Hotels group warns UK visitor levy could cost sector hundreds of millions
InterContinental Hotels Group joined UK hospitality leaders in urging the chancellor to scrap the proposed visitor levy, warning it could deter significant inbound tourism and shave off hundreds of millions of pounds in annual sector revenue. Executives argue the tax would undermine the UK’s competitiveness versus European destinations.
1. Industry Letter to Chancellor
InterContinental Hotels Group and other leading hotel operators formally wrote to the UK chancellor ahead of the spring Budget, urging the government to abandon plans for a visitor levy. They highlighted the risk that the new tax would deter international travellers and disrupt recovery in key urban markets.
2. Financial Impact Warning
The group cautioned that even a modest levy per overnight stay could translate into hundreds of millions of pounds in lost revenue across the sector, as price-sensitive tourists shift bookings to competing European destinations without similar charges.
3. Competitive Concerns
Executives stressed the levy would weaken the UK’s appeal against EU rivals, potentially reducing average occupancy rates and prolonging the industry’s post-pandemic downturn by discouraging short-haul and long-haul visitors alike.
4. Political and Economic Context
As the chancellor finalizes Budget measures, hospitality chiefs are lobbying for targeted support instead of broad new taxes, proposing measures like green investment incentives and workforce training grants to bolster long-term growth.