Local leaders and mayors across England are soon going to be given the power to introduce an overnight levy for visitors. Dubbed a ‘tourist tax’, the levy would be charged to those staying overnight in the city, and Sadiq Khan is reportedly rather keen for it happen ‘sooner rather than later’.
It’s likely that the tourist tax could be charged at up to 5% of the cost of a night’s stay, and apply to all types of short-term commercial accommodation. Tourism chiefs have called for the levy to be set at a flat rate of £2-£3 due to the fact that accommodation costs are a whole lot higher in London than they are elsewhere in the country. But ministers are reportedly backing a percentage-based fee rather than a flat rate to protect budget holidays and hotels.
Under the proposals, local leaders would have the power to decide how the revenue made from the tourist tax should be reinvested. City Hall is currently drawing up plans for London’s levy – and carefully considering how the hundreds of millions of pounds expected be raised from it would be best used to boost the city’s tourism industry, attract more visitors to the capital, and improve the tourism experience for everybody.
The government is due to announce further details following a virtual meeting taking place between mayors and the Housing Secretary, Angela Raynor, this afternoon.
The Mayor of London, Sadiq Khan, said to the Standard: “I strongly welcome the Government giving London the power to introduce an Overnight Visitor Levy.”
He added: “A well-designed, modest levy has the potential to provide an important additional source of funding to support growth, strengthen London’s offer to visitors and help us remain globally competitive.
“It would allow us to reinvest in the places, infrastructure, culture and experiences that make London one of the world’s greatest cities to visit, while helping manage the pressures that come with welcoming tens of millions of visitors every year.”
