Hospitality leaders warn new tourist tax could stall expansion and cut jobs

Prominent chef Simon Rogan, whose portfolio includes L’Enclume and Aulis, warned that the planned tourist tax will force him to pause further UK openings, describing it as another burden on customers. Hotel magnate Rocco Forte and JD Wetherspoon founder Tim Martin echoed his concerns, saying the levy will raise operating costs throughout the industry. The charge, to be introduced in early 2028 at roughly five percent of an overnight stay, could raise £600 million a year but a Tax Policy Associates study predicts it would cut six million overnight stays and shave £700 million from tourism spending.

UKHospitality forecasts 33,000 job losses and a £2 billion economic impact, while London’s mayor, Lord Khan, argues the revenue would support infrastructure and cultural projects. Critics note that England is the only G7 nation without local tourist taxes and that the measure may make London less competitive against European cities with lower VAT rates.