The proposed 'tourist tax' in England could significantly increase costs for families planning holidays, potentially leading to decreased domestic tourism and pressures on small hospitality businesses.
The hospitality and tourism sector in England is sounding the alarm over proposed legislation allowing regional mayors to impose a 'tourist tax' on overnight stays. This initiative, similar to existing taxes in parts of Europe, aims to generate revenue but comes with significant concerns about its impact on family staycations. The proposed levies could either charge tourists per person or as a percentage of their accommodation costs, effectively raising holiday expenses for families on a budget.
Critics of the tax warn that it could mean the difference between affording a family holiday or being priced out of the option altogether. For instance, a family of four could see their vacation costs rise by over £100 for a two-week stay, with some case studies highlighting that a typical stay could nearly double in cost depending on the number of occupants. This kind of financial burden poses not only a risk to the holidaymakers themselves but also threatens the viability of local businesses, such as guesthouses and B&Bs, which are already navigating post-pandemic recovery challenges.
The backlash from the trade body UKHospitality and other industry players suggests that this tourist levy could lead to some small businesses shutting down due to decreased tourism. As discussions continue, the potential implementation of this tax raises broader concerns about balancing local government revenue needs while ensuring the accessibility of holiday options for families, ultimately highlighting the fragility of the domestic tourism market in England.
