for all of us in the industry to celebrate if we reach the record levels predicted. The anticipated growth builds on a very strong first half of 2015 for inbound tourism and, at Janet Redler Travel & Tourism, we have seen this reflected in increased enquiries and bookings.”

Click here to find out more about the VisitBritain forecasts.