New report shows tourism worth £147bn to UK economy

Tourism’s importance to the British economy is highlighted in major new research from national tourism agency VisitBritain/VisitEngland, demonstrating the industry’s significant economic contribution to local communities nationwide and its potential for growth.

The report ‘Economic Value of Tourism in the United Kingdom‘ shows tourism is worth £147 billion annually to the UK, about 5 percent of the national economy, when including both direct and supply chain impacts. 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% 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% when adjusted for inflation and ahead of the UK economy overall at 8.8%. Inbound tourism is forecast to drive much of this, with growth in value of 32%, £9.4 billion, between 2024 and 2030.

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.”

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. Eighty-four per cent of domestic overnight tourism spending is in destinations outside of London. Converting just 10% 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.

Vikki Harris, Marketing and Partnerships Director of Marketing Lancashire said:

“The figures from the report released today show the important impact that Tourism has on the economic development across the country. This reflects the landscape in Lancashire, with tourism and hospitality playing a vital role in the lives of those who live and work here.

“The upcoming coastal campaign will provide a brilliant opportunity for some of Lancashire’s coastal businesses to shine, putting all that our coast has to offer at the forefront of people’s minds, just in time for them to start their summer holiday planning.”

The report also examines the UK’s future inbound visitor source markets and trends. It shows the continued importance of the USA, 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% annually combined by 2030. Looking to the Gulf, the UK already captures almost a third, 30%, of all trips to Western Europe from the high spending Qatar, Saudi Arabia and United Arab Emirates markets.

Findings from the Economic Value of Tourism in the United Kingdom report are being shared with the UK Government to inform policymaking and to track tourism’s development over time, in line with VisitBritain/VisitEngland’s statutory role to provide expert advice and insights to industry and government.