The Home Office has proposed an increase in the Electronic Travel Authorisation (ETA) fee, taking it from £10 to £16.
The rise is among a range of measures aimed at reducing the “reliance of the migration and borders system on taxpayer funding”.
The proposed changes laid before Parliament on Thursday (January 16) will provide the flexibility to increase the maximum fee that can be charged on a range of immigration and nationality products and services, said the Home Office.
As well as the ETA rising to £16, a certificate of sponsorship fee could rise to £525; naturalisation as a British citizen could go up to £1,605; and naturalisation as a British overseas territories citizen could increase to £1,070.
The changes to ETAs, certificates of sponsorship and nationality products are forecast to generate an additional £269 million a year.
The Home Office said ETAs will deliver a “more streamlined, digital immigration system” which will be quicker and more secure for the millions of people who pass through the UK border each year.
They are in line with approach to border security taken by many other countries, including the US and Australia, added the statement.
But Tourism Alliance executive director Richard Toomer attacked the fee hike.
He said: ”It is staggering that the government has taken the decision to further increase the costs for tourists visiting the UK especially in light of its ambition to grow inbound tourism numbers and deliver economic growth.
“This is especially a kick in the teeth for our European visitors that just as they are required for the first time ever to apply for advance permission to travel to the UK, the cost for doing so has been put up by 60%.
“Even before this hike to £16 per person, ETA was already an additional cost for travellers, and crucially uncompetitive against to the EU’s own forthcoming travel authorisation scheme (ETIAS) both in terms of cost (€7 vs £16), validity period (3 years for an EU ETIAS vs 2 years for a UK ETA) and in terms of the exemptions. The government has just made matters worse.
“The government recently announced a target to grow our inbound tourism to 50 million visitors by 2030 up from, 38 million in 2023.
“Hitting that target will not happen if the government keep viewing tourists simply as a cash cow. Tourists make decisions in a competitive global marketplace. We are already 113th out of 119 countries for price competitiveness. We need the government to help address that challenge, not compound it.”
However, following feedback from the aviation industry, the government has agreed a temporary exemption for passengers who transit airside, and therefore do not pass through UK border control.
This move will primarily affect Heathrow and Manchester airports, as the only UK airports which currently offer transit facilities. The exemption, welcomed by Heathrow, will be kept under review.
Heathrow chief executive Thomas Woldbye said: “The removal of airside transit passengers from the ETA scheme is the right decision and were welcome it.
“This is a critical move to ensure Heathrow and the aviation industry as a whole can continue to deliver for everyone who depends on our world-leading connectivity.”
Abta public affairs director Luke Petherbridge said: “We welcome the removal of the ETA requirement for passengers in transit in the UK as this should help ensure the continuing viability of important air links.
“However, the 60% uplift in visa cost brings another tax rise to the travel and tourism sector, which risks stifling growth.
“Coming on the back of increases announced for Air Passenger Duty in the recent budget, we are seeing a layering of additional charges in a sector which has been forecast to grow strongly.
“Travel and tourism should be taxed fairly; excessive increases run the risk of suppressing demand and holding back a thriving industry.”
UKinbound chief executive Joss Croft condemned the ETA fee hike as a “staggering blow” to the UK’s tourism industry.
“This change comes at the worst time, just as ETA requirements for all non-visa national visitors are rolled out from the 2 April,” he said.
“There is a false assumption that international visitors will continue to choose the UK, even if we hike up prices.
“International tourism is a competitive industry and the two key motivators to visit a destination are value for money and the quality of welcome, and this move damages our standing on both fronts.
“Charging international travellers more to visit the UK only harms the growth potential of the UK’s fifth largest export sector, international tourism to the UK, which is currently outperforming the wider UK economy.
“The ETA will be uncompetitive compared with the European’s Electronic Travel Information and Authorisation System (ETIAS), which launches later this year and offers entry to 29 Schengen countries, is free for over 70s and under 18s, and is half the price of an ETA. European citizens themselves, who make up two thirds of all visitors to the UK, have the right to travel freely between Schengen countries, with no requirement for an ETA/ETIAS or a passport, so the competition is stiff.
“The increased price of an ETA is just another cost that is being placed on the shoulders of international visitors, alongside increased levels of APD, potential visitor levies, and the removal of tax-free shopping.
“We need policies that will allow our industry to harness valuable growth opportunities. International tourism brings in new money to every region of the UK, it sustains and creates jobs and careers, and it fuels economic growth.”
Julia Lo Bue-Said, chief executive officer of The Advantage Travel Partnership, said: “It’s incredibly disappointing to see the government has increased the cost of the new ETA fee by 60% even before it’s fully launched.
“Charging international travellers to visit the UK is just another economic policy which will also directly impact the UK outbound travel sector and will only serve as a further blow to consumers.
“Without a thriving inbound sector, you cannot have a thriving outbound industry. The government should be looking to encourage and harness growth, capitalising on the desire to travel to help our economy prosper by creating jobs and boosting destinations.”
The legislation will be debated in Parliament and if approved, the proposed new fees will be introduced by amending separate legislation.
Picture by Shutterstock/FTiare
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