Proposed Tourism Visitor Levy

A tourism visitor levy consultation is underway in England, allowing Mayoral Strategic Authorities to potentially introduce a local tax on overnight stays, similar to systems in Scotland and Wales, with feedback sought on design, scope, revenue use (broader than just tourism), and implementation by February 2026.

The proposed Tourism Visitor Levy will mean that Suffolk’s mayor (when elected) will be able to invest in transport, infrastructure, and the visitor economy through a new levy on overnight stays.   The fee 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.  The move would ensure UK mayors have the same powers as their counterparts in cities like New York, Paris and Milan, where charges on short-term trips are already commonplace.

The Tourism Visitor Levy announcement came a day before Chancellor Rachel Reeves’ Budget, after which UK Inbound said, ‘Our feedback [to Treasury] will focus on the fact that the additional burden of business rates, layered on top of other taxes and rising costs, will impact the industry’s ability to invest and grow.’ 

Of the Tourism Visitor Levy, Visit East of England Executive Director Pete Waters said, ‘The decision to postpone the Suffolk and Norfolk Mayoral election for two years means no Tourism Visitor Levy will be introduced in East Anglia in the short term. However, we would advise businesses in the sector to still take part in the consultation process and air their views.’

To take part in the consultation please follow this link:  https://www.gov.uk/government/consultations/overnight-visitor-levy-in-england