Plans for an Overnight Visitor Levy, sometimes called a ‘tourist tax’, have moved a step closer after the Government confirmed that mayors could be given powers to introduce one in their areas. Under the proposals, the levy would be charged as a percentage of accommodation costs rather than a flat fee, making it proportionate to the cost of a holiday stay.
People and businesses across the West of England are expected to be consulted in the coming months before any final decisions are made, including on how any money raised could be spent.
Similar visitor levies already operate in many European destinations, including Barcelona, Venice and Amsterdam, with money often reinvested in transport, tourism infrastructure and public spaces.
West of England Mayor Helen Godwin welcomed the Government’s announcement. She said: “We are used to paying a visitor levy ourselves when we go on holiday to other countries, and now is the time to look at making sure we can invest more in what matters through a small charge on overnight stays here, with common-sense exemptions where we need them.”
Helen Godwin said a levy could help fund improvements including better public transport, public spaces and support for tourism-related industries.
Godwin added: “Things like this become possible sooner if we raise new funding through an overnight visitor levy. We should grab the chance to take more control of our future with both hands, because a few quid here and there can add up to some big change.”
Councillor Kevin Guy, leader of Bath and North East Somerset Council, joined leaders from Bristol and South Gloucestershire in supporting the proposals. In a joint statement they said: “Tourism and connected industries like hospitality play an important role in our economy, supporting tens of thousands of jobs.
“We are committed to working closely with businesses across the tourism and hospitality sector to ensure that any future visitor levy is designed in a way that actively supports the industry, helps destinations thrive and delivers benefits for local communities.”
North Somerset Council leader Mike Bell struck a more cautious note. He said tourism in North Somerset was worth almost £200 million a year but warned that the UK tourism sector already faced a competitive disadvantage because of higher VAT rates than many European destinations. However, he said a visitor levy could be explored if money raised from visitors was reinvested into local services and improvements that benefit both residents and tourists.