Welcome for tourist tax

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Government proposals to allow English Regional Mayors the power to introduce a tourism levy has been welcomed by Councillor Kevin Guy, Leader of Bath & North East Somerset Council.

Bath attracts around six million visitors every year, making it one of the UK’s most visited heritage cities. While tourism brings jobs and supports local businesses, it also places significant pressure on infrastructure and services.

Councillor Guy, who is also the Deputy Mayor of the West of England Combined Authority, which will be given the tax-raising powers, said: “We are about to welcome tens of thousands of visitors over the next three weeks to our world-famous Christmas Market, which contributes millions to our regional economy but also comes at a cost on our resources. So I welcome a levy which we have long been calling for because it will help make tourism work for everyone.

“We want to sustain the quality of the visitor experience while protecting the well-being of our communities. That means giving councils the tools to manage tourism in a way that reflects local needs and priorities.  I am proud of the huge role Bath plays in supporting the national visitor economy – the levy should allow a  fairer system, one that recognises the costs as well as the benefits of tourism and allows us to reinvest directly into the services and infrastructure that make great visits possible.”

Bath & North East Somerset Council will work closely with the West of England Combined Authority (WECA), Visit West and the local visitor economy to explore how the levy could be introduced. Any scheme would be developed in consultation with the hospitality sector, which has faced significant financial pressures since COVID.

Bath’s visitor economy is a major contributor to the region. Last year, the Bath Christmas Market attracted an estimated 444,000 visitors, generating £60.4m turnover for businesses and supporting more than 500 jobs. However, events and tourism also create costs for the council beyond the running of these attractions.

Councillor Guy added: ”This levy should just be the start of a conversation with Government to make the UK tourism sector one of the most successful and sustainable in the world.”

Helen Godwin, Mayor of the West of England, said:

“Residents and visitors alike know how special our part of the world is, from our people to our culture to our nature. Tourism is now worth a record £2.7 billion to the West’s economy, which is a key industry for our new Growth Strategy over the coming decade.

“These new powers are a real vote of confidence in our region taking more control of our future. Proceeds from an overnight visitor levy, that people from across the West are used to paying on holiday ourselves, have the potential to support and enhance the sector’s businesses and workers – including with better transport options.”

Wera Hobhouse, Liberal Democrat MP for Bath, has also welcomed the news that the Government will give Mayors in England the power to introduce a tourism levy, after months of campaigning from B&NES Council and the Bath MP.

Bath is visited by a whopping six million tourists annually. The popular city has been at the centre of calls for such a tax to help manage the costs of tourism, with councillors in B&NES voting in favour  of being able to introduce a ‘tourism tax’ in August.

Only yesterday (November 25th), the Bath MP called on the Government once again to give local authorities the power to introduce “a modest visitor levy” on overnight stays to generate “a new ring-fenced revenue stream for the hospitality sector”.

Wera Hobhouse Liberal Democrat MP for Bath, said:

“I’m proud that so many people visit and love Bath, but hosting millions of tourists each year puts real pressure on our city. A small, fair tourist levy would help us protect our heritage and support local services, so that residents and visitors alike can enjoy Bath at its best. This levy should act as a vehicle to help local authorities maintain facilities and infrastructure, ensuring our communities can continue welcoming visitors whilst preserving what makes each area special.

“However, we can’t lose sight of the fact that our tourism industry is already struggling under mounting costs, the Government’s jobs tax hike, and a VAT rate that’s higher than that of our international peers. The Government needs to include vital relief for our tourist and hospitality industry, such as easing the employers’ national insurance burden (by exempting it from the NICs hike or introducing a lower rate for part-time staff) and implementing an emergency 5% cut to VAT until April 2027.

“We must also scrutinise the details of this levy to ensure the voice of local people is properly heard, and that the funds will go towards spaces and facilities that benefit tourists and residents.”

Announcing the news, Secretary of State for Housing, Communities, and Local Government Steve Reed said:

“Tourists travel from near and far to visit England’s brilliant cities and regions.

“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

Bath, a city so historic that UNESCO listed it twice, was among the New York Times’ 52 must-visit places in the world this year. Bristol was recently named by Lonely Planet as one of the world’s best places to visit next year, with Weston-super-Mare tipped too as a top location for staycations in 2026.

In a major decentralisation of power from Westminster to the West of England, consultation with the tourism sector locally will precede any implementation of a levy. A national consultation is open on gov.uk until 18 February for businesses, communities, and others with an interest in the measure.