High taxes and a lack of investment are deterring tourists from visiting the UK, ministers have been warned.
Failure to take action could result in the UK’s travel and tourism industry missing out on up to £60 billion of gross domestic product output over the next 10 years, according to the World Travel and Tourism Council (WTTC).
The London-based organisation, which represents the sector, commissioned a report by consultancy Oxford Economics which found the UK is expected to have one of the lowest growth rates in overnight international arrivals among major tourist destinations.
The study’s forecast for the increase in annual arrivals from 2024 to 2029 was 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 said UK travel and tourism businesses are being hampered by factors such as:
– 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.
– The refusal to resume tax-free shopping for international visitors.
It also claimed VisitBritain – which is responsible for promoting the UK as a tourist destination – is “seriously underfunded” compared with its global competitors, many of which “receive double the government investment”.
Sir Chris Bryant, minister for creative industries, arts and tourism, will co-chair the first meeting of the Government’s Visitor Economy Advisory Council on Monday.
The council has been created to bring industry leaders and Government representatives together to support tourism growth.
Attendees will include Julia Simpson, who is president of the WTTC and was an adviser to Sir Tony Blair during his time as prime minister.
She said: “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.”
Ms Simpson said it is “arrogant to think tourists will always come to the UK”, adding that the Government has “a unique opportunity to change the trajectory of travel and tourism” in the country.
A Government spokesperson said: “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.”
