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.

London © Hornblower Group / City Experiences

Tourism’s importance to the British economy is highlighted in major new research from 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.

Eilean Donan Castle in the Highlands of Scotland © VisitBritain / Emmanuel Teikirisi

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. 

Beaumaris Castle, Anglesey, North Wales © VisitBritain / Robin Creative Media

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.”

Bath Roman Baths © VisitBritain / Casper Farrell

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.”

Bamburgh Castle, Northumberland, England © VisitBritain / Chris Ceasar

The report examined 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.

Janet Redler, Managing Director of Janet Redler Travel, added: “This timely report highlights the importance of the tourism sector to the UK and we welcome VisitBritain/VisitEngland’s commitment to work with industry and Government to maximise tourism’s huge social and economic potential.”

If you or your group would like to enjoy a tailor-made tour of the United Kingdom, please do contact our friendly team today.