Following an announcement by the Home Office that the cost of Electronic Travel Authorisation (ETA) will increase by 60%, Joss Croft OBE, Chief Executive of UKinbound commented:
“The decision to increase Electronic Travel Authorisation (ETA) costs by 60% is a staggering blow to the UK’s tourism industry and businesses across the country. This change comes at the worst time, just as ETA requirements for all non-visa national visitors are rolled out from 2 April.
“There is a false assumption that international visitors will continue to choose the UK, even if we hike up prices. International tourism is a competitive industry and the two key motivators to visit a destination are value for money and the quality of welcome. This move damages our standing on both fronts.
“Charging international travellers more to visit the UK only harms the growth potential of the UK’s 5thlargest export sector, international tourism to the UK, which is currently outperforming the wider UK economy.
“The ETA will be uncompetitive compared with the European Electronic Travel Information and Authorisation System (ETIAS), which launches later this year and offers entry to 29 Schengen countries, is free for over 70s and under 18s, and is half the price of an ETA. European citizens themselves, who make up two-thirds of all visitors to the UK, have the right to travel freely between Schengen countries, with no requirement for an ETA/ETIAS or a passport, so the competition is stiff.
“The increased price of an ETA is just another cost that is being placed on the shoulders of international visitors, alongside increased levels of APD, potential visitor levies, and the removal of tax-free shopping.
“We need policies that will allow our industry to harness valuable growth opportunities. Inbound tourism brings in new money to every region of the UK, creates and sustains jobs and careers, and fuels economic growth.”
Price competitiveness of UK tourism: key statistics
- The UK is currently ranked 113 out of 119 countries for its price competitiveness (World Economic Forum’s 2024 Travel and Tourism Development Index)
- Visa costs compared to other countries:
- The European ETIAS will cost €7 – cheaper than our ETA but valid for three years rather than two, and free for under 18s and over 70s
- It would cost a family of four €14 to visit 29 EU countries with an ETIAS, but £64 for the same family to visit the UK with an ETA
- An international visitor to the UK already has to pay one of the highest levels in Europe of 20% VAT on hospitality – in France, VAT is 10% in hotels, restaurants, and cultural services such as theatres
- Air Passenger Duty (APD) in the UK will continue to rise in the next few years. In contrast, Sweden is scrapping APD from July 2025, whilst the Netherlands, Ireland and Belgium have already scrapped APD
- For every 1% decrease in the cost of visiting the UK, the UK’s inbound tourism earnings increase by 1.3% (Sensitive Tourists, BTA, 2001)
- Forecasts suggest that in 2024, 38.7 million international visitors visited the UK, spending £32.5 billion. This is 95% and 114% of 2019 levels respectively, but spending would be 92% if adjusted for inflation. Compared to 2023, this represents growth of 2% in visits and 5% in nominal spend (2% in real spend) (Source: VisitBritain).
- International visitors can no longer take advantage of tax-free shopping in the UK
