England to Introduce New Tourist Tax – Will Your Hotel Bill Soar in 2026?

Published on December 8, 2025

England is poised to implement a new tourist tax, making it the latest European country to introduce a levy on overnight visitors. The new legislation, approved by the government, grants city mayors the authority to introduce a tax on stays at hotels, bed-and-breakfasts, and holiday rentals. This supplementary fee will be directed toward upgrading local infrastructure, improving public transport, and supporting cultural programs.

This move aligns with trends seen across Europe, where many countries have already adopted or are planning to introduce similar tourist levies. The funds collected will be used to enhance the local tourism infrastructure, ensuring that cities can continue to attract visitors while maintaining the quality of life for residents.

Funding Local Development and Public Services

The funds generated from the tourist tax will be earmarked for several important projects. These include the improvement of transportation systems, the enhancement of public services, and the promotion of cultural programs. The goal is to create a more sustainable and appealing environment for both tourists and locals.

By charging a modest surcharge on each stay, local governments aim to generate significant revenue without burdening the national budget. This initiative is designed to ensure that the benefits of tourism contribute directly to the communities that host visitors. As England joins the growing list of countries implementing such taxes, it reflects a shift toward ensuring that tourism has a positive impact on both the economy and the environment.

European Models of Tourist Taxes

The concept of a tourist tax is not new in Europe. Many countries, including Austria, Belgium, Greece, and Slovenia, already charge visitors a fee for staying in certain cities. These charges typically range from a fixed amount per night, such as €1.50 ($1.74), to a percentage of the total room cost, which is usually collected either during check-in or check-out.

Several cities have introduced more substantial fees to manage the increased pressure on their infrastructure due to high tourist numbers. For example, Venice implemented a day-trip fee of €10 ($11.62) in 2025, aimed at curbing the impact of mass tourism. Barcelona also raised its surcharge to €4 ($4.65) per night and plans to increase it further, reaching €8 ($9.30) by 2029.

These fees are typically used to fund local services and amenities that directly benefit both residents and tourists. As tourist numbers continue to grow, cities are looking for ways to ensure that the costs of maintaining and improving infrastructure are shared fairly between those who benefit most from it – tourists.

Consultation Period for UK’s Tourist Tax

In the UK, a consultation period is now open to allow for public input on the design and implementation of the new tourist tax. The government is seeking feedback on key issues such as the tax cap, which would limit how much visitors are charged, and which exemptions should apply. This consultation period will last for twelve weeks and is set to close on February 18.

Emergency accommodations, such as homeless shelters, and registered Gypsy, Roma, and Traveller sites used as primary residences are expected to be exempt from the tax. Local authorities may also introduce additional exemptions to address specific local concerns.

This consultation is an important step in ensuring that the tax is implemented in a way that is fair and beneficial to both residents and visitors. The government will use the feedback gathered during this period to finalize the structure and implementation of the levy.

Impact on Tourism in England

While the introduction of a tourist tax may initially raise concerns about its potential impact on tourism, government officials argue that the measure is a necessary step to maintain and improve the country’s infrastructure. The extra revenue generated will help fund projects that will directly benefit tourists, such as enhanced transport networks, better public facilities, and cultural initiatives that promote the UK’s rich heritage.

As England becomes part of the growing trend in Europe, this tax will allow the country to continue offering a world-class experience to visitors while ensuring that the cost of tourism is shared more equitably. By funding essential infrastructure and services, the tax aims to enhance the overall visitor experience and help support sustainable tourism in the long run.

Similar Initiatives in Scotland and Wales

The move follows similar initiatives that have been introduced or are set to be introduced in Scotland and Wales. In Edinburgh, a 5 percent tourist tax on the cost of a room per night is set to begin in July 2026. In Wales, local authorities will have the ability to charge a fee of £1.30 ($1.52) per person per night starting in April 2027. These measures are also designed to fund improvements in local infrastructure and services, ensuring that the tourism industry can continue to thrive while supporting local communities.

Conclusion

The new tourist tax in England is a significant development in the country’s approach to managing the impacts of tourism. By leveraging the revenue from this levy, local authorities will be able to upgrade infrastructure, enhance public services, and support cultural programs that will benefit both residents and tourists. This initiative is in line with similar measures adopted across Europe and is expected to play a key role in maintaining the sustainability of tourism in England.

As the consultation period moves forward, key decisions will be made regarding the structure of the tax and the exemptions that will apply. With these developments, the future of tourism in England looks set to be more sustainable and supportive of local communities, ensuring that the benefits of tourism are felt by all.