Key facts
- Mayors in England will be granted powers to impose an uncapped "overnight visitor levy" on tourists.
- The tax will apply to all overnight visitors for each night of their stay.
- The hospitality industry has warned the levy could lead to job losses and make holidays more expensive.
- The proposed tax is a percentage of the cost of overnight stays, with no upper limit.
- Similar visitor levies exist in Scotland and Wales, with caps on charges.
- Andy Burnham previously introduced a £1 per room, per night charge in Manchester.
Mayors across England are set to be granted powers to implement an "overnight visitor levy," a tax on tourists staying in hotels, holiday lets, and bed and breakfasts. The proposed charge, which could be a percentage of the accommodation cost with no upper limit, has been met with strong opposition from the hospitality sector.
Trade body UK Hospitality warned that the tax would increase holiday costs for families already grappling with the cost-of-living crisis and could lead to significant job losses within the industry. Businesses expressed concerns that an uncapped levy could add hundreds of pounds to family holidays and put tens of thousands of roles at risk.
Labour mayors, including Andy Burnham, have welcomed the move, with estimates suggesting the policy could generate up to £1.6 billion annually. Burnham previously introduced a £1 per room, per night visitor charge in Manchester in April 2023. Mayor of London Sir Sadiq Khan also supports the initiative, estimating it could raise over £350 million a year for the capital.
Similar visitor levies are already in place in Scotland and Wales. Edinburgh has implemented a 5% levy capped at five nights, while Wales is set to introduce a capped charge of £1.30 per person per night. However, the uncapped nature of the proposed English levy has drawn particular criticism, with industry leaders calling for consistency and fearing it could make UK destinations less competitive compared to European cities like Paris, Rome, and Berlin, which have capped tourism taxes.