The Story Behind the £147 Billion: New Report From VisitBritain / VisitEngland Shows Tourism Worth £147 Billion To UK Economy

Ever thought about how much your weekend trip to the seaside or a day out in a historic city actually matters? It turns out, it matters a lot. A brand new report from the national tourism agency, VisitBritain/VisitEngland, has pulled back the curtain on just how important tourism is to the UK. And the numbers are staggering. We’re talking about an industry that’s worth a massive £147 billion to the British economy every single year. This isn't just about holiday snaps and souvenirs; it’s a huge part of what keeps the country running, supporting local communities and creating jobs from the tip of Cornwall to the top of Scotland.

Just how big are we talking?

That £147 billion figure is a bit mind-boggling, so let's break it down. It’s about 5% of the entire national economy. To put it another way, the tourism industry is bigger than the insurance and pensions sectors put together. The report, released on 20 January 2026, shows that this isn't just the money spent directly on hotel rooms or museum tickets. It also includes the 'supply chain' – think of a local bakery that sells its bread to the hotel, or the farmer who supplies the milk for your morning cuppa. It all adds up.

And it's not just about business profits. In 2024, tourism in the UK generated an incredible £52 billion in tax for the government. That’s enough money to cover more than half the entire annual wages bill for the NHS in England. So, every time someone enjoys a holiday here, they’re helping to fund public services for everyone. The true value of this sector is clear in how it supports the entire nation.

It’s not just about the money, it’s about jobs

Beyond the huge sums of money, tourism is a major employer. It supports nearly 2.4 million jobs across the UK, which is roughly one in every fifteen jobs in the country. What's brilliant is that these opportunities aren't just in big cities. The industry’s reach extends into every region and nation, with at least 5% of jobs in every single part of Britain being thanks to tourism. This provides a lifeline for many local communities and small businesses.

It’s also an industry that gives a lot of young people their first step on the career ladder, creating brilliant opportunities to learn new skills. And there’s plenty of room for growth. The report predicts that another 175,000 jobs could be created by 2030. That's a huge boost for the future of the country's workforce and a testament to the potential for further economic growth.

What the bigwigs are saying

It’s not just us who think this is a big deal. People in charge are taking notice of the huge contribution from the tourism sector.

Tourism Minister, Stephanie Peacock, said:

“From rich culture and historical landmarks to beautiful landscapes and coastal communities, the UK is one of the best and most visited holiday destinations in the world. Without the incredible workforce behind the tourism industry, it wouldn’t be the powerhouse that it is today.”“The economic contribution of the tourism sector is clear, and the government is ambitious about ensuring it can continue to grow. That is why we are committed to publishing a joint growth plan with the sector in the spring.”

VisitBritain/VisitEngland CEO Patricia Yates also highlighted the importance of the findings, but pointed out some challenges, too.

“This research underscores tourism's importance as one of the UK's most valuable industries, driving economic growth for every nation and region and supporting our high streets, hospitality businesses, cultural institutions and our communities. The billions in tax revenues generated by tourism also shows how spending by domestic and international visitors contributes to services that benefit everyone.”“There are however challenges. The decline of domestic holidays has hit coastal destinations particularly hard as consumers wrestle with cost-of-living pressures and businesses with the higher cost of doing business. Longer-term international forecasts meanwhile show the UK is starting to lose its competitive position globally and inbound visits remain London-centric.”

Bringing it back home: the power of a good old staycation

One of the key messages from the report is just how vital domestic tourism is. That’s when Brits decide to holiday right here at home. A huge 84% of overnight tourism spending by people from the UK happens in destinations outside of London. This is massively important for supporting rural areas and our lovely coastal destinations.

Actually, if Brits swapped just 10% of the money they spend on holidays abroad for a trip at home, it would give the UK economy an £8 billion boost every year. That's a powerful thought. To help encourage this, VisitEngland is launching a new campaign to get people exploring the brilliant coastal destinations in the North West this summer. It's a reminder that a holiday at home supports local businesses and communities directly.

Looking abroad: who’s visiting the UK?

Of course, international visitors, or inbound tourism, are also a massive part of the picture. The report looks at which international markets are most important for the UK. The USA continues to be a huge source of visitors, with their spending expected to be worth £7.6 billion to the economy by 2026. That’s more than £1 out of every £5 spent by international tourists.

But there are also exciting emerging markets showing massive potential for growth. Visitors from China and India are expected to increase rapidly, by a combined 12% every year until 2030. The UK is also very popular with high-spending visitors from the Gulf, attracting nearly a third of all trips made to Western Europe from Qatar, Saudi Arabia, and the United Arab Emirates.

What's the bigger picture?

So, what does all this information mean? This detailed report on the 'Economic Value of Tourism in the United Kingdom' is more than just a collection of numbers. It’s a tool that’s being shared with the UK Government to help make smart decisions to support the industry. It shows that tourism isn't just 'nice to have'—it's a core part of our national economy with the potential for even more growth. The total value of tourism activity is expected to hit an eye-watering £161 billion by 2030. By understanding its true worth, plans can be made to make sure the industry continues to thrive, creating jobs and supporting communities across the whole nation.