Table of contents

Approximate read time: 10 minutes

1. Key points

  • Tourist taxes have been implemented across Europe in various forms, where they have sparked discussions around the impact on visitor numbers and revenue.
  • Legislation is enabling local authorities in Scotland and Wales to introduce levies on visitors staying overnight in short-stay accommodation.
  • Plans to enable local leaders in England to introduce a levy, through the Overnight Visitor Levy Bill (a government bill announced in the 2026 King’s Speech), have received mixed responses.

2. What are overnight visitor levies?

An overnight visitor levy is a discretionary local tax charged on overnight stays in commercially let visitor accommodation.[1] Charges are usually levied per bed or room per night and are often referred to as ‘tourist taxes’.

3. Are there any UK cities that have visitor levies?

Yes. Visitor levies have been introduced in some areas of the UK. The Visitor Levy (Scotland) Act 2024 gave local authorities in Scotland the power to introduce a levy on overnight stays from 2026.[2] In July 2026, Edinburgh became the first city in Scotland to introduce a levy.[3] Visitors staying in paid overnight accommodation are charged an additional 5% for the first five nights of their stay. Net proceeds must be used to support facilities and services used by leisure and business visitors to the city.[4] Projects earmarked for funding include street cleaning, public toilet upgrades, a theatre restoration and the development of a national centre for music.[5] The levy in Edinburgh is projected to raise up to £50mn per year.

Whilst local councils in England do not currently have the power to introduce an overnight visitor levy, Manchester and Liverpool city councils employ what the House of Commons Library has described as “a legal workaround” using existing legal powers.[6] Both cities maintain tourism-based business improvement districts (BIDs), which collect levies from accommodation providers based on occupancy rates. Visitors pay an extra £1 in Manchester and an extra £2 in Liverpool per room per night.[7] Money raised has been used to fund tourism marketing campaigns, business and consumer events, and improvements to the visitor experience.

4. What are the UK government’s plans to introduce visitor levies?

The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 allows councils in Wales to introduce a tourist tax from 2027.[8] Cardiff council plans to launch a levy in April 2027.[9] The county councils of the Isle of Anglesey, Conwy and Gwynedd hosted consultations in summer 2026, seeking feedback on proposals to introduce levies. Where tourist taxes are introduced in Wales, visitors will pay £0.75 per person per night to stay in a shared hostel room or tent and £1.30 per person per night to stay in other types of accommodation.[10]

On 25 November 2025, the Starmer government opened a consultation to gather views on the design of an overnight visitor levy in England.[11] The proposal to introduce a levy was received positively by several mayors, including then mayor of Greater Manchester Andy Burnham, who said that a levy would support investment in infrastructure and public transport. The Overnight Visitor Levy Bill, which would enable mayors and leaders of foundation strategic authorities in England to introduce a levy, was announced in the King’s Speech in May 2026.[12]

On 10 September 2026, the Burnham government released a response to the consultation, which confirmed that all mayoral and Foundation Strategic Authorities in England will be given the power to introduce an overnight visitor levy.[13] The levy will apply to short-term visitor accommodation and will be set as a percentage of the accommodation cost. Strategic authorities will have the power to determine the percentage rate, exempt certain accommodation types (such as hostels and tent pitches) and allocate the revenue collected to support regional growth.[14] The government plans to introduce legislation during the current parliamentary session and to enable local leaders to indicate how revenue from the levy will be invested by March 2028.[15]

5. Are visitor levies common in Europe?

Yes. Analysis of different European cities shows a range in how such levies are implemented. For example:

  • Amsterdam: An extra 12.5% charge on overnight accommodation stays, including hotels, hostels and campsites.[16] Research by Which? has found that the charge amounts to €21.80 per night for an average-priced room of €175.[17]
  • Barcelona: A levy for the region of Catalonia is combined with an additional municipal surcharge for staying in the city of Barcelona.[18] The total charge varies depending on the type of accommodation: from €5 to €7 per person per night for a hostel to €7.50 to €12 per person per night for a five-star hotel.[19]
  • Venice: A charge per person per night for the first five nights of a stay.[20] The charge varies depending on the season, the type of accommodation, and the area where the accommodation is located, up to a maximum of €5.[21] From 2024 to 2026, tourists who visited Venice on select dates between April and July, but did not stay overnight, paid an access fee of €5 to €10.[22] The Venice City Council has not confirmed whether the access fee will be charged in 2027.[23]

Further examples of other European cities, alongside examples from cities in Canada, Japan and the United States, are provided in the Centre for Cities report ‘Around the world: How do visitor levies work in other countries?’ (February 2026).

