Transportation Secretary Grant Shapps said the move would take effect at 4 a.m. on Monday.
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This comes two weeks after the islands were placed on the Green Watch List.
Mr Shapps said since then “we have seen the rates double and also the positivity rate of these tests double, which means that we are going to have to act quickly, as we said, we may still have to do” .
The latest figures show the infection rate for the Balearic Islands to be 205 cases per 100,000 people, compared to 329.9 for the UK.
Bulgaria and Hong Kong will be added to the green list, while Croatia and Taiwan are moved to the green watch list, which means they risk going from green to orange.
Cuba, Indonesia, Myanmar and Sierra Leone will be added to the red list.
People traveling to Orange List countries, which include mainland Spain, Portugal, Greece, Cyprus and Italy, are currently required to self-isolate for 10 days upon their return to England.
But from July 19, the quarantine requirement will be removed for fully vaccinated people and those under 18.
They will still have to take a test three days before returning and take a PCR test on the second day in the UK – but not on the eighth day.
People arriving in the UK from Green List countries do not have to be quarantined but must take a private PCR test two days after their return.
However, some holiday destinations have their own quarantine rules, so travelers may need to self-isolate upon arrival even if they are not in the UK.
“I think we all now know that traveling right now is not the same as it was before a global pandemic,” the Transportation Secretary said.
“This means that when people book, especially if you book in a country on the Green Watch List, you have to make sure you can get your money back, you have to make sure that you can book your accommodation at all times.
“That’s really what it shows more than anything else.