Travel to England could soon come with a new tourist tax, following a proposed bill that would allow local and regional leaders to introduce visitor levies.
If it’s passed, the Overnight Visitor Levy Bill will give local and regional leaders (such as mayors) the authority to charge tourists in England a visitor levy—also known as a tourist tax—and decide the amount and format of said tax. It would be similar to legislation that has already been introduced in European tourism hubs like Amsterdam, Barcelona, and Paris.
The proposed bill, which was first announced in November 2025, sparked a flurry of headlines when King Charles mentioned it in his May 13 speech. The move would bring England in line with Scotland and Wales, where cities are in the process of introducing their own tourism fees, including Edinburgh and Glasgow, which have already introduced tourist taxes.
The government claims that tourist taxes, which are charged in major travel destinations across the world, would go toward funding local infrastructure and improving the quality of life for residents and visitors, but some regional officials and hospitality executives have expressed concerns.
Here’s what travelers should know about the proposed tax.
When will the tourist taxes be introduced?
Until now, neither central nor local governments in England have had the power to introduce tourist taxes. But some city councils in England have already implemented a form of tourist tax via a legal workaround, by using a concept called an Accommodation Business Improvement District (ABID).
Manchester introduced its tax in 2023, adding an extra £1 (roughly US$1.34) to hotels and accommodations within the city center on a per night, per room basis. The extra amount is billed to guests at the end of their stay.
Liverpool followed with its own visitor levy in June 2025, adding an extra £2 to the cost of overnight accommodations. Authorities estimate that the Liverpool tax will raise £9 million (about US$12 million) over two years, £6.7 million (US$9 million) of which will go toward supporting Liverpool’s visitor economy.
An official start date for the proposed Overnight Visitor Levy has not been announced, as the legislation is currently moving through the Houses of Parliament.
If it is passed, local authorities can implement the charge in the form of a flat rate for the entire duration of the stay or as a nightly rate—for example, a nightly charge per room per night. The amount can also be set as a percentage of the nightly fee.
Concerns about the proposed tourist taxes
While tourist taxes have the potential to generate significant revenue—according to one analysis, a whopping £350 million (US$469 million) could be raised annually in London alone—the idea has been criticized by some in the country’s tourism industry.
Peter Brend, director of Brend Hotels, which has properties across Devon and Cornwall, told the BBC he has concerns that the levy could drive budget-conscious visitors away from the destination.
“Hospitality has been given a rough ride so to add an extra tax on top would just almost price us out of the market,” Brend said. “If a family of four were to come and stay for a week, it could cost them an extra £50. That’s £50 they don’t have to spend in our shops, our restaurants, and around our local community.”
And at least one local official has publicly rejected the idea of a tourist tax. According to the BBC, Dame Andrea Jenkyns, mayor of Lincolnshire, has stated the county will not bring in a tourist tax, saying that a holiday tax would “pick the pockets of families.”
She said, “Introducing a visitor levy would only punish the very entrepreneurs who drive our economy and threaten the jobs they provide.”
