Labour tourist tax will be ‘another nail in the coffin’ for our UK sea | UK | News
A tourism levy would be “another nail in the coffin” of our beloved seaside towns, an industry expert has warned. The Labor government has introduced the Overnight Visitor Tax Bill, included in the May 2026 King’s Speech, to impose a tourist tax on English towns and territories.
The legislation gives mayors the power to raise revenue, and the tax is expected to target overnight accommodations such as hotels, hostels, guesthouses and vacation homes. While some officials have welcomed the bill to ease overtourism, campaigners argue small and independently owned businesses will be harmed by the tax. They warned that areas in the South West such as Devon and Cornwall would be hardest hit because they rely on domestic tourism.
As reported by TelegramPete Brend, director of Brend Hotels, said: “A tourism tax would be another nail in the coffin of tourism-dependent seaside towns. Employment in these areas is sector dependent. Any additional costs eliminate any growth potential for businesses, thus leading to higher unemployment rates.”
“The southwest relies heavily on domestic tourism. The concept of charging people who already pay council tax in the areas where they live an additional tax to spend the night elsewhere in the country seems ridiculous.
“I agree that charging a tourist tax on overseas visitors should be considered and that it would benefit cities such as London and Manchester, but it would have a limited impact on the South West economy.”
While the exact structure of the tax will be determined locally, tourism groups expect either a flat fee, which could average around £2 per night, or a percentage-based charge of up to 5 per cent.
A similar visitor tax in Scotland has led Edinburgh to introduce a 5% tourist tax. Meanwhile, legislation has been passed in Wales allowing a national tax on visitors, set at £1.30 per person per night, from early next April.
Manchester became the first UK city to impose a tourist tax on visitors in April 2023. The £1 fee raised £2.8 million in its first year.
Then-mayor Andy Burnham said: “The new visitor tax commitment will enable us to continue to support our thriving visitor economy and invest in infrastructure to better support this growth, such as public transport, ensuring everyone has a positive experience in Greater Manchester.”
Unlike national taxes, all revenues generated remain in the local area. There is then reinvestment in transport links, infrastructure and public spaces.
