Tourist Levy is a disastrous tax on hotels
The announcement that local mayors can impose Tourist Levy’s on the overnight stays of people visiting their jurisdiction is a disastrous tax on hotels.
Paul Callingham, chairman of Starboard Hotels Ltd said: “There was nothing that would seriously adversely affect hospitality during the chancellor, Rachel Reeves, Autumn Budget speech, but the announcement that the government will allow local mayors to impose their own new Tourist Levy’s without any control on how the money is to be spent is disastrous.”
He added: “This is a direct tax on hotels. We will need to include the Levy’s in our published room rates to comply with the Digital Markets, Competition and Consumers Act 2024. And guests will not pay extra as our rates are market driven, but this will be an increased burden on hoteliers at a time when the industry is already under pressure.”
Paul said: “This has not been thought through and we will probably see different rates all over the country which for a business like ours will be hard to manage.”
He added: “I suspect it will be impossible for the local authorities to collect this Levy from holiday let businesses, especially individual Air B&B landlords.”