6. What does the evidence say about the effectiveness of visitor levies?

The impact of tourist taxes on European cities has been varied. Research from Bangor University has found that levies have not dissuaded travellers; for example, there has been an increase in visitors to Barcelona since the tourist tax was introduced.[24] In an article about the study, Rhys ap Gwilym, senior lecturer in economics, and Linda Osti, senior lecturer in tourism, described the relationship between a visitor levy and tourist flow as “so complex that there is no unified view, even within the same country”. However, they argued that “in general” tourism taxes had been successfully implemented across the destinations that they looked at “and there is little evidence of tourists being put off from visiting”.

City of Amsterdam Deputy Mayor Hester van Buren, interviewed for National Geographic, has praised the success of the levy in allowing Amsterdam to “combat the negative sides of over-tourism”, such as littering.[25] Amsterdam has also experienced an increase in visitor numbers since introducing a levy. Yet Greg Richards, professor of placemaking and events at Tilburg University in the Netherlands, warned that the levy may lead to a long-term loss in revenue for Amsterdam, as tourists are encouraged to stay outside of the city and travel in as day visitors. Professor Richards stated that Venice introduced its day visitor access fee because of this practice.

Research from the University of the Balearic Islands has found that, for a tourist tax to function successfully, the levy needs to be low in cost in relation to the average daily expenditure of tourists.[26] According to the study, tourists and residents “respond positively” to transparency regarding how revenue generated will be spent, particularly when revenue is “directed towards enhancing destination sustainability, mitigating externalities and supporting the local population”. Nonetheless, the research also found that the ability of tourist taxes to alleviate the negative social costs of tourism (such as crowding, noise and pollution) can be limited.

7. What reaction has there been to the proposed visitor levy in England?

Opponents to the introduction of a levy in England generally have concerns about the impact on small towns, where the local economy is reliant on tourism. The National Coastal Tourism Academy, which represents seaside towns, has stated that a levy would “further compound recent trends” towards day trips rather than overnight stays.[27] The organisation has reported that, on average, visitors spend £55.27 per day trip, compared to £315.21 per overnight visit. A report prepared for UKHospitality by the company Tourism Economics has calculated that a levy would have wider economic impacts. The organisation forecasts that, if implemented as a 5% surcharge on accommodation bookings, a levy could lead to the loss of 33,000 jobs in the tourism sector.[28] ABTA has also opposed the implementation of a levy, suggesting that it “risks turning people off holidays in the areas imposing these charges”.[29]

Research on the first 18 months of the BID levy in Manchester found that the charge “had no significant effect on hotel performance”.[30] The charge raised £2.8mn in its first year, which was used to fund street cleaning and tourism marketing campaigns.[31] The Centre for London think tank has advocated for the introduction of a tourist tax in London, proposing that money raised could be used to support arts and cultural programmes.[32] Additionally, the Centre for Cities has argued that the implementation of a levy “would support local economic growth” in England.[33] According to the Centre for Cities, England is an “international outlier”: the only country in the G7 where local governments cannot currently collect an overnight visitor levy.

8. Read more

Image by Angelo Casto on Unsplash.

