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UKHospitality has highlighted “damaging” impacts a charge would have on tourism, following speculation about a potential introduction of a tourist tax.
The trade body has pointed out that the UK already ranks “incredibly” poorly when it comes to tourism competitiveness due to a high VAT rate, compared to European competitors – many of which have VAT set at around half of its 20% rate.
If a tourist tax is to be implemented, the trade body believes it would push the industry’s additional costs upwards of £4bn.
UKH said it fears that a tourist tax will only make the UK less attractive to visit.
Kate Nicholls, chief executive of UKH, said: “The idea that a tourist tax would fix the public finances is completely misguided, and would only serve to inflict damage on the UK’s tourism and hospitality sectors.
“An additional charge would not only put off overseas visitors but also disincentivise Brits from taking breaks in the UK – it would be a true lose-lose for businesses, the economy and consumers.”
She added: “I sincerely hope that a tourist tax is not being seriously considered by the government. That is why I’m writing to all MPs today on this issue and I would urge them to engage with us to understand the damaging impacts it could have on a sector that generates £140bn for the economy each year.”
