# The hospitality industry fears a tourist tax will drive visitors away – the evidence disagrees

- URL: https://talkfuse.com/story/the-hospitality-industry-fears-a-tourist-tax-will-drive-visitors-away-the-evidence-disagrees/
- Published: 2026-09-10T21:32:19+00:00
- Updated: 2026-09-11T03:43:35+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/business/2026/sep/10/the-hospitality-industry-fears-a-tourist-tax-will-drive-visitors-away-the-evidence-disagrees
- Topics: Business, Europe, Health, Markets, Medicine, World

## Key points

- Hospitality industry warns tourist taxes could cost 12m visits, 33,000 jobs
- Evidence from Manchester, Liverpool, Amsterdam shows no drop in visitor numbers
- Edinburgh's new 5% levy remains disputed; Wales to allow levies from April

## Summary

UK hospitality trade bodies have strongly opposed government plans to allow English councils to introduce overnight tourist taxes, warning of significant damage to an industry already under pressure from higher costs and the lingering effects of Brexit and the pandemic. UKHospitality estimates a 5% levy on overnight stays in England could result in 12 million fewer visits and 33,000 job losses, with areas like the Lake District and Yorkshire Dales fearing tourists will simply switch to levy-free regions, including parts of England's east coast where Reform UK and Conservative mayors have rejected the charge.

However, evidence from places that have already introduced such levies largely contradicts these fears. Studies of Amsterdam, Barcelona and Venice show visitor numbers have risen steadily despite tourist taxes, while a 2025 Tourism Management study found Manchester's £1-a-night levy, introduced in 2023, had "no significant impact" on hotel occupancy, having since raised £10.5m for cultural projects. Liverpool has raised over £2m through a similar charge, and while UKHospitality's Allen Simpson claimed Edinburgh's new 5% levy was already harming the city, the Edinburgh Tourism Action Group said it was too early to judge and noted other levy-charging cities had not seen visitor declines. A 2024 Bangor University study of 125 destinations across 26 European countries found no evidence that such levies deter tourists.

## Coverage

- [The Guardian: The hospitality industry fears a tourist tax will drive visitors away – the evidence disagrees](https://www.theguardian.com/business/2026/sep/10/the-hospitality-industry-fears-a-tourist-tax-will-drive-visitors-away-the-evidence-disagrees)
- [Daily Mail: Jubilant Labour mayors hail Burnham's new £1.6bn 'tourist tax' as hospitality industry warns of jobs 'catastrophe' - and struggling families face paying more for holidays](https://www.dailymail.com/news/article-16120837/Labour-mayors-Burnham-tourist-tax-hospitality-industry-warns-jobs-catastrophe-families-holidays.html?ns_mchannel=rss&ns_campaign=1490&ito=1490)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.