New tax in England may finish UK tourism, warns trade boss

The idea of an England-wise levy that would act as a tourism tax have ben slammed as the CEO of UK Hospitality says the already struggling industry is being ‘taxed out of existence’

Plans to potentially introduce a compulsory tourist tax across England have been slammed over fears it could be the death of UK tourism.

An industry leader said such plans would be yet another blow to the already struggling tourism industry in Britain. Kate Nicholls, chief executive of UK Hospitality, said it would mean “extra charges” for people trying to stay on a budget like those that exist abroad.

She said the industry is “already taxed out of existence”. It comes after the Greater Manchester Mayor suggested there should be a compulsory charge for all visitors instead of an optional fee, reports the Sun.

Andy Burnham said he was pushing for a “proper levy” from the Government. It would mirror the links of tax fees in popular European hotspots such as Barcelona in Spain and Venice in Italy.

Ms Nicholls, however, feels it would be disastrous. She said: “This isn’t just about overseas visitors, it would mean extra charges for people staying in budget places including Travelodges, Premier Inns and seaside caravans. The risk is the industry is taxed out of existence.”

Manchester raised £2.8million last year from its optional city visitor charge of £1 per night in certain city centre hotels with the local Business Improvement District (BID) on how to use the money.

Ms Nicholls told The Sun that last month James Murray, Exchequer Secretary to the Treasury, had written to confirm there were no plans for an England-wide levy. But she still fears it may make a comeback.

But she fears the Treasury could row back on that promise because of stretched public finances.

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