Italy Unites France as England Advances New Overnight Tourist Tax on Hotels and Holiday Rentals

Written By: Debarati Paul

Debarati Paul

I’m Debarati a postgraduate in Mass Communication and Journalism with a naturally creative mindset and a genuine passion for storytelling. I enjoy transforming ideas into engaging, meaningful content that informs, connects, and inspires. Whether it’s writing, content creation, or creative communication, I believe every piece of content has the power to leave a lasting impression. Driven by curiosity and a love for learning, I continuously explore new ways to express ideas with clarity, creativity, and authenticity. My goal is to create content that not only captures attention but also resonates with people.

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September 11, 2026 17:54 GMT+5:30

Italy unites France as England advances a new overnight tourist tax on hotels and holiday rentals, signalling an important shift in how major European destinations could fund tourism growth. This system would allow local councils in England to charge an overnight stay percentage fee and use the money to improve transport, public spaces, events and infrastructure for visitors. This may mean an increased cost to travellers from Italy and France as well as other international markets. Englands joining the trend of local visitor levies and funding controls for destination management will have an effect on global tourism.

England Overnight Visitor Levy Moves Closer as Local Leaders Gain New Tourism Funding Powers

England is moving towards a new system in which mayors and eligible strategic authorities can introduce an Overnight Visitor Levy on paid stays. The important point for travellers is that this is not a single tourist tax automatically imposed across England. Local leaders will decide whether their area should use the power after consultation with residents and businesses. The government confirmed on 10 September 2026 that the levy must be calculated as a percentage of accommodation cost rather than as a fixed nightly charge. A bill is still required to establish the levy powers in law.

• The England Overnight Visitor Levy will be a locally controlled power.
• It will apply only where an eligible authority chooses to introduce it.
• The charge must be linked to the price of accommodation.
• Local residents and businesses must form part of the consultation process.
• The government expects local spending plans to start emerging by early 2028.

Hotels, Holiday Rentals and B&Bs Sit at the Centre of England’s New Tourist Tax Framework

The proposed system reaches beyond conventional hotels. Government plans have identified hotels, holiday lets, bed and breakfasts and guesthouses as accommodation that could fall within an Overnight Visitor Levy where a local scheme operates. This makes the measure relevant to travellers using both traditional hospitality and self-catering accommodation. England already regulates commercial short-term holiday accommodation as a distinct part of its accommodation economy. Under the visitor levy system, accommodation providers will be responsible for paying the levy to the relevant strategic authority or mayor, while detailed administration and collection rules will be developed through the legislative process.

• Hotels could fall within participating local levy schemes.
• Holiday lets are included within the planned accommodation scope.
• B&Bs and guesthouses can also be covered.
• Accommodation providers will carry the formal payment responsibility.
• The final collection framework will depend on legislation and local implementation.

The government has separately confirmed that temporary accommodation, shelters and refuges will not be subject to the visitor levy. Local leaders will also have some flexibility over exemptions, with campsites given as an example of accommodation that could receive different local treatment.

Percentage-Based England Tourist Tax Changes the Cost Equation for Budget and Luxury Stays

The structure of the England tourist tax matters as much as the existence of the levy. Rather than setting one flat amount for every tourist, the government has chosen a percentage-based model. This means the value of the charge would rise or fall with the accommodation price. A traveller choosing a lower-priced guesthouse or affordable holiday rental would therefore face a smaller cash charge than a traveller booking an expensive hotel, assuming both properties sit within the same participating scheme. No universal England-wide percentage should currently be treated as a confirmed final rate because local schemes and legislation are still developing.

• England has rejected a single flat-fee structure for the planned system.
• The levy will be calculated from accommodation cost.
• Lower-cost rooms produce a smaller cash levy at the same percentage rate.
• More expensive accommodation produces a larger charge.
• Travellers should not yet assume one fixed tourist-tax rate across England.

The approach is designed to prevent a fixed charge from weighing disproportionately on people buying cheaper holidays. It also means comparison shopping may become more important once individual destinations publish their rates and implementation rules.

