Posing a threat to global competitiveness and growth in the travel industry
The World Travel & Tourism Council (WTTC) has warned that the UK has lost £2.2 billion in tourism revenue due to government policies, taxes, and VisitBritain cuts. The travel and tourism sector contributed £286 billion to the UK economy in 2025, representing 10% of the nation's total GDP. However, international spending on tourism in the UK remained 5.3% below pre-pandemic levels, totaling just £40.3 billion.
WTTC claims these missed opportunities are due to policies such as the introduction of the Electronic Travel Authorization (ETA), VAT-free shopping, escalating Air Passenger Duty (APD), rising business taxes, and a 40% reduction in VisitBritain's budget. The council argues that these policies are deliberate choices made by the government, undermining the UK's tourism growth prospects and its ability to capitalize on global tourism trends. The WTTC is calling on the UK government to reverse the damaging effects of its current policies, including reversing the cuts to VisitBritain's budget, reinstating tax-free shopping, and reevaluating the burden of punitive travel taxes.
The UK must invest in its tourism sector to remain globally competitive and attract international visitors. With the world's tourism spending at unprecedented levels, the UK must create an environment where travel and tourism can thrive, providing economic benefits to all regions. Failure to act could put the UK at a competitive disadvantage, as other European destinations continue to embrace tourism as an economic engine.
