UK’s ETA Scheme Sparks Fears of Job Losses in the Tourism Industry

| October 14, 2024
UK's ETA Scheme Sparks Fears of Job Losses in the Tourism Industry
Image courtesy of Irina via Pixabay

The United Kingdom’s (UK’s) Electronic Travel Authorization (ETA) scheme has sparked concerns about job security in the tourism sector.

Businesses that rely on international tourism in Southeast Britain have raised alarms about its impact.

The UK Government plans to expand the implementation of the new digital permit system for non-visa travelers in two phases beginning January 2025.

However, many fear it will harm the local economy, particularly tourism jobs, by discouraging international visitors.

The UK ETA: what’s changing?

The UK ETA scheme requires travelers who currently don’t need a visa to apply for permission before traveling to the UK.

This includes citizens of European countries, the United States (US), Australia, and other countries with visa waiver agreements with the UK.

ETA applications cost £10, and travelers must submit personal and passport details and answer security questions online.

Processing and receiving the decision on the application typically takes three days, give or take.

Once approved, an ETA will be valid for multiple visits of up to six months over two years or until the passport it’s linked to expires.

For non-European visitors, the ETA will be required for travel starting 8 January 2025, with applications opening on 27 November 2024.

European nationals will need it starting on 2 April 2025, with applications beginning on 5 March.

Those who do not qualify for an ETA must apply for a UK visa to be allowed to travel to the country.

Local tourism businesses warn against the ETA scheme

UK's ETA Scheme Sparks Fears of Job Losses in the Tourism Industry
Image by Graham Hobster from Pixabay

The BBC cited several local businesses in the South East that voiced concerns that the ETA scheme will lead to job losses.

Many companies have struggled since Brexit, significantly affecting cross-border travel from mainland Europe.

After the pandemic, the UK Government’s decision to require European Union (EU) nationals to travel with a passport has contributed to the decline in tourist traffic.

Businesses fear that the ETA’s extra paperwork and fees could deter visitors and lead to a considerable drop in footfall.

Hilderstone College principal Lee Shutler said the requirement to have a passport instead of an ID card already discourages EU students.

German students told the BBC that few have passports, and traveling with a national ID card to other European countries is easier.

Annette Taylor, owner and director of Taylor Travel Ltd coach company, urged the UK Government to rethink the ETA scheme to prevent further job losses.

Deirdre Wells, chief executive of Visit Kent, emphasized that international students and leisure travelers are key to the region’s tourism.

She cautioned that the new ETA scheme could become “another barrier” for visitors and adversely impact local businesses.

Wells urged the government to provide more support for businesses affected by the changes.

Many emphasized the need to balance securing borders and ensuring that it doesn’t damage the vital tourism industry.

They highlighted this as many businesses are still trying to recover from the economic challenges of the past few years.

More potential impact of the ETA scheme on the UK economy

This was not the first time concerns about the ETA adversely impacting businesses have surfaced.

Heathrow Airport has repeatedly urged the UK Government to lift the ETA requirement for transit travelers.

It warned that the ETA could encourage travelers to transit in other major European airports, which do not require additional fees or permission.

This could lead to a significant decline in the number of passengers and revenue loss for the airport.

Heathrow reported a loss of 90,000 passengers from Gulf countries due to the ETA requirement since November 2023 and February 2024.

This passenger and revenue loss affects the entire tourism supply chain—from airlines to hotels and restaurants.

An analysis suggests that the scheme could cause financial losses of up to £4 billion for the UK economy.

Government defends ETA scheme amidst challenges for tourism industry

UK's ETA Scheme Sparks Fears of Job Losses in the Tourism Industry
Image courtesy of ha11ok via Pixabay

Despite these concerns, the UK Government said that the ETA scheme is essential for enhancing security and modernizing border checks.

The system will allow the government to track non-visa travelers and pre-screen them to identify potential threats before they arrive.

The ETA scheme aims to improve border security while streamlining travel to the UK, similar to systems in countries such as the US and Canada.

While they are short-term challenges for businesses that rely on tourism, the ETA’s long-term benefits would outweigh the difficulties.

These challenges could hit hard regions that rely heavily on tourists from neighboring countries like France, Germany, and the Netherlands.

While the ETA’s £10 application fee may seem small, it could add up quickly for families or frequent travelers.

The additional pre-travel requirement could also discourage travelers who make short or spontaneous trips to the UK.

As the UK moves forward with the ETA expansion, businesses are bracing for potential job losses and a decline in visitors.

Local business owners in a tourism-dependent region seek more support to prevent further economic decline.