The UK government has announced a price hike proposal to raise the cost of its new Electronic Travel Authorisation (ETA). Currently costing GBP 10, the fee might soon increase by 60 percent to GBP 16. The move has drawn significant concern from travel industry stakeholders and potential visitors alike.
About the Price Hike
The ETA, part of the UK’s new security measures, is a mandatory requirement for visa-free travelers. It allows short-term visits for tourism, business, and family purposes. Similar to the EU’s forthcoming ETIAS, the ETA system is valid for two years.
Just days after the system’s rollout, the price hike proposal has stirred debate. Government officials justify the hike as necessary to cover administrative costs and enhance security measures. In addition, the Home Office argues that the higher fee remains competitive versus similar programs worldwide. However, the timing of the announcement has raised eyebrows, particularly from the tourism and aviation sectors.
Opposition from the IATA
In particular, the International Air Transport Association (IATA) has expressed strong opposition to the price hike proposal. In a recent statement, the organization emphasized the potential negative effects on inbound travel and the UK’s competitiveness as a tourism destination. Moreover, tourism groups have also voiced concerns about deterring visitors, particularly from key markets the European Union and the United States.
“Proposing to increase ETA costs just a week after the system was introduced is bewildering,” said Willie Walsh, IATA director general. “If implemented, it would be a self-inflicted blow to the UK’s tourism competitiveness.”
Walsh also noted that in 2024, the UK government laid its plans to boost tourism by 30 percent. With this, it aims to increase arrivals up to 50 million by 2030.
Price Hike’s Potential Impact
Furthermore, many stakeholders worry the price hike could undermine the UK’s recovery from pandemic-related tourism losses. EU nationals, who previously enjoyed visa-free access, may reconsider visiting due to rising costs. This, coupled with other factors like inflation and economic uncertainties, could significantly impact the UK’s tourism revenues.
The UK government, however, remains steadfast in its decision. Officials emphasize that the ETA will improve border control and enhance the visitor experience. In addition, it will create less dependence on taxpayers’ money. In contrast to the reception of the UK ETA price hike proposal, travelers welcomed the temporary exemption of transit passengers from ETA fees.
Nevertheless, critics argue that the increase sends mixed signals about the UK’s openness to international visitors. Airlines, already struggling with high operating costs, fear the added expense will deter passengers and reduce flight demand.
What’s Ahead
Nothing is final yet as the UK Parliament will still discuss the proposal before potentially giving it green light. In the meantime, industry experts call for a balanced approach. They urge the government to consider an implementation in phases or reducing fees for frequent travelers. At the same time, advocacy groups highlight the importance of clear communication to minimize confusion among travelers.
Photo by Jamie Quirke on Unsplash
