Skip to content
Search

Latest Stories

Travel body blames government for harming UK tourism growth

Industry leaders will be watching closely to see whether future policies reverse the barriers

UK Tourism Growth Hit by Government Policies, Says Travel Body

UK remained one of the world’s most‑visited countries

Getty

The World Travel and Tourism Council (WTTC) has accused the UK government of “sabotaging” the country’s tourism sector after international visitor spending fell by over £2 billion in 2024 compared with pre‑pandemic levels. In a new WTTC study, visitors to the UK spent £40.3 billion last year—a 5.3 per cent decline on the £42.6 billion recorded in 2019.

The WTTC, which represents the global travel and tourism private sector, said ministers had made “deliberate policy choices” that erected “barriers to travel” and discouraged high‑value tourists. Policies cited include the removal of tax‑free shopping, rising air passenger duty (APD) rates and the introduction—and subsequent fee increase—of the electronic travel authorisation (ETA) scheme for non‑UK nationals.


Julia Simpson, president of the WTTC and former adviser to Sir Tony Blair, said that while the government professed to back economic growth, it was failing to support a sector that contributes 10 per cent of UK GDP and supports millions of jobs. “We’ve not got back to where we need to be [on spending by international visitors] whereas the rest of the world has,” she said. “This government is all about growth. Yet here we have a private‑sector enterprise, travel and tourism, contributing 10 per cent of UK GDP, creating jobs, but we are not prioritising it in any way. We are sabotaging ourselves.”

Retail leaders have also warned that scrapping the VAT Retail Export Scheme (tax‑free shopping) has put the UK at a “competitive disadvantage for global shoppers”. The WTTC highlighted comments from senior figures at luxury brand Burberry, who noted that tourists now spend elsewhere in Europe, where tax refunds remain available.

Simpson further criticised a 44 per cent cut to VisitBritain’s promotional budget. On 1 April 2025, the government reduced the destination‑marketing body’s “Great Britain and Northern Ireland” campaign funding from £18.85 million to £10.57 million in the same week that APD rose and the £10 ETA fee was imposed on all European visitors (excluding Irish nationals). The ETA fee has since increased to £16.

“You need to sell the UK,” Simpson said. “It’s really important that you create stories about the UK so that international visitors come to all our regions. You need to sell Harry Potter. You need to sell Jane Austen. You need to sell Richard III.”

In response, a government spokesperson said VisitBritain’s campaigns “remain an effective tool driving economic growth”. They pointed out that the UK remained one of the world’s most‑visited countries and that international tourism injected billions into the economy. The spokesperson added that ministers would publish a national visitor economy strategy this autumn to help achieve the target of welcoming 50 million international visitors a year by 2030.

Alongside its spending figures, the WTTC study, produced with Oxford Economics, reported that the travel and tourism sector contributed £286 billion to the UK economy in 2024, up 3.9 per cent on 2019. This growth outpaced overall economic expansion over the same period, underscoring the sector’s importance to post‑pandemic recovery.

The WTTC’s findings mirror broader concerns about the health of the UK high street. While retail parks experienced a small net increase in chain outlets last year, high streets and shopping centres continued to decline, losing around 30 per cent and 25 per cent of chain stores respectively over the past decade.

Zelf Hussain, Restructuring Partner at PwC UK, warned that rising payroll costs and higher business rates—introduced in April—would further squeeze profit margins for high‑street retailers and hospitality businesses that cater to visitors. “The challenges facing the retail and tourism sectors are intertwined,” he said. “Unless policy supports growth and investment, the UK risks losing its share of the global tourism market.”

As the government prepares its national visitor economy strategy, industry leaders will be watching closely to see whether future policies reverse the barriers that the WTTC says are holding back one of the UK’s largest economic sectors.

More For You

Badenoch says Tories must work hard to win May polls

Kemi Badenoch

Badenoch says Tories must work hard to win May polls

Simon Finlay

CONSERVATIVE leader Kemi Badenoch made her second visit to Kent in six weeks, declaring her party can cling onto power at the county council elections on May 1.

However, Badenoch, who was in the county on Tuesday (22) to meet a farmer impacted by the government’s changes to inheritance tax, insisted “we are going to have to work hard for it”. Eighty one seats are up for grabs at Kent County Council (KCC) next week.

Keep ReadingShow less
UK-Parliament-iStock

The sanctions target politicians across parties who have supported calls for frozen Russian assets to be used to aid Ukraine. (Photo: iStock)

iStock

Russia bans 15 UK MPs and six peers over Ukraine remarks

RUSSIA has imposed sanctions on 15 British MPs and six members of the House of Lords, citing “hostile statements and unfounded accusations” about Moscow.

The move was announced by Russia’s foreign ministry in a statement accusing the UK of “fabricating anti-Russian narratives” and trying to “demonise” the country, The Guardian reported.

Keep ReadingShow less
Wexham Hall sale sparks bidding war between Council and Hindu group

Wexham Hall sale sparks bidding war between Council and Hindu group

Nick Clark

WEXHAM COURT PARISH COUNCIL said it wants to redevelop its hall into a community hub – but faces competition from a Hindu group that wants to buy the building.

Slough Borough Council owns the hall and leases it to the parish council.

Keep ReadingShow less
Royal College of Physicians welcomes first Asian president

Dr Mumtaz Patel

Royal College of Physicians welcomes first Asian president

DR MUMTAZ PATEL has been elected as the 123rd president of the Royal College of Physicians (RCP), which represents 40,000 members around the world.

Born in Lancashire to Indian migrant parents, Patel is a consultant nephrologist who is based in Manchester.

Keep ReadingShow less
 Yvette Cooper

Home secretary Yvette Cooper has instructed officials to release the data, which includes the types of crimes committed.

Getty Images

Foreign criminals’ data to be released by year-end

THE UK government will publish the nationalities and offences of foreign criminals for the first time by the end of the year.

Home secretary Yvette Cooper has reportedly instructed officials to release the data, which includes the types of crimes committed.

Keep ReadingShow less