Tourism continues to assert itself as a major economic engine for the United Kingdom, contributing GBP 147 billion (USD 198 billion) annually—equivalent to around five percent of the national economy—through both direct and supply chain impacts, according to a new report by VisitBritain. The report also identifies emerging markets such as India and China as key drivers, projected to grow at an annual rate of 12 percent.
The report, Economic Value of Tourism in the United Kingdom, underscores tourism’s outsized influence on employment, tax revenues, and regional economies. VisitBritain highlights that the sector alone surpasses the insurance and pension industries combined, generating over GBP 52 billion in tax revenues for the UK government in 2024. Nearly one in every 15 jobs across the country is linked to tourism, with its impact felt far beyond London, supporting at least five percent of jobs in every region and nation of the UK. The sector also plays a critical role in providing first employment opportunities for young people and upskilling the workforce, with projections indicating an additional 175,000 tourism-related jobs by 2030.
Future Growth and International Markets
The report anticipates that the total value of UK tourism activity will reach GBP 161 billion by 2030—a real growth of 9.3 percent, outpacing the UK economy overall at 8.8 percent. Inbound tourism is expected to drive a significant portion of this growth, with international visitor spending forecast to rise by GBP 9.4 billion, a 32 percent increase between 2024 and 2030. Emerging markets such as India and China are highlighted as key growth drivers, alongside steady contributions from traditional markets like the United States, which is projected to deliver GBP 7.6 billion to the UK economy in 2026. The Gulf markets, including Qatar, Saudi Arabia, and the UAE, remain strategically important, with the UK capturing over a third of outbound trips to Western Europe from the region.
Stephanie Peacock, Tourism Minister, emphasised the sector’s breadth: “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 would not be the powerhouse that it is today. The economic contribution of the tourism sector is clear, and the government is ambitious about ensuring it can continue to grow.”
Domestic Tourism and Regional Impact
Domestic tourism also plays a pivotal role, particularly for rural and coastal destinations. VisitBritain notes that 84 percent of domestic overnight tourism spending occurs outside London, and converting just 10 percent of outbound holiday spend by British residents into domestic breaks could inject over GBP 8 billion annually into the UK economy. To encourage this shift, VisitBritain is preparing a pilot domestic marketing campaign targeting North West coastal destinations ahead of the summer season.
Patricia Yates, CEO of VisitBritain, highlighted the strategic importance of tourism for national prosperity: “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 communities. As a critical driver of future growth, our priority is to work with industry and government to realise tourism’s huge potential to bring social and economic benefits, create jobs, support businesses, and deliver prosperity across local communities.”
Challenges and Strategic Priorities
Despite robust growth, the sector faces challenges, including the decline in domestic holidays, which has particularly affected coastal destinations amid rising living costs. Additionally, longer-term international forecasts suggest the UK is losing some global competitiveness, with inbound visits remaining highly London-centric. The report’s findings are being shared with the UK government to inform policy making, track tourism development, and support VisitBritain’s statutory role in providing strategic advice to the industry.
With sustained focus on high-value international markets, domestic tourism, and regional development, VisitBritain aims to ensure the UK tourism sector continues to deliver economic growth, social impact, and global competitiveness well into the next decade.
