WTTC Warns UK Risks Losing Global Tourism Edge Amid Policy Failures:

WTTC Warns UK Risks Losing Global Tourism Edge Amid Policy Failure

The World Travel & Tourism Council (WTTC) has warned that the UK lost more than £2.2BN worth of exports as international visitors’ spending nosedived last year, compared to 2019, as the UK government continues to pile on taxes, red tape and slashes the budget of VisitBritain, the UK’s marketing arm.

According to WTTC’s 2025 Economic Impact Research (EIR):

• The sector contributed £286BN to the UK economy last year, 3.9% ahead of 2019, accounting for 10% of total UK GDP.

• Jobs in Travel & Tourism supported 4.2MN livelihoods last year, but still below 2019 levels.

Yet despite this, international visitor spend remains 5.3% below pre-pandemic levels at £40.3BN, representing a staggering £2.2BN loss to the economy—almost equivalent to:

• The £2.3BN announced by the government to recruit 6,500 new teachers in England

• And more than the £2.1BN to improve schools across the UK

The global tourism body says the UK is already one of the most expensive destinations in Europe, and now faces additional hurdles:

• The recently announced ETA

• Lack of VAT-free shopping

• Rising business taxes

• Increased Air Passenger Duty

• Over 40% budget cuts to VisitBritain

These cuts reduce the likelihood that regions outside London will receive the support they need to attract tourists, worsening regional inequality.

“These are not global pressures. They are deliberate policy choices. And they’re costing the UK economy.”

While the government has endorsed ambitious projects like Europe’s first Universal theme park in the UK and airport expansions at Heathrow, Gatwick, and Luton, WTTC warns these will only deliver real benefits years from now—and only if current barriers to travel are removed.

Call to Action to Prime Minister Starmer

WTTC urges Prime Minister Keir Starmer to recognise the growth value of tourism, a private sector success story, for the economy and employment.

Julia Simpson, WTTC President & CEO, said:

“Other European countries see the economic value of Travel & Tourism but in the UK, it’s taken for granted. Now the government is actively damaging growth.
Valuable overseas visitors now face pointless ETAs, a UK-only tax on air passenger duty, and no tax-free shopping.
And now the government has slashed VisitBritain’s budget. The Prime Minister needs to lead this, not commit it to death by a thousand cuts from the Treasury.
The government is risking Travel & Tourism’s stagnation and long-term decline, without targeted action and investment.
Globally, travellers are spending more than ever before, while other countries are benefitting. The loss of regional support is particularly concerning.”

The Clock is Ticking

As global tourism surges, the UK is undermining its own growth. The latest data exposes a widening gap between what the UK’s Travel & Tourism sector could deliver, and what it’s enabled to deliver.

WTTC is calling on the UK Government to:

• Reverse cuts to VisitBritain

• Restore tax-free shopping for international visitors

• Rethink punitive travel taxes

• Invest in keeping the UK globally competitive

“The world is travelling again and spending more than ever before. If the UK wants a share of the pie, it must stop sabotaging its own success.
The UK has the brand, the appeal, and the infrastructure. What it lacks is political will to allow Travel & Tourism to thrive.”

Source: WTTC – 23 April 2025