London, United Kingdom (Tourism Reporter) — The World Travel & Tourism Council (WTTC) has issued a stark warning that the introduction of daily visitor taxes or levies in England could trigger a significant slump in both international and domestic tourism, potentially wiping out at least £14 billion in visitor spending from the UK economy. The research, released on February 17, 2026, comes as the UK Government closes its consultation (ending February 18, 2026) on granting Mayoral Strategic Authorities powers to impose local tourism levies across England.
The WTTC study, conducted in partnership with research agency GSIQ among 2,502 respondents from February 7–11, 2026, focused on sentiment in key international source markets (USA, France, Germany) and UK domestic travellers. It found that a hypothetical £10 (or €10 equivalent) daily tax would prompt 29% of respondents from major overseas markets to consider alternative destinations or skip the UK entirely. Among UK residents, 39% said they would avoid domestic holidays in taxed areas or choose other locations, with 42% viewing the charge as a major barrier for family travel.
Gloria Guevara, WTTC President and CEO, commented:
“Our research couldn’t be any clearer – proposed visitor taxes would lead to a slump in international visitor numbers to the UK, as well as far fewer domestic visitors to popular English destinations. Billions of pounds will be wiped from the UK economy, leading to much higher unemployment, especially among small shops, restaurants and suppliers to the hospitality sector.”
The projected £14.4 billion loss in international visitor spending is modelled for 2027 (the first full year of potential implementation), with a “domino effect” rippling through the supply chain. Tens of thousands of jobs could be at risk, particularly in SMEs — small independent shops, restaurants, cafés, and local hospitality suppliers — that depend heavily on tourist footfall.
WTTC emphasized the UK’s relatively slow tourism recovery: global Travel & Tourism GDP grew by 6.7% in 2025, while the UK lagged at just 4.3% — 36% below the global average. The sector currently supports 4.5 million jobs (one in eight nationwide), making it a critical economic pillar.
The research responds directly to the UK Government’s consultation on empowering mayoral authorities to introduce overnight visitor levies. WTTC argues that fragmented local taxes would add complexity, reduce competitiveness against rival destinations, and deter price-sensitive travellers — especially families and those on shorter breaks.
Guevara added:
“New visitor levies in the UK would dent growth, restrict job creation and risk making the country far less competitive in the global economy.”
The warning aligns with broader industry concerns over “tourism taxing” trends in Europe and beyond. While some cities (e.g., Edinburgh’s forthcoming 5% overnight levy) aim to fund infrastructure and sustainability, WTTC cautions that poorly designed or cumulative charges could backfire by reducing demand at a time when the UK needs to accelerate tourism recovery.
As the consultation closes, the WTTC urged policymakers to prioritize policies that enhance — rather than hinder — the sector’s growth potential. With visitor numbers still below pre-pandemic peaks in many areas, the research underscores the delicate balance between revenue generation and maintaining the UK’s appeal as a welcoming, competitive destination.
Tourism Reporter will follow the consultation outcome and any subsequent policy decisions.
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