The World Travel & Tourism Council (WTTC) has warned that the UK’s tourism sector lost over £2.2 billion (US$2.9 billion) in international revenue in 2024, primarily due to government-imposed barriers. These barriers, including rising taxes, increased red tape, and substantial cuts to VisitBritain’s budget, have contributed to a 5.3% drop in visitor spending compared to 2019.
According to WTTC’s 2025 Economic Impact Research (EIR), the tourism sector still contributed £286 billion to the UK economy last year, accounting for 10% of GDP and supporting 4.2 million jobs. However, international visitor spend totalled £40.3 billion – well below pre-pandemic levels, resulting in a £2.2 billion shortfall.
WTTC President & CEO, Julia Simpson, criticised the UK government’s handling of the sector, stating, “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.” She cited the introduction of the Electronic Travel Authorisation (ETA), lack of VAT-free shopping, increasing Air Passenger Duty, and cuts to VisitBritain’s funding as key factors undermining the country’s tourism competitiveness.
Simpson also highlighted the negative impact on regions outside London, warning that the lack of investment in regional tourism marketing could exacerbate regional inequality. She added, “The loss of regional support is particularly concerning,” stressing the need for targeted investment.
WTTC is calling on the UK government to reverse the cuts to VisitBritain, restore tax-free shopping, and rethink punitive travel taxes to ensure the UK remains competitive in the global tourism market.