The Telegraph 27 November 2025 - by Sally Howard
Tourist taxes are controversial, but can subsidise everything from street sweeping to sports events. Will your region introduce them?
In yesterday’s budget Chancellor Rachel Reeves announced that regional mayors in England will have the power to introduce a levy on overnight stays at hotels, holiday lets and B&Bs.
The tourist tax, reputed to be between £1 to £5 a night, is controversial.
Kate Nicholls, chairman of industry body UKHospitality, warned the “damaging holiday tax” could cost the public up to £518m.
“Make no mistake,” Nicholls said, “this cost will be passed directly on to consumers, drive inflation and undermine the Government’s aim to reduce the cost of living.”
Meanwhile Russell Imrie, the president of BWH Hotels GB, said the tax would be a “highly negative step” that could make British hotels less competitive.
“The UK should not aspire to be the most highly taxed visitor destination in Europe,” he said, noting that the new tariffs would also apply to Britons travelling between regions.
Many regional mayors, however, have welcomed the plans, with the funds earmarked by long-time tourist tax campaigner Sadiq Khan to support the capital’s entertainment, sport and culture venues and to prettify tourist thoroughfares such as Oxford Street.
Scotland and Wales will, meanwhile, introduce their own tourist taxes from 2026, which regions can opt to introduce, of £1.30 per night for Welsh stays and up to 5 per cent on the cost of accommodation for visitors to Scotland.
City taxes on hotel stays have been a feature for decades in Greece, Spain and Germany. However, in recent years, as travel has bounced back post-pandemic and locals have hardened in their attitude towards overtourism, tourist taxes have proliferated across the world.
Los Angeles levies a charge of up to 15.5 per cent of accommodation and New York City 14.75 per cent, plus a nightly flat $3.50 fee.
Italy’s imposta di soggiorno, a daily fee charged per person on overnight stays in many cities and towns, is also substantial, up to €10 per night for five-star hotels in Rome and Florence, €5 for five-star hotels in Venice (with seasonal variations), and up to €7 per night for luxury hotel stays in Milan.
Below, we look at the UK regions that have signed up to the controversial levy, and argued against it, so far.
The tourist tax
London
In response to the Nov 26 announcement, Sadiq Khan said the levy was “great news” for London.
“The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination,” he said.
Khan has previously said he would use tourist tax funds to support smaller arts venues, “promote London as a tourist destination globally” and fund improvements to the capital’s “busiest and most famous streets”. He has mooted a £1 to £5 per night charge.
Manchester
Andy Burnham also welcomed the ability for English councils to levy charges on visitors. “Greater Manchester already has a thriving visitor economy, and a visitor levy will help us sustain good growth over the next decade,” he said.
Burnham said the levy would be used for street cleaning and later-running buses and trams in the northern cultural capital. Burnham has also suggested a fee between £1 and £5 a night.
Liverpool
Mayor of Liverpool City Region Steve Rotheram said of the plans for England: “For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted.
“Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving.”
The raised monies could help the city fund “vibrant public spaces”, Rotheram said, as well as funding events that drive visitor footfall, such as the upcoming UEFA Euro 2028 tournament.
Cardiff
Cardiff council has voted to bring in a £1.30-a-night levy on overnight visitors staying in hotels, guest houses, hostels, Airbnbs and campsites, with funds earmarked for boosting Cardiff’s growing visitor economy, creating jobs, and supporting local businesses.
Edinburgh
Edinburgh’s tourist tax, known as the Visitor Levy, is a 5 per cent charge on overnight accommodation that will be introduced on July 24 2026.
The tax applies to various types of accommodation, including hotels, guest houses, and self-catering apartments, and will be charged for the first five nights of a stay. Monies will be used for affordable homes and improving public parks and other green spaces in the Scottish capital.
South Gloucestershire
Councillor Maggie Tyrrell, Leader of South Gloucestershire Council, said the region would use levy funds to boost local transport.
“Tourism is an important part of the region’s economy, and this levy gives us a sustainable way to support it. Through reinvesting in transport and local services, we can ensure the benefits of tourism in the area are felt across all our communities,” she said.
Bristol
Liberal Democrat councillors have been at the forefront of a call for a tourist levy in the short-break favourite, which is battling what former Mayor Marvin Rees called “the wicked challenge” of Airbnbs devouring long-term rental stock.
Andrew Brown, councillor for Hengrove & Whitchurch said the monies should be spent on “a good clean up of the public realm” in Bristol, rather than being “stuck in the mayor’s coffers”.
The West of England
Mayor of the West of England Helen Godwin also welcomed the plans as a means of the region to “take control of its future”, saying that proceeds would fund better transport options for local businesses and workers.
York and North Yorkshire
Regional mayor David Skaith has called the proposed tourist tax “a total gamechanger” for his region.
“We’re home to beautiful towns, villages and cities and receive 41m visitors a year as a result,” he said, adding funds could “revolutionise transport” and improve the visitor economy.
West Yorkshire
Regional mayor Tracy Brabin said she was “delighted” the Government had heard the “strong case made by mayors” for visitor charges.
“This will allow us to invest more into making our regions even better places to visit, unlocking opportunities and help our businesses thrive,” she said.
Tourist tax rejected
Tees Valley
Tees Valley’s Conservative mayor Lord Houchen has said he will not introduce a levy “on principle”.
”I won’t be using this power,” he said. “There will be no tourist tax in Teesside, Darlington and Hartlepool for as long as I’m mayor. Thanks, but no thanks.”
Pembrokeshire
The [independent-led] council in this, one of Wales’s busiest holiday destinations, has said it will not bring in tourist tax in order to protect locals’ incomes after a “bruising few years” for the Welsh tourism industry.
Argyll and Bute
The Scots region paused its plans for a tourist tax in September after a public consultation revealed a lack of support for the proposed charge, with local businesses concerned it could harm the local economy.
The Vale of Glamorgan
The county borough in south east Wales, known for its mix of rolling countryside, coastal towns, and rural villages has also said it will not introduce a tourist tax for fear of becoming “uncompetitive”.
