Travellers to cities and regions in England could soon have to pay a tourist tax after the government announced it will allow mayors to charge visitors for overnight stays.
The visitor levy is uncapped, but is expected to be under 5% of the accommodation cost.
Tourist taxes are widespread across Europe – and the Scottish capital Edinburgh introduced an overnight fee in July – but the hospitality industry has criticised the move in England.
Opponents say it will deter visitors and put further pressure on a sector already battling tax hikes and employment issues.
What to know about England’s new tourist tax
Under the new plans, mayors in England will be able to charge a percentage of the total cost of a visitor’s overnight stay.
The levy will apply to all kinds of tourist accommodation, including hotels, holiday rentals, B&Bs and guesthouses.
All visitors, independent of nationality or the purpose of their visit, will be subject to the fee.
Mayors will be able to choose how much they charge, but it is expected to be no more than 5% of the bill for the overnight stay. Several mayors have already pledged to keep to this limit, including in London.
Where the tax will be introduced is at the discretion of mayors. Some have already opposed the proposal, including in the seaside resort of Skegness and the town of Hartlepool.
The fees are expected to be brought in before the end of 2029.
Will England’s tourist tax deter visitors?
The plans have been met with backlash from England’s hospitality industry.
The trade body UKHospitality has estimated that a 5% levy would result in 11.9 million fewer visitor nights and £1.8 billion (€2.1 billion) less in tourism spending in 2030. It also forecast a loss of nearly 33,000 jobs.
There are also concerns that tourists will abandon destinations where the tax is in place in favour of those which don’t choose to introduce it.
The World Travel & Tourism Council (WTTC) has warned that the fee risks making the UK less competitive as a global destination.
The group published research earlier this year that found 29% of travellers from the UK’s largest international source markets – the US, France and Germany – would consider an alternative destination or decide not to visit if a €10 visitor tax were introduced.
Among UK residents, 39% said they would consider holidaying elsewhere or not taking a UK holiday if faced with a £10 levy.
Tourist taxes already in place in the UK
Tourist taxes have already been introduced in the UK.
This summer, Edinburgh brought in a 5% fee applied to the cost of all paid overnight accommodation.
The levy is capped at five nights in a row and charged at the same rate every day of the year.
In 2023, Manchester became the first English city to introduce a tax. It is set at £1 (€1.14) per room, per night and applied to all hotels and short-stay serviced apartments in the city centre with an annual rent value of £75,000 (€85,000) or more.
In Wales, meanwhile, local governments will be able to charge up to £1.30 (€1.50) per person per night starting April 2027.