The World Travel & Tourism Council (WTTC) has issued a formal warning that plans for new visitor levies in England could have wide-ranging consequences for the UK travel and tourism sector, hotel occupancy, and job creation.
The concern centres on proposals to allow local authorities to introduce overnight visitor charges on stays in commercial accommodation, a move that industry bodies say may weaken competitiveness and add cost burdens to the sector at a fragile time of recovery.
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WTTC analysis: potential impact on growth and competitiveness
In its official statement, the WTTC cautioned that new tourism levies would dent growth, restrict job creation and reduce the United Kingdom’s competitiveness relative to other destinations.
#Growth in the UK’s travel and tourism sector is already lagging behind global trends, with WTTC data showing an expected 4.3 per cent expansion in 2025, compared with a forecast 6.7 per cent growth worldwide. This places UK performance roughly 36 per cent below the global average.
The organisation highlighted that travel and tourism supports around 4.5 million jobs across the UK, equivalent to one in eight positions nationwide, underscoring the sector’s importance to employment.
According to the council, additional visitor charges could make the UK a less attractive option for both leisure tourists and business travellers, leading to a shift in demand toward destinations perceived as more cost-effective.
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By GlobalDataImplications for hotels, local businesses and visitor demand
The proposed visitor levies would apply to overnight stays in commercial accommodation, including hotels, bed & breakfasts, guesthouses and short-term rentals.
Industry analysts and hotel sector stakeholders note that even modest charges can affect operating costs and pricing strategies for hoteliers and accommodation providers, particularly small and medium-sized enterprises operating on tight margins.
Data from the World Economic Forum’s 2024 Travel & Tourism Development Index already reflects competitive pressures, with the UK ranked 113th out of 119 countries for price competitiveness.
WTTC warns that adding levies could exacerbate this situation and reduce demand at a time when travellers are increasingly sensitive to cost.
Local authorities in some cities, including Edinburgh and Glasgow, have begun introducing tourist taxes, and other regions such as London and Manchester are considering follow-up measures.
However, WTTC argues that a patchwork of local policies could create an inconsistent experience for visitors and complicate planning for hotel operators.
Industry response and policy considerations
Gloria Guevara, President and CEO of the WTTC, said that research consistently shows higher levies force travellers and businesses to choose alternative destinations, shifting jobs and investment overseas.
The council has urged policymakers to focus on measures that improve the UK’s competitiveness, such as reducing the cost burden on visitors and ensuring a consistent national policy framework that supports long-term tourism growth.
As part of the ongoing consultation process, national and local government bodies will assess the potential economic implications of visitor levies before any final decisions are made.
The outcome will be closely watched by hotels and tourism businesses seeking stability and clear guidance on future operating environments.
