WTTC Warns Uncapped UK Tourist Taxes Could Lead to Fewer Jobs and Drive Visitors and Spending to Competing Destinations

The World Travel & Tourism Council (WTTC) is raising alarms over the UK Government’s decision to let English mayors impose uncapped overnight visitor levies.

The Policy Shift
- Local leaders can now set overnight visitor levies without a national cap.
- Applies to hotels, holiday lets, B&Bs, and short-term stays.
- Levy calculated as a percentage of accommodation cost.

Potential Impact
- WTTC research shows 29% of travelers from the US, France, and Germany would reconsider visiting the UK if faced with a €10 tax.
- Among UK residents, 39% would holiday elsewhere under a £10 levy.
- Estimated loss: £14.4 billion in international visitor spending by 2027.

Competitiveness Concerns
- The issue isn’t just the levy itself, but the cumulative effect of higher costs.
- Competing destinations are actively working to attract visitors with affordability.
- WTTC warns the UK risks becoming a fragmented and expensive destination.

WTTC’s Position
- Gloria Guevara, WTTC President & CEO: “The UK should be making it easier to visit, not more expensive. Travellers have choices, and if the UK becomes less competitive, they will take their spending elsewhere.”
- Calls for levies to remain proportionate, predictable, and globally competitive.
- Urges policymakers to weigh long-term economic value of visitor spending against short-term revenue gains.

Tourism’s Role in the UK Economy
- Travel & Tourism supports millions of jobs and fuels local economies across accommodation, restaurants, attractions, retail, and transport.
- WTTC stresses that any new costs must be carefully balanced to avoid undermining this sector.

In short, the WTTC sees uncapped levies as a serious risk to the UK’s tourism competitiveness, potentially diverting visitors and investment to rival destinations.