Growing use of visitor levies across UK cities could increase costs for business travel and affect demand for meetings and events, according to corporate travel specialist CMAC Group.
The warning comes as several business travel organisations have urged the UK Government to exempt business travel from any future Overnight Visitor Levy, arguing that work-related travel should be treated differently from leisure tourism.
Ashley Seed, chief commercial officer at CMAC Group, said additional charges could place further pressure on corporate travel budgets and influence decisions about where companies hold meetings, conferences and events.
“Business events are catalysts for economic growth, innovation, and skills development, and should not be treated as leisure tourism; any measures that hinder this activity risk triggering a chain reaction across the economy,” he said.
Manchester introduced its City Visitor Charge in 2023, while Liverpool also operates a visitor levy model. Edinburgh is due to introduce a 5% visitor levy in 2026, with several other UK destinations considering similar schemes.
Seed said that while individual charges may appear modest, costs can accumulate for organisations with frequent travel requirements.
According to CMAC, a £1 per-night charge could add between £500 and £700 annually to the travel budget of an SME making 150-200 business trips a year. The company estimates that a 5% levy on average business travel spending could add around £25 to the cost of a typical trip.
Seed also warned of wider implications for hotels, transport operators and destinations that rely on corporate travel spending.
“Without careful planning, these levies could make certain cities less attractive for events or client visits, with knock-on effects for restaurants, transport providers, and other local services,” he said.
He added that organisations should review travel policies and budgets to account for any new charges, including negotiating corporate hotel rates and assessing alternative meeting locations where appropriate.