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UK tourism struggles amid Brexit and inflation challenges

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  • 19 February 2025
  • 2 minute read
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This article was written by Hospitality Today. Click here to read the original article

Despite efforts to boost tourism, Brexit policies, rising costs, and global competition continue to threaten the UK’s travel industry

Feb 19, 2025

The UK tourism sector continues to experience a post-Brexit downturn, with visitor spending failing to match pre-pandemic and pre-Brexit levels when adjusted for inflation. Despite a projected record 43.4 million visits in 2025, spending remains 9% lower than 2019 figures in real terms. Several factors, including Brexit-related travel restrictions, rising costs, and increasing global competition, are contributing to the UK’s declining appeal as a tourist destination.

Key takeaways

  • Brexit’s impact on tourism: The UK’s decision to ban EU citizens from using ID cards for entry has significantly reduced European visitor numbers, especially affecting student travel;
  • New travel requirements: From April 2025, all foreign visitors (except Irish citizens) must obtain an Electronic Travel Authorisation, with the fee rising from £10 to £16, potentially further discouraging tourism;
  • Rising costs & inflation: Tourism prices in the UK have increased faster than general inflation, making the country a less attractive destination compared to European competitors;
  • Declining global ranking: VisitBritain warns that the UK is losing its competitive edge in international tourism, both within Europe and globally;
  • Business travel slump: The UK has lost approximately 1.5 million business visits since pre-Covid levels, despite some recovery in 2023;
  • US market importance: The US remains the most valuable source of inbound tourism, accounting for nearly 20% of total visitor spending;
  • Government’s tourism goals: The UK government aims to attract 50 million annual visitors by 2030, with marketing efforts focused on growth markets like the US, Australia, and the Gulf region.

Get the full story at The Independent

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