A Critical Driver: New report reinforces impact of tourism on Britain’s economy

If there was ever any doubt of tourism’s importance to the British economy, a new report makes it abundantly clear the industry’s significant economic contribution to local communities nationwide and its potential for growth.

The new research from VisitBritain/VisitEngland shows tourism is worth £147 billion annually to the UK, about 5% of the national economy, when including both direct and supply chain impacts.

Entitled the “Economic Value of Tourism in the United Kingdom,” reports that tourism is larger than the insurance and pensions sectors put together and employs more people than those and financial services combined.

And the study found that tourism generated £52 billion in tax revenues for the UK Government in 2024, more than half the wages bill of the NHS in England.

Tourism demonstrates its importance as a major employer, supporting nearly one in every 15 jobs across the UK, about 2.4 million jobs.

It also found that the industry’s value extends beyond major cities accounting for at least 5% of jobs in every region and nation of Britain. It also creates first jobs and opportunities for young people and upskills younger workers at the beginning of their careers. And going forward, the industry is predicted to create an additional 175,000 jobs in the UK by 2030.

The value of total tourism activity in the UK is expected to reach £161 billion by 2030 in 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%, £9.4 billion, between 2024 and 2030.

Tourism Minister, Stephanie Peacock, said: “From rich culture and historical landmarks to beautiful landscapes and coastal communities, the UK is one of the best and most visited holiday destinations in the world. Without the incredible workforce behind the tourism industry, it wouldn’t be the powerhouse that it is today.”

And Minister Peacock continued: “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 CEO Patricia Yates observed that: “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.”

Yates continued: “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.”

And Yates added: “As a critical driver of future growth for the UK, our priority is to work with industry and Government to realize 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.”

Click here to access the report.