The analysis suggests that a decline in international tourist flows would not be an isolated phenomenon, but rather the trigger for a negative multiplier effect across the sector’s entire value chain. WTTC argues that a meaningful drop in visitor numbers would translate into lower revenues for hotels, restaurants, retailers, and suppliers, with knock-on effects for employment—particularly among small and medium-sized enterprises linked to the tourism industry. The organisation warns that the outcome would be a loss of competitiveness relative to other European destinations that do not apply such levies or that maintain more traveller-friendly fiscal policies.
The report also examines how UK residents themselves perceive the potential introduction of a domestic tourist tax. The results indicate that the domestic response would be even more negative than the international one: 39% of respondents said they would consider holidaying elsewhere or would avoid travelling within the country if the surcharge reached £10. This trend could hit domestic destinations especially hard, particularly those that depend heavily on domestic tourism, by reducing occupancy and spending during peak seasons.
Moreover, the impact would be more pronounced among families. In the survey, 42% of participants said a fee of this kind would represent a significant or very significant issue when planning trips with children, pointing to a potential decline in this visitor segment, which is traditionally important for national and regional tourism.
The macroeconomic backdrop further reinforces the international body’s concern. Recent data cited by WTTC suggest that global travel and tourism GDP grew by 6.7% in 2025, while the UK recorded an estimated increase of 4.3%, placing it around 36% below the global average. According to the organisation, this growth gap highlights the need to safeguard the competitiveness of the UK as a destination in an international environment that is becoming increasingly dynamic and competitive.
WTTC President and CEO Gloria Guevara stressed that the study’s results are clear and point to a decline in both international and domestic tourism if the proposed levies were approved. In her assessment, billions of pounds could be lost to the national economy, with direct consequences for jobs—particularly in smaller businesses whose viability depends on tourism spending.
The weight of the travel and tourism sector in the UK further underscores the relevance of this debate. According to WTTC data, tourism supports around 4.5 million jobs in the country, equivalent to roughly one in eight jobs. This level of economic reliance highlights the strategic role of tourism as a driver of regional growth, income generation, and the dynamism of related industries.
WTTC concludes that any decision to introduce tourist taxes should carefully consider the collateral effects on demand, investment, and the destination’s international competitiveness. From the perspective of the global private sector, striking the right balance between fiscal revenue and destination attractiveness will be crucial to ensuring that the UK remains a priority destination in international markets and retains its capacity to generate employment, service exports, and long-term economic prosperity.
