IATA slams UK’s plan to increase ETA costs by 60%

As the UK’s competitiveness may suffer

The International Air Transport Association (IATA) has strongly criticised the UK government’s plan to increase the cost of UK Electronic Travel Authorisations (ETAs) by 60%, from GBP10 to GBP16.

The move, which could be implemented soon this year, has raised concerns within the travel industry. Many experts warn it could significantly hinder the UK’s competitiveness as a tourist destination.

Willie Walsh, Director General of IATA, expressed his dismay at the proposed increase just a week after the UK government launched the new ETA system. Walsh described the proposal as “bewildering” and warned it would represent a self-inflicted blow to the UK’s tourism sector.

“The timing of this increase is particularly concerning,” Walsh said. “The [UK] government has set ambitious goals to boost tourist arrivals by 30% by 2030, aiming to reach 50 million visitors annually.

“However, raising the cost of entry for international travellers soon after introducing the system sends the wrong message. It risks discouraging tourists at a time when the UK needs to position itself as an affordable and attractive destination.”

The UK government introduced the ETA system last November, which requires travellers from visa-exempt countries to apply for an electronic authorisation to enter the UK. While the system was designed to streamline the entry process and enhance border security, the proposed price increase has sparked concerns that it may negatively impact tourism, a major contributor to the UK economy.

In addition to the ETA price hike, Walsh highlighted the looming rise in Air Passenger Duty (APD)—the world’s highest air travel tax—which will increase again in April. These higher costs could make the UK less attractive than other European destinations.

“UK tourists have alternatives,” Walsh noted. “The European Union’s ETIAS system, which comes into effect in 2025, will cost a third of the proposed ETA increase and be valid for a year longer. Travellers will increasingly weigh their options when planning trips, and the UK risks losing out.”

The travel and aviation sectors are critical to the UK economy. They directly support 1.6 million jobs and contribute $160.7 billion to the nation’s GDP.

Industry leaders call on the government to reconsider the planned fee increase as discussions continue. Many urge a more balanced approach to tourism and aviation taxation to ensure long-term growth and competitiveness.

Image: The travel and aviation sectors are critical to the UK economy. Credit: Jerome Dominici

Last Updated on 5 hours by Arnold Pinto