UK Faces £14bn Economic Blow from Proposed Tourist Tax, Warns WTTC
At least £14 billion could be lost from the UK economy if daily tourist taxes are introduced, according to a stark new report. The World Travel & Tourism Council (WTTC) has published research highlighting the severe damage that would result from imposing a proposed €10 (approximately £9) levy on visitors. The findings indicate that billions of pounds would be wiped from the economy as international visitor numbers decline sharply, triggering a domino effect of tens of thousands of job losses across the country.
Visitor Numbers and Spending at Risk
The research, conducted among 2,502 people by WTTC and research agency GSIQ between February 7 and 11, shows that many Brits and international tourists would consider holidaying elsewhere if such a tax were implemented. In the largest visitor markets to the UK—including the USA, France, and Germany—29 per cent of those surveyed would either consider alternative destinations or decide not to visit the UK if the €10 tax was introduced. This substantial drop in visitors would have a fundamental impact on the economy, with travel to the UK taking a huge hit if the levy is put in place.
By 2027, the reduction in visitor spend from all international source markets could total £14.4 billion if the tax is set at €10. Gloria Guevara, WTTC's president and CEO, emphasized the gravity of the situation, stating: '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.'
Domestic and International Reactions
The study also found that UK residents are reacting even more negatively to the threat of a levy than international visitors. When asked about possible levies, those certain to visit drop dramatically, with 39 per cent of Brits saying they would consider somewhere else or definitely not holiday in the UK if the tax is set at that amount. Families are likely to be the most affected, as 42 per cent of interviewees indicated it would be 'a big issue or very big issue' when travelling as a family.
Economic Context and Employment Impact
Recent WTTC data shows that global Travel & Tourism GDP is forecast to have grown by 6.7 per cent in 2025, while the UK is expected to have grown by just 4.3 per cent, meaning UK growth is running below the global average. Travel and tourism support around 4.5 million jobs in the UK, equivalent to roughly one in eight jobs nationwide, underlining the critical role of the sector in employment and regional growth. The proposed tax could exacerbate this disparity, leading to significant economic consequences and job losses.
This research comes as the UK Government is set to end a consultation on Wednesday on whether Mayoral Authorities should be given powers to introduce tourism levies across England. The findings serve as a warning about the potential risks of such policies, highlighting how a tourist tax could undermine the UK's economic recovery and competitiveness in the global travel market.
