Tourism delivers for Britain – the Government must deliver for tourism
In my role as chair of the All-Party Parliamentary Group for Hospitality and Tourism, I’ve been pushing the government for recognition that the UK’s visitor economy is far more than a pleasant distraction – it’s an economic force and part of our national prosperity.
The Economic Value of Tourism, a new report from VisitBritain and VisitEngland, delivers the hard evidence to back that up. It tells us that tourism is worth £147 billion to the UK economy, roughly 5 per cent of our national output, and it supports millions of jobs across every nation and region.
The contribution that tourism makes includes direct visitor spending and the ripple effect through supply chains. It puts tourism on a par with sectors that often receive far more policy attention, such as pensions and insurance.
This month in my role as chair for the APPG for Hospitality and Tourism I welcomed the Minister for Tourism, Stephanie Peacock MP (left) to speak with MPs from across the House and industry representative including Kate Nicholls, chair of UKHospitality (right).
It is also a major employer – supporting around 2.4 million jobs across the UK, equivalent to nearly one in every 15 roles nationwide, with at least 5% of employment in every nation and region tied to the visitor economy. Like so many Blackpudlians, I’m testament to the fact that for many young people entering the world of work, tourism is where they get their first job and begin building valuable skills that sustain their careers.
Tourism also generated £52 billion in tax revenue for the government in 2024. That’s more than half the NHS England’s entire wage bill and a direct contribution to the services we all rely on.
The industry’s growing at pace – faster than the economy as a whole. The VisitBritain report forecasts that total tourism activity will reach £161 billion by 2030 and that the sector could support an additional 175,000 jobs by the end of the decade.
International arrivals are expected to climb too, with inbound spend projected to rise significantly, offering a huge opportunity for regions outside London to benefit if we can improve the UK’s global competitiveness and spread tourism more evenly across the nations and regions.
And while London will always be an essential destination, coastal and rural Britain must not be forgotten. Domestic tourism remains vital with 84 per cent of overnight domestic tourism spending takes place outside London – proving that our seaside towns and country escapes are a massive driver of economic and social value.
If just 10% of what British residents currently spend on holidays abroad were redirected to domestic trips, the economy would receive an £8 billion annual boost.
But even with these impressive figures there are warning signs. Domestic holidays have declined, putting pressure on coastal destinations like Blackpool and international forecasts suggest that the UK is at risk of losing global market share to more competitive destinations.
This is where government action matters. Tourism shouldn’t be treated as just a pleasant pastime – it must be part of our economic strategy, recognising its true scale and impact.
VisitBritain’s work including international promotion campaigns that generate hundreds of millions in additional visitor spend shows what can be done when strategy meets ambition.
To fully unlock tourism’s potential we need policies that back it. The Government owes it to the industry and to the millions of people whose livelihoods depend on it to take tourism seriously.
