UKinbound has raised concerns after the Government confirmed that England’s mayors may be given powers to introduce a levy on overnight stays. The association says the measure could weaken the UK’s appeal to international visitors.
It also warns that accommodation providers would face new costs and added administrative pressure.
Joss Croft OBE, CEO of UKinbound, said international visitors already face multiple charges, including visa or ETA fees, high Air Passenger Duty rates and 20% VAT on hospitality.
He says these costs reduce the UK’s competitiveness. Croft argues that a further levy would place the sector at a disadvantage compared with rival destinations.
He highlighted Scotland’s experience with percentage-based schemes. “Experience from Scotland shows that percentage-based levies create major administrative burdens for accommodation providers, intermediaries and local authorities, while delivering uncertain revenue and significant set-up costs,” he said.
Croft said: “If government proceeds, any scheme must be simple, fixed-rate and low-cost, protect small businesses, administered by local authorities rather than individual operators, and all revenue must be ring-fenced for reinvestment directly into the visitor economy.”
He added: “A full economic impact assessment is essential before any powers are introduced to avoid unintended consequences and further damage to our visitor economy.”
UKinbound has urged the Government to work with industry groups. It says the focus should be on measures that maintain the UK’s competitiveness and protect jobs and regional growth.