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UK Economy Suffers £2.2BN Loss from International Travel, Amid Government Policies Criticised by WTTC – Image Credit Unsplash+
The World Travel & Tourism Council (WTTC) reports that the UK economy suffered a loss of more than £2.2 billion due to a decline in international visitor spending last year compared to 2019. The council attributes the drop to policy decisions, including increased taxes and budget cuts to VisitBritain.
According to the World Travel & Tourism Council (WTTC), the UK economy saw a £2.2 billion decrease in revenue from international tourism last year compared to 2019. In its 2025 Economic Impact Research (EIR), the WTTC highlighted this substantial loss, associating it with various policy decisions by the UK government, including increased taxes and budget cuts to VisitBritain, the country’s tourism marketing agency.
Despite a 3.9% growth in the travel and tourism sector, which contributed £286 billion to the UK economy and accounted for 10% of the total GDP last year, international visitor spending remained 5.3% below pre-pandemic levels, totalling £40.3 billion.
This represents a significant £2.2 billion loss to the economy, almost equivalent to the £2.3 billion announced by the government for recruiting 6,500 new teachers in England and higher than the £2.1 billion allocated for school improvements across the UK.
The WTTC warns that the UK, already one of the costliest destinations in Europe, risks further hampering growth in 2025 due to recently announced Electronic Travel Authorization (ETA) requirements, the abolition of VAT-free shopping, escalating business taxes, and an increase in Air Passenger Duty. Other hindrances include more than 40% cuts to VisitBritain’s budget, which will likely exacerbate regional inequality by decreasing support for regions outside London to attract more tourists.
The WTTC’s concerns extend to the government’s recent endorsement of Europe’s first Universal theme park in the UK and plans to expand Heathrow, Gatwick, and Luton airports. While these projects signal broader ambitions, the global tourism body warns that their benefits will only materialise years from now and only if the barriers to travel are lifted.
WTTC’s President and CEO, Julia Simpson, has urged Prime Minister Starmer to acknowledge tourism as a private sector success story and its potential for economic and job growth. Simpson criticises the government for damaging growth through unnecessary ETAs, a UK-only tax on air passenger duty, and the cessation of tax-free shopping. Simpson warns that without targeted action and investment, the UK risks a long-term decline in travel and tourism.
The WTTC is calling on the UK government to reverse VisitBritain’s budget cuts, restore tax-free shopping for international visitors, rethink punitive travel taxes, and invest in keeping the UK competitive globally. The council warns that without a change in course, the UK risks falling even further behind as global tourism increases.
