The announcement was made in Osborne’s autumn budget yesterday, where he also said a new £40 million Discover England Fund would be established.

Abta head of public affairs Stephen d’Alfonso said: “Tourism to the UK is a vital part of the economy, and has previously demonstrated the significant return on investment it provides.

“The Government’s commitment of £60 million in renewed funding for the GREAT campaign and a new £40 million Discover England Fund are both positive announcements, and will be vital to ensuring that Visit Britain and Visit England can continue to support the industry particularly from a domestic tourism perspective”.

Meanwhile D’Alfonso said Abta was “disappointed” by Osborne’s decision to persist with the 0.5% of turnover rate, which he said had been opposed by many businesses during consultation, although he said the £15,000 allowance that has been introduced was “welcome”.

“As the levy is implemented it will be vital that proper sector governance measures are put in place,” d’Alfonso added. “Abta will continue to closely monitor the levy, and to ensure the voice of the tourism industry is put forward in this debate to ensure a proportionate and fair approach.”