SINGAPORE, 21 January 2025: The International Air Transport Association (IATA) opposes the UK Home Office’s proposal to increase the costs of UK Electronic Travel Authorizations (ETAs) by 60% to GBP 16.
“Proposing to increase ETA costs just a week after the system was introduced is bewildering,” IATA’s Director General Willie Walsh commented. “If implemented, it would be a self-inflicted blow to the UK’s tourism competitiveness. In November, the UK government laid out plans to increase tourist arrivals by 30% to reach 50 million annually by 2030 in pursuit of tourism’s economic benefits.
“Gouging these travellers with a 60% increase in the ETA is a very bad start. The added cost would come on top of the Air Passenger Duty (APD) — the biggest travel tax in the world — which will increase again in April. And let’s not forget that travellers have a choice, and the EU’s ETIAS will be better value — costing about a third as much as this proposed pricing and lasting a year longer.
It’s time for the UK government to see the big picture. It has everything to gain by making the UK a more cost-competitive travel destination—including the substantial tax revenues that travellers generate. It makes no sense to discourage visitors with high costs even before they set foot in the country.”
The UK Electronic Travel Authorisation (ETA) scheme is a new system that requires most non-visa nationals to obtain permission to travel to the UK before they arrive. This includes tourists, business travellers, and people transiting through the UK. The ETA is not a visa but an essential step in the process of entering the UK.
UK tourism industry concerns
The UK tourism industry has expressed several concerns regarding the Electronic Travel Authorisation (ETA) scheme.
Increased Costs: The proposed 60% increase in the ETA fee from £10 to £16 is a major concern. Industry leaders argue that this significant price hike could deter visitors, especially budget travellers and those from developing countries, negatively impacting tourism revenue.
Competitive Disadvantage: The higher ETA fee in the UK compared to similar schemes in other countries, such as the EU’s ETIAS, creates a competitive disadvantage for the UK tourism sector. This could lead to travellers choosing alternative destinations with lower or no entry fees.
Impact on Visitor Numbers: The tourism industry fears that the increased costs associated with the ETA, combined with potential delays in the application process, could discourage visitors from choosing the UK as their travel destination. This could result in a decline in visitor numbers and a significant loss of revenue for the industry.
Damage to the UK’s Image: The industry believes that the increased ETA fee sends a negative message about the UK’s openness to international visitors. This could damage the UK’s image as a welcoming and accessible travel destination, further deterring potential tourists.
These concerns highlight the potential negative impact of the ETA scheme on the UK tourism industry. The industry is urging the government to reconsider the proposed fee increase and implement measures to ensure the scheme does not hinder the tourism sector’s recovery and growth.
UK aviation and tourism support 1.6 million jobs and contribute USD160.7 billion to the UK’s GDP. For further details, check out the IATA Value of Air Transport to the United Kingdom study.
