Heathrow Warns UK ETA Scheme Will Harm Economy

London Heathrow Airport (LHR) has raised significant concerns regarding the UK government’s new electronic travel authorization (ETA) scheme, warning that its implementation for transit passengers could diminish the country’s competitiveness and negatively impact economic growth.

The UK government has officially confirmed that all visa-exempt visitors will now need to apply for digital travel authorization. This ETA scheme is being phased in over the coming months and costs £10 ($13). It allows multiple entries to the UK for stays of up to six months at a time, valid for two years or until the holder’s passport expires, whichever comes first.

Currently, the ETA program is being piloted for travelers from seven Middle Eastern countries: Bahrain, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Starting January 8, 2025, the scheme will expand to include visitors from more than 40 additional countries and territories, including Australia, Japan, South Korea, and the United States. European Union nationals will be added on April 2, with Irish citizens remaining exempt. Visitors who already require a visa to enter the UK will continue to do so under the new system.

A spokesperson for Heathrow Airport stated that while the airport does not oppose the long-term rollout of the ETA scheme, it strongly argues that including airside transit passengers will reduce the UK’s competitiveness and harm economic growth. “We want to work in partnership with Home Office ministers over the next few months to address this issue and learn from the lessons of the countries trialed, where we’ve seen the loss of a significant number of transfer passengers already,” the spokesperson added.

Since the introduction of the ETA scheme in November 2023 by the previous Conservative government, Heathrow reported a decline of 90,000 passengers on routes involving the seven Middle Eastern countries included in the pilot. The airport has described the program as “devastating for our hub competitiveness,” highlighting the immediate negative impact on passenger numbers and, by extension, on the broader economy.

Despite these challenges, Heathrow was recently named the world’s most connected airport for the second consecutive year by data analyst OAG in its annual Megahubs report. The ranking considers the number of destinations served and the number of scheduled international flight connections. Heathrow outperformed Kuala Lumpur, Tokyo Haneda Airport, Amsterdam, and Seoul Incheon, with New York John F. Kennedy Airport being the highest-ranked North American airport in sixth place.

In August 2024, Heathrow handled nearly 8 million passengers, marking its fourth consecutive record-breaking month this summer. Over the past 12 months, the airport has served 82.6 million passengers and is on track to welcome 30 million passengers between June and September—a first for the UK hub. These figures underscore Heathrow’s critical role in international travel and the potential economic ramifications of reduced passenger numbers due to the ETA scheme.

Heathrow’s warning emphasizes the importance of transit passengers to its operations and the UK economy. Transit passengers contribute significantly to airport revenues and support a wide range of businesses, from retail and hospitality to transportation services. A reduction in these passengers could lead to decreased revenues and job losses, further impacting economic growth.

As the UK government continues to implement the ETA scheme, Heathrow Airport is advocating for adjustments that consider the critical role of transit passengers in maintaining the airport’s competitiveness and supporting economic growth. The dialogue between Heathrow and government officials will be crucial in determining the future impact of the ETA on the UK’s aviation sector and overall economy.

In conclusion, while the ETA scheme aims to enhance security and streamline travel, Heathrow Airport urges the UK government to reconsider its approach regarding transit passengers. Balancing security measures with economic interests is essential to ensure that the UK remains a leading global travel hub, fostering both economic growth and international connectivity.