River Thames, London. Credit: Pixabay, liushuquan
London officials, including the Mayor, Sadiq Khan, are exploring the possibility of introducing a tourist tax on hotel stays in London, UK. The aim is to enhance public services and infrastructure while maintaining the city’s global appeal.
Inspired by similar initiatives in Manchester and European cities like Barcelona, Spain, and Paris, the proposed levy is stirring debate among policymakers and the hospitality industry.
London’s tourism recovery post-pandemic
After a sharp decline during the COVID-19 pandemic, London’s tourism sector is slowly but surely rebounding. According to a report by Travel and Tour World, between January and June 2024, 10.4 million visitors brought in £7.4 billion (€8.91 billion) in inbound spending, nearing pre-pandemic levels. Local leaders argue that a well-implemented tourist tax could boost the city’s competitiveness and fund vital improvements to infrastructure.
London officials are closely examining Manchester’s City Visitor Charge, which applies a small nightly fee to hotel stays for properties with a rateable value of £75,000 (€90,345) or more. The scheme raised £2.8 million (€3.3 million) in its first year, showing how such levies can generate substantial revenue.
Examples of European cities with tourist taxes:
– Barcelona charges €4.95 per night for four-star hotels.
– Paris visitors pay €8.13 per night.
– Venice will introduce a €5 day-tripper charge in 2025 to tackle cruise tourism.
Mayor of London Sadiq Khan has expressed openness to the idea, stating, “I’m happy to look into where it’s worked and what the issues are.” However, he emphasised the need for evidence-based decisions. Other local leaders, including the City of London’s policy chairman Chris Hayward, support the principle but stress the importance of ensuring it does not discourage tourists.
However, the hospitality sector remains cautious. Kate Nicholls, CEO of UKHospitality, warned that additional taxes could harm London’s recovery, stating, “London remains one of the biggest visitor destinations in the world, but inbound visitors haven’t returned to pre-pandemic levels.”
London’s approach will likely focus on finding a balance between opportunity and caution.
This post was originally published on here
