• November 26, 2025

The Business of Events urges hospitality businesses to participate in tourist levy consultation

The Business of Events urges hospitality businesses to participate in tourist levy consultation

The Business of Events urges hospitality businesses to participate in tourist levy consultation 900 600 micebook.

England’s mayors are being given the power to introduce a new levy on overnight stays as part of the Government’s Budget, unveiled today (26 November).

The Ministry of Housing, Communities and Local Government (MHCLG) said that the move would enable local leaders to invest in transport, infrastructure, and the visitor economy, putting them on an equal footing with top tourist destinations around the world.

England attracts over 130 million overnight visits each year. The fee would apply to visitors’ overnight trips at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses, and it would be up to mayors and other local leaders to introduce a modest charge if it’s right for their area.

Money raised could then help fund local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors – without needing approval from central government.

Many cities around the world charge tourists a small fee when they visit, including New York, Paris and Milan. Research also shows that reasonable fees have minimal impact on visitor numbers.

The Business of Events director of news & content Mike Fletcher said: “As part of today’s Budget announcement, the Government is inviting venues and hotels in England to participate in a 12-week consultation over how a new levy on overnight stays aimed at helping city mayors invest in the business tourism experience should be implemented.

“The Business of Events recognises that the levy is welcome news to city mayors but urges hospitality businesses to get involved with the consultation so that any concerns and views can be considered and used to shape how this tourist tax would ensure that hotels remain competitive, and that the money raised by each city is used appropriately for the development of the experience economy.”

Announcing the move, secretary of State for Housing, Communities and Local Government Steve Reed said: “Tourists travel from near and far to visit England’s brilliant cities and regions.  We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

In London, the levy could go towards improvements to some of the capital’s busiest and famous streets to improve the experience for both visitors and Londoners, as well as supporting the city’s entertainment, sport and culture including helping smaller venues.

Meanwhile in Liverpool, it could help the city to support the major events that drive visitors – such as the upcoming UEFA EURO 2028 – and improving the infrastructure that visitors and locals rely on.

The announcement is the latest step forward in the government’s mission to devolve power and give those who know their areas best control over how money is spent in their communities.

The move has been welcomed by mayors across the country. Mayor of London Sadiq Khan said: “Giving Mayors the powers to raise a tourist levy is great news for London. The extra funding will directly support London’s economy and help cement our reputation as a global tourism and business destination. As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses.”

Mayor of Liverpool City Region Steve Rotheram added: “For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted. Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving.

“I’m pleased that the government has listened and acted – giving areas like ours the powers we need to support and grow our economies in a sustainable way. Our visitor economy is worth more than £6billion a year and supports over 55,000 local jobs. A modest levy is money that would stay local and be reinvested in the things that make our region stand out: our world-class culture, iconic events, vibrant public spaces and the infrastructure that ties it all together.”

Businesses, communities and others with an interest in the measure can have their say on how it should work, with a 12-week consultation on Gov.UK that will close on 18 February.

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