The London Mayor welcomed government plans to allow regions to impose a tourist tax on overnight stays, despite opposition from the hospitality sector.
The plans announced alongside the budget would give Sir Sadiq Khan the power to charge a levy on overnight stays for visitors to the capital for both overseas and UK tourists.
Details on the cost of the levy are yet to be announced, but the government and mayor hope money raised will be used to develop infrastructure and boost the London economy.
Sir Sadiq 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.”
However, the hospitality industry has warned that the proposals could make holidays in England more expensive, with costs passed directly onto consumers and fuelling inflation.
Kate Nicholls, Chair of UK Hospitality, said: “Make no mistake — this cost will be passed directly onto consumers, drive inflation and will undermine the Government’s aim to reduce the cost of living.”
Many cities around the world charge tourists a small fee when they visit, and the proposals would bring London in line with cities such as New York, Paris and Milan.
The GMB union called for the money raised to be shared with councils in central London, and says it must be used to improve local services.
Kay Huntbach, GMB Regional Organiser for London, said: “This tourism levy could make a huge difference to the frontline crews who care for local amenities and keep our streets and parks clean.
“Investing money in local services, particularly in areas of high tourist footfall, will result in benefits for visitors and Londoners alike.”
The government has opened a consultation process for businesses and communities to have their say on how the levy would work, with the consultation available on GOV.UK until18 February.
Sir Sadiq said: “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.”
Nicholls said: “It’s important that the Government has paused to consult. We will be working hard with the Chancellor’s team to highlight the damage this will do to the cost of living.”
Featured image credit: Alin Gavriliuc on Unsplash
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