Research Shows That at Least £14 Billion Would Be Lost From the UK Economy If Daily Visitor Taxes Are Introduced

The World Travel & Tourism Council (WTTC), which represents the private sector in the Travel & Tourism industry, has published new research which highlights the damage that would be done to the UK economy if new visitor levies are introduced.

The research findings, conducted among 2,502 people by WTTC and research agency GSIQ between 7th and 11th February, have been released as the UK Government will tomorrow (Wednesday) end a consultation on whether Mayoral Strategic Authorities should be given powers to introduce tourism levies across England.

The research found that, of those interviewed in the largest visitor source markets to the UK – from the USA, France and Germany – 29% would consider alternative destinations or decide not to visit the UK if a tax of €10 was introduced.

A substantial drop in visitors to the UK would have a fundamental impact on the economy. In 2027, the reduction in visitor spend from all international source markets could amount to GBP £14.4billion if the tax were set at €10.

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

The research also finds that UK residents are reacting even more negatively to the threat of a levy than international visitors. Those certain to visit drop dramatically when asked about possible levies, with 39% of Brits saying they would consider somewhere else, or definitely not holiday in the UK, if the tax is set at £10.

The proposed visitor tax would likely affect families the most. 42% of international travellers and 46% of British respondents said it would be a big or very big issue for them when travelling as a family.

Recent WTTC data shows global Travel & Tourism GDP is forecast to have grown by 6.7% in 2025, while the UK is expected to have grown by just 4.3%, meaning UK growth is running at 36% below the global average.

Travel & Tourism supports around 4.5 million jobs in the UK, equivalent to roughly one in eight jobs nationwide, underlining the importance of maintaining competitiveness in a sector that plays a critical role in employment and regional growth.