UK’s Tourism at Risk: WTTC Warns New Visitor Levy Could Crush Jobs, Growth, and Global Competitiveness!

Published on February 15, 2026

The World Travel & Tourism Council (WTTC) has raised alarm over proposed visitor levies in the UK, cautioning that the move could significantly harm the country’s tourism growth, reduce job opportunities, and diminish its global competitiveness. The warning comes at a time when the UK government is considering allowing regional authorities to impose overnight visitor charges as part of a wider strategy to boost local economies and tourism infrastructure. However, tourism industry leaders are concerned that these additional costs could drive visitors away, especially at a time when recovery from the pandemic remains a top priority.

Tourism is an essential part of the UK economy, supporting around 4.5 million jobs and generating billions in revenue annually. Cities such as London, Edinburgh, and Manchester are highly dependent on international tourists, and the revenue from these visitors helps support a range of local businesses from hotels and restaurants to attractions and transport services. However, the proposal to impose overnight visitor levies on stays in commercial accommodation has raised concerns that it could lead to reduced demand for UK travel, particularly in the highly competitive global tourism market.

The UK government’s consultation on the matter, which is set to close soon, seeks to explore the introduction of a visitor levy for overnight stays, giving mayors in major cities and regions the power to decide on the implementation of this tax. This proposal is modeled on schemes used in other global tourist destinations, such as New York and Paris, where similar levies have been used to fund local projects, including infrastructure and public services. However, the UK’s unique market conditions and its ongoing recovery from the pandemic make this approach a controversial one.

According to WTTC research, the UK already ranks poorly in terms of price competitiveness, sitting at 113th place globally. The introduction of additional charges would only exacerbate this disadvantage, making the UK an even less attractive option for tourists when compared to its European counterparts. With global tourism growing at a rapid pace, the UK risks falling behind in the race for international visitors. Furthermore, WTTC highlights that the current economic climate—where travellers are more price-sensitive than ever before—could lead to fewer visitors, particularly those coming for short stays, such as city breaks, which are most vulnerable to price increases.

The visitor levy proposal also raises concerns about its impact on small and medium-sized businesses (SMEs). Independent hotels, restaurants, and other local attractions are expected to bear a disproportionate share of the financial burden. These smaller enterprises are more sensitive to fluctuating visitor numbers, and any decline in tourists could disproportionately affect their bottom line. This could also lead to job losses in sectors heavily reliant on international tourism, further exacerbating the already challenging economic environment.

On the other hand, proponents of the levy argue that it could generate vital funding for maintaining local infrastructure and services, which in turn would improve the overall visitor experience. By reinvesting the funds into public transport, parks, and cultural attractions, the government suggests that local economies could benefit from a more sustainable and well-maintained tourism ecosystem.

Despite these arguments, WTTC’s concerns are clear: without careful planning and consideration of the broader economic implications, the levy could undermine the very industry it seeks to support. According to WTTC President & CEO Gloria Guevara, tourism remains one of the fastest-growing industries globally. If the UK introduces visitor levies, it risks alienating tourists who could instead choose more affordable destinations, putting the nation’s tourism sector at a severe disadvantage.

WTTC is urging policymakers to focus on enhancing the UK’s global competitiveness by reducing the overall cost burden on travellers, improving the efficiency of the sector, and ensuring that any new tax or fee is implemented transparently and consistently across the country. Rather than fragmenting policies by allowing local governments to introduce their own levies, WTTC advocates for a more coordinated national approach that prioritises sustainable growth and long-term investment in the tourism sector.

As the government considers the introduction of the visitor levy, stakeholders in the UK’s tourism industry are calling for a more comprehensive strategy to ensure that the UK remains an attractive destination for international visitors. The focus should be on improving infrastructure, reducing travel barriers, and providing a seamless experience for visitors rather than burdening them with additional costs.

The final decision on whether to move forward with the visitor levy will have far-reaching consequences for the UK’s tourism sector. Industry leaders and local businesses alike are hoping that the government will take a step back and carefully consider the long-term impacts of such a decision. The last thing the UK needs is to stifle its recovery by introducing policies that may turn tourists away and reduce the sector’s ability to generate economic growth and create jobs.

As the consultation deadline approaches, tourism stakeholders are left waiting for a resolution that will shape the future of the UK’s tourism sector. The outcome of this consultation could either foster a new era of tourism growth or create significant challenges for an industry that is already struggling to regain momentum after the pandemic. The government must now weigh the potential benefits of the levy against the long-term risks of diminishing the appeal of one of the world’s most iconic tourist destinations.