The British government is under fire again over plans to give regional mayors the power to introduce a visitor levy or tourist tax on overnight stays in hotels, holiday lets, and Airbnbs across England. Industry leaders warn that this could add £100 or more to the cost of a typical fortnight’s holiday for families, potentially making domestic holidays less affordable - not to mention adding to the cost of holidays in England for foreign tourists and expats visiting friends and family who don’t have access to a spare room.
Around 200 bosses of leading UK accommodation firms – including Butlin’s, Hilton and Travelodge – have told the Chancellor in a letter that “holidays are for relaxing, not taxing”. They warned that the plans would hit families hard, put jobs at risk and drain money from local communities. In the letter, the industry bosses said: “This ‘Holiday Tax’ will hit families hardest, puts jobs at risk, drain money from local businesses and communities and undermine the Government’s growth agenda.
“For millions of hardworking families, a UK holiday is their chance to switch off and spend quality time together. For many, this tax will make their holiday unaffordable, meaning families will shorten trips, forgo a break altogether, reduce their spending with pubs, restaurants, events, leisure activities and local attractions, or travel overseas – spending their money and creating jobs elsewhere.”
In response to the growing concerns, a government spokesman emphasised that the introduction of the visitor levy was designed to allow local authorities to invest in their communities and improve infrastructure. They stressed that any new charges would be modest and in line with similar levies in other countries. The government also pointed out that it was up to local mayors to decide how and when the levy would be applied, depending on the needs of their region.
Despite these reassurances, the hospitality sector remains concerned about the potential negative impact on both the economy and job market. With the UK already facing challenges from rising costs and low consumer confidence, the holiday tax could be a step too far for many families looking for affordable domestic holidays.