Overview
- The government’s Rewiring the State plan would give every strategic authority in England the power to introduce a modest overnight visitor levy as part of wider devolution of revenue.
- Industry group UKHospitality and major operators have this week written to Prime Minister Andy Burnham calling for the nationwide rollout to be abandoned and for a full review of the policy.
- UKHospitality estimates the levy could cost about 33,000 tourism and hospitality jobs, cut GDP by roughly £2.2 billion and add about £100 to a family-of-four holiday, while the TaxPayers Alliance projects larger falls in domestic overnight visits.
- Government ministers say mayors and local leaders would each decide whether to adopt the charge and that receipts would help fund local infrastructure and community projects, with further consultation to follow.
- UKHospitality has proposed an alternative 'holiday bonus' that would return funds to local areas based on visitor nights to reward and incentivise tourism rather than impose a new tax.