The UK government has announced plans to increase the cost of its new Electronic Travel Authorisation (ETA) permit, just weeks after its introduction. The price hike comes amid growing concerns from the travel industry that it may deter international visitors and affect the UK’s tourism competitiveness.

Significant Price Increase for UK ETA

The UK Home Office has proposed raising the ETA fee from £10 (€11.82) to £16 (€18.91), marking a 60% increase. The new fee, if approved by Parliament, is expected to generate an additional £269 million (€318 million) annually. The increase is part of a broader strategy to reduce the reliance on taxpayer funding for the UK’s immigration and border control systems.

While the price hike has sparked significant backlash from the travel industry, there is a slight relief for transit passengers. Under the new plan, passengers transiting through UK airports without passing through immigration will no longer need to pay for an ETA, which had previously been a requirement. Major airports like Heathrow and Manchester, which accommodate transit passengers, will see this change take effect.

Industry Reactions and Potential Impact on Tourism

The proposed fee increase has drawn criticism from several key players in the tourism and aviation sectors. The International Air Transport Association (IATA) has labeled the move as detrimental to the UK’s global tourism appeal, warning that it could negatively impact the nation’s competitiveness. Similarly, UK airlines have expressed disappointment, emphasizing the need for a more cost-competitive environment to maintain strong air connectivity and tourism growth.

Tourism experts also highlight the growing costs of visiting the UK, which include high VAT rates and an upcoming increase in Air Passenger Duty (APD). With these rising expenses, the UK risks losing its position as a top destination for international visitors. In comparison, other European countries such as France, Spain, and Italy offer lower VAT rates and more affordable travel authorizations, posing an additional challenge for the UK’s tourism industry.

The UK government had initially aimed to boost tourism with ambitious growth targets, but these price hikes, coupled with other travel-related expenses, may hinder progress. Critics argue that a more strategic approach is needed to attract visitors, ensuring that the UK remains an appealing and competitive destination.