Regional mayors in England will be given the power to impose a levy on overnight stays under a government plan aimed at giving local authorities more control over tourism revenue.
The Overnight Visitor Levy will allow mayors to charge visitors a percentage of their accommodation costs. Prime Minister Andy Burnham said the measure would help move money and decision making away from London and strengthen local economies.
Housing and Communities Secretary Angela Rayner said the revenue could support local services, public spaces and tourist attractions.
The hospitality industry has opposed the plan, warning that it could increase costs and create additional bureaucracy. UKHospitality said a 5% levy could cost about 33,000 jobs and reduce economic output by £2.2 billion by 2030.
The industry also pointed to Britain’s 20% sales tax on hospitality, which it says is already high compared with many European countries.
Scotland has already introduced a similar measure, with Edinburgh applying a 5% overnight levy in July, capped at five nights.
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