ABTA has added its voice to growing opposition to a tourism levy in England, outlining opposition to the proposals to give local Mayors new powers to introduce overnight fees in a response to the Government’s consultation, which closed last week.*
There is growing concern across the industry about the overall competitiveness of English travel and tourism. ABTA’s response highlights how rising costs, increased taxation and wider regulatory pressures, are all steadily eroding the relative attractiveness of holidays in the UK as a whole. Even before the levy was proposed, ABTA points out that the UK is ranked 113th out of 119 countries for price competitiveness by the World Economic Forum1.
If the levy goes ahead, ABTA has joined with sector partners, including the Tourism Alliance, to call for mayors to be required to invest a proportion of the revenues raised to promote and develop local tourism, rather than used simply to plug gaps in local government budgets. For example, improvements in the public realm or local transport systems funded by visitor levies could deliver visible improvements for visitors, tourism businesses, and residents.
ABTA also believes that the 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.
Luke Petherbridge ABTA Director of Public Affairs, 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 U.K. 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 charges2 .”
*The Ministry of Housing, Communities and Local Government and HM Treasury joint consultation which recently closed.
1 World Economic Forum: Travel & Tourism Development Index 2024
2 Data from Outbound travel – a catalyst for jobs, growth and wellbeing 2025 and ABTA/York Aviation 2024
