A new report from the British Chambers of Commerce (BCC), in partnership with IHG Hotels & Resorts, highlights the importance of strong industry-government collaboration to support the UK’s visitor economy. The report emphasizes that the visitor economy is vital for driving growth and creating jobs. In 2023, 38 million international visitors spent £31.1 billion in the UK, with spending expected to reach £32.5 billion this year.
The report notes that both the Covid pandemic and Brexit have reduced the available workforce, especially for seasonal roles essential to the sector, stressing that addressing these workforce shortages is crucial for recovery and growth. It also cautions against visitor levies and tourist taxes, warning they could deter tourism, and urges the government to reconsider the 2020 removal of tax-free shopping for international visitors to maintain the UK’s competitiveness.
To support growth across tourism, hospitality, events, and attractions, the report recommends several policy actions, including:
- Reforming apprenticeship funding in England to expand training for visitor economy roles.
- Adjusting business rates by lowering the small and standard multipliers.
- Revisiting the potential benefits of tax-free shopping for local economies.
- Prioritizing road connectivity improvements to ports and rail hubs.
Managing Director at Cumbria Chamber of Commerce, Suzanne Caldwell said:
“We’re obviously keen to see support for what is a key sector for Cumbria. The visitor economy sector also has wider benefits to our vibrant food & drink sector and other local products. Beyond this many businesses in the sector provide services valued by us as local residents and are important to attracting the more Cumbrians to stay in the county to work and people from elsewhere to move here to do so.”
If you would like to find out more you can view the full report below:
