High taxes along with travel charges are deterring visitors from coming to Britain, warns an industry insider.
Julia Simpson says that the UK is 'overlooking travel and tourism,' yet it will lose visitors because of additional fees being imposed.
The chief executive of the World Travel & Tourism Council added that the abolition of duty-free shopping for visitors – the so-called tourist tax – means travellers are flocking to rival destinations.
Ms Simpson cautioned that an rise in air passenger duty, introduction of new visa fees, along with an increased National Insurance burden for employers, could potentially weaken the industry.
She said: 'The UK is absolutely taking travel and tourism for granted. The Treasury is imposing layer upon layer of taxes on a sector that is bringing money into the UK and is not at all a burden.
We're certainly going to lose out. This isn’t merely about finances; it’s about conveying the message that the UK is truly an excellent destination for tourists.
If the Chancellor seeks expansion, particularly one that doesn’t come from the public sector and is beyond London, then promoting the UK abroad becomes essential.
Following Brexit, Britain eliminated tax-free purchases for international travelers, which significantly reduced spending on luxury items by wealthy tourists.
Chancellor Rachel Reeves has maintained her stance and contended that bringing back duty-free shopping would result in a loss of £2 billion.
However, an analysis conducted by the Centre for Economics and Business Research revealed that this issue might be causing a loss of approximately £11 billion annually to the public finances due to the deterrence of about two million potential tourists who opt against visiting the UK each year.
Marks & Spencer, Harrods, and Heathrow are part of over 400 companies supporting the Mail's initiative urging the government to abolish the tourist tax.
As reported by The Daily Telegraph, Ms. Simpson stated at a tourism gathering in New Delhi, "If conditions are unfavorable, then how come France, which attracts more tourists than any other country, offers duty-free shopping?"
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