London, Liverpool and Major English Tourism Regions Could Make Different Local Decisions

The new framework creates a destination-by-destination question rather than a simple England-wide rule. Mayors and leaders of Foundation Strategic Authorities will have power to decide whether the levy suits their areas. Government material around the policy has involved major visitor regions including London, Liverpool City Region, West Yorkshire, South Yorkshire, the West of England, the East Midlands and York and North Yorkshire. That does not mean every one of these destinations has already imposed a tax. Each area will need to move through its own decision-making and consultation process before travellers can know whether a charge will actually apply.

• England will not operate as one single tourist-tax zone.
• London could make a different decision from another English region.
• Regional authorities can assess their own tourism needs.
• Travellers may eventually encounter different levy situations between destinations.
• Local implementation details will matter when booking multi-city England trips.

This creates a particularly important planning issue for visitors moving between several English cities. Accommodation taxation may eventually depend not simply on entering England, but on where the traveller sleeps.

Italy Travellers Face a New Accommodation Question as England Develops its Overnight Visitor Levy

Italian travellers form an important part of Britain’s European visitor economy, making England’s visitor levy particularly relevant to city breaks and overnight holidays. Current VisitBritain card-spending information shows that spending by Italian visitors increased strongly in June 2026, rising by 20% compared with June 2025. The new levy would not create an additional charge simply because someone is Italian. Instead, an Italian tourist would be affected when using qualifying paid accommodation inside an English destination that has adopted a local levy. The key booking variable therefore becomes the destination and accommodation price, rather than the traveller’s nationality.

• Italian nationality itself does not trigger the levy.
• The location of the overnight stay determines exposure.
• Paid hotels and holiday accommodation are central to the framework.
• Italian visitor spending showed strong momentum in June 2026.
• City-break travellers should monitor accommodation charges before booking.

VisitBritain’s latest overall 2026 outlook also expects European tourism to outperform long-haul markets, with European visits forecast to increase by 4% and spending by 7%. That makes the design of accommodation costs increasingly relevant to important European markets such as Italy.

France Travellers Could Feel the Levy Most Clearly Through Short Breaks and Paid Overnight Stays

France is one of Britain’s largest inbound tourism markets and has particularly strong transport links with the UK. VisitBritain’s 2026 outlook forecasts approximately 3.7 million French visits, with visitor spending of about £2.2 billion. This makes French travellers an important audience for any destination that introduces an England Overnight Visitor Levy. The charge would remain linked to the overnight accommodation rather than the way a traveller enters Britain. Someone arriving from France by plane, train, ferry or Channel Tunnel would therefore face the same basic accommodation levy rules when staying in a participating English destination.

• France is one of Britain’s largest inbound tourism markets.
• About 3.7 million French visits are forecast in 2026.
• French visitor spending is forecast at around £2.2 billion.
• The levy concerns accommodation rather than the traveller’s transport mode.
• Short-break travellers will need to include local accommodation charges in trip budgets.

France’s proximity also creates an important traveller distinction. A visitor can reach Britain using air services, Eurostar, ferries or the Channel Tunnel. The Overnight Visitor Levy does not replace or alter those transport charges. It operates around the stay itself.

United States Tourists Could Become One of the Most Important Markets Exposed to Local England Levies

The United States carries particular importance because it remains Britain’s largest and most valuable individual inbound visitor market. VisitBritain expects around 5.5 million US visits during 2026, with American travellers forecast to contribute roughly £7.5 billion in spending. More than one pound in every five pounds spent by overseas visitors comes from the US market. American tourism therefore matters greatly to destinations considering how an Overnight Visitor Levy may interact with accommodation demand. The levy would still apply according to local accommodation rules, not passport nationality, but high-value hotel stays could generate larger cash charges under a percentage-based system.

• The United States is Britain’s highest-value inbound visitor market.
• Around 5.5 million US visits are forecast for 2026.
• Forecast US visitor spending is approximately £7.5 billion.
• The planned levy is accommodation-based rather than nationality-based.
• Higher-priced hotel stays would generate larger cash charges under a percentage model.

