Will the UK’s New Tourist Tax Affect Your Hotel Bill? What British Airways, EasyJet, and Airbnb Hosts Are Saying

Published on December 9, 2025

Will the UK’s New Tourist Tax Affect Your Hotel Bill? What British Airways, EasyJet, and Airbnb Hosts Are Saying. With the UK government’s recent announcement of a new tourist tax targeting overnight stays in hotels, short-term rentals, and Airbnb properties, travelers are wondering how this change will impact their travel plans. As cities like London, Edinburgh, and Manchester prepare to implement this levy, the tourism landscape is shifting. The tax, which is designed to generate revenue for local infrastructure and public services, could lead to higher accommodation costs, making the UK a more expensive destination for visitors. But how will this affect your hotel bill, and will it influence your choice of airline or accommodation provider? British Airways and EasyJet, two of the UK’s largest airlines, are keeping a close eye on the developments, as rising accommodation costs may affect flight demand. Similarly, Airbnb hosts are also considering how to adjust their pricing in response to the new levy. With all this in mind, it’s important to understand how this new policy could impact your trip to the UK and what you can do to prepare for any changes in travel costs.

As the UK introduces a new tourist tax targeting overnight stays in hotels, short-term rentals, and Airbnb properties, tourists are left wondering how this will affect their travel budgets. While the concept of a tourist tax is not new in many European destinations, the implementation of such a tax in the UK could be a game-changer for both travelers and the hospitality industry. With airlines like British Airways and EasyJet closely monitoring the situation, it’s clear that the tourism landscape in the UK is about to see some changes. But what exactly does this mean for you, the traveler? Will your next trip to London or Manchester cost more than expected? And how are major airlines and accommodation providers reacting to the new levy?

Understanding the UK’s New Tourist Tax: A Step Toward Sustainable Tourism

The UK government has recently announced plans to introduce a new tourist tax that will apply to visitors staying overnight in paid accommodations, including hotels, guesthouses, and short-term rental properties like those listed on Airbnb. This new levy will be implemented at a local level, with mayors across the country given the authority to impose the tax in their respective cities and regions. While this tax has already sparked some concern within the hospitality and airline industries, it is part of a broader effort to generate funds for local infrastructure improvements and tourism development projects.

The government’s reasoning behind the tourist tax is clear: to reinvest the revenue generated into public transportation, infrastructure, and tourism projects that benefit both residents and visitors. This is especially important for cities like London, Manchester, and Edinburgh, where tourism is a significant driver of the local economy. With the ongoing challenges faced by cities due to the pandemic and the need for sustainable recovery, the government believes that this new tax could provide much-needed financial support for local communities.

However, for travelers, this tax raises an important question: how will it impact their travel expenses? Will they be facing higher hotel rates or additional charges for their Airbnb stays? And how will airlines, particularly British Airways and EasyJet, respond to the changes?

How the Tourist Tax Will Affect Hotel Bills: What Travelers Need to Know

One of the primary concerns for travelers is how the new tax will impact hotel bills. While the tax is expected to be modest, it could still lead to an increase in the overall cost of a trip. For example, cities like Edinburgh are planning to introduce a 5% levy on hotel room rates, capped at five nights, starting in July 2026. This means that for a hotel room priced at £100 per night, guests would pay an additional £5 per night in taxes. While this might not seem like a huge amount, for longer stays, the cost could add up quickly.

In addition to the 5% levy in Edinburgh, other cities, including parts of London, are expected to introduce similar charges. These levies will be applied to all overnight guests, regardless of nationality. While some cities may choose to implement a flat rate instead of a percentage, the overall aim is the same: to generate additional revenue for the local area. In the case of London, a £1 per night levy could generate up to £91 million annually, with funds used to improve public transportation and maintain city infrastructure.

For travelers, this means that hotel prices may see a slight increase, particularly in popular tourist destinations. While the tax may not cause a dramatic rise in accommodation costs, it’s important for tourists to budget accordingly. Travelers should also be aware that the tax will be listed as a separate charge on the accommodation bill, so it won’t be hidden in the room rate. This transparency will allow visitors to understand exactly how much they are paying in taxes and what the funds will be used for.

What British Airways and EasyJet Are Saying About the New Tourist Tax

The introduction of the tourist tax has raised concerns not only in the hospitality industry but also within the airline sector. Major airlines, including British Airways and EasyJet, are closely monitoring the situation, as they understand that any increase in overall travel costs could have a ripple effect on flight demand. While the tax itself applies to accommodation, airlines are aware that any rise in accommodation prices could discourage travelers from booking longer trips or even visiting the UK altogether.

British Airways, which operates a significant number of flights to and from the UK, has expressed concerns that the new tax could lead to a reduction in the number of visitors. While the airline has not yet indicated any plans to adjust flight prices in response to the tax, it’s clear that any decrease in demand for travel to the UK could affect ticket sales. British Airways has been working to rebuild its network after the pandemic, and the introduction of a tourist tax could hinder its recovery efforts by making the UK a less attractive destination for price-sensitive travelers.

