TA Weekly Update – 19th March 2026

In this newsletter:

• PARLIAMENTARY & POLITICAL
• TA MEMBER POLL: IRAN CRISIS IMPACT ON THE VISITOR ECONOMY
• INDUSTRY NEWS
• FORWARD LOOK

 

From Eddy Leviten, Executive Director

Yesterday we celebrated English Tourism Week with our annual Parliamentary Reception in a packed Churchill Room. TA members, tourism business leaders, and Parliamentarians heard from the Tourism Minister, Stephanie Peacock, Shadow Secretary of State for Culture, Media and Sport, Nigel Huddleston, and host, Chris Webb MP. The broad opposition to tourism tax amongst attendees was noted and we are encouraged to continue engagement with Ministers and officials on this issue. Thanks also to our sponsors, Caravan and Motorhome Club, PASC, STAA and Airbnb and to our partners, Visit England and Family Holiday Charity.

It’s important to remind those outside our industry of the economic importance of our sector and the jobs we create.That message lands well and we will keep using the data and evidence to support our arguments for Government to enable the visitor economy to grow and not be burdened with additional taxation or regulation.

There is also a huge opportunity to market the UK as a holiday destination for its own citizens, especially at turbulent times overseas.

Tourism Insights 2026 preceded the reception and we got the latest data from leading experts as well as learning about trends in AI and marketing. Thanks to all our speakers for their time, insights and analysis. There’s a lot from the events on our LinkedIn feed https://www.linkedin.com/company/tourism-alliance

On Tuesday I was pleased to talk to the Visit Greenwich Board about the overnight visitor levy and the implications for their borough. It’s also so useful to get feedback on the work of the TA.

Today I spoke on a panel on tourism tax at the Liverpool City Region Destination Partnership’s Tourism Summit. It was amazing to see what is being done in the region and to hear some real ambition about driving the visitor economy. It’s clear that we are not always fully in agreement across politics and the visitor economy on if and how a visitor levy will happen. However, I am encouraged by the appetite for investment in tourism. We just need to ensure that there is a national strategy that ties in with what the regions want to do.

I was also delighted to attend a dinner earlier in the week hosted by ALVA at the House of Lords, where I heard from some amazing people working across a range of visitor attractions. Most striking was hearing how many have had to restructure or make redundancies; yet there was so much positive news as, and I am in danger of repeating myself, the visitor economy is a hugely creative, innovative and resilient sector.

Eddy

 

 

 

 

 

PARLIAMENTARY & POLITICAL

English Tourism Week 2026

English Tourism Week runs from 13 to 22 March, organised by VisitEngland under the theme ‘Local Stories, National Growth’. Tourism Minister Stephanie Peacock hosted senior industry leaders, trade associations and tourism businesses — including TA members — at a reception at Downing Street on 12 March to mark the start of the week. The Government confirmed that tourism’s contribution to the UK economy is forecast to grow to £161 billion annually by 2030, and reiterated its target of attracting 50 million international visitors per year by that date. Ministers confirmed that work on the forthcoming Visitor Economy Strategy continues.

Sources: GOV.UK — English Tourism Week press release | VisitBritain — ETW industry news | Tourism Alliance

 

TA MEMBER POLL: IRAN CRISIS IMPACT ON THE VISITOR ECONOMY

The TA ran a member poll in March 2026 to assess the impact of the Iran crisis and regional instability on the UK visitor economy. 78 responses were received across more than 10 sub-sectors. The results show widespread concern, early measurable impact, and a clear mandate from members for the TA to escalate with Government.

Headline Findings

•        71% of respondents are very or somewhat concerned about the impact of the crisis.
•        54% have already seen measurable impact on their business.
•        91% want the TA to raise the issue with ministers.
•        40% say the TA should seek urgent ministerial attention now.

Key Findings

1. Concern is widespread and acute

70 of 78 respondents (90%) are at least somewhat concerned; 35 (45%) are very concerned. Only 3 respondents expect no impact. The education sector is the most alarmed: 24 of 36 education respondents (67%) are very concerned — the highest of any sub-sector.

