A potential new ‘tourist tax’ could make staycations unaffordable for families, according to government warnings. This levy, proposed by the Labour Party, might be introduced by regional mayors in England, similar to some European countries’ practices. The tax could be a fixed fee per person or a percentage of the accommodation cost, potentially adding over £100 to a family’s holiday bill.
UKHospitality, representing major industry players like Butlin’s, Haven, and Hilton, has raised concerns about the negative impact on families, jobs, and local businesses. They argue that even a small tax per person per week could significantly affect budget-conscious families. While Wales and Edinburgh are already implementing similar visitor levies, there is a pushback in England to avoid what is being termed a “holiday tax.”
The proposed tax has sparked worry among small businesses, such as bed and breakfasts and guesthouses, who fear it could lead to closures. Owners like Melanie Cable-Alexander from Somerset express deep concerns about the potential financial strain on their operations. They emphasize the role of small accommodations in supporting local economies and providing employment opportunities, highlighting the risk of such a tax undermining their viability.
The government defends the tourist tax as a means for mayors to boost local economies and investment opportunities. They assure that any charges would be reasonable and in line with international standards, leaving the final decision on the tax rate to the respective mayors. However, opposition from industry experts and businesses continues, urging for the abolition of the proposed holiday tax to safeguard the accessibility and affordability of domestic holidays for families and preserve the vitality of small, community-based accommodations.
