Labour’s plans to hike the cost of tourist visas could signal yet another blow to the UK’s struggling pub industry. The Government outlined plans to hike two-year visa fees for travellers from £475 to £506 this month, sparking criticism from industry figures who warned that the UK already has some of the world’s highest entry costs. As well as risking Britain’s overall competitiveness on the world stage, the change could spell further trouble for the nation’s flailing hospitality sector, Kate Nicholls, head of UK Hospitality, warned.
It is thought that the increased costs, alongside plans to boost the price of Electronic Travel Authorisation (ETA) from £16 to £20, could cancel out over £1.5 billion of tourist spending, including from pubs, bars and restaurants. Ms Nicholls told The Telegraph: “Inboard tourism is the closes thing you can get to free money in the economy. It is our second largest export earner – foreign visitors spend more eating and drinking at our pubs and restaurants than all of our food and drink exports put together.”
“Socialising like a local is the top attraction, and generates job growth and investment across all parts of the UK,” she added.
Joss Croft OBE, chief executive of UKInbound, said: “There is a false assumption that international visitors will continue to choose the UK, even if we hike up prices. International tourism is a competitive industry and the two key motivators to visit a destination are value for money and the quality of welcome. This move damages our standing on both fronts.”
The Government has already faced major backlash for unleashing a series of tax rises on UK pubs, causing the closure rate to reach one per day last year across England and Wales last year.
Businesses across hospitality and retail sounded the alarm after hikes in National Insurance and the National Minimum Wage came into effect last year, and new tax changes announced in November are set to be implemented this spring.
This will include the end of Covid-era business rates relief for pubs and a re-evaluation which is expected to push rates up.
Ms Reeves announced a £4.3 billion support package lasting until 2029 for pubs in the Budget, and has pledged to provide extra financial support amid continued closure threats.
Philip Cutter, who has worked at the 180-year-old Gardeners Arms in Norwich for 40 years, told the Express that he has never seen “successive budgets impact the business in such a detrimental way” before.
“It makes me a bit emotional to think about what would happen if we had to close,” he said. “Some of our regulars are in every day and it’s their one bit of conversation. But we’re being taxed out of existence.”
A spokesperson for the Home Office said: “These measures ensure those who benefit most from our immigration system contribute towards its cost, reducing the reliance on UK taxpayers.”