The government's push to let English councils introduce tourist taxes has sparked fierce opposition from the hospitality industry, which warns of lost visitors and job cuts, but evidence from cities that have already adopted such levies suggests these fears may be overstated. UKHospitality claims a 5% overnight levy in England could cause 12 million fewer visits and 33,000 job losses, and some mayors, including those in Skegness and Hartlepool, have already rejected the proposals over fears tourists will simply go elsewhere.

Studies from Manchester and international destinations such as Amsterdam, Barcelona and Venice found little or no evidence that overnight levies deter visitors, with trip numbers to those cities continuing to rise despite the charges. Manchester's £1-a-night levy, introduced in 2023, raised £10.5m in three years for cultural projects and had "no significant impact" on hotel occupancy, according to a 2025 study, while Liverpool's £2-a-night charge has raised over £2m since June. Edinburgh introduced a 5% tax on 24 July, prompting UKHospitality to claim it is already causing damage, though local tourism bodies say it is too early to draw conclusions; a 2024 Bangor University study of 125 European destinations similarly found no evidence such taxes put visitors off.