February 19, 2025
Investment

UK tourism ‘failing’ as high taxes and ‘lack of investment’ put off visitors


The World Travel and Tourism Council has warned that the UK is expected to have one of the lowest growth rates in overnight international arrivals among major tourist destinations

Albert Embankment and Westminster Bridge, London
High taxes and a lack of investment are deterring tourists from visiting the UK, ministers have been warned

High taxes and a lack of investment are discouraging tourists from visiting the UK, ministers have been warned.

The World Travel and Tourism Council (WTTC) has cautioned that without action, the UK’s travel and tourism industry could miss out on up to £60bn of gross domestic product output over the next decade.

The London-based organisation commissioned a report by Oxford Economics which found that the UK is expected to have one of the lowest growth rates in overnight international arrivals among major tourist destinations. The study predicted an annual increase in arrivals from 2024 to 2029 of just 3.0% for the UK, compared with 4.9% for Spain, 5.7% for Italy, 7.4% for Japan and 9.1% for Australia.

The WTTC highlighted several factors hampering UK travel and tourism businesses, including the increase in National Insurance, a VAT rate higher than the European average, increases in Air Passenger Duty, the introduction of a £10 digital permit scheme for international visitors without a visa, and the refusal to resume tax-free shopping for international visitors.

It also claimed that VisitBritain, responsible for promoting the UK as a tourist destination, is “seriously underfunded” compared to its global competitors, many of which “receive double the government investment”.

Sir Chris Bryant, the minister for creative industries, arts and tourism, is set to co-chair the inaugural session of the Government’s Visitor Economy Advisory Council this Monday. The newly established council aims to unite industry bosses with Government officials to bolster tourism growth.

Among the high-profile attendees will be Julia Simpson, WTTC president and former adviser to Sir Tony Blair during his tenure as prime minister. She commented: “The UK is at a critical juncture. The Government is looking for growth, and its travel and tourism sector offers just that.

“As one of the country’s largest employers alongside the NHS, contributing £280 billion to the UK economy last year, the sector has been misunderstood and poorly treated by successive governments.

“The Government cannot tax its way out of debt, it needs to invest to grow. UK taxes are higher than many of its competitors, making the UK expensive to operate in and expensive to visit.”

She warned against complacency, saying it is “arrogant to think tourists will always come to the UK” and urged the Government to seize “a unique opportunity to change the trajectory of travel and tourism” in Britain.

A Government spokesperson responded, affirming their commitment: “We are committed to supporting the UK’s world class tourism industry to flourish as we drive forward with our Plan for Change to deliver a decade of national renewal.

“That is why in November we announced our ambition to reach 50 million visitors to the UK each year by 2030, and we’ve established the Visitor Economy Advisory Council to co-create a growth strategy for the sector, to be launched this autumn.

“We’re pleased that the WTTC will play a key role in the council alongside other industry leaders to help co-create the strategy and support the growth of UK tourism.”



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *