UK inbound tourism businesses are warning the country is losing the price war with its competitors, even as demand holds up.
The research, carried out by Navigator Insight in September among 81 UKinbound members spanning accommodation, attractions, destinations, transport and tour operators, found 73% expect bookings, visitor numbers or customer orders in Q4 2026 to match or beat last year, with 47% expecting bookings to stay stable and 26% expecting growth.
Revenue outlooks were similarly steady, with 72% expecting yields to match or exceed last year’s and 52% confident about the next 12 months. Germany showed the strongest growth among tracked source markets – a reversal from last year’s barometer, when operators reported declines there, while the US was again cited as softening, continuing a trend flagged in UKinbound’s 2025 survey too.
The findings land days before chancellor John Healey’s Autumn Budget on 28 October, which UKinbound is using to press for competitiveness measures. CEO Joss Croft said the UK ranks “106th out of 110 destinations for price competitiveness,” citing 20% VAT on hospitality, high visa costs, the absence of tax-free shopping and the rollout of overnight visitor levies in England as reasons “the cumulative cost of a UK visit continues to rise.”
“Ahead of next week’s Budget, we want to see government prioritise the competitiveness of the UK’s inbound visitor economy,” Croft said. “As the UK’s fifth largest export industry, inbound tourism already delivers jobs, investment and economic growth in every nation and region, but we risk undermining that success if we fail to keep pace with our international competitors.”