Mayors to gain power to levy tourist taxes, industry warns of huge damage
The government plans to let English mayors impose uncapped tourist levies on accommodation, prompting hospitality groups to warn it could cost the sector up to £1.6 billion.
The UK government is set to announce that English mayors will be granted authority to impose a tourist levy on the price of accommodation for overnight visitors, with no upper limit prescribed by law. While insiders suggest most mayors will keep the charge modest, industry leaders fear the lack of a cap could lead to significant price hikes. Executives from Butlin’s and Whitbread warned that such a tax could reduce the affordability of family holidays, depress visitor numbers, and jeopardise hiring of young workers.
They calculate the potential loss to the hospitality and tourism industry could reach £1.6 billion. The move mirrors tax schemes already in place in Scotland, Wales and many European cities, where the proceeds are used to fund local services. Critics argue the uniform application across all destinations would unfairly burden resort areas compared with major cities.
