Industry unites against ‘bed tax’
Tourism bodies have united in rejecting proposals to introduce a 10% ‘bed tax’ to raise funds for local government.
The Tourism Alliance, UKinbound and British Hospitality Association all condemned the plan, insisting it will drive visitors away and create more administrative burdens on tourism businesses.
Travelodge also slated the plan with a survey revealing the tax would deter 65% of consumers from holidaying in the UK.
The tax was one of several cash-raising schemes raised in the Lyons Inquiry, an independent Government investigation into ways of swelling the coffers of local and district councils.
In an interim report in December, Sir Michael Lyons, who is spearheading the inquiry, said he was “interested in exploring this issue of tourist related taxes.”
Industry bodies had until yesterday to comment.
Tourism Alliance chairwoman Brigit Simmonds described the tax as “inequitable” as it would target only a very small percentage of visitors.
“On average only 12% of visitors to a UK destinations stay overnight and they would end up subsidising the services and facilities used by day visitors.
“Many small tourism businesses already see themselves as under threat as a result of cheap, overseas flights and lower tax rates in other European destinations. Introducing a further tax would be seen as detrimental to their long term survival.”
The Alliance added that even a 1% increase in the cost of visiting the UK reduces revenue by 1.3%
UKinbound chief executive Stephen Dowd added: “Tourists in the UK more than pay their way by contributing some £12 billion per annum to the government.”
Hotel chain Travelodge said the tax would cost domestic and overseas visitors £6.5 billion per year and could raise the cost of an average family break by £100.
A survey conducted by the company revealed that a tax would deter almost 65% of consumers from taking a UK holiday. A further 67% said they would reconsider the length of their holiday with 79% saying they would cut back on spending.
Travelodge chief executive Grant Hearn said: “Many families wait all year for their summer holiday and now this tax could force them to cut short their break or cancel completely.
“We want to make hotels accessible for everyone, not just the rich.”
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