The tax the hell out of ‘em philosophy is alive and kicking, and living in a tourist town near you. The government has confirmed that its controversial Overnight Visitor Levy will be introduced in seaside and tourist towns and cities over the next Parliament. What could end up adding over £100 to an average family staycation in UK resorts, could end up costing the UK economy billions if middle and low income families decide to say no to a domestic break.
The CEO of Butlin’s has branded plans for the Tourism Tax “regressive and absurd,” warning the levy will have the most impact on families least able to afford it.
Writing in the Daily Mail, Jon Hendry Pickup said the latest proposals included in the Overnight Visitor Levy Bill represent yet another misstep from government.
“The pressures on hospitality have not come from unpredictable and unforeseen circumstances, but parliamentary decisions that have created a cost pile-on for our sector,” said Hendry Pickup.
“Every new measure has squeezed already tight margins and made it harder to deliver affordable holidays to guests who are grappling with the cost of living.”
The Overnight Visitor Levy Bill was included in King Charles’ speech at the opening of Parliament, with the measure set to grant local authorities the power to add a tax on overnight stays, which could be as much as £2 per person, per night.
“On paper, of course, this does not sound like very much – or certainly not to politicians in Westminster, who often seem ignorant as to what life looks like for ordinary families. But it adds up.”
“According to UKHospitality, a two-week family holiday could end up costing up to £100 extra once these levies are added in. When you consider the measure will have the biggest impact on those who can afford it the least, it becomes even more regressive and absurd.”
Tourism tax to cost 33,000 jobs warns industry leaders
UKHospitality has warned that the introduction of the Tourism Tax could cost thousands of jobs and reduce tourism spending by £1.8bn, with recent polls showing 56 percent of UK residents oppose the levy.
The trade body has addressed its concerns directly to MPs, highlighting research that suggests the tax would knock £2.2bn off the country’s GDP, as well as losing the Treasury an estimated £688m.
“The facts are simple,” said CEO Allen Simpson. “A holiday tax will increase the cost of a staycation for Brits, it will hit lower income families hardest, it will lose the Treasury money, and it will cost 33,000 jobs.”
“A holiday tax is wildly unpopular, as well as economically destructive. Twice as many people oppose it than support it, and voters are ten times more likely to punish an MP who supports a holiday tax, than they are to back them. This tax, on top of the UK’s 20 per cent rate of VAT, will make us an outlier in Europe.”
Originally published on Coinslot on May 25, 2026. Republished with permission.