Visitor Levy in England: What Travellers Need to Know About the New Tax on Overnight Stays

Published on November 27, 2025

In a move aimed at boosting local economies and improving public infrastructure, England is set to introduce a tourist tax on overnight stays. The new levy will allow city mayors to implement a modest fee on visitors staying in hotels, B&Bs, and other paid accommodations. This measure brings England in line with other European countries such as Scotland and Wales, which have already begun implementing similar taxes. With many European cities already benefitting from these schemes, England’s move is set to stir debate on its impact on both tourists and the hospitality industry.

While the tax aims to provide additional funds for improving transport, local services, and tourism infrastructure, it has also sparked concerns, especially from the hospitality sector, about the potential impact on businesses already grappling with high prices.

Why the UK Is Introducing a Tourist Tax

The introduction of a tourist tax in England comes as part of a broader government initiative to enhance local amenities and infrastructure across the country. Currently, cities such as Edinburgh and Barcelona have successfully implemented similar levies, with the funds raised being reinvested into projects aimed at benefiting residents and visitors alike. In the case of England, the proposed tax will be set at a modest rate, ensuring minimal impact on visitor numbers, according to government statements.

Ministers suggest that the revenue raised through this tax will be used to support transport upgrades, develop public spaces, fund cultural programs, and improve the overall tourism experience. With over 130 million overnight visits annually, even a small charge could significantly contribute to strengthening the travel infrastructure and enhancing the visitor experience across the country.

The Growing Trend of Tourist Taxes Across Europe

Tourist taxes are not new, and England’s decision to introduce a visitor levy brings it in line with several other European destinations. Cities across the EU—from Austria and Belgium to Greece and Slovenia—already charge fees that range from €1.50 per night to a percentage of the total cost of a hotel room. Some countries have taken things further; Venice, for example, introduced a €5 charge for day-trippers in 2024, which increased to €10 in 2025. Meanwhile, Barcelona has raised its surcharge for overnight stays, with the tax in Catalonia reaching up to €4 per night at its peak, with plans to further increase the levy each year.

In these cities, the money generated from the taxes supports a range of services, from environmental protection to public housing, cultural programming, and organizing major events. As England moves forward with its own version, ministers argue that the new levy will be used for similar purposes, benefiting both local communities and visitors.

The Impact on Business Travel and Normal Tourists

While the tourist tax is expected to benefit local economies, it may have some unintended consequences, particularly for business travellers and leisure tourists. For business travellers, the introduction of the levy could mean increased costs, particularly for those attending conferences, events, or meetings that involve multiple overnight stays. However, the revenue generated from the tax may improve the overall conference and exhibition infrastructure in cities like London, Manchester, and Bristol, making it easier for future events to flourish.

For leisure travellers, the added tax will likely result in a modest increase in overall holiday expenses. However, those looking to visit major UK cities may find that the improvements funded by the tax—such as better public transport options and more cultural offerings—could enhance their travel experience. Some destinations, like London and Liverpool, have already expressed support for the levy, suggesting that the funds raised will be used to support major events and tourism infrastructure.

Key Supporters and Opposition

Not everyone is in favour of the new tourist tax. Some city officials, like Sadiq Khan, the mayor of London, have supported the proposal, calling it “great news for London.” The Hospitality Industry, however, has raised concerns about the potential for the tax to discourage tourism at a time when prices are already high. The UKHospitality trade association warned that the tax could cost the public £518 million annually, with businesses passing these costs onto consumers.

Some mayors, like Steve Rotheram from Liverpool, have pointed out the success of similar schemes in cities like Barcelona and Paris, where the money raised through tourist taxes has been reinvested into local infrastructure, such as major festivals and public works. With Manchester also expressing support, it’s clear that the new tax is expected to generate significant local benefits—provided it is implemented at a reasonable level.

What to Expect During the Consultation

A 12-week consultation process is currently underway, with the government seeking input from various sectors on how the tourist tax should be structured. The consultation will focus on key issues such as the tax cap, exemptions (such as for emergency accommodations and registered Gypsy sites), and how the funds will be distributed. This process is expected to run until February 18, 2026, giving both the public and businesses a chance to provide feedback before the proposal is finalized.

Quick Tips for Travellers

1. Check Local Regulations:
   • If you plan to visit major cities in England, keep an eye out for updates on the specific tax rates in each location.
2. Budget Accordingly:
   • Factor the tourist tax into your travel budget for the upcoming years, especially if you’re planning a long stay in the UK.
3. Stay Updated on Exemptions:
   • Be aware of exemptions for specific accommodations, such as emergency shelters or specific local laws that may waive the levy in some areas.
4. Support Local Initiatives:
   • Understand that the revenue from the tax will directly contribute to improving local public transport and cultural programs that benefit both locals and tourists.
5. Look for Deals:
   • While the tax may add extra costs, look for deals on transport and hotel packages that might offset the impact of the levy.

Key Points at a Glance

• The tourist tax in England is expected to apply to overnight stays in hotels, B&Bs, and holiday lets.
• The revenue will be used to fund public infrastructure, transport, and cultural programs.
• The proposed tax comes in response to the success of similar levies in Scotland and across Europe.
• Business travellers and leisure tourists will see a slight increase in accommodation costs.
• A 12-week consultation is currently open until February 18, 2026, where the public and businesses can provide feedback on the design of the tax.

England’s New Tourist Tax: A Small Fee for Big Benefits?

With the introduction of a tourist tax across England, visitors can expect a modest surcharge that may slightly increase costs but will help support vital local infrastructure and public services. While businesses in the hospitality industry have raised concerns about the potential for the levy to impact profits, many city leaders view it as a necessary step for ensuring continued growth and improvement of tourism offerings. Ultimately, the revenue from this tax could contribute significantly to making England an even better place to visit, with enhanced travel infrastructure, cultural experiences, and local amenities.

Disclaimer: The Attached Image in This Article is AI Generated