UK Tourism at Risk of Long-Term Decline, Due to Government Policy, WTTC Warns

The UK is at risk of seeing its inbound tourism industry fall into long-term decline, due to a number of economic decisions which could act as deterrents to potential visitors, the World Travel & Tourism Council (WTTC) has warned.

Travel and tourism contributed £286bn to the UK economy last year – nearly 4% ahead of 2019 – accounting for 10% of the country’s GDP; and the industry supported 4.2 million jobs.

However, the British Government’s ETA visa scheme, no tax-free shopping policy, cut to VisitBritain funding, and air passenger tax risks seriously damaging the country’s tourism offering and costing it billions of lost revenue.

International visitor spend remains 5.3% below pre-pandemic levels, at £40.3bn, and those aforementioned cuts and measures mean the UK lost roughly £2.2bn in tourism revenue in 2024, the WTTC claims.

The WTTC said that the UK is already one of the most expensive destinations in Europe and the measures mentioned will hamper growth this year.

“These cuts mean it’s even less likely that regions outside London will get the support they need to attract more tourists, exacerbating regional inequality.  These are not global pressures. They are deliberate policy choices. And they’re costing the UK economy,” the WTTC said.

Julia Simpson, WTTC President & CEO warned: “Other European countries see the economic value of Travel & Tourism but in the UK, it’s taken for granted. Now the government is actively damaging growth. Valuable overseas visitors now face pointless ETAs, a UK-only tax on air passenger duty, and no tax -free shopping. And now the government has slashed VisitBritain’s budget. The Prime Minister needs to lead this, not commit it to death by a thousand cuts from the Treasury. 

“The government is risking Travel & Tourism’s stagnation and long-term decline, without targeted action and investment. Globally, travellers are spending more than ever before, while other countries are benefitting. The loss of regional support is particularly concerning. Without dedicated marketing and investment, regions outside London will struggle even more to attract international tourists, despite their huge untapped potential.” 

The WTTC said: “As global tourism surges, the UK is undermining its own growth. The latest data exposes a widening gap between what the UK’s Travel & Tourism sector could deliver, and what it’s enabled to deliver. Without urgent course correction, WTTC warns the UK risks falling even further behind.” 

WTTC is calling on the UK Government to: 

1. Reverse cuts to VisitBritain
2. Restore tax-free shopping for international visitors
3. Rethink punitive travel taxes
4. Invest in keeping the UK globally competitive

 
The WTTC said: “The world is travelling again and spending more than ever before. If the UK wants a share of the pie, it must stop sabotaging its own success. The UK has the brand, the appeal, and the infrastructure. What it lacks is political will to allow Travel & Tourism to thrive.”