WTTC warns of £14bn economic impact from potential UK visitor taxes

International

New research points to reduced international and domestic travel demand if daily levies are introduced

The World Travel & Tourism Council (WTTC) has published new research indicating that at least £14 billion could be lost from the UK economy should daily visitor taxes be implemented. The findings were released as the UK Government concludes its consultation on granting Mayoral Strategic Authorities the power to introduce tourism levies across England.

The study, conducted by WTTC in partnership with research agency GSIQ between 7 and 11 February among 2,502 respondents, examined traveller reactions across key inbound markets and within the UK.

International demand at risk

According to the research, 29 percent of respondents from the United States, France, and Germany – three of the UK’s largest visitor source markets – stated they would consider alternative destinations or opt not to travel to the UK if a €10 visitor tax were introduced.

WTTC estimates that a levy at this level could lead to a reduction in international visitor spending of approximately £14.4 billion by 2027, reflecting the potential economic consequences of declining demand.

“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,” said Gloria Guevara, WTTC’s President and CEO. “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.”

Domestic travel intentions also affected

The research suggests that UK residents may respond even more negatively to the prospect of visitor levies. When presented with a potential £10 tax, 39 percent of British respondents indicated they would consider travelling elsewhere or avoid domestic holidays altogether.

Families appear particularly sensitive to the proposed charges. Forty-two percent of respondents described such a levy as a significant issue when travelling with family members.

Competitiveness concerns highlighted

WTTC notes that global Travel & Tourism GDP growth is projected to have reached 6.7 percent in 2025, while UK growth is estimated at 4.3 percent. The organisation argues that additional visitor costs could further affect the UK’s competitive position.

Travel & Tourism currently supports approximately 4.5 million jobs across the UK, equivalent to around one in eight jobs nationwide.

Further information is available at wttc.org.