New tourist tax for visitors to English cities

Neil Lancefield, Press Association Transport Correspondent

Visitors to English cities and regions face paying a new tourist tax under legislation included in the King’s Speech.

The Overnight Visitor Levy Bill will give mayors the power to impose a charge on visitors staying in accommodation such as hotels, bed and breakfasts, guest houses and holiday lets.

The measure, first announced in November last year, was welcomed by regional leaders including London Mayor Sir Sadiq Khan and Liverpool City Region’s Steve Rotheram.

But a tourism group said it does not support the move.

The Government said the levy – which would be used to fund local projects – will bring England into line with Scotland and Wales, as well as several other European countries.

Further details about the levy are expected to be announced when the Government publishes its response to a public consultation on the issue shortly.

The precise amounts of the charges will be determined by local areas.

Sir Sadiq said: “Giving mayors the powers to raise a tourist levy is great news for London.

“The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination.”

Joss Croft, chief executive of lobby group UKinbound, said: “While we have not yet seen the detail of the legislation, UKinbound does not support further taxation on international visitors, who already contribute through one of Europe’s peak levels of VAT and some of the world’s highest visa and ETA (Electronic Travel Authorisation) fees and air passenger duty.

“As these powers are taken forward, the devil will be in the detail, including ensuring any levy is simple to implement, creates no additional cost burden for businesses, and that revenues are clearly reinvested into the visitor economy.”

Matthew Price, chief executive of holiday rentals company Awaze, said: “The introduction of a levy on overnight stays risks placing further pressure on consumers with already tight budgets, and by extension the communities and businesses that rely on holidaymakers for their living.

“We ask that if a levy is to be introduced that it is enforced within a standardised national framework that minimises the impact on guests, owners and the wider visitor economy in Britain.”