ABTA has formally opposed Government plans to introduce a tourist tax in England.
In a written response to the consultation on introducing an overnight visitor levy, ABTA warned increased taxation and more red tape would make UK holidays less attractive.
The Government confirmed last November a plan for regional mayors in England to be given powers to set their own tourism levy on overnight stays.
The plan was announced the day before the 2026 Budget, on 25 November, with the Government saying the move would ‘put local leaders on equal footing with top tourist destinations around the world’.
The Government said mayors would be able to introduce a ‘modest charge’ on visitors’ overnight trips and the money could be used to invest in ‘transport, infrastructure and the visitor economy’.
Under the plans, any new levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses.
Local leaders welcomed the plan, but ABTA and UKinbound have warned against it.
ABTA added its voice to the debate during a 12-week consultation, which ran until 18 February last week.
It said there is growing concern across the industry about the overall competitiveness of English travel and tourism and that rising costs, increased taxation and wider regulatory pressures are all steadily eroding the attractiveness of holidays in the UK as a whole.
It added the UK is already ranked 113th out of 119 countries for price competitiveness by the World Economic Forum.
If the levy goes ahead, ABTA wants mayors to be required to invest a proportion of revenues raised to promote and develop local tourism, rather than plug gaps in local government budgets.
It also believes a proposal for a percentage-based model for any levy would be overly complex and administratively burdensome compared to a flat-rate charge. This was made clear from the experience of Scotland which moved last year from a percentage to a flat rate model.
ABTA Director of Public Affairs Luke Petherbridge said: “We have sent a robust response to the Government’s proposal for the introduction of an overnight visitor levy in England.
“Domestic and inbound tourism are worth more than £97 billion annually to the economy in England. We’ve long expressed concern with the cumulative impact of taxes and charges on UK travel and tourism, which is already uncompetitive on cost grounds.
“Adding further taxes to visitors who support vital economic activity across the country is short-sighted, and risks turning people off holidays in the areas imposing these charges.”
