Parliament Square, London. Photo: Shutterstock The UK’s tourism industry faces a new warning over plans to allow mayors and other local leaders in England to introduce uncapped overnight visitor levies, with the World Travel & Tourism Council (WTTC) saying higher costs could push travelers to competing destinations.
Under the government’s new policy, local authorities will be able to introduce a charge on overnight stays in hotels, holiday lets, bed and breakfasts and other short-term accommodation. The levy will be calculated as a percentage of the accommodation price rather than as a fixed amount.
WTTC says the concern is not only the additional cost for travelers, but the possibility of creating a more expensive and fragmented tourism market across the UK.
Research published by the organization earlier this year found that 29% of travelers from the UK’s three largest international source markets, the US, France and Germany, would consider choosing another destination or not traveling if faced with a £10 visitor tax.
The response was even stronger among UK residents, with 39% saying they would consider holidaying elsewhere or not taking a UK holiday if they had to pay a £10 levy.
WTTC estimates that, under the £10 scenario, international visitor spending in the UK could fall by as much as £14.4 billion in 2027.
WTTC President and CEO Gloria Guevara said the UK should focus on making travel easier and maintaining its competitiveness rather than adding costs that could influence where people choose to spend their holidays.
“Travelers have choices, and if the UK becomes less competitive, they will take their spending elsewhere,” Guevara said.
The organization argues that the potential impact extends beyond accommodation providers. Fewer visitors could mean less spending at restaurants, attractions, shops, transport companies and other businesses that depend on tourism.
The government’s previous consultation also recognized the importance of keeping any visitor levy affordable and providing accommodation businesses with stability and certainty. It raised concerns that excessive local charges could affect visitor numbers.
WTTC is now calling for any visitor levies introduced across England to be proportionate and predictable, warning that different local rates could make the cost of visiting the UK harder for travelers to understand.
The organization says the priority should be protecting the UK’s position as an international destination while ensuring local communities and businesses continue to benefit from tourism spending.