More than 200 leaders from the UK\u2019s hospitality and leisure sector have written to the Chancellor urging the Government to reconsider the proposed visitor levies.<\/p>\n
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Signatories included major accommodation providers such as Butlins, Haven, Hilton and Travelodge and the message was clear, \u201cholidays are for relaxing, not taxing\u201d.<\/p>\n
With the school half-term upon us, many businesses are assessing what a tourist tax could mean for their future and how it could impact already tight margins.<\/p>\n
At the Autumn Budget 2025, the Government announced that it would give mayoral authorities in England the power to introduce a visitor levy on overnight stays.<\/p>\n
The charge would apply to hotels, B&Bs, guesthouses, short-term rentals, campsites and other paid accommodation.<\/p>\n
Often referred to as \u2018tourist tax\u2019, the levy would apply to leisure and business travellers.<\/p>\n
However, any businesses that benefit from tourism and holidaymakers could feel the impact, even though they themselves are not taxed.<\/p>\n
Despite the backlash, councils have argued that the funds raised could support local infrastructure, public services and tourist development.<\/p>\n
Although consultations in England are ongoing, some cities already have local schemes in place.<\/p>\n
This includes:<\/p>\n
In Scotland, the Visitor Levy (Amendment) was introduced to the Scottish Parliament in January 2026 and this could indicate how successful or damaging a tourist tax could be on all businesses.<\/p>\n
The Scottish Government has also consulted on a levy for cruise passengers docking at local ports.<\/p>\n
In their letter to the Chancellor, industry leaders warned that a visitor levy could add \u00a3100 or more to a two-week UK family holiday.<\/p>\n
They argue this may force families to shorten trips, reduce spending in local establishments or encourage travel overseas instead.<\/p>\n
The letter also stressed that fewer visitors could mean fewer jobs. This could have a knock-on effect on a range of sectors that rely on tourism, including retail, entertainment, transportation, real estate and agriculture.<\/p>\n