Families choosing to holiday in the UK could face an additional £112 for a fortnight's stay under new government plans to allow local councils to impose a tourist tax. The proposal, which would give Mayoral Strategic Authorities in England the power to introduce 'local overnight visitor levies', has sparked warnings from industry body UKHospitality that it could 'decimate' tourism across the country.
Under the proposed scheme, a levy of £2 per person per night would add £56 to a week-long break and £112 for a fortnight in self-catering or hotel accommodation. However, exemptions similar to those in Venice, where children under 14 are exempt, could reduce the cost for a family of four to £28 per week.
Some UK cities already charge a tourist tax: Edinburgh, Manchester, and Liverpool levy £2 plus VAT per room per night, while London is considering a 3% charge that Mayor Sadiq Khan claims could raise £350 million annually. The government's consultation on the matter closed in February, seeking input on which types of accommodation to include and how the funds would be used.
UKHospitality Chief Executive Allen Simpson said: 'A holiday tax would hike costs for Brits, make staycations more expensive and decimate tourism. There are no winners from a holiday tax. From coastal communities and city centres to local guesthouses, pubs and taxi firms, the impacts are stark and indiscriminate.'
According to VisitBritain, the average cost of an overnight domestic stay rose by 5% between 2023 and 2024 to £107 per night. A 3% levy on this would add £3.21 per night, while a 5% tax would add £5.35. The Institute for Government noted that the new powers would provide mayors with 'a new source of revenue to invest in local growth and support regeneration', a move many mayors have long called for.
The potential tax comes as more Brits consider staycations due to conflicts in the Middle East, with one holiday company reporting a 235% increase in bookings. To cut costs, experts suggest travelling during shoulder seasons and choosing lesser-known destinations over popular spots like Cornwall and the Lake District.
