The Business Travel Association (BTA), beam (business meetings accommodation and events) and the Meetings Industry Association (MIA) have issued a joint response to the UK government’s proposal for a nationwide overnight visitor levy framework.
The joint statement described the move as short-sighted, and said it risks making Britain’s cities less competitive “at exactly the moment we should be doing everything we can to attract investment, events and business”.
It argued that business travel is not tourism. “Adding another accommodation charge on top of the UK’s existing 20% VAT makes Britain more expensive for the very people and businesses we need to attract,” it said.
“The real question isn’t whether tourist tax is a good or bad idea, but whether it will actually benefit the destinations and businesses being asked to pay it. Tourist taxes are widely used across Europe and, if the revenue is invested back into tourism, they can provide valuable funding for infrastructure and services that support the visitor economy and help attract more events and spending.
“Of greater concern is what happens if every region is left to decide its own approach. A patchwork of different charges and rules could make it harder for businesses to operate and leave the UK looking disjointed to international markets. We should be competing with other countries, not creating a situation where UK destinations are competing with each other on tax.”
The three organisations warned that the impact on business meetings and events could be particularly damaging.
“Conferences, exhibitions and major meetings can involve hundreds or thousands of room nights, meaning even a modest charge can become a significant additional cost,” said the statement.
“Organisers compare destinations closely and, if the cost of bringing an event to one UK city becomes uncompetitive, they can choose another destination – taking with them spending on venues, hotels, restaurants, transport and local suppliers.”
The statement noted that if local authorities are given these powers, there needs to be a clear commitment that tourism is a priority, with transparency over how the revenue is reinvested and a consistent approach across the UK.
“Tourist tax can have a role to play if it is used as part of a reinvestment cycle to make destinations more attractive,” it said. “But if it simply adds another business cost, the biggest risk is that it makes the UK less competitive at a time when we need to be doing everything we can to strengthen it.”
Announcing the levy framework, Angela Rayner, Secretary of State for Housing, Communities and Local Government, said: “This measure will give mayors the choice to raise and reinvest funding where it’s needed most. It’ll help support the local services, public spaces and attractions that both residents and visitors rely on, with decisions taken by people who know their area best.”
Sadiq Khan, Mayor of London, added: “A well-designed, modest levy has the potential to provide an important additional source of funding to support growth, strengthen London’s offer to visitors and help us remain globally competitive. It would allow us to reinvest in the places, infrastructure, culture and experiences that make London one of the world’s greatest cities to visit, while helping manage the pressures that come with welcoming tens of millions of visitors every year.”
