February 16, 2025
UK’s Proposed ETA Price Hike Risks Damaging Tourism Competitiveness, Says IATA

UK’s Proposed ETA Price Hike Risks Damaging Tourism Competitiveness, Says IATA

IATA has strongly criticized the UK proposal to increase the cost of Electronic Travel Authorizations (ETAs) by 60%, warning it may damage tourism competitiveness.
GeoMancer448, CC BY 4.0, via Wikimedia Commons

The International Air Transport Association (IATA) has strongly criticized the UK Home Office’s proposal to significantly increase the cost of Electronic Travel Authorizations (ETAs) by 60%.

This substantial price hike, implemented shortly after the system’s introduction, has been met with significant opposition from the travel industry.

An Electronic Travel Authorization (ETA) is a digital travel permit that allows visa-exempt foreign nationals to enter a specific country for a short period. It’s essentially an online application that replaces the need for a physical visa stamp in your passport.

ETAs are typically used for tourism, business, or transit purposes and are linked electronically to your passport information. They help countries screen travelers before they arrive, enhancing border security and identifying potential risks.

Heathrow Airport international arrivals
Photo Credit: Heathrow Airport

Undermining UK Tourism


IATA Director General, Willie Walsh, expressed deep concern over the sudden price hike. “Proposing to increase ETA costs just a week after the system was introduced is bewildering.”

He emphasized that this move would directly undermine the UK’s tourism competitiveness. “In November, the government laid out plans to increase tourist arrivals by 30% to reach 50 million annually by 2030,” Walsh pointed out. “Gouging these travelers with a 60% increase in the ETA is a very bad start.”

World’s Highest Travel Tax

This proposed price hike comes at a time when the UK already imposes Air Passenger Duty (APD). This is widely recognized as the world’s highest travel tax. With APD set to increase again in April, the cumulative impact of these travel costs could significantly deter potential visitors.

Furthermore, travelers have the option of choosing alternative destinations. The European Union’s upcoming ETIAS system will cost roughly a third of the proposed UK ETA. The system will offer a longer validity period, presenting a more attractive option for visitors.

Photo Credit: London Heathrow Airport

A More Holistic Approach Needed


Walsh emphasized the importance of a holistic approach. “It’s time for the UK government to see the big picture,” he stated. “It has everything to gain by making the UK a more cost-competitive travel destination—including the substantial tax revenues that travelers generate.”

Discouraging visitors with high costs, even before they arrive, is counterproductive to the government’s own tourism growth objectives.

The UK aviation and tourism sectors play a vital role in the country’s economy, supporting 1.6 million jobs and contributing USD 160.7 billion to the UK’s GDP. A significant increase in travel costs could jeopardize these critical sectors and hinder economic growth.

IATA warns that the proposed 60% increase in UK ETA fees is a concerning development that could severely damage the UK’s tourism competitiveness.

By prioritizing cost-effectiveness and considering the broader economic implications, the UK government can create a more welcoming environment for international travellers. This would foster sustainable tourism growth and maximize the benefits for the UK economy.

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