Multiple cities across the UK are considering levying a tax on tourists (Image: Getty Images)
Two UK cities have already implemented a tax on visitors, and more could follow suit in the coming years as local councils seek to bolster revenues. Tourist levies are not a new concept by any means, with popular European destinations like and Venice having already introduced them.
The purpose of a is to generate revenue for the destination, helping to mitigate the potential negative impacts of overtourism and boost investment in local services. made headlines last month when the city council decided to implement a five per cent visitor levy on overnight stays—the largest such tax introduced in the UK so far.
The charge will be applied per person, per night, for the first five nights of their stay. It’s estimated that this will bring in £50 million every year, which will be used for city improvements such as enhanced lighting and pedestrianisation schemes.
However, tourism chiefs expressed concerns that financially strained councils might use the tax to plug budget deficits rather than enhance amenities across Edinburgh. This new charge follows legislation passed by the Scottish Government allowing visitor levies to help councils capture and reinvest funds from tourism growth.
Edinburgh and Manchester already have systems in place to charge visitors (Image: Getty Images)
Living Rent, a Scottish tenants’ union, is urging Edinburgh Council and other local authorities to allocate tourist tax revenue towards affordable housing, reports the The union’s chair, Aditi Jehangir, said that the funds should be used to “improve the lives of the people who live and work in our cities”, advocating for the money to be invested in council and social housing.
In response, Edinburgh Council has committed £5 million of its annual £50 million earnings from the tax towards housing and “tourism mitigation”. Meanwhile, Glasgow has initiated a consultation on a proposed five per cent tourist tax. If approved, the charge would apply to overnight stays.
Over the next 12 weeks, the city will gather feedback from residents on how the revenue could be utilised to bolster the tourism sector. Under the current proposal, the city would retain 3.5 per cent of the levy, with the remaining 1.5 per cent returned to operators to offset administrative costs.
Other Scottish regions including Aberdeen, Falkirk, Highland, Stirling and Argyll and Bute are also considering the introduction of a tourist tax. In England, Liverpool is contemplating implementing a £2 per night levy for visitors staying in the city.
Manchester has raised millions through its ‘tourism tax’ (Image: Getty Images)
Liverpool’s Accommodation Business Improvement District (ABID) is encouraging its member hotels and serviced accommodation providers to adopt a new City Visitor Charge. This initiative, aimed at supporting the city’s growth and development, could be introduced as early as June 2025 and is projected to generate around £6 million.
Meanwhile, in London, Mayor Sadiq Khan has expressed his willingness to consider a tourist tax. Although no formal proposal has been made, Khan stated that he would monitor the impact of Manchester’s tourist tax and similar schemes in other European cities.
According to the , Khan said: “I’m happy to look into where it’s worked, what the issues are in relation to that particular policy… we’ll be looking at what cities are doing not just across Europe, but in the UK as well,” In Bristol, the Liberal Democrat group has proposed a visitor levy despite not being in power. They suggest a £2-per-night accommodation charge, describing it as an “innovative revenue stream”.
The proposal is part of their amendments to the city council’s annual budget, set for discussion today, February 25.
Manchester has already implemented a £1-per-night scheme for visitors, which generated £2.8 million in its first year. The city introduced its tourist tax in April 2023, becoming the first UK city to do so.
The funds collected from this tax have been utilised for street cleaning and marketing initiatives. The Manchester Accommodation BID, an organisation representing 74 hotels and serviced apartment providers in the city, was established in 2023 to manage the funds raised from the levy.
This was part of a strategy to maintain high visitor occupancy rates as more hotels and tourist apartments were constructed in the city, amid concerns that visitor numbers were not matching the pace of development.