UK Hospitality has called on Prime Minister Andy Burnham to abandon plans to expand a tourist tax across the UK, warning that the measure could put thousands of jobs at risk.
The trade body has written to the Prime Minister urging the government to shelve the proposed Visitor Levy, which would give regional mayors the power to introduce a charge on overnight accommodation.
The plans were first proposed under the previous government and have faced significant opposition from across the hospitality sector. Major operators including Whitbread, Greene King and Butlins are among those to have raised concerns.
The government argues that revenue raised through the levy could be used to fund local infrastructure and support regional growth, with local leaders given greater freedom to invest in priorities specific to their areas.
However, UK Hospitality believes the additional charge would ultimately fall on consumers, making domestic holidays more expensive at a time when many households are already under pressure from the cost of living.
The organisation estimates that the levy could result in more than £1 billion in additional tax for holidaymakers and put around 33,000 tourism jobs at risk.
Allen Simpson, Chief Executive of UK Hospitality, said the sector supports greater regional decision-making but warned that introducing an additional tax on overnight stays could have serious consequences for tourism.
The concern is that higher accommodation costs could discourage visitors, reduce spending in local economies and affect a much wider range of businesses that depend on tourism, including restaurants, pubs, attractions and retailers.
The debate highlights the challenge facing the government as it looks to give local leaders more funding powers while avoiding further pressure on businesses and consumers.
For the hospitality sector, the message is clear: while investment in local infrastructure is welcome, industry leaders believe a new levy on visitors risks undermining the very businesses and communities it is intended to support.
