Businesses in some of the United Kingdom’s most popular tourist destinations have voiced significant concerns over the proposed tourist tax, warning that it could deal a severe blow to the industry. The owner of a well-known Cotswold bed and breakfast and a senior figure from the Lake District’s tourism sector have both expressed apprehensions about the proposed Overnight Visitor Levy.
Caron Cooper, proprietor of Fosse Farmhouse near Castle Combe in Wiltshire, has seen her Georgian bed and breakfast become a major draw for Japanese tourists, inspired by its role as the setting for the Japanese animated series Kinmoza, which has attracted over five million viewers. Ms Cooper’s establishment also featured in an episode of Gordon Ramsay’s show “Uncharted: UK Showdown,” further boosting its profile.
Speaking to the Press Association, Ms Cooper reflected on the challenges faced during her 42 years running the B&B in the Cotswolds. She highlighted the difficulties posed by fluctuating business rates, the severe impact of the Covid-19 pandemic, and other successive challenges in recent years. “Just as we felt we were emerging from those hardships and tourism was picking up, this [tourist tax] feels like a hammer blow,” she said.
READ MORE: Gloucestershire Police Seeks Witnesses Following Multiple Recent Incidents
READ MORE: Major Milestone Reached as A417 Missing Link Switches to New Permanent Layout
Meanwhile, Gill Haigh, managing director of Cumbria Tourism-an independent organisation representing 4,500 members in the county’s tourism industry-outlined the crucial role tourism plays in the region. Employing approximately 43,000 people-amounting to 26% of Cumbria’s workforce-tourism supports a sector welcoming around 40 million annual visitors and 7.25 million overnight stays.
Ms Haigh acknowledged the devastating effects of the pandemic on the sector and cautioned against introducing additional financial burdens. She emphasised that England’s current tourism taxation, with VAT at 20%, is considerably higher than the average 10% across Europe, making the UK a comparatively expensive destination.
“While a tourist tax might seem a straightforward way to raise funds, we must recognise the potential risk of further diminishing our competitiveness,” Ms Haigh explained. She advocated for any local authorities considering the Overnight Visitor Levy to commission thorough economic and social impact assessments before proceeding, ensuring a clear understanding of both advantages and unintended consequences.
Ms Cooper suggested that if such a levy were to be introduced, a fixed-rate charge-such as an additional £1 per booking-would be preferable to a percentage-based surcharge. She reasoned that while luxury hotel guests spending £500 a night might barely notice a 5% increase, budget-conscious visitors, often staying in bed and breakfasts, would feel the financial strain more acutely. “Adding a percentage-based levy is unfair and would disproportionately affect those with less to spend,” she said.
Ms Haigh called on Government officials and mayors to adopt an evidence-based approach, carefully evaluating the potential outcomes of imposing the tourist tax. Reflecting on the situation, Ms Cooper observed, “It feels like the Government is seeking income from wherever possible, and tourism too often seems like an easy target.”