APPG for Hospitality and Tourism Launches Visitor Levy Inquiry

The All Party Parliamentary Group (APPG) for Hospitality and Tourism is today launching a wide-ranging inquiry into the Government’s proposed visitor levy.

The group is seeking evidence from hospitality and tourism businesses about their views on the Government’s proposed visitor levy on overnight accommodation.

A consultation into the proposed measures is currently awaiting a Government response and legislation to introduce levy powers to Mayoral authorities was included in the King’s Speech.

Oral evidence sessions will take place on 20 May, 9 June and 23 June, where MPs and peers will hear from affected businesses. It will cover the principle of a levy itself, the potential impacts on the visitor economy, and design and implementation of the levy. The APPG is also seeking written evidence from interested businesses.

Chris Webb, MP for Blackpool South and Chair of the APPG, said: “Hospitality and tourism are vital to our local economies and communities across the UK. They support jobs, investment and growth, so it is important that any proposals for a visitor levy are fully considered.

“This inquiry will ensure Parliament hears directly from affected businesses and aims to understand the potential impacts on businesses, destinations and customers.”

Following evidence sessions, the APPG will prepare and publish its findings from the inquiry, with recommendations for the Government.

Following the Kings Speech Allen Simpson, Chief Executive of UKHospitality, said: “The Government has confirmed it will legislate to make family holidays more expensive during a cost-of-living crisis.

“It’s a shocking U-turn after it told both the House of Commons and UKHospitality that it would not implement a holiday tax.

“The facts are simple. A holiday tax will increase the cost of a staycation for Brits, it will hit lower income families hardest, it will lose the Treasury money and it will cost 33,000 jobs.

“A holiday tax is wildly unpopular, as well as economically destructive. Twice as many people oppose it, than support it, and voters are 10 times more likely to punish an MP who supports a holiday tax, than they are back them.

“This tax, on top of the UK’s 20% rate of VAT, will make us an outlier in Europe. The tax on a holiday in the UK will become double many of our major rivals, who enjoy a much lower rate of VAT.

“It is nonsensical for the Government to go ahead with such an unpopular measure. There is still time for the Government to think again and stop the holiday tax.”