The Government’s Budget has paved the way for tourist taxes across England, prompting Cornwall Council’s tourism lead to keep the idea under consideration, despite calling it unwelcome. CornwallLive readers have had a mixed response to the proposal.
Communities secretary Steve Reed said mayors will be able to charge visitors staying overnight in hotels, B&Bs, guest houses and holiday lets. It is not yet known whether this will apply to non-mayoral authorities such as Cornwall Council. The Budget states that mayors, and potentially other local leaders after consultation, could introduce a levy on overnight stays to fund local growth and support the visitor economy. A consultation is now under way on the design of the levy.
Cllr Sarah Preece said early discussions show limited enthusiasm for a tourism tax, even though the impact of visitor numbers on Cornwall is clear. She said any move would need wide consultation and warned Cornwall must avoid becoming uncompetitive, instead strengthening year-round tourism to ease pressure on peak season and support a key part of the Duchy’s economy.
Cllr Donnithorne argued the sector has already been hit hard by Government policies, including recent changes to National Insurance, and said a holiday tax would be another blow.
UKHospitality figures show British travellers took 89 million overnight trips in England in 2024, totalling 255 million nights. A 5 per cent holiday tax would add around £518 million to hotel bills. Because it would sit on top of the existing 20 per cent VAT, UKHospitality’s Kate Nicholls warned it would push up prices and inflation. It would effectively raise the VAT rate to 27 per cent, while Ireland’s hospitality VAT stands at 9 per cent and Germany’s at 7 per cent.
Commenter Johnboy599 says: “So many taxes piled on to hospitality, businesses closing left right and centre. It’s all very well put a tax on but where is the revenue going? Or will it just vanish into council coffers again?”
Cpro replies: “Not sure how true it is, but I heard that any tourism tax would not go to local authorities, but rather direct to the government. So it may not directly benefit the council at all, but may bring harm to volumes of visitors, and reduce revenue.”
Cornwall Amigo thinks: “Well, Cornish tourism is dying, so that should finish it off altogether. That suits me, but not so much the businesses.”
Coastallife is in favour: “It’s about time that tourists contributed to the infrastructure they use and any tourist worth having here won’t blink at a small daily charge. Those that shout about £1 are probably net-negative contributors to the total Cornish economy.”
Stormageddon replies: “Tourists do contribute, they pay VAT, they pay the restaurants, shops, banks and all other services to stay open during the off season months by spending during the high season. What do you think your high street would look like with no visitors? How many restaurants, pubs, shops etc do you think there would be? How many attractions would stay open for you to visit with your children/grandchildren? And it’s not a tourist tax, it’s a visitor tax. which you would pay if you stayed at a camp site a few miles up the road.”
Cornwall123 points out: “Most places I have visited in Europe have a tourist tax, it’s just a small part of the price of the holiday.”
Andanotherfing agrees: “Introduce a tourist tax in the UK immediately. Will raise much needed funds. I’ve holidayed in many parts of Europe and have paid a tourist tax. In Rhodes, you can pay up to 15 euros a night!”
Stormageddon retorts: “Do you realise that one of the reasons why these other countries pay a tourist tax is because other taxes are lower. VAT at 20% in the UK and 5% in most other places. Also it’s not a tourist tax only payable by overseas visitors again as is the case in other countries. It’s a VISITOR tax paid by everyone.”
Westwalas thinks: “If the tax is hypothecated and used for specific improvements for local residents (rather than the vanity projects of some local councillors) then this has to be a good thing. Many other tourist destinations do this – and well-run viable businesses will cope.”
Thewestisbest writes: “Yes, tax the tourists. The Kernewek people are fed up with footing the bill for the disruption they cause us, tourist businesses are owned by outsiders anyway, let tourists contribute to the mess they leave in Kernow.”
Where do you stand on a visitor tax? Could it genuinely help the community or does it feel like one more cost landing on people’s shoulders? Drop your thoughts in the comments and join the conversation.
