WTTC Warns Visitor Levies Could Result in £14 Billion Loss for UK Economy, Significantly Impacting Tourism and Job Growth

Published on February 17, 2026

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The introduction of visitor levies in the UK could significantly harm its economy, according to new research published by the World Travel & Tourism Council (WTTC). The study, conducted by the WTTC in collaboration with the research agency GSIQ, surveyed 2,502 people between February 7 and 11, 2026. With the UK government set to conclude its consultation on whether to grant Mayoral Strategic Authorities the authority to implement tourism levies, the research findings serve as a stark warning about the potential economic repercussions of such a move.

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The study focused on key source markets for UK tourism, including the United States, France, and Germany, and revealed that 29% of respondents would either choose alternative destinations or decide against visiting the UK altogether if a €10 levy were introduced. This shift in travel behavior could lead to a substantial drop in the number of visitors, with long-term effects on the nation’s economy.

If the proposed tax were implemented, visitor spend could decrease by an alarming GBP £14.4 billion by 2027, which would be a severe blow to the UK economy. This significant reduction in tourism-related revenue could ripple across the economy, affecting sectors from hospitality to retail and transportation, and jeopardizing the livelihoods of millions who depend on the tourism industry.

The research also uncovered a stronger negative response from UK residents themselves. While international visitors expressed concerns about the levies, UK residents appeared even more inclined to abandon domestic travel. Nearly 39% of Britons said they would either reconsider their travel plans within the UK or opt for destinations abroad if the proposed £10 levy were enforced. This would further exacerbate the decline in domestic tourism, adding to the challenges faced by regional economies that rely heavily on tourist spending.

Families, in particular, would bear the brunt of the new levy. According to the research, 42% of respondents traveling with children viewed the levy as a significant barrier, with many indicating that it would deter them from planning trips within the UK. The potential impact on family tourism could lead to a decrease in visits to key destinations, from cultural sites to family-friendly attractions, further hurting businesses that cater to these types of visitors.

In addition to the findings on visitor levies, the research highlights the broader context of the UK’s tourism sector. While the global Travel & Tourism industry is forecast to grow by 6.7% in 2025, the UK’s growth is expected to lag behind at just 4.3%, a concerning figure that underscores the country’s competitive disadvantage. With the global tourism market outpacing the UK’s growth rate by nearly 36%, the imposition of visitor levies could further widen this gap, preventing the UK from capitalizing on global growth opportunities.

Gloria Guevara, WTTC’s President and CEO, said:

“Our research couldn’t be any clearer – proposed visitor taxes would lead to a slump in international visitor numbers to the UK, as well as far fewer domestic visitors to popular English destinations. Billions of pounds will be wiped from the UK economy, leading to much higher unemployment, especially among small shops, restaurants and suppliers to the hospitality sector.”

Travel & Tourism is a vital sector for the UK, supporting approximately 4.5 million jobs – nearly one in eight jobs across the country. This highlights the importance of maintaining a competitive edge in the industry, which is instrumental in driving employment, economic growth, and regional development. The introduction of tourism taxes could undermine these efforts, particularly as the country seeks to recover and thrive post-pandemic.

The WTTC’s research calls for careful consideration of the proposed visitor levies, urging policymakers to recognize the potential harm they could inflict on an already fragile sector. As the UK continues to recover from the global pandemic, the need for a strong and competitive tourism industry has never been more crucial. Ensuring that the UK remains an attractive destination for both international visitors and domestic travelers is key to the nation’s economic resilience.

In conclusion, the introduction of tourism levies threatens to hurt the UK’s tourism industry by deterring visitors, undermining economic growth, and potentially leading to a reduction in jobs. As the government prepares to make decisions on this issue, it is essential to weigh the long-term consequences on the sector and the broader economy.