The Government has announced a tourist tax on overnight stays in English cities later today
City Mayors will be able to impose a tax of around £2 a night on hotel and Airbnb-style stays and the money raised is intended to be invested in local transport, infrastructure and the visitor economy to attract more tourists.
Local Government Secretary Steve Reed said: “Tourists travel from near and far to visit England’s brilliant cities and regions.
“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
England’s lack of a local tourist tax makes it an international outlier. England is the only country in the G7 where national government prevents local government from collecting a tourist tax on overnight accommodation, and London is the largest city in the G7 without one. Scotland and Wales have recently introduced tourist tax powers for local government and risk leaving England behind.
Greater Manchester Mayor Andy Burnham has long been campaigning for such a move and a scheme involving a number of hotels by the Manchester Accommodation Business Improvement District (BID) has been in operation since April 2023
There is though opposition. The tourist alliance say “The UK is already one of the least price-competitive destinations globally, with visitors facing ETA/visa fees, high air passenger duty, 20% VAT on in-destination spend, and no tax-free shopping. Adding a tourist tax makes us even less attractive and risks the Government’s own target of 50m inbound visitors.”