Air travel is especially relevant to the American market because most US travellers enter Britain by air. However, England’s Overnight Visitor Levy is not an aviation tax. It would apply at the accommodation stage, making the hotel or holiday-rental bill the part of the trip where travellers need to check for a local levy.

England Plans to Reinvest Visitor Levy Revenue in Transport, High Streets and Tourism Infrastructure

The visitor levy is designed as more than an additional accommodation charge. The government’s policy links the new revenue power directly with local investment. Strategic authorities could use money raised to support economic growth and the visitor economy, including high streets, public transport, local infrastructure, events and other destination improvements. This creates a direct relationship between where tourists stay and where revenue can be reinvested. For travellers, the long-term value of the policy will therefore depend partly on whether local authorities convert levy receipts into visible improvements in transport, public areas, cultural infrastructure and visitor services.

• Levy proceeds are intended to remain connected to local growth.
• Public transport is one potential investment area.
• High streets could receive additional destination investment.
• Events and visitor experiences can form part of spending plans.
• Local authorities will have significant influence over spending priorities.

The policy sits alongside existing government tourism investment. The government has also committed £3.38 million through VisitEngland’s Connected Destinations Fund to improve collaboration between destinations and strengthen visitor experiences across England.

Hotels and Holiday Rentals Will Become Critical Information Points for Travellers

Accommodation providers will play a central role once local visitor levy schemes become operational. Government policy places responsibility for paying the levy to strategic authorities on hotels and other accommodation providers. This means booking platforms, hotels, B&Bs, guesthouses and holiday-rental businesses will become important sources of practical information for travellers about whether a local charge applies. The precise way a charge appears in a booking journey will depend on final legislation and local administrative systems. Travellers should therefore avoid assuming that every advertised room rate across England will eventually include the levy in exactly the same way.

• Accommodation providers will have formal responsibilities under the levy system.
• Local rules may become important during online booking.
• Travellers should check whether quoted prices include applicable charges.
• The levy framework covers more than traditional hotels.
• Final administrative details are still being developed.

England is also moving towards a mandatory national registration system for short-term lets, reinforcing the government’s broader focus on the commercial visitor-accommodation market. Government guidance published in 2026 covers cottages, apartments, lodges and similar self-catering properties used for short-term paid stays.

Travel and Tourism Impact Could Extend Beyond Hotel Bills into Regional Mobility and Destination Planning

The immediate traveller impact of the England Overnight Visitor Levy is a possible increase in the total cost of qualifying overnight accommodation. The wider tourism effect could be more complex. VisitBritain’s revised August 2026 forecast expects 44.2 million inbound visits to the UK in 2026, generating £33.9 billion in spending. European markets are expected to grow faster than long-haul markets, increasing the importance of travellers from countries such as Italy and France, while the United States remains the country’s largest high-value source market. Local levy decisions will therefore operate within a highly competitive international tourism environment.

• The levy increases the importance of comparing total accommodation costs.
• It does not create an additional airline passenger tax.
• International travellers could face different conditions between English regions.
• Revenue could improve public transport and destination infrastructure.
• England must balance local investment with a competitive visitor proposition.

The scale of Britain’s visitor economy explains why implementation will receive close attention. The government’s September 2026 announcement cites 42.6 million inbound UK visits, £32.5 billion in spending and 293 million visitor nights in the latest annual figures referenced in its policy material. At the same time, the latest VisitBritain forecast points to continued inbound growth during 2026. Any England tourist tax will therefore operate across destinations already competing for millions of international overnight visitors.

Conclusion

Italy unites France as England advances a new overnight tourist tax on hotels and holiday rentals, marking a significant change in how destinations may fund local tourism priorities. This system will allow local councils to charge an overnight stay fee and local councils will have more control on how and where the funds will be used to improve services and infrastructure. Travellers will have to pay more depending on the local councils that decide to implement the levy. England’s new system will be more like other systems already being used in Italy, France and other international markets.