London Proposes Tourist Levy on Overnight Stays to Strengthen Local Economy
London has set its sights on introducing a tourist tax on overnight accommodations, a move that mirrors similar initiatives in major cities around the globe. Mayor Sadiq Khan has affirmed the city’s investigation into a “modest tourist levy” that could impose a 5% charge per night on hotels, Airbnbs, and other short-term rentals.
The suggested tax is a component of the English Devolution and Community Empowerment Bill, which is currently making its way through Parliament. Given that London registered 89 million overnight stays in 2024, this levy could potentially generate up to £240 million annually. These funds would be channelled towards enhancing infrastructure, upgrading transportation, and bolstering public services.
“The mayor has been explicit about contemplating a modest tourist levy, akin to other international cities,” a spokesperson stated. “This would stimulate the economy, foster growth, and help solidify London’s standing as a global tourism and business hub.”
The proposed tax would align London with cities such as Paris, New York, and Venice, all of which already impose visitor fees.
While the hospitality sector has expressed apprehensions about the potential impacts on visitor numbers, proponents argue that the revenue will enhance the very infrastructure that draws tourists to London in the first place.
Source: Fox News Travel