The Overnight Visitor Levy, which was outlined in the King’s Speech in May, has not been brought forward in Parliament yet.
Prime Minister Andy Burnham has framed the policy as part of his wider devolution agenda with mayors able to set out plans for how new revenues will be invested by March 2028.
He was mayor of Greater Manchester when the city introduced the City Visitor Charge in April 2023 – a £1 per room, per night fee – to pay for measures aimed at attracting more visitors.
Regional mayors say the levy is needed to raise more income to invest in local priorities and support economic growth.
The taxes are common in Europe and the rest of the world, with New York, Amsterdam and Rome applying overnight charges to accommodation stays to fund local services. However, they are capped in several European cities.
Mayor of London Sir Sadiq Khan supports a tourist tax on overnight visitors, which could raise more than £350m a year for the capital, according to analysis in January.
The figure from Central London Forward (CLF), which represents 12 central London local authorities, was based on a 3% levy on the cost of a room, whether a hotel or short-term let.
In Scotland local authorities can charge a visitor levy on overnight accommodation. In Edinburgh, the rate is 5% for those staying overnight in hotels, bed and breakfasts and self-catering facilities – capped at five nights.
In Wales, a capped levy of £1.30 per person per night is set to be introduced in April next year.
