HOLIDAYS are set to get more expensive, with new tourist tax rules and a rise in Air Passenger Duty.
Regional mayors will be given powers to introduce the levy on overnight stays at hotels, holiday lets and B&Bs.
London mayor Sadiq Khan, Liverpool‘s Steve Rotherham and Manchester‘s Andy Burnham have all backed the tourism levy.
But the Tory mayor of Teesside Ben Houchen vowed to shield visitors to his North East region and blasted the idea.
He told The Sun: “If Labour hands me these powers, I won’t use them.
“People in Teesside and our local businesses are already feeling the squeeze from Labour’s last budget.
“Piling another tax on working people isn’t the answer and won’t drive growth.
“This is yet another cash grab that will hammer the fantastic hospitality businesses we have across Teesside, Darlington and Hartlepool.”
It comes just two months after Tourism Minister Chris Bryant told MPs the government “had no plans to introduce a tourism tax”.
Luke Petherbridge ABTA Director of Public Affairs said: “ABTA has consistently raised concerns about the cumulative impact of increasing taxes and charges on tourists and tourism businesses, with the UK already applying much higher rates of VAT than many countries and levying the highest air departure tax in the world.
“Against that backdrop, it’s hard to see how a further tax will not simply worsen the UK’s situation when it comes to competitiveness.
“We will be engaging with industry partners to respond to the consultation in the coming weeks.”
Kate Nicholls, Chair of UKHospitality, slammed the move as “another shocking U-turn”.
She added: “I know the Government is worried about the cost of living, but a holiday tax is little more than a higher VAT rate for holidaymakers.”
Yesterday, EasyJet boss Kenton Jarvis warned the Chancellor against imposing a tourist tax across cities in the UK.
The airline chief said it might encourage tourists to go to rival European cities instead, such as Paris or Berlin.
‘Tourist tax’ is yet another blow to hard-up families
By LISA MINOT, Head of Travel
NEWS of impending taxes on holiday stays delivers yet another blow to hard-up families and under-pressure tourism businesses.
Figures from Westminster’s All Party Parliamentary Group for tourism and hospitality show that while day visitors spend an average of £36 per trip, it rockets to £193 for overnight tourists.
Anything that adds extra cost to staycations will surely lead to cash-strapped Brits simply choosing to stay for shorter periods – or not at all.
Both Manchester and Liverpool already have taxes of £1 and £2 a night respectively on hotels, the move to allow all areas of the country to charge for any type of accommodation could have a serious impact on the industry as a whole.
Adding £56 to the the cost of a week-long holiday for a family of four will be devastating for those on low incomes who choose to staycation as they simply cannot afford to head abroad.
If destinations choose to impose the charges, holidaymakers will want to see the taxes they pay visibly being spent on improving the infrastructure in the destinations they choose to visit.
Mr Jarvis said: “Any increase in tax that impacts the competitiveness of the UK visitor economy would not be a good thing.
“Last year, easyJet flew 15 million tourists into the UK and they spent just under £10 billion across the UK economy… so it’s very important to the visitor economy.”
And the cost of holidays abroad is set to go up as well.
The government will increase all rates of Air Passenger Duty (ADP) in line with RPI from April 1, 2027.
APD is a ‘tax’ on passengers flying from UK airports, built into the price of a flight ticket.
Ryanair boss Michael O’Leary previously slammed some of the plans to increase the cost of flights.
He warned he would axe hundreds of flights from the UK if APD is increased.
