Editor’s Viewpoint: The Holiday Tax – A Tax Too Far
By Peter Adams, Editor, CLH News
The debate regarding the plight of hospitality and business rates has been the subject of contentious national debate for weeks, and shows no signs of abating. Rightly so—the rates burden placed on operators is simply unsustainable.
Ironically, as political debate has reached fever proportions on matters unrelated to hospitality, we saw a suggestion for a ‘Minister for Nightlife’ from the very same government that has crippled the nighttime economy with increased taxes, rules, regulations and compliance demands.
Although, to be fair, a former government minister recognised this recently and also acknowledged the unfair burden of VAT in our hospitality sector compared to the EU.
However, the tourist tax—and let’s be honest, that’s exactly what it is—has slipped under the radar.
More than 200 hospitality bosses, including leaders from Butlin’s, Haven, Hilton, IHG Hotels & Resorts, Merlin Entertainments, Parkdean Resorts, Travelodge and Whitbread, have now urged the Government to scrap this unfair levy. They warn it will hit families hardest, putting jobs at risk and draining money from local businesses and communities.
The UK already faces some of the highest taxes on holidays in Europe. The proposed visitor levy would add an extra £100 or more to a two-week family holiday in the UK. Think about that for a moment. We’re talking about slapping a tax on hard-working people seeking to take a break, to enjoy a family holiday. It’s frankly outrageous.
As Allen Simpson, Chief Executive of UKHospitality, rightly put it: ‘Holidays are for relaxing—not taxing.’ The sector already pays billions in business rates, employment taxes and VAT at 20%—double the rate of competitors in France, Italy, Spain or Portugal. And now they want to add more?
I do hope the public see this for what it is: a tax grab by robber barons who really have no idea how hospitality works. The impact extends far beyond accommodation providers. Fewer visitors mean lower spending at restaurants, cafés, pubs, taxi firms and shops. In many coastal communities that rely on tourism for survival, this could be devastating. Fewer visitors mean fewer local jobs, fewer shifts and fewer opportunities.
To even think of taxing holidays is beyond the pale. Do not turn the Great British break into a luxury. Scrap the holiday tax!!
On a brighter note, there is some genuinely good news to celebrate. The opening weekend of the Six Nations demonstrated exactly why pubs matter to communities and why they deserve our support, not additional burdens.
New data from The Oxford Partnership reveals that across Thursday 5th and Saturday 7th February, pubs sold 11.4 million pints of draught beer and cider, with the average pub serving 349 pints over the two days and generating an estimated £1,805 in income per venue.
Rate of sale rose by 6.6% compared with the previous weekend, whilst sales were up 0.9% year-on-year.
This is a powerful indication of how the public value pubs, particularly during major sporting events. Footfall increased by 4.0% compared with 2025, and customers spent an average of 163 minutes in venues—four minutes more than the previous year. These aren’t just statistics; they represent real people coming together, spending time in their local communities, supporting local businesses.
It’s precisely why decisions like the proposed holiday tax are so misguided. When given the opportunity, people want to spend their money in hospitality venues. The sector doesn’t need more taxes—it needs support.
More good news: congratulations to Craft Union Pub Company, who has proudly reached the £1 million fundraising milestone towards local charitable causes for the second consecutive year.
Their community pubs across the UK came together to raise an incredible £1,358,422 for local causes as part of their nationwide Make It A Million campaign.
And good luck to Hospitality Action, who have launched Hospitality Rides as challenge organisers set their ambition to raise over £500,000 for leading hospitality charities LTC and Only A Pavement Away in 2026.
It’s great to see the sector, despite its current difficulties, giving back to communities. This is what hospitality does best—bringing people together, supporting local causes, creating jobs and opportunities. These are the stories we should be celebrating and supporting, not undermining with ill-conceived tax grabs.
The contrast couldn’t be starker: an industry under immense pressure, yet still finding ways to support communities and drive economic activity, versus a government seemingly intent on taxing it into submission. Something has to give—and it shouldn’t be our hospitality sector.