The World Travel and Tourism Council (WTTC) has said failure to address these issues could result in the UK’s travel and tourism industry missing out on up to £60 billion of gross domestic product output over the next decade.
The London-based organisation, which represents the sector, commissioned a report by consultancy Oxford Economics.
The report found the UK is expected to have one of the lowest growth rates in overnight international arrivals among major tourist destinations.
The WTTC identified several factors hampering UK travel and tourism businesses, including the increase in National Insurance, a VAT rate higher than the European average, increases in Air Passenger Duty, the introduction of a £10 digital permit scheme for international visitors without a visa, and the refusal to resume tax-free shopping for international visitors.
It also claimed VisitBritain, responsible for promoting the UK as a tourist destination, is “seriously underfunded” compared with its global competitors, many of which “receive double the government investment”.
Sir Chris Bryant, minister for creative industries, arts, and tourism, co-chaired the first meeting of the government’s Visitor Economy Advisory Council on Monday (January 20).
The council has been created to bring industry leaders and government representatives together to support tourism growth.
Attendees included Julia Simpson, president of the WTTC and a former adviser to Sir Tony Blair during his time as prime minister.
She said: “The UK is at a critical juncture. The government is looking for growth, and its travel and tourism sector offers just that.
“As one of the country’s largest employers alongside the NHS, contributing £280 billion to the UK economy last year, the sector has been misunderstood and poorly treated by successive governments.
“The government cannot tax its way out of debt, it needs to invest to grow.
“UK taxes are higher than many of its competitors, making the UK expensive to operate in and expensive to visit.”
A government spokesperson said: “We are committed to supporting the UK’s world-class tourism industry to flourish as we drive forward with our Plan for Change to deliver a decade of national renewal.
“We’re pleased that the WTTC will play a key role in the council alongside other industry leaders to help co-create the strategy and support the growth of UK tourism.”