2. Impact is already being felt

42 respondents (54%) have already seen measurable impact, with 14 (18%) reporting significant impact already. A further 29 (37%) say it is too early to say, suggesting the full picture will worsen. Only 7 (9%) see no impact and expect none. The hardest-hit sub-sector is education — English language schools, summer camps and university programmes — where 11 of 36 respondents report significant impact already. The main drivers are cancellations from Middle Eastern source markets and disruption to Gulf hub routing.

3. Inbound bookings and fuel costs are the top pressure points

The most-cited impacts are drops in inbound bookings (51 respondents, 65%) and rising fuel and transport costs (47, 60%). Cancellations and refund requests affect 35 respondents (45%), broader consumer confidence concerns are felt by 31 (40%), and supply chain pressures are cited by 24 (31%).

 

4. Members want visa access, financial support and clear FCDO guidance

The top four government asks are: maintaining visa access for key source markets (42 respondents, 54%); direct financial support (41, 53%); clear and timely FCDO travel guidance (37, 47%); and VisitBritain promotional investment (34, 44%). A recurring theme in open comments is the need for positive messaging that the UK is safe, open for business and not a target — particularly given overseas agents reportedly advising clients against travel to major UK cities.

5. Members want the TA to act — and act now

71 of 78 respondents (91%) want the TA to raise the issue with ministers. 31 (40%) want urgent ministerial attention now; 29 (37%) say act if impacts worsen; and 11 (14%) want the TA to coordinate with other trade bodies first. Only 7 say it is too early to escalate.

Sector Spotlight: Education and English Language

Education was the largest responding sub-sector (36 of 78 respondents) and shows the most acute impact. The crisis is disrupting inbound student flows from the Middle East, with students travelling via Gulf carriers particularly affected by airspace closures and routing changes.

• 11 of 36 education respondents (31%) report significant impact already.
• 15 of 36 (42%) report minor impact.
• 67% are very concerned — the highest of any sub-sector.
• Top asks: visa access, direct financial support, FCDO guidance, and airlift protection.

“We are struggling to survive as a business. If it goes on much longer, we need to start making people redundant.”  — An International School

“Large agencies in Brazil are telling staff to dissuade travellers from coming to major hubs such as London. Reassurance and positive messaging are essential.”  — A School of English

Cross-Sector Theme: Energy and Fuel Costs

A secondary theme raised across accommodation, campsites and rural operators is the direct impact of rising oil and LPG prices on heating costs. Several off-grid operators highlighted that they cannot absorb fuel price spikes. This energy exposure is amplified by the Iran crisis but is a distinct issue.

“When guests come to stay they leave the heating on 24/7. We will be worse off letting the accommodation than not. I don’t know how I am going to honour existing bookings if costs have risen so much.”  — A Holiday Cottages operator

TA Response

On the basis of these findings the TA is taking the following actions:

• Immediate: We wrote to the Tourism Minister and DCMS requesting an urgent briefing on the crisis’s impact on the visitor economy; we wrote to DBT and FCDO for sector-specific guidance on travel advice and airspace routing for inbound visitors; coordinating with members on specific issues; wrote to Home Office also.
• Short-term: Liasing with VisitBritain on international messaging response; monitor energy/fuel price impact and consider a separate representation to DESNZ.
• Ongoing: Re-run the poll in 4–6 weeks to track whether the ‘too early to say’ group has crystallised into confirmed impact.

Westminster Hall Debate — Local Museums

A Westminster Hall debate on local museums was held this week, brought forward by Jen Craft MP (Labour, Thurrock). Responding for the Government, the Minister for Creative Industries, Media and Arts, Ian Murray, confirmed that the Museum Estate and Development (MEND) fund is open to museums of all sizes, and that the Hodge review is examining simpler application processes for smaller and volunteer-run organisations. Murray noted that around 30% of museums in England are volunteer-led and approximately 40% receive fewer than 10,000 visitors per year. He also referenced the economic contribution of the sector, stating that the average museum generates around £350,000 for its local economy through visitor spending, and confirmed that museum partnerships funded by Arts Council England reach more than 200,000 pupils each year. The debate is relevant to TA members in the visitor attractions and cultural heritage sector.

