However, warnings have arisen from within the hospitality sector. UKHospitality – which represents hotels, restaurants and tourism businesses – has criticised the measure, warning of its possible negative impact on tourism demand. According to the organisation, a surcharge along the lines of what is being considered – for instance, 5% on the cost of accommodation – could significantly increase the price of domestic holidays, which in turn could deter travel and affect the competitiveness of British tourism.
Critics also point out that the new tax could increase the financial burden on families and visitors at a time when prices have already risen in the wake of the pandemic and broader inflation. They fear that the additional cost will ultimately be reflected in hotel occupancy levels and demand for short-term rentals.
The proposal must now go through a 12-week public consultation to decide key details: whether the tax will be a fixed amount per night or a percentage of the accommodation cost, which types of properties and stays will be subject to it, and whether there will be exemptions for certain categories of travellers.
The step taken by England represents a significant shift: until now, aside from a few cities that applied surcharges through special structures – such as so-called Tourism Improvement Zones – the country had no general legislation on tourist taxes. With this reform, many cities could adopt a model that is already common in European metropolises.
If it goes ahead, visitors could see an extra charge added to their final bill on top of the room rate; a small amount per night which, multiplied across several nights, could become noticeable, especially for families or longer trips. This raises questions about how tourists will respond to this new cost and whether British destinations will be able to maintain their appeal compared to other European cities with a lower tax burden.
In a broader context, the decision places England within a global trend: numerous destinations are choosing to pass on part of the cost of infrastructure, services and urban maintenance to visitors. While the tax revenue promises benefits – improved transport, cleaner streets, preservation of heritage sites and higher-quality public services – the key will be to implement the tax in a way that does not discourage travel, particularly among more price-sensitive segments.
It remains to be seen whether, at the end of the consultation, local councils opt for moderate, balanced rates that contribute to local development without eroding visitor numbers, or whether the measure will result in higher travel costs in England – potentially affecting both domestic and international tourism.
