The cost and complexity of obtaining a visa to enter Britain is costing the UK up to £750 million a year in lost income, according to the European Tour Operators Association (ETOA).
A survey published today by ETOA assesses the extent of lost business due to people abandoning visa applications for the first time. The results led ETOA to describe the UK system as “arrogant and slightly racist”.
The survey of overseas travel companies rates the country top of the league for visa problems and suggests more than 300,000 long-haul visitors a year are deterred from taking a holiday in Britain.
Applicants from China may have to travel up to 500 miles to appear in person at a visa-processing centre, complete a form in English – a script most won’t know – be fingerprinted and charged £70, with no prospect of a refund should a visa be refused.
In China, applicants must supply a letter from their employer to prove they have leave from work. A travel agent in the country said: “This would never happen in Europe. There is no privacy for applicants.”
An agent in the Middle East told ETOA: “What is there to like about the UK visa process – long queues, delays, [the] cost, [the] too short working hours . . . the attitude of staff”?
ETOA described the system as “abjectly stupid” and pointed out anyone hoping to visit the UK and Ireland has to obtain visas costing £155.
Association executive Tom Jenkins said: “The [government’s] new Tourism Strategy, launched 10 days ago, acknowledges there are difficulties. But the scale of the problem is not addressed by issuing guidance notes for applicants in their own language.
“The cost to the UK in foreign exports is between a half and three-quarters of a billion pounds a year. Thousands of jobs are being lost.”
ETOA also hit out at the government over the cost of VAT to UK inbound operators, levied under the Tour Operators Margin Scheme (TOMS). Companies based outside the UK do not pay the tax.
Jenkins said: “This is a massive disincentive for UK-based companies promoting UK holidays. The prime minister has talked about making the US tax competitive. That idea must embrace tourism.”