UK’s ETA travel permit likely to cost €7 more under government plan

Posted by Admin January 20, 2025 Travel

Travellers from many countries now need to apply for an Electronic Travel Authorisation (ETA) to enter the UK.

Visiting the UK is about to get more expensive, as the rollout of the nation’s new travel permit gets underway.

Visitors from Europe don’t need an Electronic Travel Authorisation (ETA) until April, but for other international visitors, the permit was a requirement from 8 January. But less than a month into the scheme, the UK Home Office has announced plans to hike the price of an ETA.

Under the proposed amendment, the ETA fee will rise to £16 (€18.91), from a previous fee of £10 (€11.82). The silver lining in the announcement is that transit passengers will no longer need to pay the fee at all.

Read our full guide to the UK’s new Electronic Travel Authorisation (ETA): who needs it, how long it’s valid for and how to apply.

“The decision to increase Electronic Travel Authorisation (ETA) costs by 60 per cent is a staggering blow to the UK’s tourism industry and businesses across the country,” says Joss Croft, Chief Executive of UKinbound.

How much more will a UK ETA cost now?

The proposed changes will see the cost of an ETA application rising from £10 (€11.82) to £16 (€18.91), a 60 per cent increase.

The UK Home Office says these changes are to “reduce the reliance of the migration and borders system on taxpayer funding,” and estimates they will raise £269 million (€318 million) each year.

The proposed price hike will be debated in the UK Parliament and will need to be approved before going ahead. But if it’s approved, the new price will be in place quickly.

How has the travel industry reacted to the ETA price increase?

The International Air Transport Association (IATA), which speaks on behalf of 340+ airlines worldwide, has been vocal in its opposition to the price hike.

“Proposing to increase ETA costs just a week after the system was introduced is bewildering,” says IATA director general Willie Walsh. “If implemented it would be a self-inflicted blow to the UK’s tourism competitiveness.”

Walsh further points out that, in November last year, the UK government pledged to boost tourism by 30 per cent, aiming to stimulate arrivals to 50 million by 2030. “Gouging these travellers with a 60% increase in the ETA is a very bad start,” says Walsh.

“It’s time for the UK government to see the big picture,” Walsh continues. “It has everything to gain by making the UK a more cost-competitive travel destination—including the substantial tax revenues that travellers generate. It makes no sense to discourage visitors with high costs even before they set foot in the country.”

AirlinesUK, the association of UK airlines, similarly rebuffed the price increase, with CEO Tim Alderslade commenting the move was “bitterly disappointing.”

“[The fee increase} makes little sense in a country that depends on its air connectivity for economic growth, and which only recently raised air passenger duty to record levels,” continues Alderslade. “The UK cannot hope to compete globally if we continue to place a wall of costs in front of those wanting to visit and invest in this country.”

Do transit passengers need a UK ETA?

While the increased price will be upsetting for some, the u-turn on charging transit passengers has been widely welcomed by the travel industry.

It means that if you are just stopping in the UK to connect to another flight, and not going through immigration, you don’t need an ETA.

London’s Heathrow Airport had previously said that it risked losing four million passengers a year if transit passengers were charged.

“The removal of airside transit passengers from the ETA scheme is the right decision, and we welcome it,” said Thomas Woldbye, Heathrow’s chief executive. “It shows that the government is listening to industry concerns and is willing to make necessary changes to strengthen the UK’s competitiveness and drive economic growth.”

Only Heathrow and Manchester airports have transit facilities for passengers, and will therefore be the only facilities where ETA-free travel will be allowed.

It’s important to note that only proper connecting flights will unlock the ETA-free transit. If you are making your own arrangements to travel onward from the UK and need to pass through border controls and check in again, you will still need an ETA.

The UK government had previously shunned the idea of ETA-free transit, stating that it would risk illegal migration. It will be following the situation closely and reserves the right to re-introduce ETAs for transit passengers in the future.

“We urge that this exemption is made permanent,” says Alderslade, “given the vital role that passengers transiting the UK play in making vital international routes viable, particularly to growth markets.”

Does the ETA threaten UK tourism?

“There is a false assumption that international visitors will continue to choose the UK, even if we hike up prices,” says Joss Croft. ”International tourism is a competitive industry and the two key motivators to visit a destination are value for money and the quality of welcome. This move damages our standing on both fronts.”

In comparison, the European Electronic Travel Information and Authorisation System (ETIAS) which launches later this year will cost less, offer more, and last longer.

The ETIAS is expected to cost €7 and will be valid for three years. It will be free to those over 70 and under 18, allowing entry to 29 Schengen countries. A family of four would therefore pay €14 to visit 29 EU countries with an ETIAS, but to visit the UK with an ETA would cost £64 (€75.65).

UKInbound warns that, when combined with the other high costs of visiting the UK, the new authorisation threatens to harm the country’s competitiveness. International visitors can no longer shop tax-free, are subject to 20 per cent VAT on hospitality, and could find themselves paying a tourist tax, depending on where they stay.

In comparison, France, Spain, Italy, Austria and Finland charge just 10 per cent VAT on hospitality. Germany, Switzerland, Portugal and many other nations charge less than that. Only Denmark has a higher rate of VAT at 25 per cent.

Adding to the concerns is the UK’s proposed hike in Air Passenger Duty (APD), which is already the highest in Europe. In 2026, rates will increase by £2 (€2.36) per passenger for short-haul flights, £14 (€16.50) on flights between 2,001 and 5,500 miles, and by £8 (€9.45) on the longest flights.

“The 60% uplift in visa cost brings another tax rise to the travel and tourism sector, which risks stifling growth,” warns Luke Petherbridge, director of public affairs at ABTA, the UK’s travel agent trade association. “Coming on the back of increases announced for Air Passenger Duty in the recent budget, we are seeing a layering of additional charges in a sector which has been forecast to grow strongly.”

In 2024, Visit Britain estimates that 38.7 million international visitors arrived in the UK and spent £32.5 billion. Tourism is currently the UK’s fifth largest export sector, and UKInbound says it is currently outperforming the wider UK economy.

“The increased price of an ETA is just another cost that is being placed on the shoulders of international visitors,” says Croft. “We need policies that will allow our industry to harness valuable growth opportunities.”