Tourist tax in England: Which destinations could introduce a new overnight levy?
The visitor levy is uncapped, but is expected to be under 5% of the accommodation cost.
England may soon introduce a tourist tax, allowing mayors to charge visitors for their overnight stays. This new levy, which is uncapped but expected to be under 5% of accommodation costs, will apply to all types of tourist accommodation. Mayors can choose the specific amount, but are expected to keep it at or below 5% of the bill.
Several mayors, including those in London, have already expressed support for the proposal. However, the hospitality industry has raised concerns about the potential negative impact on visitor numbers and the local economy, estimating that a 5% tax could lead to 11.9 million fewer visitor nights and £1.8 billion less in tourism spending in 2030, along with a loss of nearly 33,000 jobs.
The World Travel & Tourism Council warns that the tax could make the UK less competitive as a global destination, with research showing that 29% of travelers from the UK's largest international source markets would consider alternative destinations if a €10 tax were introduced. Despite these concerns, the tax is expected to be implemented before the end of 2029, with the final decision left to individual mayors.
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