A new report by the British Chambers of Commerce (BCC), in collaboration with IHG Hotels & Resorts, highlights the need for urgent policy reforms to ensure the UK visitor economy thrives.

The report stresses the importance of government-industry partnerships and provides several key recommendations to policymakers to boost the tourism, hospitality, events, and attractions industries.

Among the recommendations is a call for reforms in apprenticeship funding in England, which would support more training opportunities for businesses in the visitor economy.

This sector is critical to driving economic growth and job creation in the UK. In 2023, the country welcomed 38 million overseas visitors, contributing £31.1 billion to the economy—a figure expected to rise to £32.5 billion this year.

The report also suggests reforms to business rates, advocating for a reduced multiplier for both small and standard rates. This would alleviate financial pressures on businesses in the sector, allowing them to reinvest in growth and employment.

Workforce shortages, exacerbated by Brexit and the Covid-19 pandemic, remain a significant challenge, particularly in seasonal roles. The report emphasizes the urgent need for a robust skills strategy and an immigration system that supports the industry.

Another focal point of the report is the reconsideration of tax-free shopping for overseas visitors. The removal of this benefit in 2020, according to the report, has made the UK less competitive as a global tourism destination. Reintroducing tax-free shopping could stimulate spending by international tourists and support local economies.

Concerns were also raised about the potential introduction of visitor levies and tourist taxes, which the report warns could act as an economic disincentive for the tourism industry, reducing the UK’s appeal to global travelers.