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England to Align with EU Peers as Mayors Plan 2028 Accommodation Levy

England tourist tax

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Image Credit: VisitBritain

England to Align with EU Peers as Mayors Plan 2028 Accommodation Levy as the country moves towards a new tourism funding approach that mirrors visitor charge systems already used across several European destinations. The reason behind this shift is the growing demand for sustainable tourism investment, with Mayors expected to gain powers to introduce an Accommodation Levy on overnight stays from around 2028. The proposed Overnight Visitor Levy would allow local leaders to raise funds for public spaces, transport, attractions and visitor services, bringing England closer to tourism models used by EU peers such as France, Italy, Germany and the Netherlands. The levy would be locally controlled rather than a nationwide tax, meaning charges could vary depending on destination decisions.

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Why Is England Introducing a Locally Controlled Overnight Visitor Levy?

England is preparing for a new tourism funding model that could allow local authorities to charge visitors staying overnight in commercial accommodation. The proposed Overnight Visitor Levy aims to give tourism-heavy areas additional resources to manage the impact of growing visitor numbers.

The UK Government’s approach focuses on allowing Mayoral Strategic Authorities to decide whether a levy should be introduced in their areas. The revenue could support:

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AreaPotential Tourism Benefit
Public spacesCleaner and improved visitor areas
TransportBetter connections for tourists
AttractionsSupport for tourism facilities
InfrastructureImproved destination management

The policy follows a wider international trend where destinations use visitor charges to fund services that support both travellers and residents. The levy is designed as a local decision rather than a single UK-wide tourist tax.

Comparative Study: How England’s Proposed Tourist Tax Compares With Other Countries’ Visitor Levies

England’s proposed Overnight Visitor Levy follows a model already used by many tourism destinations worldwide. Countries including France, Italy, Spain, the Netherlands, Germany, Switzerland, Portugal, Greece and Japan already operate visitor taxes or accommodation levies to fund tourism infrastructure, public services and destination management.

Unlike many countries that apply national or regional visitor taxes, England’s proposed system would be locally controlled, allowing Mayoral Strategic Authorities to decide whether to introduce a levy and how revenue is used. The expected model from around 2027–2028 is therefore closer to European city-based systems rather than a single nationwide charge.

Global Tourist Tax Comparison: England vs Other Popular Destinations

Country / DestinationTourist Tax ModelCurrent Rate / ExampleWho PaysMain Purpose
England (Proposed)Local overnight visitor levyPossible percentage-based charge; 5% discussed but not confirmedOvernight accommodation guests in participating areasTourism infrastructure, visitor services, local improvements
FranceLocal accommodation tax (Taxe de séjour)Approx. €0.65–€15.60 per person/night depending on accommodation typeHotel and accommodation guestsTourism development and local services
Netherlands (Amsterdam)Percentage-based accommodation tax12.5% of accommodation costOvernight visitorsManage tourism pressure and fund city services
Italy (Rome, Venice and others)City accommodation taxAround €1–€12 per person/night depending on city and hotel categoryOvernight touristsInfrastructure, cultural sites and tourism management
Spain (Catalonia/Balearic Islands)Regional tourist taxVaries by region; Barcelona/Catalonia charges based on accommodation typeHotel and accommodation visitorsTourism sustainability and local investment
Germany (Berlin)Percentage-based city taxAround 7.5% of accommodation costHotel guestsCity tourism funding
Portugal (Lisbon)Flat overnight chargeAround €4 per person/night in LisbonVisitors aged over 13Tourism infrastructure
GreeceClimate resilience accommodation feeAround €2–€15 depending on accommodation and seasonAccommodation visitorsClimate adaptation and tourism support
SwitzerlandLocal/canton visitor taxUp to around CHF 7 per person/nightTourists staying overnightVisitor services and local benefits
JapanDeparture tax¥1,000 per traveller leaving JapanInternational and domestic departing passengersTourism infrastructure improvements

How Does England’s Proposed Tourist Tax Compare With France?

France has one of the longest-running visitor levy systems in Europe. Local authorities have had the ability to introduce the taxe de séjour since 1910, allowing destinations to collect money from overnight visitors.

