Government Plans UK Holiday Overnight Visitor Levy

By the Editorial Team · Sunday, August 9, 2026

The UK government plans to allow local authorities in England to charge an overnight visitor tax starting in April 2027, with accommodation providers collecting the levy from guests. Industry groups warn this could cost up to 33,000 jobs and raise holiday prices, while proposing an alternative incentive scheme to support tourism without directly taxing visitors.

The UK government has announced plans to introduce a new tax allowing local authorities in England to levy charges on overnight visitors, starting from April 2027. The proposal would enable mayors and other local strategic leaders to implement an “overnight visitor levy” designed to generate revenue from tourism within their regions.

Under the scheme, accommodation providers including hotels, bed and breakfasts, holiday parks, and short-term rental services such as Airbnb would be responsible for collecting the tax from guests on behalf of local councils. Holidaymakers themselves would not be billed directly by the local authorities.

The government’s plan is outlined in the Rewiring the State policy paper, which aims to establish strategic authorities across all areas of England by 2028. As part of this framework, these authorities would have the power to introduce taxes targeting the tourism sector to support regional economic development.

Similar visitor levies are already in place in popular tourist destinations internationally, but the proposal has raised concerns among representatives of the UK hospitality industry. UK Hospitality, the trade organisation representing hotels and other accommodation providers, has warned that the tax could lead to the loss of up to 33,000 jobs in the sector and drive up costs for consumers, potentially reducing demand for domestic holidays.

In response, UK Hospitality has urged the government to consider an alternative “Holiday Bonus” scheme. This approach would reward local authorities with a fixed payment for each visitor night, aiming to encourage tourism growth and support the hospitality industry without directly increasing prices for holidaymakers.

As the consultation and planning progress, government officials and industry stakeholders continue to debate the impact and structure of the proposed overnight visitor levy, weighing potential economic benefits against concerns over possible negative effects on employment and affordability in the UK’s domestic tourism market.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.