The UK economy lost more than £2.2 billion in export revenue last year due to a sharp decline in international visitor spending, according to new research from the World Travel & Tourism Council (WTTC)
The WTTC’s 2025 Economic Impact Research (EIR) revealed that while the UK’s Travel & Tourism sector contributed £286 billion to the economy in 2024—3.9% higher than in 2019 and representing 10% of GDP—international visitor spend remained 5.3% below pre-pandemic levels at £40.3 billion.
This £2.2 billion shortfall in international spending is nearly equivalent to the £2.3 billion the government recently pledged to recruit 6,500 new teachers in England, and surpasses the £2.1 billion budgeted for improving schools across the UK.
The WTTC has blamed the UK government’s growing tax burden, increased red tape, and drastic cuts—over 40%—to VisitBritain’s marketing budget for the slump in international spend. The UK, already one of Europe’s most expensive travel destinations, now faces further barriers including the new Electronic Travel Authorisation (ETA) requirement, the removal of VAT-free shopping for tourists, rising Air Passenger Duty, and growing business taxes.
“These are not global headwinds—they are home-grown policy decisions, and they are directly harming the UK economy,” the WTTC said in a statement. The cuts to VisitBritain, in particular, are likely to hit regions outside London hardest, widening existing regional disparities.
While the government has shown ambition with plans to expand Heathrow, Gatwick, and Luton airports, and support for Europe’s first Universal theme park in the UK, the WTTC warns these projects may take years to yield benefits—and only if immediate barriers to travel are addressed.
WTTC President & CEO Julia Simpson issued a stark warning:
“Other European countries recognise the economic value of Travel & Tourism. In the UK, it’s being taken for granted. Overseas visitors now face pointless ETAs, a uniquely British air passenger tax, and no tax-free shopping. And with VisitBritain’s budget slashed, the government is actively damaging growth. The Prime Minister must step in—before this sector faces long-term decline.”
Globally, traveller spending has surged past pre-pandemic levels. But while other nations reap the rewards, the UK is at risk of falling further behind.
WTTC is calling on the UK government to take urgent action to:
- Reverse cuts to VisitBritain
- Reinstate tax-free shopping for international visitors
- Reconsider punitive travel taxes
- Invest in keeping the UK globally competitive
“The UK has the brand, the infrastructure, and global appeal,” Simpson added. “What it lacks is the political will to let Travel & Tourism flourish.”