by Vicki Philpott

Holiday Tax confirmed

Holiday Tax confirmed

We are disappointed by the Government’s confirmation in last week’s King’s Speech that it intends to proceed with a tourism tax, introducing an additional cost for the industry at a challenging time. With families and hospitality businesses already managing rising costs, there is understandable concern that extra charges on overnight stays could make UK holidays less affordable and place added pressure on the visitor economy.

As UKHospitality has highlighted, there is a risk that this measure could disproportionately affect lower-income households, impact domestic tourism, and reduce the UK’s competitiveness as a destination while the sector continues to navigate ongoing economic pressures.

At the same time, the hospitality and tourism sector has repeatedly demonstrated its resilience, adaptability, and value to communities across the country. Businesses have continued to support local economies despite economic and operational challenges in recent years. That resilience is something the industry should be proud of, and it remains a vital strength as the sector looks to the future.

We believe it is important that any new measures are carefully considered to avoid placing unnecessary pressure on an industry that contributes so much and would encourage the Government to continue engaging closely with the sector to avoid any unintended consequences.

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