Overview
- Oxford Economics, in modelling released Monday, projects a 5% accommodation levy would add £1.6 billion to visitor bills and cut GDP by about £2.2 billion by 2030.
- The study estimates 33,000 job losses, £1.8 billion less tourism spending, about 12 million fewer nights in paid stays, and £101 million less sector investment.
- Alternative designs still show net harm, with a £2 per person per night charge tied to a £1 billion GDP hit and 16,000 job losses, and a £2 per room levy linked to a £500 million hit and 7,000 job losses.
- UKHospitality urged the government to drop the idea after the consultation closed in February, warning the added cost would deter trips and shrink local trade.
- The analysis argues England’s already high VAT makes an extra levy more damaging, which could squeeze coastal towns and city centres that depend on visitor spend.