Overview

• Julia Simpson, chief executive of the World Travel and Tourism Council, warned on June 4 that hikes in air passenger duty, visa fees and VAT are undermining the UK’s tourism sector.
• She highlighted that Chinese and Indian tourists, among the fastest-growing markets, are being put off by what she calls the “tourist tax.”
• The removal of tax-free shopping for foreign visitors, introduced under former Chancellor Rishi Sunak, is estimated to have deterred around 2 million tourists and cost the sector billions in lost revenue.
• With tourism accounting for about 10% of UK GDP and supporting millions of jobs, a recent 50% cut in Visit Britain’s funding is expected to exacerbate the downturn.
• Simpson criticised reliance on Treasury officials over elected ministers and questioned the extension of the electronic travel authorisation fee to American visitors.