Traveling to London? Visitors to likely pay ‘tourism tax’ from…, check rates, other details
Authorities in London will likely impose a tourist tax on accommodations such as hotels, Airbnbs and more. Although the final decision has not been taken, annual revenue of around Rs 29,36,55,00,000 is likely to be generated.
Visitors will likely pay ‘tourism tax’ in London
Traveling to London will be expensive for visitors as the city will start charging for hotel stays and short-term rentals such as Airbnbs. This comes after the Greater London Authority’s cross-party oversight committee recommended the same, the BBC reported. According to the Cities Centre’s assessment, the tax is likely to raise Rs 29,36,55,00,000 per year. Mayor of London Sadiq Khan supported the proposal but refused to comment on the speculation until it was approved by the UK Government.
A spokesman told the Local Democracy Reporting Service: “The mayor has made clear that, similar to other international cities, a modest tourist tax will strengthen our economy, drive growth and help strengthen London’s reputation as a global tourism and business centre.”
How will London implement the tax?
The proposed tax model is based on Scotland’s percentage-based structure. According to the BBC report, the tax will include a 5% charge on average accommodation costs of around R1,352 per night in hotels and R1,175 per night in Airbnbs. The report also states that Edinburgh’s 5 per cent tourist tax will come into force in July 2026 and will apply to the first five nights of a stay.
Tourist tax already exists in various other international cities. While New York City collects Rs 57,96,15,17,000 annually through tourist tax, Tokyo’s flat fee for bookings of all types of accommodation is an estimated Rs 4,11,49,15,000. However, in France and Italy, the fee varies depending on the type of accommodation, star category and location.
Andrew Carter, chief executive of the Center for Cities, said: “The model the government should adopt is already in place in Scotland, where Edinburgh, Glasgow and Aberdeen introduce percentage taxes on overnight stays in hotels, hostels and short-term stays.” He added: “The introduction of the tourist tax would be the start of a larger program of devolving tax and spending powers to the capital. London is the most productive major city in the UK and devolving greater fiscal powers would give the capital more policy tools to fuel growth in the economy.”
