The UK Government has proposed allowing English mayors to introduce tourist taxes.
Many countries charge tourists a levy for their visit, usually at the airport or through their accommodation.
Wales and Scotland have already moved to introduce tourist taxes.
Here’s what you need to know.
Tourist tax
A tourist tax is a mandatory charge paid to a government body.
The tax could be introduced for a variety of reasons, including to curb over-tourism, invest in tourism infrastructure, or protect landmarks.
Rates vary by country and city, from €0.50 ($AU0.89) across Malta to up to ¥1,000 ($AU9.90) in Kyoto, Japan. These charges are typically per person, per night.
Australia does not have a tourist tax at the federal level.
In January, the Victorian Government’s ‘short stay levy’ came into effect — a charge of 7.5% on visits of less than 28 days in entire houses, apartments or private rooms.
This impacts accomodation booked through sites like Airbnb, but not hotels or motels.
UK proposal
The UK’s plan to allow English mayors to introduce a tourist tax is currently open for public consultation.
If passed, the UK Local Government Ministry said mayors could “introduce a modest charge” to “help fund local projects”.
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A 2017 report investigating the possibility of a tourism levy in London estimated a revenue of up to £450 million ($AU914 million), depending on how much visitors are charged.
A tourist tax has been introduced in Scotland.
Local authorities decide whether they impose the levy, and how much to charge.
In Scotland’s capital, Edinburgh, tourists are charged 5% tax on the cost of accommodation on the first five nights of their stay.
Councils in Wales will be able to introduce a tourist tax from April 2027.
Support
Some English mayors expressed their support for the tax, including London Mayor Sadiq Khan, who called it “great news” for the city.
Khan said the tax would “directly support London’s economy”.
Greater Manchester Mayor Andy Burnham said it is “a measure we have long called for”.
The tax would fund “keeping our streets clean and enhancing our public transport system,” he added.
Criticism
UK tourism industry body Tourism Alliance said: “The UK is already one of the least price-competitive destinations globally”.
The group blames this on visa fees, 20% value added tax (similar to GST), high air passenger duties, and no tax-free shopping.
It said a tourist tax would make England “even less attractive” and “risks” the Government’s 50 million annual international visitor target.
