Government's plans to hike cost of tourist visas to deliver ‘fresh blow to Britain’s struggling pubs’, industry experts warn

Industry figures are warning that increasing the cost of tourist visas from £475 to £506 will have a stark impact on the number of people visiting Britain. They say this will negatively affect tourist spending, threatening Britain’s pubs with financial ruin. 

The surging visa costs coupled with plans to ramp up the cost of electronic travel authorisation (ETA) could see £1.5 billion of tourist spend wiped, with the pub and hospitality sectors expected to take a big hit.

“Inbound tourism is the closest thing you can get to free money in the economy.

“It is our second largest services export earner – foreign visitors spend more eating and drinking out at our pubs and restaurants than all of our food and drink exports put together and socialising like a local is the top attraction – and generates jobs growth and investment cross all parts of the UK,” Kate Nicholls, the head of UK Hospitality told the Telegraph. 

This week, Chancellor Rachel Reeves insisted pubs faced a “far different” situation from other businesses such as hotels, restaurants and cafes as she appeared at the World Economic Forum in Davos.

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Earlier this month, the Treasury indicated pubs would be given extra financial support amid changes in business rates announced at the budget in November.

Other high street businesses have lobbied for such support to be extended to help them weather the changing tax situation.

But speaking to the Times on the fringes of the World Economic Forum, the Chancellor signalled the Government’s plans remained targeted at pubs.“I do recognise the particular challenge that pubs face at the moment, and so I’ve been working with the sector over the last few weeks to make sure that the right support is in place and we’ll be announcing something in the next few days,” she said.

Ms Reeves later added: “I think the situation pubs face is different from other parts of the hospitality sector. We’ve just been using this time to get the package right. We’ll be setting out details in the next few days.”

Lady Loretta Rothschild, wife of financier Lord Nathaniel Rothschild, bought her local pub The Seven Stars in Bottlesford in Wiltshire, which was “on its knees” when he sold.

The former owner, Graham Thomson, said Lady Rothschild’s purchase shows “the money keeps going away from the common man”, but insisted he is happy the business is being kept alive. Michel de Carvalhom, a financier, and his wife

Charlene de Carvalho-Heineken of the brewing dynasty, own the 19th century Woolpack Inn in Totford, Hampshire. 

They claim they “100 per cent” bought the pub to keep it in the community and vowed to avoid making it an “elegant gastropub where the locals feel excluded”.

Mr Carvalhom said: “A lot of friends of mine have bought a pub as an ego-trip so that they can walk in and say: “I’m the owner of the pub,” and everyone says, “Oh, thank you, milord.’ That is absolutely not what we do.”