UK Tourism Loses Billions as International Visitation Spending Declines

Last updated: 3:15 PM ET, Wed April 23, 2025

International visitation to the United Kingdom declined sharply last year, losing nearly $3 billion compared to peak tourism revenues in 2019.

The news, reported by the World Travel & Tourism Council, comes at a time when the UK has been increasing taxes and has simultaneously reduced the budget of VisitBritain, which is the country's tourism marketing arm.

According to WTTC's 2025 Economic Impact Research (EIR), international visitation contributed about £286BN to the UK economy last year, which is 3.9 percent ahead of 2019.

Additionally, international visitation accounted for 10 percent of the UK's total GDP, while travel and tourism jobs supported 4.2 million livelihoods last year.

"Yet despite this, international visitor spend remains 5.3 percent below pre-pandemic levels at £40.3 billion, representing a staggering £2.2 billion loss to the economy," the WTTC said in a statement today.

The revenue loss from international visitation is nearly equivalent to the £2.3 billion announced by the government to recruit 6,500 new teachers in England, and the more than the £2.1 billion to improve schools across the UK.

Making matters worse, the UK is already one of the most expensive destinations in Europe, according to the WTTC.

The decline in international visitors could be further exacerbated by the UK's recently announced electronic travel authorization (ETA) process for international visitors, as well as its lack of VAT-free shopping. Air passenger duties have also been increased.

At the same time all of these changes have been unfolding, VisitBritain's budget has been cut by more than 40 percent, which the WTTC is likely to hamper growth in visitation for the country.

"These cuts mean it's even less likely that regions outside London will get the support they need to attract more tourists, exacerbating regional inequality," the WTTC added.

"These are not global pressures. They are deliberate policy choices. And they're costing the UK economy," the statement continued.

The WTTC urged UK Prime Minister Starmer to recognize "the growth value of tourism, a private sector success story, to the economy and jobs."

"Other European countries see the economic value of travel and tourism but in the UK, it's taken for granted," Julia Simpson, WTTC president & CEO said in a statement.

"Now the government is actively damaging growth. Valuable overseas visitors now face pointless ETAs, a UK-only tax on air passenger duty, and no tax -free shopping," Simpson added. "And now the government has slashed VisitBritain's budget. The Prime Minister needs to lead this, not commit it to death by a thousand cuts from the Treasury."

WTTC is calling on the UK Government to take several specific actions, including:

Reverse cuts to VisitBritain
Restore tax-free shopping for international visitors
Rethink punitive travel taxes
Invest in keeping the UK globally competitive

"The world is traveling again and spending more than ever before. If the UK wants a share of the pie, it must stop sabotaging its own success," WTTC said.