Sources: Hansard — Westminster Hall (transcript to be linked once published)

Business Rates — April 2026 Changes

The replacement of the 40% Retail, Hospitality and Leisure (RHL) business rates relief scheme takes effect on 1 April 2026, with significant implications for tourism businesses. Under the Non-Domestic Rating (Multipliers and Private Schools) Act 2025, the current two-multiplier system is replaced by five multipliers. Two lower multipliers will apply to qualifying RHL properties with rateable values below £500,000, representing a permanent structural reduction rather than an annually renewed relief scheme. However, the simultaneous 2026 business rates revaluation means many properties — particularly hotels and pubs — will see rateable value increases that may more than offset the multiplier reduction. The Commons Library published an updated briefing on the impact on pubs this week, noting that in 2027/28 an average pub’s rates will be £4,500 higher than today, rising to £7,000 higher in 2028/29. Pubs and live music venues will receive an additional 15% relief in 2026/27. The changes were raised at Business and Trade Questions on 12 March, where it was noted that hotels’ rates could double. The TA continues to monitor the impact on accommodation and hospitality businesses.

Sources: Commons Library — Business rates on pubs | Hansard — Business and Trade Questions, 12 March 2026 | GOV.UK — Business rates relief 2025/26

Youth Employment Package

The Secretary of State for Work and Pensions, Pat McFadden, announced a £1 billion youth employment package this week, expected to create 200,000 jobs for young people. The three headline measures are directly relevant to tourism and hospitality employers:

• Youth Jobs Grant: £3,000 for every young person aged 18–24 hired who has been on Universal Credit and seeking work for six months or more, expected to support 60,000 young people over three years.
• Jobs Guarantee expansion: Extended from ages 18–21 to 18–24, creating more than 35,000 additional subsidised jobs.
• Apprenticeship Incentive: £2,000 for SMEs taking on a new employee aged 16–24.

 

Tourism and hospitality businesses are significant employers of younger workers and SMEs, and the sector may benefit materially from all three measures.

Sources: GOV.UK — Major employment drive announcement

OVL — King’s Speech Speculation

The Spectator reported on 17 March that industry leaders attending the Downing Street ETW reception believe an overnight visitor levy (OVL) enabling power will be included in the forthcoming King’s Speech, which would allow Labour-controlled Mayoral Strategic Authorities — including London — to introduce charges on overnight accommodation stays. UKHospitality described its response as one of “profound disappointment”, with its head of public affairs noting that Labour ministers had previously given explicit commitments to the sector and to Parliament that they were not intending to devolve such powers to local mayors. The OVL consultation closed on 18 February; no Government response has yet been published. The TA has been actively engaged on this issue and continues to press for a model that protects the competitiveness of the visitor economy if a levy does proceed.

Sources: The Spectator — English Tourism Week won’t save the tourist industry, 17 March 2026 | GOV.UK — Visitor levy consultation | Commons Library — A visitor levy for English mayors?

INDUSTRY NEWS

VisitBritain 2026 Inbound Forecast

VisitBritain’s current forecast for 2026 projects 45.5 million inbound visits and £35.7 billion in visitor spending — representing 4% growth in visits and 7% growth in nominal spend compared to 2025. This would represent 105% of 2019 visit volumes, although spend in real terms remains below pre-pandemic levels. European markets are forecast to grow 4% in volume and 6% in value; long-haul markets 5% and 8% respectively. The forecast carries geopolitical and economic uncertainty caveats.

Sources: VisitBritain — UK Inbound Tourism Forecast 2026

ETA Full Enforcement

From 25 February 2026, the UK’s Electronic Travel Authorisation (ETA) scheme entered full enforcement. Visitors from 85 visa-exempt countries — including the USA, Canada, Australia and all EU member states — are now required to hold a valid ETA before travelling to the UK. Carriers face penalties for transporting passengers without a valid ETA. The Home Office has confirmed that 24.8 million ETAs were issued between October 2023 and the end of 2025. The TA has previously noted that the 60% increase in ETA costs is estimated to cost the UK up to 100,000 visitors annually and up to £734 million over five years

Sources: Home Office — ETA factsheet, February 2026 | GOV.UK — Get an ETA to visit the UK

 

FORWARD LOOK

• English Tourism Week concludes 22 March — VisitEngland Tourism Superstar 2026 winner to be announced after voting closes at midnight on 22 March.
• Visitor Economy Strategy — In development; stakeholder engagement ongoing.
• OVL consultation response — Awaited; King’s Speech expected to set the legislative direction.

Business rates changes — Take effect 1 April 2026.