England Hands Mayors Uncapped Power to Tax Tourists

A spokesman for Whitbread, which owns Premier Inn, said: "This is hugely damaging for hospitality, which is a key pillar of the UK economy and where many of our young people get their first job. Measures like this risk undermining the industry's ability to invest, create jobs and support economic growth."

Butlin's chief executive Jon Hendry Pickup said: "Big cities may welcome these mayoral powers, but treating every destination and hospitality business the same will leave resorts like ours to shoulder the burden." He added that a levy with no national upper limit "risks making family holidays less affordable, damaging demand and making it harder for businesses to hire young people."

UKHospitality has written to Burnham urging a holiday bonus scheme instead, arguing it would do more for households facing cost-of-living pressure, The Independent reported. Industry leaders also note UK holidays already carry high VAT and that comparable European tourist taxes are capped.

Conservative leader Kemi Badenoch strongly criticized the proposal, arguing that raising taxes hampers business growth and job creation.

Not everyone in the trade objects. Bill Addy, chief executive of the Liverpool BID Company, told The Independent that after the city's £2 levy came in, Liverpool had its best July on record for room bookings. "Tourists are used to city charges; ours is a minimal, fixed fee that is easily communicated and absorbed," he said. "We are not using it to deter tourists, so that's important to us."