World Travel & Tourism Council Warns UK Cities Against Introducing Standalone Hotel Bed Taxes
Industry body says patchwork overnight levies could undermine competitiveness and deter international visitors as local authorities explore new revenue tools
The World Travel & Tourism Council has urged UK destinations to avoid introducing city-specific overnight hotel taxes, warning that a fragmented approach to visitor levies could damage Britain’s global competitiveness and deter tourism investment.
In a statement issued this week, the industry body cautioned that while local authorities face mounting fiscal pressures, imposing separate bed taxes in individual cities risks creating a patchwork of charges that may confuse visitors and increase costs at a time when the UK is striving to strengthen its international appeal.
The warning comes as several councils across England and Scotland examine the possibility of introducing overnight levies to fund local infrastructure and tourism-related services.
WTTC leaders argued that the UK already faces competitive challenges compared with European destinations, particularly in relation to visa costs and air passenger duties, and that adding additional city-level taxes could further raise the price of visiting British cities.
They stressed that travel and tourism remains a key contributor to jobs and economic growth, supporting millions of roles across hospitality, aviation and cultural sectors.
Some local authorities have defended the concept of overnight levies, pointing to established models in cities such as Barcelona, Paris and Rome, where tourist taxes are used to fund public services and manage visitor impacts.
In Scotland, legislation passed in 2024 enabled councils to introduce a visitor levy from 2026 onwards, with Edinburgh and Glasgow among the first considering implementation.
Proponents argue that carefully designed schemes can provide stable funding for destination management without significantly affecting demand.
However, WTTC has called for a coordinated national strategy rather than a series of isolated local decisions.
It says that any discussion of tourism taxation should be undertaken in consultation with industry stakeholders and accompanied by transparent impact assessments.
The council warned that without such safeguards, Britain risks sending “mixed signals” to global travellers at a time when competition for international tourism spending is intensifying.
As councils continue consultations and central government reviews its broader tourism policy, the debate underscores the delicate balance between raising local revenue and maintaining the UK’s attractiveness as a world-class destination.
In a statement issued this week, the industry body cautioned that while local authorities face mounting fiscal pressures, imposing separate bed taxes in individual cities risks creating a patchwork of charges that may confuse visitors and increase costs at a time when the UK is striving to strengthen its international appeal.
The warning comes as several councils across England and Scotland examine the possibility of introducing overnight levies to fund local infrastructure and tourism-related services.
WTTC leaders argued that the UK already faces competitive challenges compared with European destinations, particularly in relation to visa costs and air passenger duties, and that adding additional city-level taxes could further raise the price of visiting British cities.
They stressed that travel and tourism remains a key contributor to jobs and economic growth, supporting millions of roles across hospitality, aviation and cultural sectors.
Some local authorities have defended the concept of overnight levies, pointing to established models in cities such as Barcelona, Paris and Rome, where tourist taxes are used to fund public services and manage visitor impacts.
In Scotland, legislation passed in 2024 enabled councils to introduce a visitor levy from 2026 onwards, with Edinburgh and Glasgow among the first considering implementation.
Proponents argue that carefully designed schemes can provide stable funding for destination management without significantly affecting demand.
However, WTTC has called for a coordinated national strategy rather than a series of isolated local decisions.
It says that any discussion of tourism taxation should be undertaken in consultation with industry stakeholders and accompanied by transparent impact assessments.
The council warned that without such safeguards, Britain risks sending “mixed signals” to global travellers at a time when competition for international tourism spending is intensifying.
As councils continue consultations and central government reviews its broader tourism policy, the debate underscores the delicate balance between raising local revenue and maintaining the UK’s attractiveness as a world-class destination.
