WTTC cautions UK against new visitor levies amid competitiveness concerns
The World Travel & Tourism Council (WTTC) has cautioned against introducing new local visitor levies in England, warning that additional costs and fragmented local policies could reduce job creation and weaken the UK’s competitiveness as the sector continues to trail the global recovery.
The warning comes as the UK government consults on proposals to allow Mayoral Strategic Authorities to introduce overnight visitor levies. According to WTTC analysis, the UK is already underperforming compared with global peers, and new charges on visitors are likely to add pressure rather than address existing challenges. Small and medium-sized enterprises, including independent hotels, restaurants and local retailers, are expected to be among the most affected.
WTTC data shows that global Travel & Tourism GDP is forecast to grow by 6.7% in 2025, while the UK is expected to grow by 4.3%, placing it 36% below the global average. The sector supports around 4.5 million jobs in the UK, representing roughly one in eight jobs nationwide, underlining its role in employment and regional economies.
Over the past four years, Travel & Tourism has accounted for one in three new jobs created globally. WTTC warns that policies such as visitor levies could jeopardise future job growth in the UK, as travellers may increasingly opt for destinations without such charges.
The UK currently ranks 113th out of 119 countries for price competitiveness, according to the World Economic Forum’s 2024 Travel & Tourism Development Index. The ranking reflects the cumulative impact of taxes, operating costs and administrative requirements on visitors.
Commenting on the proposals, WTTC President and CEO Gloria Guevara said new visitor levies could slow growth, limit job creation and reduce the UK’s appeal to travellers and investors. WTTC research indicates that travellers are becoming more price-sensitive, with cost and value for money increasingly influencing destination choices.
WTTC also expressed concern that devolving levy powers to individual cities or regions could create a fragmented and uncertain policy environment. Its analysis suggests that local visitor taxes may increase revenue but often fail to address underlying infrastructure or capacity issues without a clear national strategy and a reinvestment framework.
WTTC has advised policymakers to reconsider introducing new visitor levies in England and instead focus on improving the UK’s competitiveness. This includes reducing the cost burden on visitors, maintaining a consistent national policy environment, and ensuring that existing tourism revenues are reinvested into destinations, infrastructure and local communities.
Leave a comment