UKHospitality warns tourist tax U-turn could cost Brits £518m: UKHospitality has said the U-turn to introduce a holiday – or tourist – of tax directly contradicts and undermines the government’s aim to reduce the cost of living. Local mayors will be allowed to impose a “tourist tax” on overnight stays, the government has announced as part of an attempt to put more money into England’s cities and regions. Brits took more than 89 million overnight trips in England in 2024 and stayed for a total of 255 million nights, according to Visit Britain. Analysis from UKHospitality shows that the tax could hit Brits with up to £518m in additional tax, making holidays in England more expensive, with costs passed directly on to consumers and fuelling inflation. If set at the level of the Edinburgh visitor levy of 5%, it would create an effective 27% VAT rate for consumers on their holidays, making it one of the highest in Europe. It would see consumers visiting destinations in England charged double the tax of visiting Paris and 70% more than in Barcelona and Rome. For example, visitors to London would pay £199 (€225) in tax for three nights in a hotel, a meal for two and two theatre tickets. The equivalent tax would be £90 (€103) in Berlin, £92 (€104) in Barcelona, £94 (€107) in Paris and £97 (€110) in Rome. UKHospitality said it’s a significant U-turn by the government, just two months after its tourism minister told the House of Commons it “had no plans to introduce a tourism tax”. Kate Nicholls, chair of UKHospitality, said: “The government has gone back on its word and introduced a damaging holiday tax. This is the wrong way to make policy and the fastest way to undermine investment. It has blatantly disregarded the commitments it gave to the House of Commons just two months ago that it ‘had no plans’ to introduce this tax. This is a shocking U-turn that will only make life more expensive for working people. It could cost the public up to £518m in additional tax when they travel in the UK and having knock-on impacts for the wider hospitality sector. It will effectively increase the rate of VAT to 27% for people who want to enjoy a holiday in the UK – making it one of the highest tax rates for consumers in Europe. Make no mistake – this cost will be passed directly on to consumers, drive inflation and undermine the government’s aim to reduce the cost of living. It’s important the government has paused to consult. We will be working hard with the chancellor’s team to highlight the damage this will do to the cost of living.”

Propel’s sector-leading guide to the UK’s 500 largest hospitality companies to be made free to Premium subscribers on day of publication: Propel’s sector-leading guide to the UK’s 500 largest hospitality companies is making its return – and will now be available to Premium Club subscribers on the day of publication. The Propel 500 – 2026 report will analyse the companies leading the charge in hospitality, reporting on turnover, number of sites and key staff. The 45,000-word report will feature exclusive analysis to provide a full understanding of the market’s dynamics, as the top companies in the sector shift position after a challenging year. Mark Wingett will review the mergers and acquisitions changing the shape of the Top 500 as size increasingly matters. Katherine Doggrell will examine the key developments in UK hotels and look into one of the sector’s brightest lights, experiential leisure, while Tim Street dissects the UK’s rapidly-developing franchise market. Data expert Mark Bentley, business development director at HDI, will look at emerging growth sectors, and Meaningful Vision founder Maria Vanifatova will analyse the latest trends in the quick service restaurant market. Propel 500 – 2026 will be released on Friday, 9 January at 9am and will be available free to Premium Club subscribers. The report will be available to non-Premium Club subscribers for £595 plus VAT. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up and to pre-order Propel 500 – 2026.