France vs England

FeatureFranceEngland (Proposed)
System typeLocal accommodation taxLocal overnight visitor levy
Decision makerMunicipal authoritiesMayoral Strategic Authorities
RateVaries by accommodation categoryNot confirmed
CoverageMany French tourism destinationsParticipating English destinations only
PurposeTourism development and infrastructureTourism funding and visitor services

France’s experience shows how visitor taxes can become an important tourism funding source when revenue is reinvested into destinations.

Why Is Amsterdam’s Tourist Tax Higher Than England’s Proposed Model?

Amsterdam operates one of the world’s highest-profile tourist tax systems. The city applies a 12.5% levy on accommodation costs, making it significantly different from traditional flat nightly visitor charges.

Amsterdam vs England

CategoryAmsterdamEngland Proposal
Tax stylePercentage-basedExpected percentage-based
Rate12.5%Around 5% discussed, not confirmed
ControlCity governmentMayoral Strategic Authorities
ReasonManage overtourismSupport tourism infrastructure

Amsterdam’s approach demonstrates how percentage-based systems increase revenue from higher-priced accommodation while reducing the impact on lower-cost stays.

How Does England Compare With Italy’s Tourist Tax System?

Italy uses one of Europe’s most established tourism tax models. Major cities including Rome, Venice and Florence charge overnight visitors different amounts depending on accommodation type.

FeatureItalyEngland
Tax methodUsually fixed nightly chargeLikely percentage-based
Main destinationsRome, Venice, FlorenceFuture English tourism areas
Maximum examplesUp to around €12/nightNot confirmed
Main goalProtect tourism assetsImprove tourism services

Italy demonstrates how visitor taxes can help cities manage pressure from millions of tourists visiting cultural landmarks.

How Does Spain Use Tourist Taxes?

Spain uses regional tourism levies, especially in areas facing heavy visitor demand.

Catalonia, including Barcelona, applies accommodation taxes based on hotel category, with discussions around increasing rates to address tourism pressure and housing challenges.

FeatureSpainEngland
ControlRegional authoritiesMayoral Strategic Authorities
Main affected areasBarcelona, Catalonia, Balearic IslandsFuture English destinations
PurposeSustainability and tourism managementDestination investment

Spain’s model shows how tourism taxes are increasingly linked with managing overtourism.

Which Countries Have the Highest Tourist Tax Models?

DestinationApproximate Higher-End Charge
Amsterdam12.5% of accommodation cost
BerlinAround 7.5% accommodation tax
Paris luxury accommodationUp to around €15+ per person/night
Greece luxury accommodationUp to around €15
Italy luxury hotelsUp to around €12/night

England’s discussed 5% model would place it below Amsterdam but closer to other percentage-based European systems.

How Could England’s Tourist Tax Affect International Travellers?

The levy would not target specific nationalities. However, travellers from major UK visitor markets may notice the impact more frequently because they often stay overnight in hotels and other paid accommodation.

Visitor MarketWhy Impact Could Be Higher
United StatesLonger stays and higher accommodation spending
AustraliaExtended UK holidays
CanadaHeritage and family travel
France/Germany/SpainFrequent city breaks
IndiaGrowing family and business travel

The charge would depend on destination choice, accommodation cost and local authority decisions.

What Lessons Can England Learn From Other Countries?

International examples show that tourist taxes can work effectively when destinations:

Countries using visitor levies generally focus on improving:

When Could England’s Tourist Tax Start Affecting Travellers?

The proposed visitor levy is not currently active nationwide, and there is no single confirmed start date for all of England. The expected timeline points towards the 2027–2028 financial year, after the necessary legal framework and local decisions are completed.

StageExpected Timeline
Government proposals and consultationCompleted
Powers for Mayoral Strategic AuthoritiesExpected through legislation
Local decisionsAfter powers become available
Possible first implementationAround 2027–2028

The system means visitors will not automatically pay an additional charge everywhere in England. Instead, individual authorities will decide whether introducing a levy supports their tourism strategy.

Countries Most Likely to Feel the Impact of England’s Overnight Visitor Levy: UK Tourism Source Markets and Statistics

The proposed England Overnight Visitor Levy will not be based on nationality. Any traveller — including UK residents and international visitors — could pay the charge if they stay overnight in a destination that introduces the levy.

