Tourism contributes £147 billion a year to the UK economy and supports nearly one in every 15 jobs, according to major new research published by national tourism agency VisitBritain/VisitEngland.
The report, titled Economic Value of Tourism in the United Kingdom, shows the industry accounts for about 5% of national economic output when direct and supply chain impacts are included.
The study finds tourism generated £52 billion in tax revenues for the UK Government in 2024 and supports around 2.4 million jobs nationwide, with at least 5% of employment in every region and nation of Britain linked to the sector. Looking ahead, total tourism value is forecast to reach £161 billion by 2030 in 2024 prices, while inbound tourism is expected to grow by 32%, adding £9.4 billion in value between 2024 and 2030.
Tourism’s economic weight stretches far beyond the capital
The research positions tourism as one of the UK’s most powerful industries, larger than the insurance and pensions sectors combined and employing more people than those sectors plus financial services. Its impact extends into high streets, hospitality businesses, cultural institutions and local communities across the country, reinforcing the role travel plays in regional regeneration as well as national growth.
“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,” said Stephanie Peacock, Tourism Minister.
She added that government ambitions remain firmly aligned with industry growth. “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,” said Peacock.
VisitBritain/VisitEngland CEO Patricia Yates said the findings underline tourism’s national importance while also revealing structural challenges. “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,” added Yates.
However, domestic travel patterns have shifted. “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,” said Yates.
Staycations, overseas visitors and the road to 2030
Despite those pressures, the report highlights how encouraging more Britons to holiday at home could deliver substantial economic returns. Eighty-four percent of domestic overnight tourism spending already flows to destinations outside London, supporting rural and coastal economies that often depend heavily on seasonal visitor demand. Converting just 10% of what Britons currently spend on overseas travel into domestic trips could deliver an £8 billion annual boost to the economy.
To stimulate demand, VisitEngland plans to launch a pilot domestic marketing campaign focused on the North West’s coastal destinations in the build-up to summer. The initiative aims to showcase seaside breaks and encourage short domestic trips that benefit local businesses while spreading visitor spending more evenly across the country.
Inbound tourism is also expected to play a decisive role in future growth. The United States remains the UK’s most valuable source market and is forecast to be worth £7.6 billion to the UK economy in 2026, accounting for more than £1 in every £5 of inbound visitor spending. Emerging markets including China and India are predicted to grow rapidly, with combined annual growth of 12% by 2030.
High-spending Gulf markets continue to show strong momentum. The UK already captures around 30% of all trips to Western Europe from Qatar, Saudi Arabia and the United Arab Emirates, positioning Britain as a leading long-haul destination for premium travellers and extended stays.
Beyond visitor numbers, the employment impact remains central to the industry’s long-term value. Tourism creates first-job opportunities for young people and supports early career skills development, while the sector is predicted to generate an additional 175,000 jobs by 2030. For many communities, especially in coastal and rural areas, tourism remains one of the most accessible routes into employment.
“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,” concluded Yates.
Findings from the report are being shared with the UK Government to inform policymaking and track tourism’s development over time, reinforcing the sector’s role as a pillar of economic resilience and long-term growth.
