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Although tourist levies are widespread across Europe, the hotel industry in England has criticised this initiative. Its opponents argue that the new levy will deter tourists and put further pressure on a sector already facing tax increases and employment issues.
According to Euronews, the levy will apply to all types of tourist accommodation, including hotels, short-term holiday lets, bed and breakfast (B&B) establishments and guesthouses. All guests will be required to pay the levy, regardless of their nationality or the purpose of their visit.
Mayors will be able to set the rate of the levy themselves, though it is expected not to exceed 5 per cent of the overnight bill. A number of mayors, including those in London, have already pledged to adhere to this limit.
The hospitality sector has reacted strongly. According to estimates by the trade association UKHospitality, the introduction of a 5 per cent levy will lead to a reduction of 11.9 million tourist overnight stays by 2030 and a decrease in tourist spending of 1.8 billion pounds sterling (2.1 billion euros). A loss of nearly 33,000 jobs is also forecast.
There are fears that tourists will avoid destinations where such a levy is in place, favouring those that decide not to introduce it.
The World Travel and Tourism Council (WTTC) warns that the new levy could reduce the UK’s competitiveness as a global tourist destination.
Earlier this year, the organisation published a study showing that 29 per cent of travellers from the UK’s largest international markets (the US, France and Germany) would consider travelling elsewhere or cancel their trip altogether if a €10 levy were introduced.
Among UK residents themselves, 40 per cent said they would prefer to spend their holiday elsewhere or would cancel their trip to the UK altogether if they had to pay a £10 levy.
It should be noted that tourist levies have already been introduced in a number of regions in the UK. This summer, Edinburgh introduced a 5 per cent levy charged on the cost of any paid overnight stay. The levy is charged for a maximum of five consecutive nights and remains the same throughout the year.
In 2023, Manchester became the first English city to introduce a tourist tax. It is set at £1 (€1.14) per room per night and applies to all hotels and short-stay apartments in the city centre with an annual rental value of £75,000 (€85,000) or more.
Finally, in Wales, local authorities will be able to charge up to £1.30 (€1.50) per person per night from April 2027.
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