Tourism Levy Should Be Used to Boost Local Visitor Attractions – LGA

Devolving the visitor levy to local areas will enable significant investment in the visitor economy, boosting local attractions and tourism businesses, say councils.

It follows the Government consulting over proposals for an overnight stay levy in England.

In its response, the Local Government Association is calling for funds raised from the levy to be more tightly defined in terms of how they can be spent and reinvested in the visitor economy and providing facilities and services for visitors.

It wants councils to be allowed to retain a portion of the funding raised to support the services they provide which serve the visitor population.
This could include services like parks, waste collections, and public toilets, which are under more pressure from high visitor numbers, as well as those that will attract more tourists, such as culture, heritage, and events.

Funds raised could also be used to directly support tourism and hospitality businesses to grow and diversify their offer. This could include destination marketing, digital capability, skills, events and cultural programming that increase footfall and visitor spend.

In its response to the consultation, the LGA, which represents councils, also says:
• Councillors and mayors should be allowed to jointly decide whether to introduce a levy and free to adapt scope and rate of levy to reflect visitor economy
• Government needs to introduce a national registration scheme so the levy can be collected from short term lets, such as Airbnb, in advance of the levy so that it can be collected from them – it is essential that they remain in the scope of the levy.
• Councillors and mayors should be able to work together to decide how funding is allocated across a strategic authority area, ensuring places where high numbers of visitors travel through or visit but not necessarily stay overnight, can benefit.

The LGA says that where areas choose to implement the levy, they will consult with local tourism and hospitality businesses.

Cllr Julie Jones-Evans, Chair of the LGA’s Culture, Tourism and Sport Committee, said:
“When designed locally, a visitor levy can directly support tourism businesses and strengthen the visitor economy in our communities.

“It represents an important step in fiscal devolution and giving local areas the powers to raise new income.

“However, it should be down to councillors as well as mayors, as democratically elected representatives, to decide whether to introduce a levy, in consultation with local tourism businesses.”

Case studies

Bath & North East Somerset Council (B&NES) plans to spend potential tourism tax revenue on enhancing public spaces, maintaining heritage sites, and improving infrastructure impacted by over 6 million annual visitors. The levy aims to fund sustainable tourism, including better transport options, street cleaning, and marketing to support the local visitor economy.

Edinburgh’s visitor levy will apply to all bookings made from 1 October 2026, ensuring tourists directly support the city they enjoy. The anticipated £50M annual revenues will be invested in services that keep Edinburgh thriving—from supporting cultural and heritage assets to maintaining essential city operations.

A guaranteed £5 million a year will tackle tourism related housing pressures, with the remaining funds boosting street cleaning, public realm upgrades, culture, heritage and events, as well as improving the visitor experience through marketing and wayfinding.

Manchester’s £1 a night City Visitor Charge has already generated £2.8 million in its first year, powering cleaner streets, major marketing campaigns, and successful bids for large scale events, conferences and festivals. The fund has backed headline cultural moments such as the Manchester Flower Festival, Pride and Chinese New Year, supported new music and arts programmes to boost off peak stays, and invested in hospitality training to strengthen the city’s readiness for major events—all helping increase footfall, attract visitors and fill hotel rooms across the city.