Mayors in England to Gain Powers for Tourist Tax on Hotel and Rental Stays

1-Minute Brief

The proposed tourist tax aims to address housing pressures and generate local revenue, but faces concerns from the hospitality industry.

Key Facts

• Plans would allow mayors in England to introduce a nightly levy on hotel and Airbnb-style stays.
• The EU has drafted new rules that could impose further restrictions on short-term rental platforms like Airbnb.
• Protests have occurred over the impact of holiday rentals on affordable housing availability.
• The hospitality sector has expressed concern about potential job risks and the absence of a cap on the levy.
• The idea for a visitor levy was first raised by Keir Starmer’s government in November, according to The Guardian.

What Happened

Ministers in England are preparing to outline plans granting mayors the authority to impose a nightly tourist levy on hotel and short-term rental stays, while the EU is advancing proposals to regulate holiday rentals.

Why It Matters

The measures are intended to address the shortage of affordable housing linked to the rise in holiday rentals and to provide local governments with new revenue streams, but have raised concerns within the hospitality industry about economic impacts.

What's Next

Details of the proposed levy, including potential caps and implementation timelines, are expected to be outlined by ministers. The EU's draft rules on short-term rentals are also moving forward, with potential implications for platforms such as Airbnb.