The United Kingdom’s plans to raise the cost of Electronic Travel Authorizations (ETAs) by 60% have sparked opposition from key industry figures, particularly the International Air Transport Association (IATA). The UK Home Office’s proposal, which would increase the ETA fee to GBP 16, has raised alarms over its potential impact on the nation’s tourism sector and broader economic health.
Willie Walsh, Director General of IATA, voiced strong opposition to the move, particularly given the short timeframe since the introduction of the ETA system. “Proposing to increase ETA costs just a week after the system was introduced is bewildering,” Walsh commented. His criticism reflects concerns that such an abrupt price hike could harm the UK’s competitiveness in the global tourism market, just as the government aims to boost tourist numbers.
In November, the UK government outlined ambitious goals to increase annual tourist arrivals by 30%, reaching 50 million by 2030. This plan is rooted in the belief that tourism can significantly contribute to the UK’s economic recovery and growth. However, Walsh points out that the proposed increase in ETA fees coupled with the already high Air Passenger Duty (APD) could be a major deterrent for travelers considering the UK as a destination. He argued that the timing of the fee hike could undermine these ambitious tourism goals right from the outset.
The increased ETA cost would be on top of the APD, which is already considered one of the highest travel taxes globally. The APD is set to rise again in April, further inflating travel costs for visitors. According to Walsh, this combination of rising taxes and increased authorization fees could create a significant burden for travelers. “Gouging these travelers with a 60% increase in the ETA is a very bad start,” he said. “It’s time for the UK government to see the big picture.”
As part of the broader discussion, Walsh also highlighted the competitive disadvantage posed by the EU’s upcoming ETIAS (European Travel Information and Authorization System). The ETIAS, which is set to cost about a third of the proposed UK ETA fee, offers a more affordable and longer-lasting travel authorization for visitors to European Union countries. This price disparity, Walsh argues, could push tourists toward other destinations in Europe, potentially diverting valuable tourism revenue from the UK.
The UK’s tourism and aviation sectors are significant contributors to the nation’s economy, currently supporting 1.6 million jobs and generating an impressive USD 160.7 billion for the UK GDP. Given these statistics, Walsh emphasizes that the government should consider the broader economic impact when setting travel-related fees. He urges the government to take a more strategic approach to tourism pricing, arguing that making the UK a more cost-competitive destination could yield substantial long-term benefits, including higher tax revenues from an increase in tourism.
The debate over the proposed ETA price hike serves as a reminder of the delicate balance governments must strike between raising revenue and maintaining the attractiveness of their countries as travel destinations. For now, industry leaders like IATA continue to call on the UK government to reconsider its stance and focus on creating a more cost-effective and competitive environment for international visitors.
