The UK tourism industry has raised concerns over government plans to introduce powers for an Overnight Visitor Levy, following references included in the King’s Speech during the State Opening of Parliament.
The proposed legislation, mentioned in the government’s background briefing notes for the King’s Speech, could allow new charges on overnight stays for visitors across parts of the UK. However, full details of the bill have not yet been published.
UKinbound, which represents the interests of the UK’s inbound tourism sector, warned against placing additional financial burdens on international travellers already facing high travel-related costs when visiting Britain.
“While we have not yet seen the detail of the legislation, UKinbound does not support further taxation on international visitors, who already contribute through one of Europe’s peak levels of VAT and some of the world’s highest visa and ETA fees and Air Passenger Duty,” said Joss Croft, CEO of UKinbound.
Croft added that the organisation would closely examine the details of the legislation as it develops through Parliament.
“As these powers are taken forward, the devil will be in the detail, including ensuring any levy is simple to implement, creates no additional cost burden for businesses, and that revenues are clearly reinvested into the visitor economy,” he said.
The UK government has not yet confirmed how the proposed Overnight Visitor Levy would operate, including whether it would apply nationwide or give powers to local authorities or devolved administrations.
Tourist taxes and overnight visitor levies are already used in several European destinations, including cities in Spain, Italy, France and the Netherlands. Supporters argue that such charges help fund local infrastructure, tourism services and destination management.
However, critics within the travel industry argue that additional fees could weaken the UK’s competitiveness at a time when international tourism recovery remains uneven and travellers are increasingly price-sensitive.
The debate also comes as the UK continues to face criticism from parts of the tourism sector over rising travel costs, including Air Passenger Duty and Electronic Travel Authorisation (ETA) fees introduced for many international visitors.
The government said the wider legislative programme outlined in the King’s Speech is designed to help “build a stronger and fairer Britain,” although further details on the Overnight Visitor Levy Bill are expected later this year.
Photo Credit: Darryl Brooks / Shutterstock.com
