Tourists visiting parts of England may soon face a new tax on overnight stays, according to proposed plans by the UK government. These proposals would allow local leaders in large areas of England to impose levies on visitors staying overnight, with the aim of generating revenue for local services and infrastructure. While the levies have no official upper limit, government officials suggest that mayors are unlikely to set them at a very high level, with most expected to be a few percent.
Ryanair’s chief executive, Michael O’Leary, has raised concerns about the potential impact of these plans, calling them a "double tax" on holidaymakers. He explained that tourists already pay air passenger duty (APD), a tax on flights, and warned that adding another tax on overnight stays could push the airline to consider moving some of its operations to other European destinations with lower or no taxes. O’Leary also urged Prime Minister Keir Starmer to support the aviation and tourism sectors, emphasizing their potential to drive regional economic growth.
Industry representatives have expressed serious concerns about the proposed levies. The hospitality and tourism sector has warned that these new taxes, which have no cap, could cost the industry up to £1.6 billion. Airlines have also long advocated for the reduction or elimination of APD, arguing that it raises travel costs and could discourage tourists from visiting the UK. Currently, APD rates vary depending on the flight distance and cabin class, with economy passengers paying £8 for domestic flights and £15 for short-haul flights up to 2,000 miles.
The new proposals come at a time when the UK is trying to boost its tourism industry, which has faced challenges in recent years. While the government highlights the need for local areas to generate their own funding, the potential for increased taxes on visitors may have unintended consequences, including reduced travel demand and a shift in business to other European countries with more favorable tax environments.
Labour's Proposed Tourist Levy Sparks Debate Over Double Taxation Concerns
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