Following speculation about the potential introduction of a tourist tax, UKHospitality has highlighted the dire impacts a charge would have on tourism. Kate Nicholls, Chief Executive of UKHospitality, stated:

“The idea that a tourist tax would fix the public finances is completely misguided, and would only serve to inflict damage on the UK’s tourism and hospitality sectors.”

“The UK already ranks incredibly poorly when it comes to our tourism competitiveness, due to our high rate of VAT. This is in comparison to our European competitors, many of which have VAT set at around half our 20% rate, and a tourist tax will only make us less attractive to visitors.”

“An additional charge would not only put off overseas visitors but also disincentivise Brits from taking breaks in the UK – it would be a true lose-lose for businesses, the economy and consumers.”

“The potential estimated cost of a tourist tax, if inflicted on hospitality businesses, would push the additional costs they’re facing north of £4 billion. That’s simply unsustainable.”

“I sincerely hope that a tourist tax is not being seriously considered by the Government. That is why I’m writing to all MPs today on this issue and I would urge them to engage with us to understand the damaging impacts it could have on a sector that generates £140 billion for the economy each year.”