Trade bodies warn of tax burden as government proposes visitor levy

Abta and UKinbound have again warned of the financial burdens on businesses and tourists, after the Overnight Visitor Levy Bill was included in the King’s Speech.

The so-called tourism tax was part of the Labour government’s legislative agenda, outlined in the speech for the upcoming parliamentary session.

It could mean English Mayors and potentially other local authority leaders will be given the powers to impose new tourist tax on overnight visitors in England.

Luke Petherbridge Abta director of public affairs, said: “We’ve long expressed concern with the cumulative impact of taxes and charges on UK travel and tourism, which is already uncompetitive on cost grounds, a visitor levy further adds to this.

“When it comes to any new levy on visitors, it is important that money raised from it is put back into tourism and the local communities, and it was encouraging to see reinvestment acknowledged today.

“With our sector partners, including the Tourism Alliance, we will engage with local mayors to express how vital it is for this to be focused on promoting and developing local tourism which could deliver visible improvements for visitors, tourism businesses, and residents. 

“We await the government’s full report on the consultation and will reiterate our members views and shape taxes where introduced.”

Joss Croft, UKinbound chief executive, commented: “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.

“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.”

• Abta also commented on other bills affecting travel in the speech.

Petherbridge added: “The UK-EU bill signals an intention for closer relations with the EU, which are important for both outbound and inbound travel.

“We’ll continue to raise with government the changes we need to help boost these sectors, including a youth-experience scheme to make it easier for young people to work in the EU and vice versa.

“We’ll also be paying close attention to the Civil Aviation Bill and what that means for consumers’ travel.”

More: Domestic tourism faces ‘decimation’ if holiday tax is imposed