The Tourism Alliance, representing over 65 trade associations across the UK's visitor economy, has voiced strong opposition to the newly introduced Visitor Levy (England) Bill. Presented in the House of Commons on 4 November 2026, the legislation would empower strategic authorities to impose a levy on overnight stays of up to 28 nights.
Eddy Leviten, Executive Director of the Tourism Alliance, acknowledged that the government had included some safeguards, such as allowing booking platforms to collect the levy and setting thresholds for smaller operators. However, he argued that the Bill fails to protect the very industry it seeks to tax.
Key concerns: no cap, no ring-fencing
Leviten criticised the lack of a statutory cap on the levy rate and the absence of provisions to ring-fence revenue for tourism. Under the proposed arrangements, authorities would pay the proceeds into the mayor's general fund without requiring specific allocations for the visitor economy. He also pointed out that local councils within mayoral areas would have no veto over the levy.
"Ministers point to the UK's low share of local taxes," Leviten said, "but they ignore how heavily visitors are already taxed nationally."
The Tourism Alliance is calling for several amendments, including a statutory cap on the levy rate, ring-fencing revenue for the local visitor economy, and giving local councils veto powers. It also wants the government to reduce VAT on accommodation to 10% before introducing any visitor levy.
Tourism contributes £147 billion annually to the UK economy, supports 2.4 million jobs, and generates £52 billion in tax revenue. The Alliance argues that an additional levy could further weaken the UK's price competitiveness. The World Economic Forum ranks the country 106th out of 110 countries for price competitiveness.
For travel businesses operating in the UK, the proposed levy adds another layer of complexity. Hoteliers and tour operators already face a challenging fiscal environment, and any additional cost could deter international visitors. The Alliance's concerns echo those raised in other destinations where visitor levies have been introduced without clear revenue allocation.
As the Bill progresses through Parliament, the Tourism Alliance is urging MPs to consider the long-term impact on the visitor economy. The organisation has also highlighted the need for a more coordinated approach to destination management, similar to initiatives seen in other markets, such as Memphis Tourism's neighbourhood guide that aims to enhance visitor experiences.
Industry stakeholders are watching closely, as the outcome could set a precedent for how local taxes are applied to tourism across England. The Alliance's call for a VAT reduction on accommodation is seen as a critical step to offset any potential negative effects of the levy.
For more context on how visitor levies are being handled elsewhere, see our analysis of UK regional visitor levies and what travel businesses need to know.