However, countries that send the largest number of visitors to England are likely to experience the greatest impact because their travellers frequently use hotels, guest houses and other paid accommodation. Official tourism statistics from the UK Office for National Statistics (ONS) and VisitBritain show that the United States, France, Germany, Spain, Italy, India, Australia, Canada, China and the Netherlands are among the UK’s leading international visitor markets.

Leading UK Visitor Markets Potentially Affected by the Overnight Visitor Levy

Country / RegionWhy Travellers May Be AffectedOfficial Tourism Statistics / Market ImportanceTypical Visitor Profile
United StatesLargest overseas spending market; many visitors stay in hotels across EnglandThe US is one of the UK’s biggest inbound tourism markets, contributing billions of pounds in visitor spending annually according to VisitBritain and ONS dataLong-haul leisure holidays, heritage trips, luxury travel, business visits
FranceHigh volume of short breaks and cultural tourismFrance consistently ranks among the UK’s top European visitor markets, with millions of visits annuallyCity breaks, museums, shopping, family visits
GermanyStrong leisure and business travel connectionGermany is one of the largest European sources of UK visitorsBusiness travel, cultural tourism, countryside holidays
SpainPopular UK city-break and leisure marketSpain remains among Europe’s leading contributors to UK inbound tourismShort holidays, shopping trips, events
ItalyStrong cultural tourism demandItaly is a significant European source market for UK tourismHeritage tourism, education visits, cultural travel
NetherlandsClose-distance European travel marketDutch visitors represent a high-value European market due to frequent UK short staysWeekend breaks, business travel, city tourism
IndiaRapidly growing tourism and family travel marketIndia is one of the UK’s fastest-growing long-haul visitor markets, supported by family, business and heritage travelVisiting friends and relatives, business, luxury travel
AustraliaLong-haul visitors typically stay longerAustralia remains one of the UK’s major long-haul markets with longer average staysHeritage tourism, extended holidays
CanadaStrong historic and cultural connection with the UKCanada is consistently among the UK’s important overseas tourism marketsHeritage travel, family visits, leisure trips
ChinaImportant long-haul tourism marketChina remains a major global tourism market, although UK visits fluctuate depending on travel conditionsGroup tours, luxury shopping, cultural travel

Could the Overnight Visitor Levy Make UK Holidays More Expensive?

The financial impact remains uncertain because no England-wide rate has been finalised. Individual authorities would decide whether to introduce a charge and how it would operate.

Possible effects include:

Traveller GroupPossible Impact
Weekend visitorsSlight accommodation increase
FamiliesHigher overall holiday costs
Business travellersIncreased travel expenses
Long staysLarger total levy payment

Hospitality businesses have raised concerns that additional charges could increase costs and affect demand. However, supporters argue that properly managed visitor levies can improve destinations and create better experiences for travellers.

How Could the Levy Improve Tourism Across England?

Supporters believe the Overnight Visitor Levy could create a direct connection between tourism activity and destination improvements.

Potential benefits include:

For tourism communities, the levy could provide additional funding to manage the costs created by high visitor numbers.

The policy reflects a shift towards responsible tourism, where destinations focus not only on attracting visitors but also on protecting the places those visitors come to enjoy.

Conclusion

England Set To Introduce New Tourist Tax as Mayoral Authorities Could Introduce 5% Overnight Visitor Levy From 2028 as the proposed policy creates a new chapter in England’s approach to tourism management. The reason behind the New Tourist Tax is to provide destinations with additional funding to improve facilities, maintain public spaces and support the growing demands created by visitors. While the 5% Overnight Visitor Levy From 2028 remains a possible model rather than a confirmed national charge, Mayoral Authorities Could Introduce local versions depending on their tourism priorities. The levy could influence future accommodation costs for travellers, but its long-term impact will depend on how effectively the revenue is invested. By linking visitor contributions with destination improvements, England aims to develop a more sustainable tourism funding system.

Frequently Asked Questions

When will England introduce the Overnight Visitor Levy?

The levy could become possible around the 2027–2028 period, depending on legislation and local authority decisions.

Will every English city charge tourists?

No. The levy will be optional and decided locally.

Who will pay the visitor levy?

Visitors staying overnight in participating paid accommodation are expected to pay.

Will international tourists pay more than UK travellers?

No. The charge would be based on accommodation use, not nationality.

Why is England introducing this levy?

The aim is to provide additional funding for tourism infrastructure, public services and destination improvements.

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