The chief executive of UKHospitality, which represents the hospitality sector across the country, said the UK's high rate of VAT is holding it back compared to European neighbours, and called on the Government to boost its competitiveness.
New data released by the Office for National Statistics shows international visitors to Derbyshire and Nottinghamshire spent £437m in 2022, the most recent year with available figures.
This was up from £350m in 2019, before the coronavirus pandemic, while £264m was spent a decade earlier.
Nationally, foreign tourism spending hit £50bn in 2022, a seven per cent increase on 2019, and the highest figure on record.
It also represents a 63 per cent increase over the previous 10 years.
However, a spokesperson for the Tourism Alliance, which represents different sectors across the UK tourism industry, said for many of its members ‘it is not a happy picture’ and ‘many are struggling’, with the added warning that the Chancellor’s changes to National Insurance contributions announced in the last Budget would ‘hit our sector hard’.
Many businesses reported higher taxation as the biggest challenge, with many pubs struggling as one in four say they believe their future is ‘untenable’.
In Derbyshire and Nottinghamshire, £142m was spent on hotels and restaurants, and £21m on recreation and culture.
The Tourism Alliance spokesperson added: "We are pleased the tourism minister announced a new 50m inbound visitor target by 2030.
"We applaud that ambition, as well as his intention to publish a tourism growth plan later this year."
"We need to tackle our high visa fees and ensure that we do not further increases taxes on tourists and tourism businesses.
Kate Nicholls, chief executive of UKHospitality, said: "The Government should improve the UK's tourism competitiveness, particularly through a lower rate of VAT for hospitality and tourism.
"Currently, the UK's 20 per cent rate of VAT ranks as one of the highest in Europe and is one of the major factors holding the sector back."
She also called on the Government to delay its planned NIC changes and review the proposed business rate reform.
She added: "The enormity of the cocktail of costs being imposed upon hospitality venues is unprecedented and, for many, completely unsustainable.”