The experience economy

With 1,621 hotel rooms currently under construction and 287,000 sq. ft. of new retail and leisure space in the pipeline, the city is strategically expanding its capacity to meet growing demand.

This robust investment is further amplified by major events, such as the 'Madchester mania' surrounding Oasis this year, which is projected to generate £277 million for Greater Manchester, with a net local economic impact of £95.7 million from just five nights. This includes significant spending on tickets, food, drink, shopping, travel, and accommodation, demonstrating a direct boost to the local economy. Additionally, it provided a major boost to the city's profile, attracting notoriety, tourism, and ultimately, investment.

The visitor economy is also seeing a diversified way in which experiences are manifesting themselves, catering to a wide range of broader societal trends. Technological advances are being leveraged to bring new experiences to new audiences, from immersive digital art installations to AI-driven personalised retail experiences. One example is the recently announced Banksy exhibition at Mayfield, which sold 10,000 tickets on the first day of online sales.

The investment in high-profile hotel developments such as the M-hotel at St Michael's and the Nobu hotel at Viadux, alongside the pipeline of hotel rooms currently under construction, highlight confidence.  287,000 sq. ft. of new retail and leisure space is also under construction, buoyed by data that shows low vacancy rates and 25 per cent of spending on food/drink in Manchester, coupled with a growing cultural and experiential economy. Collectively, these figures underscore the strength of the Manchester brand in attracting global tourism and business travel. This investment in accommodation capacity is a clear testament to investor confidence in Manchester's enduring appeal as a destination.

Indeed, over the course of a weekend (5th/6th/7th December 2025) 1.2 million people travelled to the Manchester to large scale events in Co-op Live, AO Arena, the Etihad Stadium among others, alongside the Christmas Markets.  As of May 2025, the total number of visitors represented a 4 per cent increase (40,289,750) compared to the previous year and the year-to-date figure was 4.2 per cent higher than the same period in the previous year.  However, while footfall data for the week starting 13 April 2025 showed a 20.9 per cent increase against the same week in 2024, it was still slightly down by 2.7 per cent when compared to the same week in 2019 and therefore room to grow.

The strategic investments in major events, attractions, and transport infrastructure (such as the Bee Network and the £1.3 billion transformation of Manchester Airport), coupled with the city's growing residential base, strongly position Manchester to not only recover but exceed pre-COVID visitor numbers in the coming years.  Looking ahead at how this could be achieved, the Greater Manchester Visitor Economy Strategy was released in January 2025 and has five targets to meet by 2030:

1. Greater Manchester will be the most visited city-region outside of London and a top 20 European destination.
2. 30 per cent of all passengers using Manchester Airport will be of international origin.
3. The economic impact of the visitor economy across Greater Manchester will increase to £15 billion.
4. All employees in the visitor economy will be earning a minimum of the Real Living Wage.
5. Manchester will be ranked as the most sustainable English city in the UK and in the top 50 in the world on the Global Destination Sustainability Index.

To meet these targets the strategy has four strategic aims:

1. Creating a sense of place
2. Attracting and delivering major events 
3. Enhancing the visitor offer and experience 
4. Providing greater connectivity 

In terms of attracting and delivering major events, Europe's largest indoor arena – Co-op Live - has already demonstrated significant economic impact, contributing £785.5 million to the UK economy and £313.4 million in Gross Value Added (GVA) to Manchester's economy in its first year. [INFOGRAPHIC?] This and other venues like the AO Arena, Etihad, Old Trafford, Factory, Mayfield Depot and outdoor locations like Heaton Park will be essential in being able to recover far beyond pre-COVID levels.

Regarding the visitor offer and experience, the ambition around connectivity is key.  Locally, the Bee Network makes it more straightforward and cheaper to get around and key to sustainable transport initiatives. Northern Powerhouse Rail will improve regional connectivity, allowing Manchester to flourish as a gateway to the rest of the North.  Internationally, the £1.3 billion transformation project of Manchester Airport, including the expansion of Terminal 2, aims to increase annual passenger capacity to 40 million by 2030.

However, this sector is sensitive to personal expenditure dictated by broader economic conditions. People are increasingly spending or saving money to experience life to the fullest, or conversely, are constrained by economic pressures. Limited real wage growth in the UK caused by inflationary pressures can have a significant knock-on effect.  Data from Deloitte's Consumer Tracker indicates that overall net spending on leisure activities declined in Q3 2025, reflecting "renewed pressure on budgets and greater caution in discretionary categories as households try to deal with high bills including for energy and groceries.

Driven by events like the Oasis reunion, Manchester's visitor economy is a key driver of economic growth and city profile, despite current challenges from declining consumer spending. The city is strategically addressing this through significant regeneration projects and hotel investments, aligning with its ambitious 2030 Visitor Economy Strategy to become a top European destination with increased economic impact and high sustainability.