The United Kingdom will soon have several tourism or hotel room-night levies.
Hoteliers are campaigning against the imposition of the levies, but they will happen because the legislation is there to allow them to happen.
It is rather the same as arguing technology should not be used because of some concern as to its specific repercussions. The technology exists, so the product will follow. Later on, perhaps, legislation and regulations will catch up to provide safeguards.
In a move that offsets any blame back at it, the U.K. government has given local mayors the power to charge a tourism or hotel levy, or not.
London will get one, for sure. It is our one world-class city, and visitors arrive in the tens of thousands every day.
A tourism or hotel levy would raise substantial income, although there is no guarantee that income will be re-invested into the sector that raised it, or even if hospitality businesses would receive part of the proceeds.
Central London Forward predicts a hotel tax could raise annually for London up to £350 million, approximately £475 million.
England’s second city Manchester already has a £1 tax on top of the value-added/sales tax of 20% on every hotel stay in the city center. Manchester officials are thinking of expanding the scheme, which usually means adding a cost.
Liverpool — home of The Beatles — has a £2 City Visitor Charge. That started last year, and there also is talk of analyzing the benefits of the initiative, which also likely means an extra cost.
Edinburgh — most people argue it is Scotland’s world-class city and the U.K.’s second — has passed a resolution to have a tax starting next year, and on its coattails are several secondary cities, notably Bristol and the Welsh capital Cardiff.
Popular vacation destinations such as Cornwall, Devon and the Lake District suffer terribly on occasion from overtourism. Cities in those places will be looking at such tax windfalls with envious eyes.
Cornwall is noted for some serious social problems. Its young people find it difficult to stay in their home county due to the rise in second homes, bed and breakfasts and other short-term accommodation, and their elected leaders do not wish to reside over what might be considered one very large museum.
UKHospitality is one organization representing hoteliers that is against the imposition of tourism or hotel levies.
It says that “with the U.K. already applying one of the highest VAT rates on accommodation in Europe, additional charges risk undermining international competitiveness and discouraging domestic breaks, particularly for families and young people. … if it does go ahead, it must be designed in the least damaging way, with national consistency, a simple flat-fee model and receipts used for the benefit of hospitality and tourism, alongside genuine involvement from the businesses expected to deliver it.”
Fingers crossed.
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