Government warned tourist tax will see “billions wiped from the UK economy”

It could cost the country around £14 billion as tourists divert their travel away from the UK if a tourist tax is approved. Worse still, a tenner per night per person could destroy the already fragile seaside economy.

The World Travel and Tourism Council has published new research warning the introduction of a tourist tax in major UK cities could “wipe billions of pounds from the UK economy,” just days before consultation closed on the controversial levy.

Proposals to allow Mayoral Strategic Authorities in England to add £10 nightly taxes were announced in November, however the WTTC has revealed such measures could see international visitor spend fall £14.4bn by next year.

“Our research couldn’t be any clearer; proposed visitor taxes would lead to a slump in international visitor numbers to the UK, as well as far fewer domestic visitors to popular English destinations,” said WTTC president and CEO Gloria Guevara.

“Billions of pounds will be wiped from the UK economy, leading to much higher unemployment, especially among small shops, restaurants and suppliers to the hospitality sector.”

The survey of 2,500 people found that 39 percent of domestic tourists would choose to travel abroad instead if the levy is introduced, while 29 percent of potential tourists from the US, France and Germany would also consider alternative destinations.

In its own response to the proposals, UKHospitality said “this is the wrong policy at the worst possible time.”

“Accommodation businesses are already battling enormous cost increases and declining confidence.”

Tax torture for tourists

CEO Gloria Guevara said… “Billions of pounds will be wiped from the UK economy, leading to much higher unemployment, especially among small shops, restaurants and suppliers to the hospitality sector…

Originally published on Coinslot on February 23, 2026. Republished with permission.