High taxes are putting tourists off from UK, ministers told
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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.