On the other hand, EasyJet, which primarily serves budget-conscious travelers, may feel the impact of the new tax more acutely. As the UK’s largest low-cost carrier, EasyJet has a significant presence in cities like London, Manchester, and Edinburgh. If the tourist tax leads to higher accommodation prices, budget travelers may choose to fly to other destinations with lower overall costs. EasyJet may need to adjust its pricing strategy to account for the increased costs travelers may face when booking hotels and short-term rentals.

While both British Airways and EasyJet are likely to monitor the situation closely, it’s important to note that flight prices may not see an immediate increase due to the new tax. Airlines operate in a competitive environment, and a significant increase in ticket prices could lead to a loss of customers. As such, travelers are unlikely to see a major rise in airfare, but the overall cost of a trip to the UK could increase when factoring in the additional tourist tax.

How Airbnb Hosts Are Responding to the Tourist Tax

In addition to hotels, the new tourist tax will also impact short-term rental properties listed on platforms like Airbnb. Airbnb hosts, especially those in popular tourist destinations, will need to factor the new tax into their pricing strategy. While some hosts may choose to absorb the cost of the tax, others may pass it on to guests in the form of higher nightly rates.

The response from Airbnb hosts is likely to vary depending on the location of their properties and the level of competition in the area. In cities like London and Edinburgh, where tourism is a major industry, hosts may have the flexibility to raise their prices slightly without losing business. However, in more rural or less popular destinations, hosts may be more reluctant to increase their rates for fear of losing bookings.

For travelers, this means that Airbnb stays could become more expensive as hosts adjust their prices to account for the new tax. As with hotels, the tax will be added as a separate charge on the booking, allowing guests to see exactly how much they are paying. Airbnb users should also be aware that the tax may vary depending on the city or region they are booking in, so it’s important to check the details before finalizing a reservation.

The Impact on Budget Travelers and Long-Term Stays

One of the most significant effects of the new tourist tax will likely be on budget travelers and those planning long-term stays in the UK. For those traveling on a tight budget, the added tax could make the UK a more expensive destination compared to other European countries that do not impose similar taxes. Budget airlines like EasyJet, which rely on volume and low-cost fares, may see a decrease in demand if travelers feel that the additional costs of accommodation will make their trip unaffordable.

For long-term travelers, the new tax could have a more substantial impact on their overall travel budget. While short stays may only see a minor increase in costs, those planning extended visits will feel the tax’s effects more acutely. Travelers who stay for weeks or months at a time could see their accommodation costs rise significantly, especially in cities where the tax is higher or applied as a percentage of room rates.

To mitigate the impact of the tourist tax, budget travelers should consider staying in less expensive cities or regions where the levy may not be as high. Additionally, booking accommodation well in advance and taking advantage of promotions or special deals could help offset the added cost of the tax. Long-term travelers may also want to explore alternative accommodation options, such as hostels or serviced apartments, which may offer more competitive pricing compared to traditional hotels or Airbnb rentals.

Travel Tips for Tourists Visiting the UK

As you plan your trip to the UK, here are some travel tips to help you navigate the new tourist tax and make the most of your visit:

1. Budget for the New Tax: Be sure to factor the new tourist tax into your travel budget. While it may not drastically increase the cost of your trip, it’s still important to account for the additional charge when booking hotels or short-term rentals.
2. Book Early: To secure the best rates for accommodation, try to book your stay well in advance. This will help you avoid last-minute price hikes and take advantage of early-bird discounts.
3. Check for Promotions: Keep an eye out for promotions and special deals on flights and accommodation. Many airlines and hotel chains offer discounts or bundle packages that can help reduce your overall travel expenses.
4. Explore Alternative Accommodation: If Airbnb or traditional hotels are out of your price range, consider staying in hostels, serviced apartments, or guesthouses, which may offer more affordable options.
5. Travel Off-Peak: Traveling during off-peak seasons can help you avoid higher accommodation prices and the crowds that come with peak tourist seasons. This could also help reduce the impact of the new tourist tax on your overall costs.

The Future of UK Tourism: What’s Next?

As the UK continues to recover from the effects of the pandemic, the introduction of the new tourist tax represents a strategic move to bolster local economies and ensure the long-term sustainability of tourism. However, the impact on travelers, airlines, and the hospitality industry remains to be seen. While the tax is unlikely to have a dramatic effect on the number of visitors, it could lead to higher accommodation costs and may influence the overall cost of travel to the UK. For now, tourists should remain aware of the changes and plan accordingly to ensure their trip remains affordable and enjoyable.

Will the UK’s New Tourist Tax Affect Your Hotel Bill? What British Airways, EasyJet, and Airbnb Hosts Are Saying. As the UK introduces a new tourist tax, your next trip could cost more than expected—here’s how airlines and hotels are reacting!

In conclusion, while the UK’s new tourist tax may add some extra costs to your trip, it is ultimately a necessary step toward supporting local infrastructure and enhancing the tourism experience. By staying informed and adjusting your travel plans, you can still enjoy all that the UK has to offer without breaking the bank.