UK Visitor Tax Could Kill $18 Billion in Tourism Revenue: WTTC

Travel agents selling UK destinations should take note of a stark new warning from the World Travel & Tourism Council: proposed visitor levies in England could trigger a significant drop in both international and domestic tourism, with serious consequences for the travel trade.

New research published by the WTTC on February 17 found that a roughly $10.50 daily visitor tax could wipe more than $18 billion from the UK economy by 2027, as travellers from key source markets — the US, France, and Germany — reconsider their plans. The survey, conducted among 2,502 respondents between February 7–11, was released just one day before the UK Government closed its consultation on whether Mayoral Strategic Authorities should be granted powers to introduce tourism levies across England.

For agents booking American, French, and German clients into the UK, the numbers are telling: 29% of respondents from those markets said they would consider alternative destinations or skip the UK entirely if faced with the proposed tax. And domestic demand looks even more fragile — 39% of British travellers said they would holiday elsewhere, or not at all, if hit with an equivalent levy.

Families are particularly price-sensitive. The research found that 42% of international travellers and 46% of British respondents said the tax would be a significant issue when travelling as a family — a segment that typically represents strong booking value for agents.

“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,” WTTC President and CEO Gloria Guevara said in a statement. “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.”

The backdrop makes the timing particularly concerning. While global Travel & Tourism GDP grew an estimated 6.7% in 2025, the UK trailed significantly at just 4.3% — already 36% below the global average. Adding a visitor levy, the WTTC warns, risks compounding that gap through a “domino effect” of job losses among SMEs, from independent restaurants and local shops to hospitality suppliers.

The UK’s travel sector is a major employer, supporting around 4.5 million jobs — roughly one in every eight positions nationwide. Any policy that puts bookings at risk has real implications not just for agents, but for the broader tourism ecosystem their clients rely on.

The full WTTC research is available at researchhub.wttc.org.

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