A new VisitBritain/VisitEngland report, Economic Value of Tourism in the United Kingdom, highlights tourism’s crucial role in the UK economy, contributing £147 billion ($198 billion) annually—around 5 per cent of GDP—through direct and supply chain impacts.

The research emphasises tourism’s significant benefits for local communities nationwide and its strong potential for future growth across the country.

Tourism is larger than the insurance and pensions sectors put together and employs more people than those and financial services combined.

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.

The industry’s value extends beyond major cities accounting for at least 5 per cent 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. 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 per cent when adjusted for inflation and ahead of the UK economy overall at 8.8 per cent.

Inbound tourism is forecast to drive much of this, with growth in value of 32 per cent, £9.4 billion, between 2024 and 2030.

The report also shows the vital role of domestic tourism in supporting rural and coastal destinations and the importance of getting more Brits to holiday at home.

84 per cent of domestic overnight tourism spending is in destinations outside of London.

Converting just 10 per cent of what Brits spend on travelling abroad to holidaying at home could deliver an £8 billion boost annually to the economy.

 VisitEngland is set to launch a pilot domestic marketing campaign to drive breaks to the North West’s coastal destinations in the build up to summer this year.

The report also examines the UK’s future inbound visitor source markets and trends.

It shows the continued importance of the US, forecast to be worth £7.6 billion to the UK economy in 2026 and accounting for more than £1 in every £5 of inbound visitor spending.

Tourism to the UK from emerging markets including China and India is predicted to grow rapidly, by 12 per cent annually combined by 2030.

Looking to the Gulf, the UK already captures almost a third, 30 per cent, of all trips to Western Europe from the high spending Qatar, Saudi Arabia and UAE markets.

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.

“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 said: “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.

“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.

“As a critical driver of future growth for the UK, our priority is to work with industry and Government to realise 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.” -TradeArabia News Service