The World Travel & Tourism Council (WTTC) has warned that plans allowing mayors and local leaders across England to introduce uncapped overnight visitor levies could weaken the United Kingdom’s competitiveness as a global tourism destination, with higher accommodation costs potentially encouraging travelers to choose alternative markets. The council said the policy could affect not only visitor numbers but also tourism spending, employment and future investment, particularly as international destinations continue competing aggressively for travelers.
Under the UK Government’s decision, English mayors and other local authorities will be able to introduce overnight visitor charges on accommodation without a nationally imposed maximum rate. The proposed levy would apply to hotels, holiday rentals, bed and breakfasts and other short-term accommodation, with the amount calculated as a percentage of the accommodation cost. WTTC argues that while such charges could generate additional revenue for local authorities, policymakers must also consider whether increased costs could discourage visitors and reduce the wider economic contribution generated by tourism.
WTTC Warns Higher Costs Could Change Travelers’ Plans
WTTC said its research published earlier this year highlights how even relatively modest visitor charges can influence travel decisions. According to the council, 29% of travelers from the UK’s three largest international source markets the United States, France and Germany said they would consider visiting another destination or choosing not to travel if a €10 visitor tax were introduced. Among UK residents, the response was even stronger, with 39% saying they would consider taking their holiday elsewhere or not taking a UK holiday if they faced a £10 levy.
The potential economic consequences could therefore extend well beyond the amount collected through the tax itself. WTTC estimated that, under a £10 visitor-tax scenario, the reduction in international visitor spending could reach £14.4 billion in 2027. The council said the figure demonstrates how a relatively small additional cost can have a much broader effect when travelers compare destinations based on their overall price and value.
UK Risks Losing Visitor Spending to Competing Destinations
WTTC said the central concern is not simply whether tourists can afford an additional charge, but whether the accumulation of taxes and other travel-related costs could make the UK appear increasingly expensive compared with competing destinations. Travelers have a wide range of choices, and destinations that offer competitive prices, convenient access and attractive experiences can quickly benefit when visitors decide to redirect their spending.
Gloria Guevara, President and CEO of WTTC, said the UK should focus on making the country easier and more attractive to visit rather than introducing measures that could increase the cost of travel. She warned that reduced competitiveness could ultimately mean lower visitor spending, weaker tourism growth and fewer opportunities for workers and businesses that rely on the sector. According to WTTC, the consequences could be particularly significant for local economies where accommodation providers, restaurants, attractions, retailers, transport companies and other tourism businesses depend heavily on visitor expenditure.
Council Calls for Proportionate and Predictable Visitor Levies
WTTC is calling on the UK Government and local leaders to ensure that any visitor levy remains proportionate, predictable and carefully designed, with the country’s international tourism competitiveness taken into account. The council noted that the Government’s previous consultation had already recognized the importance of keeping such charges affordable while providing accommodation businesses with sufficient stability and certainty.
The organization also pointed to the importance of considering the wider economic value generated by visitors rather than focusing only on the immediate revenue a levy might raise. Tourism spending supports employment and local businesses across a broad range of industries, while a healthy visitor economy can also encourage investment and contribute to regional economic growth. WTTC therefore believes that any decision to introduce or increase visitor charges should be assessed against both the revenue generated and the potential effect on overall demand.
As England moves toward giving local authorities greater flexibility over overnight visitor levies, the debate is likely to center on how communities can generate additional funding without making themselves less attractive to travelers. For the UK, WTTC’s warning underlines a broader tourism challenge: raising revenue from visitors while ensuring that the destination remains competitive enough to keep attracting them in the first place.
