Tourexpi
UK Economy Loses More Than £2.2BN from International Traveller Spend, reveals WTTC
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 that the UK is already one of the most expensive destinations in Europe and the recently announced ETA, lack of VAT-free shopping, growing business taxes, increasing Air Passenger Duty, and now cuts of more than 40% to VisitBritain’s budget will all hamper growth in 2025. These cuts mean it’s even less likely that regions outside London will get the support they need to attract more tourists, exacerbating regional inequality. These are not global pressures. They are deliberate policy choices. And they’re costing the UK economy. Whilst the government’s recent endorsement of Europe’s first Universal theme park in the UK, and plans to expand Heathrow, Gatwick, and Luton airports, signal broader ambitions, WTTC warns these projects will only deliver real benefits years from now and only if the barriers to travel are lifted. WTTC urges Prime Minister Starmer to recognise the growth value of tourism, a private sector success story, to the economy and jobs. Julia Simpson, WTTC President & CEO warned, "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. Without dedicated marketing and investment, regions outside London will struggle even more to attract international tourists, despite their huge untapped potential.”
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. Without urgent course correction, WTTC warns the UK risks falling even further behind.
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.
Picture Credit: © WTTC
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