Travel to England could soon be subject to a new tourist tax following the introduction of legislation that would allow local government leaders to introduce a tourist tax.
If passed, the Overnight Traveler Tax Bill would give local authorities and local leaders (such as mayors) the power to charge visitors to England a visitor tax, also known as tourist tax, and to decide the amount and form of the fee. This would be similar to laws already in place in European tourist hubs such as Amsterdam, Barcelona and Paris.
The bill was first announced in November 2025 and made headlines when King Charles mentioned it in his May 13 speech. The move would bring England into line with Scotland and Wales, where cities are rolling out their own tourist taxes, including Edinburgh and Glasgow, which already have tourist taxes in place.
Governments say the tourism tax, which is levied in major tourist destinations around the world, is used to build local infrastructure and improve the quality of life for residents and visitors, but some local officials and hospitality executives have expressed concerns.
Here’s what travelers need to know about the proposed tax.
When will the tourism tax be introduced?
Until now, neither central nor local governments in the UK had the power to introduce a tourism tax. However, some councils in England have introduced tourist taxes through legal workarounds, using a concept called Accommodation Improvement Districts (ABID).
The City of Manchester has introduced a surcharge of £1 (approximately US$1.34) per room per night for hotels and accommodation in the city center in 2023. Additional fees will be charged to the guest at the end of the stay.
Liverpool introduced its own visitor tax in June 2025, adding an extra £2 to room rates. Officials estimate that the Liverpool tax will raise £9 million (approximately US$12 million) over two years, of which £6.7 million (approximately US$9 million) will go towards supporting Liverpool’s tourist economy.
No official start date has been announced for the proposed Overnight Traveler Tax as the bill is currently being passed through Parliament.
If the bill is passed, local authorities will be able to introduce charges in the form of a flat rate charge over the length of the stay, or a charge per night (for example, a charge per room per night). The amount can also be set as a percentage of the nightly charge.
Concerns over proposed tourism tax
Tourism taxes have the potential to generate significant revenue, with one analysis suggesting London alone could receive as much as £350 million (about $469 million) a year, but the idea has been criticized by some in the country’s tourism industry.
Peter Blend, director of Blend Hotels, which operates hotels across Devon and Cornwall, told the BBC he feared the levy would drive budget-minded travelers away from the destination.
“The hospitality industry is in a tough spot, so imposing an additional tax on it would push us out of the market,” Brend said. “If a family of four comes and stays for a week, it could cost them an extra £50. That £50 shouldn’t have to be spent in our shops, restaurants and around the local community.”
And at least one local official has publicly rejected the idea of a tourism tax. According to the BBC, Lincolnshire Mayor Dame Andrea Jenkins said the county would not introduce a tourist tax, saying a holiday tax would “squeak into the pockets of families”.
She said: “Introducing a visitor tax will only punish the very entrepreneurs who drive our economy and threaten the jobs they provide.”