United Kingdom’s Travel Sector Trails Europe as Spain, Germany, and Italy Outperform in Tourism Growth : What more you need to know?

Friday, January 24, 2025 The World Travel & Tourism Council (WTTC) has issued a strong caution to the UK Government, warning of potential stagnation and a long-term downturn in the country’s tourism sector. The announcement came ahead of the inaugural meeting of the Visitor Economy Advisory Council , aimed at addressing challenges in the UK’s travel and tourism landscape. With £60 billion in tourism revenue at risk over the next decade, the WTTC emphasized the urgency of proactive government intervention.

The UK’s travel and tourism industry plays a vital role in the nation’s economy. In 2024, the sector accounted for £280 billion , representing 10.3% of GDP , and directly supported 4.

1 million jobs , comparable to the workforce size of the NHS. Additionally, tourism generated approximately £100 billion in annual tax revenues . Despite its significance, the sector has suffered from limited government investment and a lack of comprehensive policies, leaving it lagging behind other European competitors like Spain, Germany, and Italy .

While global travel and tourism are projected to grow at an annual rate of 3.7% over the next decade, the UK faces one of the slowest growth rates in international overnight arrivals among major European destinations. High VAT rates , increased Air Passenger Duty (APD) , and a planned hike in the Electronic Travel Authorization (ETA) fee from £10 to £16 per visitor have further discouraged international travelers.

These financial barr.