Fresh analysis published on 24 January 2026 by market-intelligence firm IndexBox, and cited by The Telegraph, suggests the Home Office’s plan to raise visa prices may cost Britain’s visitor economy £1.15 billion in lost spending by 2030. Ministers have proposed increasing the standard two-year multiple-entry visit visa from £475 to £506 and bumping the new Electronic Travel Authorisation (ETA) fee from £16 to £20.
Although the individual increases look modest, hospitality leaders warn the timing is disastrous for a sector still nursing post-pandemic debt and high energy costs. UKHospitality chief Kate Nicholls called the move “a deliberate act of economic self-harm,” noting that inbound tourists collectively spend more in restaurants and pubs than the UK exports in food and drink. Luxury retailer Fortnum & Mason added that Britain should be making it cheaper—not dearer—for high-spending visitors to come.
Travellers from India, China and South Africa—who require visit visas—are price-sensitive segments that tourism boards have been courting aggressively.
Meanwhile, nationals of the United States, Canada, Australia and most EU states, who currently travel visa-free, must pay the ETA from February 2026.
![Treasury figures warn visa-fee hikes could wipe £1.15 bn off UK tourist spending]()
Amid these changing requirements, VisaHQ can streamline the process for both tourists and corporate travellers by handling the paperwork for UK visit visas and the upcoming ETA, keeping applicants up-to-date on fees and documentation, and submitting forms on their behalf; full details are available at https://www.visahq.com/united-kingdom/.
Airlines and tour operators fear that layering new fees onto airfare-inflation and sterling strength will nudge leisure visitors toward mainland Europe, whose Schengen visa costs remain lower.
The Home Office argues the extra revenue will fund border modernisation and help plug this year’s £4 billion asylum-accommodation bill. Officials also point out that UK visa fees have been frozen since 2022 and remain competitive with comparable destinations after currency adjustment. Nonetheless, the Treasury’s own modelling, obtained by The Telegraph, shows net negative impacts unless the UK meets an ambitious target of 50 million annual visitors by 2030, up from 38 million in 2023.
Corporate-travel managers should budget for higher compliance costs on short-term assignments and factor the ETA surcharge into project bids involving non-visa nationals. Legal teams are watching parliamentary scrutiny; MPs on the Business and Trade Committee have requested an impact assessment that weighs revenue gains against potential VAT, duty-free and job losses in tourism hot-spots outside London.
Although the individual increases look modest, hospitality leaders warn the timing is disastrous for a sector still nursing post-pandemic debt and high energy costs. UKHospitality chief Kate Nicholls called the move “a deliberate act of economic self-harm,” noting that inbound tourists collectively spend more in restaurants and pubs than the UK exports in food and drink. Luxury retailer Fortnum & Mason added that Britain should be making it cheaper—not dearer—for high-spending visitors to come.
Travellers from India, China and South Africa—who require visit visas—are price-sensitive segments that tourism boards have been courting aggressively.
Meanwhile, nationals of the United States, Canada, Australia and most EU states, who currently travel visa-free, must pay the ETA from February 2026.
Amid these changing requirements, VisaHQ can streamline the process for both tourists and corporate travellers by handling the paperwork for UK visit visas and the upcoming ETA, keeping applicants up-to-date on fees and documentation, and submitting forms on their behalf; full details are available at https://www.visahq.com/united-kingdom/.
Airlines and tour operators fear that layering new fees onto airfare-inflation and sterling strength will nudge leisure visitors toward mainland Europe, whose Schengen visa costs remain lower.
The Home Office argues the extra revenue will fund border modernisation and help plug this year’s £4 billion asylum-accommodation bill. Officials also point out that UK visa fees have been frozen since 2022 and remain competitive with comparable destinations after currency adjustment. Nonetheless, the Treasury’s own modelling, obtained by The Telegraph, shows net negative impacts unless the UK meets an ambitious target of 50 million annual visitors by 2030, up from 38 million in 2023.
Corporate-travel managers should budget for higher compliance costs on short-term assignments and factor the ETA surcharge into project bids involving non-visa nationals. Legal teams are watching parliamentary scrutiny; MPs on the Business and Trade Committee have requested an impact assessment that weighs revenue gains against potential VAT, duty-free and job losses in tourism hot-spots outside London.
