Travelers from numerous countries must now apply for an Electronic Travel Authorisation (ETA) to enter the UK. This new requirement is already making headlines for all the wrong reasons.
For European visitors, the ETA won’t be necessary until April, but for others, it has been mandatory since January 8. However, less than a month into its implementation, the UK Home Office has announced a significant price hike for the permit.
If approved, the fee for an ETA will jump from £10 (€11.82) to £16 (€18.91)—a steep 60% increase. According to the Home Office, this adjustment aims to reduce the migration and borders system’s dependence on taxpayer funding and is expected to generate £269 million (€318 million) annually.
While transit passengers have been exempted from paying the fee, the travel industry has strongly criticized the increase.
Joss Croft, Chief Executive of UKinbound, calls the price hike a “staggering blow” to the tourism sector, warning that it threatens the UK’s competitiveness in an already challenging market. Similarly, Willie Walsh, Director General of the International Air Transport Association (IATA), expressed frustration, calling the move “bewildering” and a direct contradiction of the government’s pledge to boost tourism by 30% by 2030.
AirlinesUK’s CEO, Tim Alderslade, also condemned the decision, stating it undermines the country’s reliance on air connectivity for economic growth.
The decision to exempt transit passengers has been widely welcomed. London Heathrow Airport had previously warned that charging transit passengers could result in the loss of up to 4 million travelers annually. Heathrow’s CEO, Thomas Woldbye, praised the exemption as a sign that the government is listening to industry concerns.
However, the exemption only applies to passengers connecting through Heathrow or Manchester airports without passing through immigration. Travelers with separate connecting flights that require going through border controls will still need an ETA.
Critics have also pointed out that Europe’s upcoming travel authorization system, ETIAS, offers more value at a lower cost. For just €7, travelers can access 29 Schengen countries for three years, making the UK’s £16 fee seem disproportionately high.
The cumulative costs of visiting the UK are becoming a deterrent for international travelers. Visitors no longer benefit from tax-free shopping, face a 20% VAT on hospitality, and may soon encounter tourist taxes in some areas. Meanwhile, other European nations, such as France, Spain, and Finland, charge significantly lower VAT rates on hospitality services.
The UK’s Air Passenger Duty (APD), already the highest in Europe, is also set to increase in 2026, further adding to travel expenses. Industry leaders warn that this “layering” of costs risks stifling growth in a sector vital to the UK economy.
Tourism is one of the UK’s largest export sectors, with Visit Britain estimating 38.7 million international visitors in 2024, contributing £32.5 billion to the economy. However, with rising costs and increased competition from other destinations, the UK risks losing its appeal.
Joss Croft emphasized the need for policies that promote growth, stating, “International tourism is highly competitive, and visitors have options. Increasing costs while offering less value is not a sustainable strategy.”
As the debate over the ETA price hike continues, the government faces growing pressure to balance its fiscal goals with the need to maintain the UK’s reputation as a welcoming and accessible travel destination.