NEWS: England Holiday Costs Could Rise Under Proposed Tourist Levy
England is preparing to give regional mayors the power to introduce a tourist levy on overnight stays, potentially adding up to 5% to accommodation bills for both domestic and international visitors.
The proposed charge, which has already drawn criticism from the UK hospitality industry, would apply to a wide range of paid accommodation, including hotels, bed and breakfasts, caravan parks and other visitor accommodation.
Under plans being developed by the UK government, the levy would not be mandatory across England. Instead, regional mayors would decide whether to introduce a charge in their areas and determine how the money raised would be used.
Labour mayors have indicated that they would cap the levy at 5% of the cost of an overnight stay, although the government is expected to introduce legislation before the system is implemented. Regional mayors could begin setting out their plans by early 2028.
The percentage-based model is designed, in part, to avoid placing an unnecessarily heavy burden on travelers staying in lower-cost accommodation, compared with a fixed per-night fee.
Hospitality industry voices concern
The proposed levy has faced opposition from the UK's hospitality sector.
UKHospitality has warned that additional charges could make domestic holidays more expensive and potentially put jobs at risk, particularly in destinations where tourism plays a major role in the local economy.
The industry body has also expressed concerns about the potential for an uncapped system. However, Labour mayors have publicly indicated that their proposed levies would remain below the 5% threshold.
A growing trend across the UK
England's proposal comes as visitor levies become increasingly common in destinations across Europe and the UK.
Cities such as Amsterdam and Rome already impose charges on overnight visitors, with revenues used to support local services and tourism-related infrastructure.
Scotland has also introduced legislation allowing local authorities to establish visitor levies. Edinburgh is scheduled to introduce a 5% charge from 25 January 2027, while Aberdeen has approved a 7% levy, subject to implementation.
Meanwhile, Wales is preparing its own visitor levy system. The Welsh government announced last year that councils would be able to introduce a charge from 1 April 2027.
Under the Welsh system, the higher rate will be £1.30 (US$1.76) per person, per night for accommodation such as hotels, B&Bs, holiday lets and caravan parks. Campsites and shared hostel-style accommodation would be subject to a lower rate of £0.75 per person, per night.
For travelers planning future trips to England, the impact of the proposed levy will therefore depend largely on where they stay, and whether the regional authority governing that destination ultimately chooses to introduce a charge.
