UK Tourism Sluggishness Persists: Inflation and Currency Impact Slow Growth
June 23, 2025 – Breaking News: The UK’s tourism sector is grappling with sustained sluggishness, as new research reveals that inflation and the pound’s weakness will hamper growth over the next decade. This comes on the heels of the abolition of VAT exemptions post-Brexit, which has already dampened tourist spending.
Key Findings from CEBR Research
The Centre for Economics and Business Research (CEBR) has released its first comprehensive study, highlighting that real per-tourist spending will trail the expected UK economic growth rate by 2030. While tourist numbers remain robust, spending is not keeping pace. The report suggests that inflation, which has risen by 26.6% over the past six years, is making the UK less competitive compared to other major tourist destinations like the EU, US, and China.
The end of the 20% VAT refund perk for tourists in January 2021 has also significantly impacted high-spending tourists, who are now opting for shopping havens like Paris and Milan. Additionally, the new electronic travel authentication (ETA) and air passenger tax hikes for European tourists add further costs and complexity to visiting the UK.
Government Targets and Economic Implications
The UK government aims to attract 50 million foreign tourists by 2030. However, CEBR warns that even if this target is met, tourist spending will only increase by 6.5% compared to pre-pandemic levels. For the sector to thrive, it is crucial to increase the value of each visit, not just the number of tourists.
Historical Context and Future Outlook
Tourism has long been a vital component of the UK’s economy. Post-Brexit challenges have exacerbated existing issues, including currency fluctuations and higher inflation rates. The sector must adapt to these new realities to maintain its competitive edge.
Expert insights suggest that focusing on unique experiences and improving the overall tourist experience can help mitigate the impact of economic factors. Additionally, strategic marketing and partnerships with other global destinations can enhance the UK’s appeal.
Practical Tips for Tourists
For tourists planning a visit to the UK, it’s essential to budget for higher prices and plan ahead to make the most of your trip. Researching local attractions, utilizing budget-friendly options, and taking advantage of off-peak travel times can help stretch your pounds further.
Stay tuned to archyde.com for the latest updates and expert advice on navigating the evolving landscape of UK tourism.
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