Tourist Tax Proposals Spark Outcry from Hospitality Sector

Plans to empower mayors in England to impose a tourist tax have drawn significant backlash from major players in the hotel and tourism industry, who warn that such measures could severely impact British holidaymakers.

Major companies, including Whitbread, the owner of Premier Inn, and Butlin’s, have publicly criticized the upcoming proposal, urging the Labour Government to reconsider its decision. The government is set to announce these plans, which would allow local leaders to charge a levy on overnight accommodation costs, later today.

While government sources suggest that the tax may not exceed a few percentage points, industry leaders are concerned about the potential for uncapped charges. Estimates indicate that the hospitality sector could face losses of up to £1.6 billion, with UKHospitality projecting that approximately 33,000 jobs could be at risk due to the tax.

Concerns Over Economic Impact

Jon Hendry Pickup, CEO of Butlin’s, lamented that the proposed tax could disproportionately burden resorts and tourist destinations, arguing that it could diminish the affordability of family holidays and deter younger workers from entering the hospitality field. He stated, “Big cities may welcome these mayoral powers, but treating every destination and hospitality business the same will leave resorts like ours to shoulder the burden.”

Industry's Plea for Rethink

Whitbread's representatives echoed similar sentiments, declaring that such a tax would be detrimental to the hospitality sector, a vital component of the UK economy that serves as a first job opportunity for many young individuals. They emphasized that these measures could undermine the industry's capacity to invest, create jobs, and foster economic growth.

Source: www.independent.co.uk