Tourist tax to invest in local growth

Mayors across England will be able to use a new levy on overnight stays to invest in transport, infrastructure and the visitor economy.

The levy would apply to visitors’ overnight trips, and it would be up to mayors and other local leaders to introduce a modest charge if it’s right for their area.  

Mayors in cities like New York, Paris and Milan already have these powers and they are commonplace in several parts of the world.

There are more than 130 million overnight visits in England every year.

They levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses.   

The money raised would then help und local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors.

Research shows that reasonable fees have a minimal impact on visitor numbers.

In London for example, the money could go towards improvements to some of the capital’s busiest and famous streets to improve the experience for both visitors and Londoners, as well as supporting the city’s entertainment, sport and culture including helping smaller venues.

In Liverpool, it could be used to support the major events that drive visitors, such as the upcoming UEFA EURO 2028, and improving the infrastructure that visitors and locals rely on.  

A 12-week consultation has been launched which will close on 18 February.

Secretary of State for Housing, Communities and Local Government Steve Reed said: "Tourists travel from near and far to visit England’s brilliant cities and regions.  

"We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come."

Mayor of London Sadiq Khan said: "Giving Mayors the powers to raise a tourist levy is great news for London. 

"The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination. It also shows what can be done when ministers work closely with Mayors to devolve more powers to cities and regions. 

"As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses."