WTTC warns new UK tourism levies could undermine growth and jobs - Get updated on what's happening in tourism!

The World Travel & Tourism Council (WTTC) has issued a warning over proposals to introduce new local visitor levies in England, arguing that additional charges could slow sector growth, restrict job creation and weaken the UK’s global competitiveness.

The statement follows the UK government’s consultation on granting Mayoral Strategic Authorities the power to impose overnight visitor levies. According to WTTC, such measures risk adding costs and complexity at a time when the UK tourism sector is already expanding more slowly than the global average.

UK growth trailing global performance

WTTC data indicates that global Travel & Tourism GDP is forecast to have grown by 6.7% in 2025. By comparison, the UK is expected to record growth of 4.3%, placing national performance approximately 36% below the global average.

Travel & Tourism remains a significant contributor to the UK economy, supporting around 4.5 million jobs — roughly one in eight positions nationwide. WTTC stresses that maintaining international competitiveness is therefore critical for employment and regional development.

Impact on SMEs and visitor demand

The organisation highlights that new levies would disproportionately affect small and medium-sized enterprises. Independent hotels, restaurants and local retailers, many of which operate on tight margins, would face increased pressure from higher visitor costs and administrative burdens.

WTTC research suggests travellers are becoming increasingly price sensitive, particularly in uncertain economic conditions. Cost and perceived value continue to rank among the primary decision factors when choosing destinations.

“New visitor levies in the UK would dent growth, restrict job creation and risk making the country far less competitive in the global economy,” said Gloria Guevara, President and CEO of WTTC. “Our research proves time and time again that higher levies force travellers and businesses to choose alternative destinations as they opt for more affordable and predictable markets to visit and invest in. It is certain that jobs would go to other destinations outside of the UK. Policymakers need to focus on making the UK more competitive, re-investing tourism-generated revenues more effectively.”

Competitiveness pressures already evident

WTTC also points to existing structural challenges. The UK ranks 113th out of 119 countries in price competitiveness, according to the World Economic Forum’s Travel & Tourism Development Index 2024. The ranking reflects the cumulative effects of taxation levels, operating costs and regulatory requirements.

Industry estimates cited by WTTC suggest that substantial volumes of potential visitor spending are already being redirected to alternative destinations perceived as more affordable or predictable.

Risks of fragmented local policies

Beyond the financial implications, WTTC expresses concern over the potential for policy fragmentation. Granting individual cities or regions authority to introduce levies could lead to an uneven and uncertain regulatory landscape for both travellers and businesses.

According to the council’s analysis, local visitor taxes may generate revenue but do not automatically resolve infrastructure or capacity constraints. Without clear national coordination and reinvestment frameworks, such measures may increase complexity and discourage long-term investment.

Call for a competitiveness-focused strategy

WTTC advises policymakers to prioritise measures that strengthen the UK’s tourism competitiveness. Recommended approaches include reducing cost burdens on visitors, ensuring regulatory consistency and reinvesting existing tourism-generated revenues into infrastructure and destination development.

Without such a strategy, the council warns that new levies risk further slowing growth, reducing visitor numbers and weakening one of the UK’s key export sectors during a pivotal phase of global Travel & Tourism recovery.

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