Tourist tax to be introduced in London

Mayor of London Sir Sadiq Khan is expected to bring a tourist tax on overnight stays. The levy is likely to be introduced in the capital, resulting in tourists that stay overnight in hotels or Airbnb-style accommodation charged a small tax. The Chancellor is expected to give the mayor and other civic chiefs the power to impose such a levy.

Earlier this year, Khan made the case for a tourist tax, saying that visitors to other European destinations don’t mind paying an “extra few Euros,” which could be used to encourage more tourism. It is also expected to raise £250 million for London every year.

The money is not expected to be used for public services in the capital, according to The Standard. Nor is it expected to lead to a cut in funding for City Hall from the central Government. Instead, it is likely that it could make London “an even more attractive place to visit,” the newspaper said.

UKHospitality, which represents the country’s hotels, pubs, and clubs, criticised the plan for tourist tax as “shocking,” warning that such a measure would “only serve to ramp up prices and drive inflation.”

But the mayor has made it clear that any proposals would be drawn up in consultation with hotels and other affected sectors, with an aim to increase tourism.

“We don’t comment on speculation, but the Mayor has been clear that a modest tourist levy, similar to other international cities, would boost our economy, deliver growth and help cement London’s reputation as a global tourism and business destination,” a spokesperson for the Mayor of London, said.

Other cities, including Barcelona, Lisbon, and Prague have already imposed a tourism tax.

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