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Airlines oppose UK ETA price hike

Heathrow Airport, Terminal 5A

The UK Home Office’s proposal to increase the cost of the Electronic Travel Authorization (ETA) from £10 to £16 has drawn criticism from the aviation industry, with the International Air Transport Association (IATA) voicing strong opposition. The 60 per cent price hike comes shortly after the system’s introduction and has sparked concerns about its potential impact on the UK’s tourism competitiveness.

Willie Walsh, Director General of IATA, described the proposed increase as a counterproductive measure that could harm the UK’s efforts to boost tourism. “Proposing to increase ETA costs just a week after the system was introduced is bewildering. If implemented, it would be a self-inflicted blow to the UK’s tourism competitiveness,” Walsh stated. He highlighted the government’s goal to increase tourist arrivals by 30 per cent to reach 50 million annually by 2030, warning that the higher fee could deter travellers.

Walsh also pointed out the additional financial burden on visitors, citing the UK’s Air Passenger Duty (APD), the world’s highest travel tax, which is set to rise again in April. He contrasted the UK’s ETA cost with the EU’s upcoming ETIAS, which will cost about a third as much and remain valid for a year longer, making it a more attractive option for travellers.

“It’s time for the UK government to see the big picture. It has everything to gain by making the UK a more cost-competitive travel destination—including the substantial tax revenues that travellers generate. It makes no sense to discourage visitors with high costs even before they set foot in the country,” Walsh urged.

The government has also announced a temporary exemption for airside transit passengers who were previously required to apply for an ETA before travel. While the exemption has been welcomed, the Home Office stated that it “will be kept under review.”

The UK aviation and tourism sectors collectively support 1.6 million jobs and contribute USD 160.7 billion to the UK’s GDP. Industry leaders argue that making travel to the UK more affordable is crucial to sustaining these economic benefits and achieving the government’s ambitious tourism targets.

As the debate continues, the aviation industry calls on the UK government to reconsider the proposed fee hike and prioritise measures that enhance the country’s appeal as a travel destination.