The United Kingdom (UK) Government recently announced plans to increase its Electronic Travel Authorization (ETA) fees.
Still subject to Parliamentary approval, the ETA cost could increase from £10 to £16.
This 60 percent ETA fee hike has caused an outcry from the airline and tourism industries.
They argue that raising the cost of the new digital travel permit could hurt the UK’s popularity as a travel destination.
The proposal came only a week after the ETA scheme rolled out for all non-European visa-exempt UK travelers.
The British Government introduced the ETA to improve border security and streamline entry into the UK.
However, industry leaders say the ETA fee hike will discourage travelers, particularly those from Europe and families traveling on a budget.
What is the ETA?
The ETA is a digital pre-authorization travel permit required for visitors who can previously visit the UK without a visa or other formal permissions.
It was first introduced in November 2023 for Qatari citizens traveling to the UK.
Travelers from Bahrain, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates followed suit in February 2024.
Effective January 2025, non-visa travelers from outside Europe must have an ETA before traveling to the UK. This includes United States (US) citizens, Canadians, and more.
Beginning April 2025, all non-visa nationals visiting the UK, including European citizens, except Irish citizens, must have an ETA.
The ETA allows travelers to visit the UK as often as they want over two years or until the passport the permit is linked to expires.
The Home Office currently charges an ETA fee of £10 per application but will increase it to £16.
The government says the extra money will help cover the costs of border control and reduce the need for taxpayer funding.
Officials estimate that this ETA fee increase could generate an extra £269 million yearly.
Why the ETA fee hike faces criticisms
The plan to raise the ETA fee has upset many people in the travel and tourism industries.
Willie Walsh, head of the International Air Transport Association (IATA), said the timing of the increase is “bewildering.”
“If implemented, it would be a self-inflicted blow to the UK’s tourism competitiveness,” he said in an official press release.
The UK Government recently announced its goal to attract 50 million visitors annually by 2030, a 30 percent increase from today.
However, subjecting travelers to a 60 percent increase in ETA fees is a “very bad start,” Walsh added.
The extra cost will be in addition to the UK’s Air Passenger Duty (APD), the highest travel tax in the world, which will also increase in April.
APD is a tax on flights from UK airports to raise government revenue and promote sustainable transport.
“It makes no sense to discourage visitors with high costs even before they set foot in the country,” the IATA chief stressed.
On the other hand, Richard Toomer, who leads the Tourism Alliance, also criticized the decision, as per The Financial Times.
He said the ETA fee hike is particularly discouraging for European visitors who are now required to apply for advance permission to travel to the UK for the first time.
Airlines UK chief executive Tim Alderslade said the ETA fee increase is “bitterly disappointing” following the temporary ETA exemption for airside transit travelers.
“[It] makes little sense in a country that depends on its air connectivity for economic growth,” he said in a press release.
Heathrow Airport had repeatedly called to scrap the ETA requirement for transit passengers as it threatened its position as Europe’s leading hub airport.
Comparing the ETA fees with other travel permits
The UK’s ETA system is similar to other countries’ existing pre-travel authorization programs.
The US Electronic System for Travel Authorization (ESTA) costs $21, or about £17, and is valid for two years.
On the other hand, Canada’s Electronic Travel Authorization (eTA) costs CAD $7, or about £4, and lasts for five years.
IATA’s Walsh noted that travelers would soon have a choice between paying for the UK ETA or the much cheaper European Union (EU’s) European Information and Travel Authorization System (ETIAS).
The EU’s planned ETIAS will cost travelers €7, or about £6, and be valid for three years, a year longer than the UK ETA.
Critics of the ETA fee hike say this could make travelers think twice about visiting the UK, especially when cheaper airports and destinations are nearby.
Alderslade stated that the UK cannot compete globally if it continues to impose high costs on those wanting to visit and invest in the country.
Impact on UK tourism and the economy
Tourism is a big part of the UK economy, contributing about £74 billion yearly and supporting millions of jobs.
Industry leaders are worried that increasing the ETA fee will make the UK less appealing, especially to European tourists.
The UK is famous for its history, culture, and landmarks, but costs matter. If visiting becomes too expensive, travelers may choose other destinations.
Small businesses, like hotels, restaurants, and local attractions, will likely feel the impact the most.
Many depend on visitors to stay in business. If fewer tourists come, it could hurt these businesses and the local communities they support.
The UK Government’s stance
The UK Home Office defends the fee increase, saying it is necessary to create a better and more secure immigration system.
It also mentioned that the ETA fee hike’s revenue will help reduce the need for public funding.
The proposed increase is part of a broader plan to increase immigration costs.
The Home Office also plans to raise the cost of Certificates of Sponsorship from £239 to £525.
British naturalization fees will rise from £1,500 to £1,605, and costs for Overseas Territory citizens will increase from £1,000 to £1,070.
Other nationality-related fees will also see increases, including:
- Renunciation of British citizenship, from £450 to £482.
- Amendments to citizenship certificates, from £400 to £428.
- Administrative review of decisions, from £450 to £482.
- Right of abode documentation, from £550 to £589.
Parliament is reviewing the proposal for the ETA fee hike and raising other immigration costs, and a decision is expected soon.