Leading figures from the UK hospitality and leisure sectors have written to the Chancellor calling for the government to scrap proposed plans for a holiday tax — also referred to as a visitor levy — in England.
More than 200 chief executives and senior leaders from major hotel groups and accommodation providers warn that the measure could have negative effects on domestic travel, family holiday costs and local communities.
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The letter, coordinated by industry body UKHospitality, was published on 12 February 2026.
Industry leaders highlight tourism tax impact on families and hotels
The open letter argues that the visitor levy, which would give city mayors the power to impose a charge on overnight stays in hotels and other tourist accommodation, could increase the cost of a two-week holiday in England by £100 or more for British families.
Signatories, including executives from Hilton, Travelodge, IHG Hotels & Resorts, Butlin’s and other accommodation brands, said the additional cost might prompt some travellers to shorten trips, cancel holidays altogether or choose destinations outside the UK, shifting spending away from local economies.
Industry representatives warned that hotels are already contending with high business rates, energy costs and employment expenses, and that adding a visitor levy could exacerbate financial pressures.
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By GlobalDataThe group also said that reduced tourism spending would affect employment, including frontline hospitality jobs and roles in related sectors such as cafes, pubs, transport and attractions.
Policy context: what government consultation proposes
The visitor levy concept stems from a government consultation launched in late 2025, which proposes empowering Mayoral Strategic Authorities in England to introduce local charges on overnight visitors.
Authorities would decide whether to implement a levy, how it should be applied and which types of accommodation would be covered, with the aim of raising revenue for local services.
Similar levies have already been adopted or planned in devolved parts of the UK, including Scotland and Wales, where city councils have moved ahead with local tourist taxes.
Proponents of the English visitor levy argue it would align England with other global cities that use tourism charges to fund transport and infrastructure enhancements.
Implications for the global hotel sector and tourism economy
The debate over the holiday tax reflects wider concerns within the hospitality and travel industry about the balance between generating public revenue and maintaining competitive tourist markets.
Industry leaders caution that additional levies could make domestic destinations less attractive compared with European counterparts that have lower effective tourism taxes.
Officials in some English cities have signalled they may pursue visitor levies if they are permitted, and the ongoing government review could lead to clearer policy direction later in 2026.
The hospitality sector is closely watching for developments, as decisions on overnight stay charges could affect hotel pricing strategies, tourism demand and local business revenues in the months ahead.
