WTTC warns of £14bn loss from UK visitor tax

 

New research from the World Travel & Tourism Council (WTTC) highlights the potential UK visitor tax impact, estimating that at least £14 billion could be lost from the UK economy if daily visitor levies are introduced. The findings indicate that billions of pounds could “disappear from the economy” as international visitor numbers decline, triggering wider economic consequences.

The research, conducted among 2,502 respondents by WTTC and research agency GSIQ between 7 and 11 February, was released as the UK Government prepares to conclude a consultation on whether Mayoral Strategic Authorities should be granted powers to introduce tourism levies across England.

 According to the study, 29% of respondents in the UK’s largest visitor source markets – the United States, France and Germany – would consider alternative destinations or decide not to visit the UK if a 10 euros tax were introduced. The projected UK visitor tax impact in 2027 could result in a reduction in international visitor spending of up to £14.4 billion if the levy were set at 10 euros.

“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.” said Gloria Guevara, President and CEO of WTTC.

The research also indicates a strong reaction among UK residents. When asked about the potential introduction of a £10 levy, 39% of British respondents stated they would consider travelling elsewhere or would definitely not holiday in the UK. The findings suggest the UK visitor tax impact would extend beyond inbound travel to domestic tourism flows.

Families are expected to be disproportionately affected. The survey found that 42% of international travellers and 46% of British respondents described a potential visitor tax as a big or very big issue when travelling as a family.

 Recent WTTC data shows that global Travel & Tourism GDP is forecast to grow by 6.7% in 2025. In comparison, UK growth is expected to reach 4.3%, placing it 36% below the global average. The UK visitor tax impact, according to WTTC, would add further pressure to a sector already growing at a slower rate than the global market.

Travel & Tourism currently supports approximately 4.5 million jobs across the UK, equivalent to around one in eight jobs nationwide. The sector plays a significant role in employment and regional economic activity, with small and medium-sized enterprises forming a substantial part of the supply chain.

Tags: Gloria Guevara, WTTC United Kingdom (UK)