Plans to give local leaders the power to impose a new tax on overnight stays have prompted warnings over the potential impact on Isle of Wight tourism, with MP Joe Robertson, Daish’s Holidays and the Country Land and Business Association raising concerns about additional costs for visitors and businesses.
The Government has confirmed plans for an Overnight Visitor Levy in England, which would allow Mayors and other eligible local leaders to introduce a percentage-based charge on paid overnight accommodation.
Under the proposals, the levy would not automatically apply across England; instead, Local leaders would be given the power to decide whether introducing one was appropriate for their area, following consultation.
The rate would be calculated as a percentage of the cost of accommodation, meaning guests staying at cheaper hotels and guesthouses would pay less than those booking more expensive accommodation.
Revenue raised could then be invested locally, including in infrastructure, the visitor economy and other local priorities.
For the Isle of Wight, however, concerns are being raised about whether making overnight stays more expensive could discourage visitors and reduce spending elsewhere in the Island economy.
Isle of Wight East MP Joe Robertson challenged the Government over the proposals in Parliament, arguing that growth should come from attracting more visitors rather than taxing those already choosing to stay.
Joe Robertson MP has said:
“Tourism growth requires an increase in visitor numbers so that more money is spent on the high street, not a new tax.
“Oxford Economics says the cost of the overnight visitor levy will be around £1.8billion in reduced spending and a decrease in tax receipts, not an increase.”
Mr Robertson asked the Government to confirm whether its visitor economy growth strategy would consider what he described as the harm caused by the new tourism tax, as well as when the strategy would be published.
Opposition has also come from Daish’s Holidays, which operates Daish’s Hotel on the Isle of Wight as part of a portfolio of 11 hotels in England and Wales.
The family-owned coach holiday company transports guests from pick-up points around the UK, with customers also able to travel independently.
Paul Harper, Commercial Director at Daish’s Holidays, has said:
“Daish’s Holidays, which owns and operates 11 coastal hotels in destinations including Bournemouth, Torquay, Newquay and Eastbourne, opposes plans to give mayors in England the power to introduce a tourist levy.
“While we understand the pressure on local services, adding another tax on customers during a cost-of-living squeeze is not supportable and risks undermining the Chancellor’s ambition for ‘growth in every postcode’.
“UKHospitality analysis suggests that even a 5 per cent levy could cost the UK economy up to £2bn in GDP, putting more than 30,000 hospitality jobs at risk and coastal communities, including those where our hotels are based, will likely feel the impact most.
“Even if Parliament grants these powers, further local decisions would be required before any levy could be introduced. The priority should be making UK holidays more affordable and supporting the coastal economies that depend on tourism, not adding further costs at the point of booking.”
The potential impact extends beyond hotels, with rural tourism businesses also among those concerned about visitors facing another charge.
Gavin Lane, President of the Country Land and Business Association (CLA), has said:
“A tourism levy sends the wrong signal entirely at a time when many rural businesses are already under significant financial pressure.
“Business taxes seem as incoherent as they have ever been. Increasing taxes via a visitor levy while at the same time reducing VAT on visitor attractions and business rates for pubs and clubs seems very poorly thought through and confusing.
“The profit warnings from Greggs and Wetherspoons demonstrate that UK retail and hospitality is grappling with significant cost pressures, including 20% VAT, business rates and rising labour costs. This is compounded in rural areas with poor transport links, weak digital connectivity and restrictive planning rules.
“Rather than introducing new costs for visitors and businesses, policymakers should focus on creating the conditions for this vital sector to thrive.”
The Government argues that the measure would instead give local areas a new way of raising money from their visitor economies and investing it back into the places tourists come to see.
It says England currently has few local mechanisms through which destinations can raise money to maintain and improve infrastructure supporting tourism.
While supporters of the policy argue that visitors could contribute towards the infrastructure and services they use, opponents fear an additional charge could make destinations such as the Isle of Wight less attractive to cost-conscious holidaymakers and leave them with less money to spend during their stay.
Mayors will be able to set out their spending plans by March 2028.
Local leaders? What’s
bunch of useless losers they are
Makes one wonder what we pay VAT for.
If IW Council need to generate extra revenue roll out
Islandwide parking permit charges
AND STOP NUMPTIES EVADING PARKING CHARGES BY
PARKING ON PAVEMENTS!
Could also introduce a ULEZ CHARGE FOR GAS GUZZLERS
This tax is just rediculas who thought this stupid tax up it seems whatever people door wherever people go to relax is taxable for this mindless so called government Betting Shos Bingo halls night clubs even churches are all being shut down or over taxed by these imbeciles any form of pleasure is seen as something to be made unobtainable to ordinary people who work for a living they should be ashamed of themselves .!!!
How long before this Government introduces a Fart tax.
“It is coming”
Attracting people here is hard enough. If any idiot in charge considers a visitors tax, even less will be inclined to visit this poorly run island. It’s time to acknowledge it’s cheaper to visit the Med. You only have to go to Sandown to know this place is finished as far as tourism goes.
Sandown was once a great place, it’s been a sh*thole for the
past 20+ years.
Back in the heyday it was booming.
The Wight City Complex had it all, plus Browns Boating Lake.
Now it’s a dump full of p*ssheads and druggies.
just take a walk from Yaverland to Hinks and you will
see the clientele in Sandown plus the smell of weed everywhere.
Just stop the ferries, that would be the quickest way to stop the tourists coming !!!
So yet another tax ! What a good idea eh! To hopefully add to the possibility of spending that money locally? Will it help get rid of the eyesores of the dead derelict buildings that have been standing empty and decaying for YEARS on end. Will it help with the much needed regeneration ? Or will it pay a premium wage for someone to administer the money pot ? Someone coated with Teflon that us Islanders although will cover with dirt it will just fall off them! Islanders and our much needed visitors must expect more. We have a wonderful Island that has been neglected for a long time now. It’s time to take a stand and improve this Island and raise it from the state it has allowed it to become. There are so many people trying to make it happen but it needs us all to freely contribute and not to have an imposed TAX.
Vote labour vote tax and a dead economy..always the same look at history.
Lots of opposition to this proposed levy, but no suggestions on how else to raise the money necessary to fund the essential services we all rely upon.
The uninspiring MP for IOW East is critical, but fails to mention that it was the last government under his party that repeatedly reduced funding for local authorities.
If we want public services, we have to fund them. So much effort is made by IWC to encourage tourism rather than caring for those of us who live here full time. Why not ask visitors to contribute?
We pay Council tax and vat for such services.
If the SO called authorities were desperate for extra revenue
they would STOP vehicles EVADING parking charges by parking on the pavement outside the old tourist information centre opposite Sandown pier.
Do what the majority of the mainland do rollout islandwide
permit parking charges.
There are so many other ways to make money rather than
killing off tourism.
Your quote:
It’s not a pound or two levy that’ll kill tourism!
You are quite right.
Sandown has been a sh*thole since about 1999
The Millennium didn’t so Sandown any favours, problem
is once a sh*thole always a sh*thole.
Shanklin is far superior and that is going in the wrong
direction.
and yet more red tape for businesses to be burdened by collecting and sending off the tax
Whatever tax the government collects and from where, it still won’t be spent wisely. So yet another pointless exercise.
And where does all that VaT go that they collect?