Travelers lodging in various locations throughout the UK may soon be subject to daily fees.
Officials in England are set to receive new authority to impose a visitor levy on overnight visitors in order to generate funds for their local communities. However, some within the tourism sector have criticized the decision, suggesting it may discourage individuals from selecting UK destinations for holidays.
The Ministry of Housing, Communities and Local Government has revealed the initiative in preparation for the upcoming budget, stating that it will empower officials to invest in transportation, infrastructure, and the tourism sector through a fresh levy on overnight accommodations.
Minister Steve Reed remarked, “Tourists visit England’s vibrant cities and regions from near and far. By granting mayors the ability to utilize this, we can allocate more resources to local priorities, enabling continual growth and investment in these communities.”
Annually, England welcomes over 130 million overnight stays, with the proposed levies applicable to hotels, vacation rentals, B&Bs, and guesthouses.
Exceptions will be made for emergency lodging, homeless shelters, and authorized Gypsy and Traveller sites used as primary residences. Officials will also have the authority to exempt other lodging types if desired. The government’s announcement added, “This action will ensure that UK officials possess similar powers to those in cities like New York, Paris, and Milan, where fees for short-term visits are commonplace.”
The revenue generated could support local projects enhancing communities and enriching tourists’ experiences, potentially attracting more visitors without requiring central government approval. Studies indicate that reasonable fees have minimal impact on visitor numbers.
Nevertheless, industry leaders swiftly reacted to the announcement, expressing concern about the additional financial burden on already strained households. Ben Spier, head of policy and regulation at Sykes Holiday Cottages, stated, “Implementing a tourism tax in the UK will further strain our hospitality and staycation sector, already affected by recent tax hikes and regulatory adjustments.”
Ben highlighted, “The UK’s tourism and hospitality businesses face some of the highest taxes in Europe, including steep business rates, corporation tax, and elevated VAT levels. Introducing a new tourism levy risks adding more pressure and administrative burden on numerous small businesses, from holiday rental owners to local establishments, which rely on a flourishing tourist economy.”
Mayors from various UK regions responded positively to the news, with London’s Mayor Sadiq Khan emphasizing the additional funding’s direct support for the city’s economy and its global tourism and business standing. West of England’s Mayor Helen Godwin stated, “These enhanced powers demonstrate a vote of confidence in our region’s self-determination.”
A 12-week consultation period will follow, allowing businesses, communities, and interested parties to provide feedback on the proposed measures. The consultation is accessible on GOV.UK and will conclude on February 18, 2026.
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