The hospitality industry fears a tourist tax will deter visitors – the evidence says otherwise
Summary
Many popular places in Europe have added a tourist tax on overnight stays, but the UK has avoided this so far due to concerns from hospitality businesses. Some UK cities like Manchester and Liverpool have introduced small tourist taxes that have generated money for local projects without reducing the number of visitors.Key Facts
- Tourist taxes on overnight stays, called levies, are common in parts of Europe such as Spain and the Netherlands.
- UKHospitality warns a 5% tourist tax in England could cause 12 million fewer visits and 33,000 job losses.
- Some English coastal towns are expected to remain free of tourist taxes after political opposition.
- Cities like Amsterdam, Barcelona, and Venice have tourist taxes but still see growing visitor numbers.
- Manchester introduced a £1 per night tax in 2023, raising £10.5 million without affecting hotel occupancy.
- Liverpool started a £2 per night tourism tax in 2023, raising over £2 million for local projects.
- Scotland has the legal power for tourist taxes; Edinburgh began a 5% tax in July 2024.
- A 2024 study in Wales found no evidence that tourist taxes reduce visitor numbers.
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