Latest news with #tourismlevy
The Independent
22-07-2025
- Business
- The Independent
No plans for England tourism tax, No 10 insists, after claims Rayner backed one
There are 'no plans' to introduce a tourism tax in England, Downing Street said, amid claims that Angela Rayner's efforts to bring one in were rebuffed by the Treasury. The Deputy Prime Minister has been pushing for councils to be allowed to introduce a tax on tourism in their areas as part of the Government's devolution agenda, according to several media reports. Rachel Reeves, however, is said to have blocked the move for fear it would reduce revenues for businesses struggling with higher national insurance contributions and a rise in the minimum wage already brought in by the Government. The Prime Minister's official spokesman would not be drawn into saying whether there were plans for such a tax. 'We have previously said there's no plans to introduce a tourism tax in England,' the spokesman said. He added: 'Places can already choose to introduce a levy on overnight stays through working with their local tourism sector, using the accommodation Business Improvement District model. 'Tourism obviously plays an important role in the UK's economy. Inbound tourism is the UK's third largest service export. 'The UK is the seventh most-visited country in the world, and we're committed to continuing to support the sector.' Pressed again whether a tourism tax had been shelved after an intervention from the Treasury, the spokesman said: 'Well, there's no plans to introduce it.' Chancellor Rachel Reeves earlier sidestepped a question about Ms Rayner's call for a tourist tax. Asked for her response, Ms Reeves said she had made decisions on tax in last year's 'once-in-a-generation budget' which was intended to 'fix the mess' left by the Conservatives. She added: 'We'll have another budget later this year, and I'll be setting out our tax policy there.' A similar levy already exists in Scotland, and the Welsh Government is also in the process of introducing a tourism tax. Tourists staying in countries across Europe are required to pay local taxes aimed at offsetting the impact of large numbers of visitors.
Yahoo
22-07-2025
- Business
- Yahoo
No plans for England tourism tax, No 10 insists, after claims Rayner backed one
There are 'no plans' to introduce a tourism tax in England, Downing Street said, amid claims that Angela Rayner's efforts to bring one in were rebuffed by the Treasury. The Deputy Prime Minister has been pushing for councils to be allowed to introduce a tax on tourism in their areas as part of the Government's devolution agenda, according to several media reports. Rachel Reeves, however, is said to have blocked the move for fear it would reduce revenues for businesses struggling with higher national insurance contributions and a rise in the minimum wage already brought in by the Government. The Prime Minister's official spokesman would not be drawn into saying whether there were plans for such a tax. 'We have previously said there's no plans to introduce a tourism tax in England,' the spokesman said. He added: 'Places can already choose to introduce a levy on overnight stays through working with their local tourism sector, using the accommodation Business Improvement District model. 'Tourism obviously plays an important role in the UK's economy. Inbound tourism is the UK's third largest service export. 'The UK is the seventh most-visited country in the world, and we're committed to continuing to support the sector.' Pressed again whether a tourism tax had been shelved after an intervention from the Treasury, the spokesman said: 'Well, there's no plans to introduce it.' Chancellor Rachel Reeves earlier sidestepped a question about Ms Rayner's call for a tourist tax. Asked for her response, Ms Reeves said she had made decisions on tax in last year's 'once-in-a-generation budget' which was intended to 'fix the mess' left by the Conservatives. She added: 'We'll have another budget later this year, and I'll be setting out our tax policy there.' A similar levy already exists in Scotland, and the Welsh Government is also in the process of introducing a tourism tax. Tourists staying in countries across Europe are required to pay local taxes aimed at offsetting the impact of large numbers of visitors.
BBC News
07-07-2025
- Business
- BBC News
Wales' tourism tax plans set for go-ahead in Senedd vote
A new law allowing councils to tax people staying overnight in Wales is set to be passed by the Senedd on staying in hotels could have £1.30 per night added to the cost of their stay if the plans go hope the tax will raise as much as £33m a year to support and improve tourist destinations, but businesses worry it might put visitors Welsh Conservatives vowed to scrap the tax if the party wins the next Senedd election. Plaid Cymru support for the legislation means the Welsh government has the numbers it needs to get the law through the the plans, those staying in hostels and campsites would pay 75p per person per night, while people staying in all other accommodation would pay the higher charges are subject to VAT, while children under 18 will be exempt at hostels and campsites. Plans for a tourism levy were promised in Labour's 2021 Senedd election manifesto, and in the party's now-defunct co-operation deal with Plaid were drawn up following growing concerns about the impact of tourism in some Welsh would be up to individual councils to decide whether to levy the charges, which would be introduced in 2027 at the authorities could also decide after a year to increase the charges, in agreement with the Welsh councils have said they have no plans to introduce the levy, including the Vale of Glamorgan, Rhondda Cynon Taf and council's leader Huw Thomas has said he wants to introduce the policy in the capital, and Anglesey has backed the idea in principle according to Walesonline. Under the legislation, councils have to spend the cash on managing and improving tourist destinations. This could be things such as toilets, promoting the Welsh language, footpaths, beaches and visitor centres, but what the cash ends up funding will ultimately be up to councils to decide. The Welsh government has estimated that the levy could generate £33m a year if all councils took it up. An impact assessment drawn up for the law said the number of visitors could fall as a result of the suggests that, in the most optimistic case, the levy could lead to 100 new jobs overall, but in the worst could see 390 fewer for how much it will benefit or hit the economy range from a boost of £10.8m, to a reduction of £7.3m, when public spending is taken into adding on how much might be spent by the public sector as a result of the levy, estimates range from a £9.1m hit to the economy, to a £26.8m hit. 