UK Hospitality warns £5 overnight tax could cut visits by 12 million and cost 33,000 jobs
The hospitality sector predicts a significant drop in tourism if the UK imposes an overnight stay levy. Industry leaders warn of massive job losses and visitors fleeing to non-taxing destinations.
Hospitality bosses in the United Kingdom are urging ministers against introducing a 5% overnight tax on stays in England. The trade body UKHospitality estimates the measure would drive 12 million fewer visits to English regions. Consequently, the sector projects 33,000 job losses resulting from the additional financial burden on businesses. Many areas across eastern England, including Skegness and Hartlepool, expect to remain levy-free following opposition from local mayors affiliated with Reform UK and the Conservative party. Some locations in the Lake District and Yorkshire Dales are also at risk as tourists might travel to counties that refuse to impose such fees. While cities like Amsterdam, Barcelona, and Venice adopted similar levies to manage over-tourism, existing evidence suggests these measures have failed to effectively reduce visitor numbers. The industry faces mounting pressure from rising taxes, employment costs, war, the pandemic, and Brexit.
