WTTC says new UK tourism levies would 'dent growth'

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WTTC says new UK tourism levies would 'dent growth'

February 16, 2026

The World Travel & Tourism Council has warned against proposed overnight visitor levies in the UK, arguing they would fragment policy, reduce job creation and push tourists towards cheaper destinations. Olivia Palamountain reports

As the UK government consults on proposals to give Mayoral Strategic Authorities the power to introduce overnight visitor levies, the World Travel & Tourism Council (WTTC) has warned the charges risk diverting tourists to cheaper destinations. This comes at a time when UK tourism growth is already running 36% below the global average.

While global travel and tourism GDP grew by 6.75% in 2025, the UK managed just 4.3% – and the WTTC warns that proposed overnight visitor levies could widen that gap further.

The council points to the UK's existing price competitiveness problem as context: the country already ranks 113th out of 119 nations in the World Economic Forum's 2024 Travel & Tourism Development Index, reflecting the cumulative impact of high taxes, operating costs and administrative burdens on visitors.

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"New visitor levies in the UK would dent growth, restrict job creation and risk making the country far less competitive in the global economy," says Gloria Guevara, president and CEO of WTTC. "Our research proves time and time again that higher levies force travellers and businesses to choose alternative destinations as they opt for more affordable and predictable markets to visit and invest in. It is certain that jobs would go to other destinations outside of the UK. Policymakers need to focus on making the UK more competitive, re-investing tourism-generated revenues more effectively."

Travel and tourism supports around 4.5 million jobs in the UK – roughly one in eight jobs nationwide. The WTTC warns that devolving levy powers to individual cities or regions would create a fragmented policy landscape that increases complexity, discourages investment and undermines long-term competitiveness, with the heaviest impact falling on small hotels, restaurants and local shops.

WTTC research shows that travellers are increasingly price sensitive, particularly in a weaker economic environment, and that additional levies are more likely to divert visitors to competing destinations than deliver policy objectives. Industry estimates already suggest billions in potential visitor spending are being redirected away from the UK.

The council is urging policymakers to focus instead on reducing the cost burden on visitors, providing a stable national policy environment and ensuring tourism-generated revenues are reinvested effectively to support destinations, infrastructure and local communities.

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