UKHospitality Chair Kate Nicholls warns that the introduction of visitor levies across the UK risks damaging tourism, increasing costs for holidaymakers and placing further pressure on hospitality businesses already facing rising operational challenges.
Holidays are here! And so, sadly, is the holiday tax.
At least it is north of border, where Edinburgh has become the UK’s first city to a introduce a ‘visitor levy’.
It’s something UKHospitality has long campaigned against, and we’re among a coalition of business, hospitality, tourism, countryside and travel groups that have signed a letter to the Government urging it to stop the holiday tax.
In it, we warn new Chancellor John Healey about the devastating effects such a tax will have on families, jobs, tourism and the wider UK economy:
There are no winners from a holiday tax. Holidaymakers, hotels, B&Bs, guesthouses, holiday parks, pubs, restaurants, shops, tourism, visitor attractions, indoor leisure, farm shops, events, music, sports and business travel will all be hit.
And holidaymakers themselves will be faced suddenly with an extra £100 on a typical two-week break.
Analysis from Oxford Economics estimates that there will be a clear negative impact on businesses and employment across the whole economy – with 33,000 fewer jobs, a hit of £2.2 billion to GDP and a £1.6 billion tax hike in a cost-of-living crisis.
Unsurprisingly, the public are also against the holiday tax, with twice as many opposing (56%) the tax, as those supporting it (24%).
Since 24 July, overnight visitors to Edinburgh have been paying an additional 5% charge on their accommodation.
UKHospitality Scotland has urged other local authorities against following suit, but Glasgow, Aberdeen and Stirling councils have already voted to introduce their own charges, with several more local authorities consulting on introducing a levy.
In Wales, UKHospitality Cymru has renewed its opposition to similar proposals, and in consultation response to Ynys Môn (Anglesey), Conwy and Gwynedd we’ve reiterated our long-standing opposition to a holiday tax, warning that it will cut visitor numbers, place destinations at a competitive disadvantage and create additional red tape for businesses already facing significant cost pressures.
The visitor economy in England, Scotland and Wales is a major employer and economic driver, and rather than introducing taxes that put the brakes on growth, government and local authorities across the UK should instead be encouraging more people to visit and to stay longer.
You’ll have heard it before, but it bears repeating: holidays are for relaxing, not taxing!
Kate Nicholls, Chair, UKHospitality