The World Travel & Tourism Council’s 2023 Economic Impact Research said the sector was set to contribute £252.4 billion to the UK economy this year, surpassing the 2019 pre-pandemic high of £248.5 billion.
The WTTC also forecasts the sector will create almost 380,000 jobs this year, recovering nearly all jobs lost during the pandemic. Employment in the sector is set to reach more than four million, with around one in nine UK workers in the sector.
Research carried out with Oxford Economics forecasts international visitor spend in the UK to reach £26.18 billion, just 6% behind the 2019 peak of £38.6 billion.
The WTTC estimates that last year, the sector’s GDP contribution grew 65% year on year to reach more than £237 billion, representing 9.5% of the economy, edging close to the 2019 high of 9.9%.
The WTTC said the sector had now recovered 1.5 million of the 1.7 million UK jobs lost during the pandemic.
Julia Simpson, WTTC president and chief executive, said: “Travel and tourism creates one in every 10 jobs in the UK. It contributes over £250 billion a year to the UK economy.
“Whilst our forecasts show the sector will reach a quarter of a trillion pounds this year, and predicts international visitor spend will recover by early next year, the UK government should be aiming higher.
“The recovery and long-term growth of the sector is at risk with the self-axing of VAT-free shopping for international tourists. We will continue to see high-value tourists choosing France and Italy over the UK and taking with them economic value and jobs.”
The global tourism body forecasts the sector will grow its GDP contribution to almost £315 billion by 2033, nearly 11% of the UK economy, with one in seven Britons working in the sector.
