Local administrative leaders advocate for increased authority to implement taxation on tourists
Let's Chat About Tourist Taxes Across the UK and Beyond
There's a growing buzz among English mayors, led by Liverpool'sSteve Rotheram, pushing for the power to impose tourist taxes nationwide. This move would allow local authorities to generate revenue from tourists, boosting infrastructure and cultural events. Rotheram pointed out Liverpool's success, with a staggering £6.25bn visitor economy, but acknowledged the pressures on infrastructure and services caused by the city's popularity.
In his proposal, a small tourism charge would enable reinvestment into the areas that make their regions so attractive. The mayors have sent a joint letter to culture secretary, Lisa Nandy, and chancellor, Rachel Reeves, advocating for this change. Andy Burnham, Greater Manchester's mayor, supports the idea, noting it as a fair and sustainable way to support local services.
Manchester, which initiated a tax in 2023 through its Accommodation Business Improvement District, raised £2.8 million in the first year. London's mayor, Sadiq Khan, also signed the letter, emphasizing the potential benefits to the city's economy and international reputation.
Scotland pioneered such changes in 2024, allowing councils to choose whether to tax overnight accommodation, leading to a 5% visitor surcharge in Edinburgh from 2026 onwards. Wales is also considering a nightly levy, potentially starting in 2027. With neighboring regions making progress on the issue, there's a worry England may lag behind, prompting calls for swift action from Westminster.
Tourist taxes are common in various destinations worldwide, serving as both a deterrent and a fundraising mechanism. For example, Japan hikes fees on Mount Fuji trails, while Italy imposes an 'access charge' on peak days in Venice. Greece recently implemented a new cruise passenger tax, while Portugal and Norway, like the UK, are considering tourist taxes to fund infrastructure improvements.
Insights:- Edinburgh introduced a 5% Visitor Levy from July 2026, capped at five days for each stay.- Wales is planning a per-person nightly levy, with varying rates by accommodation type.- Other countries, such as Greece, Spain, Italy, and France, are also adjusting their tourism tax structures.- Norway and Portugal have seen potential impacts of tourist taxes, with a decrease in visitor numbers.
- The push for tourist taxes in England could potentially lead to the restoration of infrastructure and the enhancement of cultural events, similar to Edinburgh's Visitor Levy.
- The mayors' proposal includes a small tourism charge, which would be used to reinvest in the attractions that draw tourists to their regions.
- Manchester, which has already implemented a tourist tax, raised £2.8 million in its first year, demonstrating the potential revenue-generating capacity of such a tax.
- London, like Manchester, supports the idea of tourist taxes, seeing benefits to the city's economy and international reputation.
- Scotland was among the first to introduce tourist taxes in the UK, with Edinburgh imposing a 5% visitor surcharge from 2026 onwards.
- Wales is considering a nightly levy, with rates potentially varying based on accommodation type, much like Portugal's and Norway's proposed tourist taxes.
- Other countries, such as Greece, Spain, Italy, and France, are also adjusting their tourism tax structures, similar to Japan's hike in Mount Fuji trails' fees and Italy's 'access charge' in Venice.
- A cruise passenger tax has recently been implemented in Greece, and Norway and Portugal are also considering tourist taxes to fund infrastructure improvements, mirroring the UK's motives.
- The potential impacts of tourist taxes have been observed in Norway and Portugal, with a decrease in visitor numbers, signifying the need for a balanced approach in tourism tax implementation to maintain a sustainable lifestyle and business in the travel and tourism industry.
