The UK tourism sector faces a £60 billion loss due to high taxes and lack of investment, prompting urgent calls for government action to attract visitors.
London: The UK’s travel and tourism industry is in a bit of a pickle. High taxes and not enough investment are making it tough to attract visitors. If things don’t change, we could miss out on a whopping £60 billion over the next decade.
A report from the World Travel and Tourism Council (WTTC) highlights how the UK is lagging behind other countries. It shows that our growth in international visitors is expected to be pretty slow compared to places like Spain and Australia.
From 2024 to 2029, we’re looking at just a 3% increase in visitors. Meanwhile, Spain is set to see nearly 5% growth. What’s holding us back? Well, there are a few things. National Insurance contributions are up, VAT is higher than in many European countries, and Air Passenger Duty has also increased.
Plus, there’s a new £10 digital permit for international visitors without a visa, and the government still hasn’t brought back tax-free shopping for tourists. The WTTC even called out VisitBritain for being underfunded compared to other countries’ tourism boards.
In light of these issues, Sir Chris Bryant is stepping up to lead a new Visitor Economy Advisory Council. This group aims to unite tourism leaders and government officials to find ways to boost the industry. Julia Simpson from the WTTC will be there too, and she’s stressing how urgent this situation is.
She pointed out that tourism is a huge part of the UK economy, contributing £280 billion last year. Yet, it seems like the government hasn’t given it the attention it deserves. Simpson believes that the government can’t just keep raising taxes and expects things to improve. They need to invest in the sector instead.
She warned that it’s a bit naive to think tourists will always choose the UK. The government has a real chance to turn things around for tourism, but they need to act fast.
A government spokesperson said they’re committed to supporting the tourism industry and have plans to attract 50 million visitors annually by 2030. They’re also working with the new advisory council to create a solid strategy for growth.
While the government is on board, industry experts are saying we need urgent action. Without it, the UK risks losing its spot as a top destination for international travelers, which could have long-term effects on our economy.
