The UK tourism decline has resulted in a £2.2 billion loss to the economy due to a sharp drop in international visitor spending in 2024, according to a new report by the World Travel & Tourism Council (WTTC). Despite the sector contributing £286 billion to the UK economy—accounting for 10% of national GDP—international tourist spending remains 5.3% below pre-pandemic levels.
The WTTC’s 2025 Economic Impact Research (EIR) shows that although Travel & Tourism supported 4.2 million jobs in the UK last year, the industry is being held back by government-imposed barriers. These include the introduction of Electronic Travel Authorisations (ETA), the scrapping of VAT-free shopping, rising air passenger duties, and a 40% budget cut to VisitBritain, the UK’s tourism marketing body.
Tourism Spending Still Trails Pre-Pandemic Levels
International visitors spent £40.3 billion in 2024—£2.2 billion less than in 2019. This shortfall is nearly equivalent to the government’s £2.3 billion plan to hire new teachers or the £2.1 billion allocated for school improvements. The WTTC argues that these losses are not due to global trends but stem from deliberate UK policy decisions.
WTTC President & CEO Julia Simpson said, “Other European countries see the value of tourism, but in the UK, it’s being taken for granted. Now the government is actively damaging one of its biggest economic drivers through a mix of over-taxation and under-investment.”
Cuts to VisitBritain Threaten Regional Tourism
The WTTC warns that slashing VisitBritain’s budget undermines efforts to support tourism outside of London, further deepening regional inequality. Without sufficient marketing and investment, destinations across the UK are likely to miss out on the global tourism boom.
Although the government has backed high-profile projects such as Europe’s first Universal theme park and airport expansions at Heathrow, Gatwick, and Luton, these will take years to materialise and won’t offset the current policy damage unless barriers to travel are urgently addressed.
WTTC Calls for Immediate Action
WTTC is urging Prime Minister Keir Starmer and his government to implement the following changes to reverse the UK tourism decline:
• Reverse cuts to VisitBritain’s budget
• Restore VAT-free shopping for international tourists
• Reevaluate and reduce punitive travel taxes
• Invest in maintaining UK competitiveness in the global travel market
“The clock is ticking,” Simpson added. “The UK has the infrastructure, global brand, and appeal—it just lacks the political will to unlock its full tourism potential.”
As global travel spending hits record highs, the WTTC warns the UK risks falling behind unless swift action is taken to support the sector that could be a cornerstone of economic recovery.
