The government has announced plans to add a tourism tax to holiday destinations. But what is the industry’s response?
The leisure industry reacts
200 bosses from the UK leisure and hospitality industries have said that plans for a tourist tax should be scrapped, after the government considered plans for local leaders to add a visitor levy to boost revenue.
Some cities already have a scheme like this in place, but the charges are added voluntarily onto bills rather than levied as a local authority tax. Already, big providers of UK holidays, including Butlin’s, Travelodge, Hilton and small providers of Cotswolds Private Tours, like //cotswoldtour.co.uk/cotswolds-private-tours/, fear the proposals will take money away from local businesses.
Will tourists turn away?
They say that under the new proposals, set at £2 per person, per night, would add over £100 for a two-week holiday, potentially forcing some families to cancel or shorten trips, or head overseas.
The government has said that it prefers the tax to be calculated as a proportional cost of accommodation, rather than a flat rate, and set locally.
In Scotland and Wales, local authorities already have the legal power to levy a local tourist tax. Wales isn’t introducing any version of this until next year, and some Scottish cities will launch it this year. Government officials say that the move will help to decentralise taxation, offer extra local powers and unlock economic growth to make destinations more attractive.
At a time when businesses are struggling in leisure and hospitality, the plan might be a challenging one to sell.