Value of tourism to UK economy ‘worth £147bn’ a year

 

Tourism is worth £147 billion a year to the UK and generated £52 billion in tax revenues for the government in 2024, a new study reveals.

 

The tax figure represents more than half the wages bill of the NHS in England, according to research from national tourism agency VisitBritain/VisitEngland.

 

Tourism is larger than the insurance and pensions sectors put together and employs more people than those and financial services combined. 

 

The value of total tourism activity in the UK is expected to reach £161 billion by 2030 at 2024 prices, growth of 9.3% when adjusted for inflation and ahead of the UK economy overall at 8.8%. 

 

Inbound tourism is forecast to drive much of this, with growth in value of 32%, or £9.4 billion, between 2024 and 2030.

 

Tourism supports almost one in every 15 jobs across the UK, about 2.4 million. 

 

The report shows the vital role of domestic tourism in supporting rural and coastal destinations and the importance of getting more Brits to holiday at home. 

 

Eighty-four per cent of domestic overnight tourism spending is in destinations outside of London. 

 

“Converting just 10% of what Brits spend on travelling abroad to holidaying at home could deliver an £8 billion boost annually to the economy,” the report said. 

 

VisitEngland is set to release a pilot domestic marketing campaign to drive breaks to the northwest’s coastal destinations in the build up to summer.

 

The industry’s value extends beyond major cities, accounting for at least 5% of jobs in every region and nation of Britain, according to the economic study. 

 

It also creates first jobs and opportunities for young people and provides skills for younger workers at the start of their careers. 

 

The sector is predicted to create an additional 175,000 jobs in the UK by 2030.

 

The report also examines the UK’s future inbound visitor source markets and trends. 

 

It shows the continued importance of the US, forecast to be worth £7.6 billion to the UK economy in 2026, accounting for more than £1 in every £5 of inbound visitor spending. 

 

Tourism to the UK from emerging markets including China and India is predicted to grow rapidly, by 12% annually combined by 2030. 

 

Looking to the Gulf, the UK already captures almost a third, 30%, of all trips to western Europe from high spending Qatar, Saudi Arabia and the United Arab Emirates.

 

Tourism minister Stephanie Peacock said: “The economic contribution of the tourism sector is clear, and the government is ambitious about ensuring it can continue to grow. 

 

“That is why we are committed to publishing a joint growth plan with the sector in the spring.”

 

VisitBritain/VisitEngland chief executive Patricia Yates said: “This research underscores tourism’s importance as one of the UK’s most valuable industries, driving economic growth for every nation and region and supporting our high streets, hospitality businesses, cultural institutions and our communities. 

 

“The billions in tax revenues generated by tourism also shows how spending by domestic and international visitors contributes to services that benefit everyone.

 

“There are, however, challenges. The decline of domestic holidays has hit coastal destinations particularly hard as consumers wrestle with cost-of-living pressures and businesses with the higher cost of doing business. 

 

“Longer-term international forecasts meanwhile show the UK is starting to lose its competitive position globally and inbound visits remain London-centric.

 

“As a critical driver of future growth for the UK, our priority is to work with industry and Government to realise tourism’s huge potential to bring social and economic benefits for every nation and region, creating jobs, supporting businesses and delivering prosperity for local communities.”