Industry restless over proposed ‘bed tax’

DOMESTIC travel lobby group Tourism Alliance and budget hotel chain Travelodge have lodged their opposition with the Government over a proposal to raise funds for local government with a tax on hotel beds.

Research among holidaymakers commissioned by Travelodge found 89% of respondents are opposed to the move.

The ‘bed tax’ is one of many ideas the Government is considering as part of the Lyons Inquiry into local government funding.

It has been estimated the bed tax would add £100 to the average UK family holiday and Travelodge chief executive Grant Hearn said it would put hotel rooms out of the reach of many holidaymakers.

“Many families wait all year for their summer holiday and now this tax could force them to cut short their break or cancel completely. We want to make hotels accessible to everyone, not just the rich,” he said.

Hearn said the tax could even be levied on people staying at camping and caravan sites.

In its submission, chairwoman of Tourism Alliance Brigid Simmonds said the bed tax was unfair because the 12% of UK tourists who stay overnight would be subsidising day trippers.

Tourism Alliance director and chief executive of UKinbound Stephen Dowd said: “Tourists in the UK more than pay their way, contributing some £1.2 billion per annum to the Government for the provision and maintenance of the public resources they use.”

The final recommendations from the Lyons Inquiry will be made to the Government later this year.