References

  1. HM Government, ‘Visitor levy consultation’, November 2025, p 64. Return to text
  2. House of Commons Library, ‘Tourist taxes in the UK’, 26 September 2024. Return to text
  3. BBC News, ‘Tourist tax introduced in Edinburgh: How much is it and who pays?’, 23 July 2026. Return to text
  4. The City of Edinburgh Council, ‘The scheme for the Edinburgh visitor levy’, accessed 24 August 2026. Return to text
  5. The City of Edinburgh Council, ‘Edinburgh visitor levy comes into effect’, 23 July 2026. Return to text
  6. House of Commons Library, ‘Tourist taxes in the UK’, 26 September 2024. Return to text
  7. Manchester Accommodation Business Improvement District, ‘Manchester accommodation BID’, accessed 24 August 2026; Liverpool BID Company, ‘Enabling the prosperity of accommodation throughout Liverpool’, accessed 24 August 2026. Return to text
  8. Welsh Government, ‘Visitor levy to support tourism becomes law’, 18 September 2025. Return to text
  9. Welsh Government, ‘Step-by-step guide to visitor levy for accommodation providers: Check if your local council charges the levy’, accessed 7 September 2026. Return to text
  10. Welsh Government, ‘Step-by-step guide to visitor levy for accommodation providers: How much you must pay’, accessed 7 September 2026. Return to text
  11. Ministry of Housing, Communities and Local Government, ‘Levy on overnight trips will help mayors invest in local growth’, 25 November 2025. Return to text
  12. Prime Minister’s Office, ‘King’s Speech 2026: Background briefing notes’, 13 May 2026, pp 40–1. Return to text
  13. Ministry of Housing, Communities and Local Government, ‘Visitor levy in England: Government response’, 10 September 2026, p 10. Return to text
  14. As above, pp 10–11. Return to text
  15. As above, p 12. Return to text
  16. City of Amsterdam, ‘Tourist tax (toeristenbelasting)’, accessed 24 August 2026. Return to text
  17. Which?, ‘Tourist taxes: countries charging travellers a fee to visit from 2026, as Barcelona doubles overnight fee’, 16 April 2026. Return to text
  18. Barcelona City Council, ‘The tourist tax’, accessed 24 August 2026. Return to text
  19. Barcelona City Council, ‘The Parliament of Catalonia passes an increase of the tourist tax’, 2 March 2026. Return to text
  20. City of Venice, ‘Tourist tax information for guests’, 11 February 2026. Return to text
  21. City of Venice, ‘Imposta di soggiorno (tourist tax)’, 10 March 2025. Return to text
  22. City of Venice, ‘Vènezia unica: General questions’, accessed 24 August 2026; and Reuters, ‘Venice residents protest as city begins tourist entry charge’, 25 April 2024. Return to text
  23. City of Venice, ‘Vènezia unica: General questions’, accessed 24 August 2026. Return to text
  24. Bangor University, ‘Why you should expect to pay more tourist taxes—even though the evidence for them is unclear’, 9 May 2024. Return to text
  25. National Geographic, ‘A look at Europe’s tourist taxes—have they helped curb overcrowding?’, 2 August 2024. Return to text
  26. Jaume Rosselló-Nadal and María Sard, ‘Tourism taxation: Balancing revenues, competitiveness and sustainability in destination management’, Tourism Management, April 2026, vol 113. Return to text
  27. National Coastal Tourism Academy, ‘Letter to the Ministry of Housing, Communities and Local Government’, 17 February 2026. Return to text
  28. UKHospitality, ‘Tourist levy impacts in England’, May 2026, p 7. Return to text
  29. ABTA, ‘ABTA responds to government consultation on a proposed overnight visitor levy in England’, 24 February 2026. Return to text
  30. Oriol Anguera-Torrell et al, ‘Does an industry-promoted tourist tax per night affect hotel performance? Quasi-experimental evidence from Manchester’, Tourism Management, August 2025, vol 109. Return to text
  31. BBC News, ‘Manchester’s ‘tourist tax’ raises £2.8mn after first year’, 7 April 2024. Return to text
  32. Centre for London, ‘Arts for all: Tackling barriers to arts and cultural participation in London’, April 2025, p 69. Return to text
  33. Centre for Cities, ‘How should a tourist tax work for England’s mayors?’, 23 October 2025. Return to text