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Electronic Travel Authorisations: Tourism

Volume 762: debated on Thursday 27 February 2025

3. What assessment her Department has made of the potential impact of the cost of electronic travel authorisations on inbound tourism. (902900)

We are absolutely determined to reach our goal of 50 million international visitors to the UK by 2030. I am very hopeful that the electronic travel authorisation system will be simpler and make it easier and safer for people to visit the UK in the coming years.

Our travel, tourism and hospitality sectors continue to face huge challenges, yet the Home Office’s own impact assessment of the 60% increase in electronic travel authorisation fees concluded that it could reduce the number of tourists wanting to come here and result in a loss of revenue to the wider economy of £734.7 million over five years. If the Government are to succeed in achieving the inbound tourism target of 50 million by 2030, would an agreement between the EU and the UK to facilitate easier travel not be a good place to start?

I am absolutely delighted that even the Liberal Democrats are citing our target of 50 million international visitors by 2030; we have got that into this session three times now. The hon. Lady is right—of course we have to bear in mind all the issues that could affect those numbers. I do not know whether she has seen the recent video produced by VisitBritain, “Starring GREAT Britain”, which includes film clips from James Bond, Tom Cruise and many others, but we are determined, through the visitor economy advisory council, to make sure that we reach those numbers. We will work with the Home Office to try to mitigate the problems that we may have.

According to VisitBritain, the estimated value of inbound tourism in 2024 will be in the region of £31.5 billion, so it is a huge economic contributor to the United Kingdom. When speaking to tourism businesses that rely on seasonal tourism, alongside the rising cost of ETAs, they express great concern that the reduction in national insurance thresholds and the rise in employer national insurance contributions mean that many more workers will be caught in a damaging tax trap. It will mean that businesses have to reconsider how many people—many of them young, and many of them in their first jobs—they can employ while remaining profitable. Does the Minister have an impact assessment of the effect of those NI rises, and what does it say about how many jobs will be created or lost as a result of Labour’s jobs tax trap?

One of the problems with the Conservatives is that they want us to endlessly spend more money on things, but they do not want to find the money that enables us to afford that expenditure. There are lots of things that affect the tourism industry in the UK —incidentally, I think the hon. Gentleman mistook his millions for his billions in what he said—but it is really important that we look at how we can extend the season in the UK and make sure that more international visitors do not just come to London and the south-east, but go to places across the whole of the United Kingdom. That is precisely the kind of thing that I hope we will be able to incorporate into our national tourism strategy this autumn. It will be the first time that the UK has ever had one.