{
  "id": 8914207,
  "title": "A tourist tax will be bad for all business, not just hotels",
  "url": "https://urgent.news/2026/09/21/a-tourist-tax-will-be-bad-for-all-business-not-just-hotels",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-21T11:35:16.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/a-tourist-tax-will-be-bad-for-all-business-not-just-hotels/"
  },
  "original_language": "en",
  "account": "James Ford, a former adviser to London's Mayor Boris Johnson, argues that a proposed tourism tax will not only affect the hospitality industry but will also harm all businesses operating in the city. The tax, set to be introduced in 2025, will exacerbate the existing challenges faced by hotels, which already suffer from soaring business rates and increased tax burdens. In 2025 alone, the added costs are projected to amount to £3.4 billion for the hospitality sector, with an additional £1 billion in wage increases due to higher employer national insurance contributions. Moreover, the tax comes at a time when footfall is declining, consumer confidence is weak, and households are grappling with tighter budgets.\n\nThe tourism tax could also tarnish London's reputation as an expensive destination for visitors. According to a poll by The Caterer, nearly 60% of the public would reconsider their travel plans if an overnight visitor levy were added to their expenses. An analysis by Oxford Economics estimates that the tax could result in a £2.2 billion loss in GDP, 3.5 million fewer visits, and the loss of 33,000 jobs in the sector.\n\nWhile the tax is expected to primarily impact tourists and hotel operators, it will also have far-reaching consequences for businesses in general. Business travelers, who account for around 25% of hotel stays in London, constitute 57% of all inbound business visits to the UK. These business visitors spend significantly more per night (£209) compared to other visitors (£101), contributing around £5 billion annually to the UK economy. The tax will not only increase expenses for business travelers but also affect client negotiations, conference attendance, and overall corporate expenditures. For multinational firms, the tax will add to the financial burden whenever their overseas staff travel for meetings.\n\nIf a tourism tax must be implemented, the author contends that it should be carefully designed to minimize its negative impacts. The hospitality industry has called for a reduction in VAT by 10% to mitigate the tax's burdens, but the author questions whether the Prime Minister will extend the same support to other non-hospitality businesses. The author suggests that businesses should be exempted from the tax or provided with a mechanism to claim it back, similar to the VAT claim process. Ultimately, the government should prioritize reducing the financial burdens on UK businesses rather than imposing additional taxes.",
  "summary": "Increasing the cost of hotel rooms and Airbnbs is not just a blow to the hospitality sector, it will hammer all businesses, argues James Ford.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}