The World Travel & Tourism Council (WTTC) has doubled down on its warning to the UK about the introduction of daily tourist taxes for various attractions; now saying such a move could cost the country’s economy a whopping £14bn per year in lost revenue.
The warning comes as the UK Government is about to decide to give local authorities powers to introduce tourism levies across England. A decision on the matter is due this week.
Just last week, the WTTC warned the introduction of tourist levies could seriously hamper the UK’s tourist industry – WTTC Warns UK Introducing Visitor Taxes Could Hamper its Tourism Growth | ittn.ie.
The Council’s latest research into the matter found that, of those interviewed in the largest visitor source markets to the UK – from the USA, France and Germany – 29% would consider alternative destinations or decide not to visit the UK if a tax of €10 was introduced.
A substantial drop in visitors to the UK would have a fundamental impact on the economy. In 2027, the reduction in visitor spend from all international source markets could amount to £14.4bn if the tax were set at €10.
Research Highlights:
- Billions of pounds would “disappear from the economy” as international visitor numbers dry up
- “Domino effect” would lead to tens of thousands of job losses among SMEs
- The research also shows that 39% of Brits would consider a holiday somewhere else if a £10 visitor tax was introduced
Gloria Guevara, WTTC’s President and CEO, said: “Our research couldn’t be any clearer – proposed visitor taxes would lead to a slump in international visitor numbers to the UK, as well as far fewer domestic visitors to popular English destinations. Billions of pounds will be wiped from the UK economy, leading to much higher unemployment, especially among small shops, restaurants and suppliers to the hospitality sector.”
The research also finds that UK residents are reacting even more negatively to the threat of a levy than international visitors. Those certain to visit drop dramatically when asked about possible levies, with 39% of Brits saying they would consider somewhere else, or definitely not holiday in the UK, if the tax is set at £10.
The proposed visitor tax would likely affect families the most. 42% of international travellers and 46% of British respondents said it would be a big or very big issue for them when travelling as a family.
Recent WTTC data shows global Travel & Tourism GDP is forecast to have grown by 6.7% in 2025, while the UK is expected to have grown by just 4.3%, meaning UK growth is running at 36% below the global average.
Travel & Tourism supports around 4.5 million jobs in the UK, equivalent to roughly one in eight jobs nationwide, underlining the importance of maintaining competitiveness in a sector that plays a critical role in employment and regional growth.
