![\"Breaking](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/03\/Untitled-design-27.jpg\")
\t\tThe tax would be charged to domestic and international holidaymakers\t<\/p>\n\t\t\tMonday 23 March 2026 12:27 pm\n\t\t\t<\/p>\n
\t\tThe tax would be charged to domestic and international holidaymakers\t<\/p>\n
The \u201cgreat British holiday\u201d is under threat from a proposed tax which would hit visitors with \u00a31.6bn in new charges and threaten 33,000 jobs, hospitality bosses have warned.<\/p>\n
The country\u2019s holiday economy could be \u201cdecimated\u201d by a levy on tourist accommodation which would turn away domestic and international holidaymakers, according to new modelling.<\/p>\n
Industry body UKHospitality<\/a> is urging the government to reverse course on the tax, which would allow mayors in England to impose a charge on international and domestic visitors\u2019 stays in hotels, hotels and bed-and-breakfasts.<\/p>\n The government\u2019s consultation<\/a> on the levy closed in February, and ministers say revenue from the tax could be used by mayors to invest in local infrastructure and regeneration.\u00a0<\/p>\n Individual mayors would be able to decide whether to impose a tourist tax in their area, if the plans are progressed by government.\u00a0<\/p>\n A five per cent levy on accommodation would cost tourists \u00a31.6bn by the fifth year of its existence, according to modelling by consultancy Oxford Economics.\u00a0<\/p>\n The tax would slash GDP by \u00a32.2bn and starve the country\u2019s hospitality industry of \u00a31.8bn in tourist spend, as visitors opt to spend 11.9m fewer nights in hotels and other accommodation.<\/p>\n The levy would cause the country\u2019s tourism industry to shrink in response to lower custom, Oxford Economics claims, with \u00a3101m less direct investment and 33,000 lost jobs.\u00a0<\/p>\n \t\t\t\t\tRead more<\/p>\n