Tourism in the UK is at risk of disappearing due to taxation, with a property rental expert warning that the government’s proposed ‘holiday tax’ could lead to its downfall.
Kate Allen, who manages Finest Stays in South Devon, criticized the decision—unveiled in the King’s speech last week—as “yet another hidden tax.”
The Nighttime Guest Charge will enable authorities to implement additional fees for reservations, with concerns that it might increase the cost by up to £140 for a two-week stay for a family of five.
Ms. Allen informed The Mail on Sunday that the hospitality industry was already “overburdened” and cautioned that it could become “disastrous” for tourist areas like Devon and Cornwall, which were already struggling to attract customers.
And she aligned with other tourism leaders in criticizing the Government for falsely citing the examples of Amsterdam and Paris, where a holiday or tourist tax is already in place.
‘We pay double the VATamong our European rivals. When discussing visitor levy and traveling overseas, it has a different effect on the industry,” she stated.
We are already heavily taxed.
She also criticized the unclear proposals regarding how the tax would be applied, stating: “I don’t believe they have determined how it will be calculated – whether it’s a percentage of the rental fee or per person or per room, per night. This is because we are handling very costly holiday rentals, and a percentage could be disastrous.”
A recent UK Hospitality survey indicated that the tax would decrease the likelihood of 73% of individuals taking a vacation, with Ian White from StayBlackpool.com stating that any new charge would be “more than the straw that breaks the camel’s back.”
He mentioned that companies were already having difficulty filling rooms due to “over 500” unlicensed rentals in the town.
In Cornwall, tour operator Peter Robinson of Enjoy Fowey mentioned that reservations have decreased by 16 percent compared to the previous year, and any further tax would inevitably ‘raise the cost of vacations for financially strained families’.
He stated: “It’s quite challenging for companies to draw in individuals at this point.”
This will increase the challenges we face in Cornwall when competing against those flying to Tenerife.
In the Lake District, Henry Wild, who has managed a 140-acre holiday park at Skelwith Fold in Ambleside for three decades, mentioned that it has become increasingly difficult to generate profit in tourism due to escalating expenses.
He stated, “If individuals could observe how much is already collected in taxes when they travel, they would be astonished. It’s likely close to 30 percent. At the same time, it’s becoming more challenging to earn any profit.”
He cautioned that the tax would be “counterintuitive,” as rather than remaining overnight, the area would see an increase in day visitors “who have picnics and leave trash behind without contributing to the local economy.”
“If the funds were being directed towards our region to enhance the facilities, you might be inclined to say ‘we could tolerate this,’ but that is not what is going to occur,” he said.
Debbie Walker of the Holiday and Residential Parks Association proposed that a charge per person per night might increase the cost of a two-week vacation for a family of five by up to £140.
She stated: “Although we completely understand the financial challenges that local authorities are experiencing, implementing a holiday tax that increases the cost of a typical two-week family vacation by approximately £100 is not the appropriate approach.”
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