Nearly 60% of consumers would change travel plans to avoid a tourist tax
Nearly 60% of consumers would change their travel plans to avoid paying an additional tourist tax in UK cities, according to RSM UK’s latest Consumer Outlook.
A survey of 2,000 consumers conducted on behalf of RSM UK showed that 29% of consumers would consider a location that didn’t have a tourism tax and 28% would reduce the duration of their stay to avoid extra costs. With 42% saying it wouldn’t affect their travel plans.
Gen X consumers are the least likely to change their plans due to a visitor levy policy, with almost half (49%) saying it wouldn’t impact their decision making. However, Gen Z are the most likely to change their plans, as a third would consider a different location and 38% would reduce the duration of their stay.
Chris Tate, head of travel at RSM UK, said: “Cost conscious consumers could vote with their feet if tourist taxes are implemented across UK cities, with many suggesting they would change their plans to circumvent the extra cost. This could be a real blow to UK tourism, particularly in Scotland where taxes are due to become effective later this year in Edinburgh, with other cities to follow in 2027.
“As many other councils consult on plans, everyone will be watching closely to see the impact in Edinburgh which has confirmed a 5% charge per night, per person for the first five nights. If the Scottish capital sees a real hit to tourism, then it could deter other cities from going down the same path. However, if it doesn’t impact behaviour too much, and brings in the projected £50m in revenues, then we could see the ripple effect across the rest of the UK and a tourist tax might be the new norm for 2026.
“These taxes could hit luxury hotels harder as a percentage of a higher room rate might have more sway to change consumer plans. This is at a time when the luxury market has been booming, but with the acute impact of a tourist tax combined with the increased burden of business rates following the budget, we could see a challenging 2026 for luxury hotels.