- WTTC warns uncapped England tourist taxes could reduce competitiveness
- 29pc of international travellers would consider alternative destinations
- 39pc of England residents would reconsider domestic holidays
- Visitor spending reduction could reach £14.4bn in 2027
- WTTC calls for proportionate and predictable visitor levies
The World Travel & Tourism Council is warning that plans to give mayors in England the power to impose uncapped overnight visitor levies risk making England less competitive as a global destination. The warning follows the Government’s decision to allow English mayors and other local leaders to introduce overnight visitor levies without a national cap on the rate charged. The levy will apply to overnight stays in hotels, holiday lets, bed and breakfasts and other short-term accommodation with the charge calculated as a percentage of the accommodation cost.
WTTC’s research published earlier this year found that 29pc of travellers from England ‘s largest international source markets including the US, France and Germany would consider an alternative destination or decide not to visit if a €10 visitor tax were introduced. Among England residents, 39pc said they would consider holidaying elsewhere or not taking a England holiday if faced with a £10 levy. Under that £10 scenario, WTTC estimated that the reduction in international visitor spending could reach £14.4bn in 2027.
Travel and Tourism is a major contributor to England economy, supportingms of jobs across the country and generating economic activity through visitor spending in accommodation, restaurants, attractions, retail, transport and other local businesses. WTTC has previously warned that the sector is already facing cost pressures while England ‘s price competitiveness remains a concern. The Council believes that any policy affecting the cost of travel must be assessed not only on the revenue it can raise but also on its potential impact on visitor demand and the wider economic contribution of Travel and Tourism.
Gloria Guevara, President and CEO of WTTC, shared: “England should be making it easier to visit, not more expensive. Travellers have choices, and if England becomes less competitive, they will take their spending elsewhere. The risk is that higher costs mean less visitor spending, weaker growth and fewer opportunities for the people and businesses that depend on Travel & Tourism. The Government should be focused on keeping England attractive and competitive as a destination. If we make it more expensive to visit, we risk losing the very visitors whose spending supports local economies across the country.”
