Cities, towns, and villages in the UK may soon implement daily charges for holidaymakers. Mayors in England are set to receive new authority to impose a visitor levy on overnight guests to generate funds for their local areas. Despite opposition from some in the tourism sector who fear a negative impact on holiday choices in the UK, the Ministry of Housing, Communities and Local Government announced plans to empower mayors to invest in transportation, infrastructure, and the visitor economy through this new levy.
Minister Steve Reed emphasized the importance of leveraging tourist visits to benefit local communities and promote sustained growth. The proposed levies would target overnight stays in various accommodations like hotels, holiday rentals, bed and breakfasts, and guesthouses. Certain accommodations, such as emergency shelters and primary residences in Gypsy and Traveller sites, will be exempt from the levy, with mayors having the discretion to exempt other types of lodging.
The government aims to align UK mayors with international cities like New York, Paris, and Milan, where similar charges on short-term stays are common practice. The revenue generated from the levy could support local projects enhancing communities and enriching tourist experiences, potentially attracting more visitors without requiring central government approval. Research indicates that reasonable fees have a minimal impact on visitor numbers.
Nevertheless, industry leaders, including Ben Spier from Sykes Holiday Cottages, expressed concerns over the added financial burden on households and potential deterrence for UK holidaymakers. They highlighted the existing tax pressures on the tourism and hospitality sector, emphasizing the need to support small businesses in the industry. In contrast, mayors across the UK welcomed the news, foreseeing the additional funding as a boost to their local economies and tourism sectors.
London Mayor Sadiq Khan anticipated direct economic benefits for the city, strengthening its global appeal for tourism and business. West of England Mayor Helen Godwin viewed the new powers as a vote of confidence in the region’s autonomy. The upcoming 12-week consultation period will allow stakeholders to provide feedback on the operational aspects of the proposed measures. Interested parties can participate in the consultation on GOV.UK until February 18, 2026.