IATA: Airlines Oppose the UK's ETA Price Hike

DALLAS — The International Air Transport Association (IATA) has rejected the UK Home Office's proposal to increase the price of electronic travel authorizations (ETAs) by 60%.

The current cost of an ETA is GBP 10, and it grants permission for passengers to travel to the UK. The price increase to GBP 16 was opposed by IATA’s Director General Willie Walsh, who commented:

"Proposing to increase ETA costs just a week after the system was introduced is bewildering. If implemented it would be a self-inflicted blow to the UK’s tourism competitiveness. The added cost would come on top of the Air Passenger Duty (APD)—the biggest travel tax in the world—which itself will increase again in April.”

He also mentioned, “It makes no sense to discourage visitors with high costs even before they set foot in the country.”

The proposal, announced on January 16, 2025, is part of a broader initiative to reduce the reliance of the migration and borders system on taxpayer funding.

The ETA System

The ETA system, which went into effect on January 8, 2025, for travelers from countries including the US, Canada, and Australia, requires most non-visa visitors to apply for permission before entering the UK.

The proposed price increase comes just days after the system's introduction and has sparked criticism from various sectors:

1. Tourism industry concerns:
   • The increase is seen as a blow to the UK's tourism competitiveness.
   • It contradicts the government's November 2024 plans to increase tourist arrivals by 30% by 2030.
   • The higher cost may discourage visitors and harm the growth potential of the UK's tourism sector.
2. Comparison with EU's ETIAS:
   • The EU's Electronic Travel Information and Authorization System (ETIAS), launching later in 2025, will be more cost-effective.
   • ETIAS will cost around €7 (£5.90), offer entry to 29 Schengen countries, and be free for those over 70 and under 18.
3. Economic impact:
   • The proposed changes, including increases in other immigration and nationality fees, are forecast to generate an additional £269 million per year.
   • UK aviation and tourism currently support 1.6 million jobs and contribute US$160.7 billion to the UK's GDP.  IATA provides further details of the value of air transport to the UK here.