According to government estimates, the initiative could generate up to £1 billion annually to support public finances. Yet, while the prospect may sound attractive to policymakers seeking to fill budget deficits, the potential repercussions for the UK’s leisure, hospitality, and tourism sectors could be significant. 

As Rachel Reeves, Chancellor of the Exchequer, has remained tight-lipped on the proposal, industry stakeholders are left grappling with the implications of a move that could reshape the landscape of UK tourism. 

Why the Tourist Tax matters 

The UK is already perceived internationally as a relatively expensive destination, particularly when compared to European competitors. Adding a nightly charge risks tipping the balance for cost-conscious travellers who may simply choose alternative destinations. 

Prominent industry voices, such as hotelier Sir Rocco Forte, have issued stark warnings: 

“This would be a pernicious new tax charged on top of all other taxes. The UK is already not a cheap destination, and this can only deter cost-conscious visitors who will increasingly choose to go elsewhere.” 

The concerns are particularly pressing when viewed against current visitor statistics. In 2019, the UK welcomed 41 million overseas visitors. By 2023, the figure had only recovered to 38 million, underscoring the lingering impact of the pandemic and the slow pace of recovery. Any further barrier to inbound tourism could hamper growth at a time when the sector is still fragile. 

And this isn’t only an issue for international arrivals. Staycations, a vital revenue driver for domestic leisure operators, holiday parks, and attractions, could also be affected. UK residents would be required to pay the levy, meaning a family holiday at a holiday park or rural resort could suddenly feel less affordable. 

Learning from Manchester, Wales, and Beyond 

While the idea of a tourist tax is new at a national scale in England, the concept is not entirely unfamiliar. 

• Manchester has already implemented a City Visitor Charge (CVC) of £1 per room per night, with proceeds directed towards street maintenance and city marketing. 

• Wales is rolling out a fixed levy of £1.25 per person per night, while Edinburgh has proposed a 5% tax on accommodation costs. 

• Across Europe, the practice is widespread, with cities like Paris, Barcelona, and Venice applying similar charges to fund urban upkeep and tourism management. 

The question, then, is not whether tourist taxes can work, but whether they are appropriate in the current UK context, where the leisure and tourism sector is simultaneously grappling with rising costs, labour shortages, and shifting visitor expectations. 

The risk to operators 

For operators of holiday parks, leisure attractions, and family destinations, the introduction of a tourist tax adds another layer of complexity. 

• Perception of Value: Families already making careful spending decisions could view the levy as the “tipping point” between a UK break and a cheaper overseas option. 

• Revenue Impacts: Independent operators, particularly those in rural or coastal regions, could lose out if visitor numbers dip. 

• Operational Pressures: Many venues are still managing rising energy, staffing, and supply chain costs, the addition of a national levy may feel like another external factor beyond their control. 

For smaller businesses, which often operate on fine margins, the risk is particularly acute. Unlike major hotel chains or international attractions, local operators cannot easily absorb the impact of reduced demand. 

A call for industry unity 

Amid this uncertainty, one message is clear: the industry needs a unified voice to ensure its concerns are heard and to develop strategies that mitigate potential disruption. 

That’s why the Land Leisure & Tourism Show 2025 is more important than ever. 

Taking place this November, the show is the UK’s largest event dedicated to rural businesses, holiday parks, and leisure attractions. It offers a unique platform for operators, suppliers, and policymakers to come together, share knowledge, and explore solutions to the challenges facing the sector. 

With keynote speakers, expert-led seminar sessions, and an extensive exhibition floor showcasing the latest innovations, the show is the ideal place to gain up-to-date insights, exchange ideas, and prepare for the future. 

What to expect at the Land Leisure & Tourism Show 2025 

This year’s event will tackle head-on the issues shaping the industry’s future: 

• Policy & Regulation: Hear directly from policymakers and industry leaders on how government decisions, including the tourist tax debate, could impact your business. 

• Business Diversification: Learn how operators are finding new revenue streams, from hosting weddings and events to investing in unique accommodation and wellness offerings. 

• Customer Experience: Explore innovations in guest engagement, marketing, and operations that help retain customers even in competitive conditions. 

• Sustainability: Discover how businesses are embracing renewable energy, green infrastructure, and eco-accommodation to stay ahead of consumer demand and policy shifts. 

• Networking & Collaboration: Connect with suppliers, advisors, and fellow operators to build the partnerships needed to thrive in a changing landscape. 

The potential introduction of a tourist tax is not just a policy question, it’s a challenge that will affect every operator, from independent glamping sites to large-scale attractions. How the industry responds will shape its resilience, reputation, and long-term growth. 

The Land Leisure & Tourism Show provides the forum to: 

• Stay informed about the latest industry news. 

• Gain practical insights from those already navigating similar challenges. 

• Build a collective voice that ensures the sector is represented in policy conversations. 

• Find innovative solutions to maintain competitiveness, even in a changing fiscal environment. 

Be part of the conversation 

The tourism sector is no stranger to external pressures, from global economic shifts to the unprecedented challenges of the pandemic. Yet time and again, it has demonstrated resilience through collaboration, creativity, and adaptability. 

The debate around a tourist tax is just the latest reminder of why industry operators cannot afford to work in isolation. By coming together at the Land Leisure & Tourism Show 2025, we can ensure that the sector remains not only resilient but also innovative, competitive, and ready to seize opportunities in the years ahead. 

Don’t just watch these changes unfold, be part of the conversation that shapes the future of UK tourism. 

Join us at the Land Leisure & Tourism Show 2025 and help ensure our industry thrives in the face of new challenges. 

Claim your free ticket