'Long ceased to be a tourism tax' Among those concerned with the plans have been the Welsh Tourism Alliance, who say that the way the bill has been drafted means councils do not need to focus on tourism when they decide how to spend the Mid Wales Tourism group's Suzy Davies said the levy had "long ceased to be a tourism tax" because it would apply to "staying in visitor accommodation for any reason". The Welsh Conservatives vowed to scrap the plans before they come into force, should they form a government after the next Senedd election. Shadow finance cabinet secretary Sam Rowlands said the plans "will harm the economy to the tune of tens of millions of pounds and hundreds of jobs every single year".Plaid Cymru's Luke Fletcher said the law would allow councils "to start the journey towards a sustainable tourism sector that works both for tourists and businesses alike".Reform UK, which is hoping to win seats in the Senedd for the first time next May, said the tax would "hurt local businesses and cost rural jobs".Plaid Cymru's Luke Fletcher said the law would allow councils "to start the journey towards a sustainable tourism sector that works both for tourists and businesses alike".Accommodation providers will also be required to join a register under the law, which will be voted on by the Senedd on Tuesday Secretary Mark Drakeford said: "We think it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience."Visitor levies are common around the world, benefiting local communities, tourists and businesses - and we want the same for Wales."
CBC
29-05-2025
- Business
- CBC
N.S. commits to fix for municipalities waiting on marketing levies from booking platforms
The provincial government has promised to find a solution for Nova Scotia municipalities struggling to have booking platforms like Airbnb or Vrbo collect and remit the fees they are legally owed. Many cities, towns or districts in Nova Scotia have, or are exploring, marketing levies to bring in funds for tourism projects or events. The levies can be up to three per cent of an accommodation price, and apply to short stays at places like hotels, or rentals in homes or cottages. Since April 2024, online platforms have been required under provincial law to collect the levies from guests and send them to the local municipality. But so far, that has proved to be easier said than done. "It's been a lot of legwork on our end to find these folks, to establish a relationship, to work through the documentation," said Donna Hatt, economic development officer for the Town of Bridgewater on the South Shore. "Some of them aren't even in Canada. We're working with head offices for companies like that are overseas … so it's been a bit more complicated." Bridgewater's levy came into force on April 1, and Hatt said about 15 short-term rental properties fall under the bylaw, with many using online platforms for bookings. Hatt said most of the platforms have been co-operative, but made it clear they don't want to deal individually with dozens of municipalities, who all have their own rules and regulations. She said they have warned her "it may be a little bit longer" before they start sending levies to Bridgewater. CBC reached out to Airbnb, Vrbo and but did not receive a response. Carolyn Penny, senior financial consultant for the Halifax Regional Municipality, said they are an outlier — likely because they make up the largest segment of rentals in the province. The online platforms have been sending monthly wire transfers of the levies to Halifax, which has more than 1,000 listings on Airbnb alone. "I've actually had a few emails from municipalities wanting to know 'how did you make Airbnb remit to you?'" Penny said. Staff said Halifax received $10 million in marketing levies from all the operators the levy applies to from May 2024 to this May, with about $750,000 coming through platforms like Airbnb. Penny said she understands the administrative burden of dealing with smaller municipalities would be difficult for major companies, especially when some districts might only have a few listings with monthly levies adding up to just a few dollars. Municipal Affairs Minister John Lohr told municipal leaders at a conference in early May that the province was aware local governments were "facing challenges" securing agreements with booking platforms, and will step in. He said they will find a third party to serve as a single point of access between municipalities and the platforms. Provincial spokesperson Geoff Tobin said they are in the "early stages" of finding that third party, and the government has not committed to a timeline. The District of Chester's senior economic development officer, Brian Webb, said getting that solution in place before the 2026 summer season would be ideal. Their new levy kicks in Jan. 1, 2026. The district, which includes the scenic waterfront Village of Chester, has a high number of short-term rentals with 227 properties providing hundreds of bedrooms. Another 10 properties would be commercial businesses like hotels or resorts. Webb said they had expected to make about $200,000 from the levy in its first year, because staff planned for "low levels of compliance" from online platforms. But with a provincial portal, he said they could get full compliance and bring in more than double that amount. "It would allow us to achieve better results, to develop our tourism sector and much quicker, were this to be done at a provincial level for sure," Webb said. Staff from multiple municipalities said having a third party handle the levies should mean that group also audits the funds. Right now, this takes a large amount of staff time in places like Halifax, or isn't being done at all in other areas where they don't have the time or expertise. "We really are kind of blind to making sure that everybody is fully compliant … so having [the province] take ownership of this process alleviates some of that duplication of effort to make sure that everybody is remitting correctly," said Kelsey Hicks, finance manager for Bridgewater. Both Chester and Bridgewater will develop a plan with local businesses and tourism organizations for how to spend their levy funds.
