If you wandered down Las Ramblas or lazed on a beach in the Balearics this summer, you probably paid a tourist tax for the privilege. In fact, if you enjoyed any of Europe’s beauty spots in recent years, it is likely that an overnight levy was added to your bill. Britons have become used to paying these fees abroad but ministers have shied away from introducing them in the UK.
The furious response from UK hospitality bosses helps to explain why. The trade body UKHospitality estimates that a 5% tax on overnight stays in England would result in 12m fewer visits and 33,000 job losses, piling further pressure on an industry battling an increase in taxes and employment costs, as well as the effects of war, Covid and Brexit. In places like the Lake District and the Yorkshire Dales, which rely heavily on tourism, businesses are concerned that visitors will instead go to other parts of the country that choose not to impose such a levy.
Large parts of England’s east coast, for example – from the seaside resort of Skegness to the town of Hartlepool – are expected to remain levy-free after their mayors, from Reform UK and the Conservative party, opposed the proposals on Thursday. But are overnight levies a success? The evidence suggests that it depends what mayors want to achieve, but they could be very lucrative.
They were introduced in cities including Amsterdam, Barcelona and Venice as a way to prevent over-tourism. But there is little evidence they kept visitors at bay: trips to all three destinations have risen consistently over the past decade (despite Amsterdam charging an additional 12.5% for an overnight stay, believed to be the most expensive tourist tax in Europe). In April 2023, Manchester became the first place in the UK to introduce an overnight visitor levy, charging £1 per room per night in the city centre.
A study published in the journal Tourism Management in 2025 found that the tax had had “no significant impact” on the occupancy of hotels in the city. In sharp contrast to the vocal opposition of national trade bodies, in Manchester it was hospitality businesses that introduced the levy through a business improvement district. Local leaders say the £1-a-night levy has raised £10.5m in its first three years of operation, with the revenue ringfenced for cultural projects such as the Brit awards and Mobo awards, both hosted in Manchester this year.
When Labour MPs visit Liverpool for their party conference later this month, they too will be paying a tourist tax: a £2-a-night charge was introduced by its hospitality firms last June, raising more than £2m for projects in sports, culture and conferencing. Councils in Scotland already have the power to introduce local overnight levies, with Wales following suit next April. Only Edinburgh has taken the plunge so far, introducing a 5% tourist tax on 24 July, although Cardiff, Glasgow and three other regions of Scotland are expected to follow next year.
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