Published on : Saturday, January 28, 2017
The hotel owners in London has become furious as the government is planning to implement a ‘bed tax’ of five percent of the room tariff on 2100 hotels, spread across the capital city, London. After the implementation, the additional bed tax could add around £3.40 to the hotel room cost per night.
A recent report, published by the Greater London Assembly (GLA), said that a Berlin-style tax of 5 per cent of the room rate per night could generate £240 million per year.
According to the industry experts, an additional tax of five per cent might increase the average budget hotel room cost in London. Where the travellers pay £68 a night for a budget hotel room, they might need to pay additional £3.40 as ‘bed tax’.
The authorities informed that taxing only the four and five star hotels in the capital would not raise that much revenue.
According to the report, the government plans to direct the money raised from the ‘bed tax’ to cultural attractions offering free entry, borough councils maintaining the public realm, London government which promotes the tourism offer, or the industry itself for education and training purposes. The report also said that the bed tax could also potentially support a reduction in other taxes in the capital city.
The chief executive of the British Hospitality Association, Ufi Ibrahim stated that a bed tax, however small, will discourage guests from staying overnight and reduce the amount they spend in the wider London economy, impacting shops and restaurants as well as hotels and the local bed taxes will make it even harder for British businesses to compete.
According to the Mayor of London, Sadiq Khan, this is just a discussion with those in the hotel industry about how to make sure London stays special. He also said, especially with hotels facing all sorts of pressures with the shared economy, the rise of , what they don’t want to do, is cause damage to their brilliant hotels, some of the best in the world.