Millions of Britons could miss out on cheap holidays if the Government presses ahead with a new visitor tax, tourism bosses fear. Prime Minister Andy Burnham has confirmed plans to create an “Overnight Visitor Levy”, forcing tourists to pay a fee for breaks in the UK.
The Holiday And Residential Parks Association (HARPA) fears this will push up the price of caravan stays, and even make campsite breaks unaffordable. There are 16.7 million camping and caravanning trips in the UK every year, with costs typically much cheaper than staying in a hotel. Industry experts warn the levy could increase the price of a family holiday by up to £140.
Industry warning over holiday costs
HARPA Director General Debbie Walker said: “As summer draws to a close, the sun is also setting on affordable British breaks with the looming holiday tax.” She added: "Licensed holiday parks contribute 12 billion to the UK economy and create more than 227,000 fulltime jobs. Once lost, these jobs, mainly in coastal and rural communities, are not recovered.
“Adding a levy, which could cost a family of 5 an extra £140 for a fortnight of camping, will simply price hardworking families out of domestic breaks during a cost of living crisis.”
Mayors to set fees
Regional mayors across the country have been campaigning for the right to impose an overnight levy and Mr Burnham, the former Greater Manchester Mayor, has confirmed it will go ahead as part of his plan to devolve more power to regional leaders. While the Government wants every part of England to elect a mayor, the new powers will also go to strategic regional bodies that don’t have one.
The charge is sometimes described as a hotel tax, but a Government consultation last year said it could include campsites and caravan parks as well as “glamping” sites such as yurts and pods, and overnight stays on stationary boats. Mayors will be given the power to set their own fees, although central government could impose an upper limit. A charge already operating in Edinburgh adds 5% to the cost of an overnight stay.
Government defends levy plans
Other industry leaders have also expressed concern, with UKHospitality, which represents hotels, bars and restaurants, warning of “unintended consequences” and higher costs for families. A Government statement last month portrayed the levy as part of a plan to devolve power out of London. It said: “We have therefore agreed to overhaul the way regional government is funded, starting by replacing grants from central government with a share of local income tax for every mayor beginning in 2028, such that where a region grows its tax base, it benefits from the increased receipts.”
It continued: “We will also give all strategic authorities the ability to introduce an Overnight Visitor Levy, with local leaders able to set out plans for how revenues will be invested by March 2028.” A Government spokesperson said: "We consulted earlier this year on the design of the visitor levy, and received a range of responses including from HARPA. The levy will ensure people benefit from more investment in their local area, and we will set out next steps in due course."
