London and Manchester to Introduce Nightly Tourist Fee—How It Impacts Your Travel

Published on December 3, 2025

Several major cities in the United Kingdom, including London, Manchester, and others, are closer to implementing a new tourism tax that will affect travellers staying in hotels, guesthouses, bed and breakfasts, and holiday rentals. The tax, which is still under discussion, is expected to be introduced in 2025 and will apply to overnight accommodations in these cities, with specific rates yet to be finalised. The move aims to generate revenue that will support local tourism infrastructure, maintenance, and services, benefiting both the cities and the local economy.

Key Details on the New UK Tourism Tax

The new tax will be levied on tourists staying in overnight accommodations across participating UK cities. This includes both large hotel chains and smaller establishments such as boutique hotels and private holiday rentals. The introduction of the tourism tax will mark a significant shift in the cost of visiting major UK cities, particularly for international tourists who are already facing higher living expenses and exchange rates.

Although the exact fee amount for each city has yet to be determined, local authorities have stated that the tax will be relatively modest, likely ranging from £1 to £3 per night. The rate may vary depending on the type of accommodation and the city, with more expensive hotels potentially seeing a higher nightly charge. The proposal follows the growing trend of introducing local tourism taxes in popular tourist destinations worldwide, with similar taxes already in place in cities like New York, Paris, and Milan.

The Purpose of the Tourism Tax

Local governments in the UK argue that the introduction of a tourism tax is necessary to help fund tourism-related services, including public transport improvements, cleaning services, and enhanced safety measures for tourists. With the UK being one of the world’s top tourist destinations, the new tax is seen as a way to ensure that the country’s infrastructure can keep up with the growing number of visitors, especially during peak seasons.

In addition, the tourism tax is expected to help address some of the pressures on public resources caused by the influx of tourists. The funds raised through the tax will be reinvested into projects that directly benefit both tourists and residents, such as better amenities, local attractions, and more sustainable tourism initiatives. By introducing this fee, the government aims to enhance the overall tourism experience while supporting the development of the tourism industry at the local level.

How the Tax Will Impact Travellers

Travelers planning to visit the UK in 2025 or beyond will need to factor in the new tourism tax as part of their accommodation budget. Depending on the city and type of accommodation, the tax could add a small but significant cost to each night’s stay. For example, a family booking a week’s stay in a hotel in London could see an additional £20–£30 in charges, while solo travelers staying in a guesthouse may face a slightly lower charge.

Tourists need to check with their accommodation provider for details on how the tax will be applied. In some cases, the tax may be included in the booking fee, while in others, guests may be required to pay it separately upon check-in or check-out. While this new charge may not be a substantial burden for many visitors, it will still be an important consideration when planning trips to popular UK destinations like London, Manchester, and Edinburgh.

Comparison with Other Global Cities

The introduction of a tourism tax in the UK is in line with similar initiatives in other major cities around the world. For instance, New York City has had a hotel tax in place for many years, which is used to fund tourism infrastructure and services. Paris, one of the most visited cities globally, has also implemented a nightly tourist tax, which varies based on the type of accommodation.

In Milan, Italy, the city charges a tourism tax on hotel stays, with rates depending on the category of the accommodation. The funds collected are used to maintain city parks, transportation services, and cultural attractions. Like these global counterparts, the UK’s tourism tax aims to create a sustainable funding mechanism that can support the growth and maintenance of tourism infrastructure without relying solely on taxpayer money.

Potential Benefits for UK Tourism

While some travelers may initially view the new tourism tax as an added expense, it is anticipated to have long-term benefits for the UK’s tourism sector. By creating a sustainable funding model for tourism infrastructure, the UK will be better equipped to handle the demands of millions of visitors each year. This could lead to improved public services, such as cleaner streets, better public transport options, and enhanced security, all of which will contribute to an overall better travel experience for both tourists and residents.

Additionally, the revenue generated from the tax could be used to promote tourism beyond the major cities, encouraging visitors to explore lesser-known areas of the UK. This could help balance tourism traffic and ensure that smaller towns and rural destinations receive the support needed to thrive in the global tourism market.

Conclusion

As the UK prepares to introduce a new tourism tax in London, Manchester, and other major cities, travelers should be aware of the potential additional costs to their trips. While this new charge may increase the cost of accommodation slightly, it is part of a broader strategy to ensure the long-term sustainability and growth of the UK’s tourism sector. By investing in local infrastructure and services, the tourism tax aims to enhance the visitor experience, create new opportunities for local economies, and ensure that the UK remains a top destination for international tourists for years to come.

For tourists, this means a more enjoyable and seamless travel experience in the UK, although planning ahead for the new tax will be important when budgeting for trips to these iconic cities.