At least £14billion would be lost from the UK economy if daily tourist taxes are introduced, it has been revealed.
If the UK imposes a proposed €10 (£9) tax on visitors, the consequences could be drastic.
The World Travel & Tourism Council (WTTC) has published new research highlighting the damage that would be done to the UK economy if new visitor levies are introduced.
Billions of pounds would ‘be wiped from the economy’ as international visitor numbers would dry up as a result, it concluded.
The domino effect would lead to tens of thousands of job losses.
The research also shows that many Brits would consider a holiday somewhere else if such a visitor tax were introduced.
Of those surveyed in the largest visitor markets to the UK – from the USA, France and Germany – 29 per cent would consider alternative destinations or decide not to visit the UK if a tax of €10 (£9) was introduced.
A substantial drop in visitors to the UK would have a fundamental impact on the economy.
The research was conducted among 2,502 people by WTTC and research agency GSIQ between February 7 and 11.
It comes as the UK Government is set to end a consultation on Wednesday on whether Mayoral Authorities should be given powers to introduce tourism levies across England.
In 2027, the reduction in visitor spend from all international source markets could total £14.4billion if the tax were set at €10 (£9).
Gloria Guevara, WTTC’s president and CEO, said: ‘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 research also found that UK residents are reacting even more negatively to the threat of a levy than international visitors.
Those certain to visit drop dramatically when asked about possible levies, with 39 per cent of Brits saying they would consider somewhere else, or definitely not holiday in the UK, if the tax is set at that amount.
The proposed visitor tax would likely affect families the most, as 42 per cent of those interviewed said it would be ‘a big issue or very big issue’ when travelling as a family.
Recent WTTC data shows global Travel & Tourism GDP is forecast to have grown by 6.7 per cent in 2025.
Meanwhile, the UK is expected to have grown by just 4.3 per cent, meaning UK growth is running below the global average.
Travel and tourism support around 4.5 million jobs in the UK, equivalent to roughly one in eight jobs nationwide.
This underlines the critical role of the sector in employment and regional growth.