The new year rise in VAT is set to make the UK unaffordable to many would-be visitors from overseas, a poll has claimed.
The increase from 17.5% to 20% will mean UK holidays will be "too expensive", according to 24% of 3,200 worldwide travellers surveyed by TripAdvisor.
In addition, a further 26% were still undecided as to whether the tax hike will deter them from holidaying in Britain next year.
The survey also showed that around a quarter of Britons reckon the VAT rise could make domestic holidays in 2011 too expensive.
TripAdvisor spokesperson Emma O'Boyle said: "The UK is one of Europe's most popular holiday destinations, with London in particular regarded as a world-class shopping hub.
"With a quarter of both continental European and British travellers anxious about a UK holiday because of the VAT increase, we may see some excellent travel deals in 2011 as the British tourism industry works hard to be seen as an attractive and competitive holiday option."
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