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Allen Simpson, Chief Executive of UKHospitality, said: “Holidays are for relaxing – not taxing.” – Image Credit UKHospitality
More than 200 hospitality and leisure executives have signed a letter to the Chancellor urging the Government to scrap plans for a Visitor Levy in England.
More than 200 CEOs from companies including Butlin’s, Haven, Hilton, IHG Hotels & Resorts, Merlin Entertainments, Parkdean Resorts, Travelodge, and Whitbread have signed a letter to the Chancellor opposing the proposed Visitor Levy in England. The letter states that the holiday tax would increase costs for families, put jobs at risk, and reduce spending in local businesses and communities.
The signatories warn that the tax could add £100 or more to the cost of a two-week holiday in the UK, potentially leading families to shorten trips, skip travel, or spend their money overseas. They state that introducing a Visitor Levy would negatively affect local communities in England that rely on tourism, resulting in fewer local jobs and lower spending at businesses such as restaurants, cafes, pubs, taxi firms, and shops. The letter highlights that tourism supports 3 million UK jobs and is particularly important for coastal areas.
The letter also states that the UK hospitality sector is under pressure from rising business rates, energy costs, tax bills, and employment costs, and already contributes billions of pounds in tax through business rates, employment taxes, and VAT, which is set at 20%. The signatories note that this VAT rate is double that of France, Italy, Spain, and Portugal.
The letter urges the Government not to implement the Visitor Levy, arguing that it would make holidays less affordable for many families and reduce opportunities for workers in the sector. The signatories argue that the tax would undermine the Government’s growth agenda and negatively affect businesses and workers in England’s tourism industry, particularly in entry-level and return-to-work roles in areas dependent on tourism.
