The UK Government is proposing to allow local mayors or leaders to impose a ‘tourist tax’ in their respective cities, in order to raise revenue for local services. This levy is already in place in several cities across the UK such as Edinburgh. They’ll also be given the power to decide the rate proportionally to their area, instead of the Government imposing a flat, nationwide rate. The consultation period for this proposal ends this Wednesday, the 18th of February.
Over 200 hospitality leaders have advocated for this proposal to be scrapped, arguing that it will deter holiday-goers from staying in Britain, especially deterring UK residents from taking domestic holidays. It’s feared that a decline in tourism due to rising visitor tax could harm communities that rely on tourism for their economy. They are backed and supported by UKHospitality, who state that “It could cost the public up to £518 million in additional tax when they travel in the UK and having knock-on impacts for the wider hospitality sector.”
This rise in costs for consumers will come on top of trickle-down effects from many other policies shaping hospitality in the UK. Customers can already expect to pay more for alcohol levies, rising food prices and one of the highest rates of VAT on hospitality in Europe. With more and more UK customers cutting back on dining out and going for drinks, there are fears that this will be another nail in the coffin for many hospitality businesses who may see a sharp decline in footfall once a tourist tax is implemented. After all, this will not only affect hotels and b&bs: nearby bars and restaurants that see a lot of tourists will also see a fall in customers who decide to holiday elsewhere.
Consultations on this will end this Wednesday at 11:59pm, so if you would like to have your say, see Gov.UK’s contact form here.
