Visitor Tax Is A Kick In The Teeth For Hospitality
Proposals to introduce visitor levies in England risk undermining tourism, increasing costs for small businesses and discouraging visitors from choosing English destinations, the Federation of Small Businesses (FSB) has warned.
Today (September 10), the Government announced that mayors in England will be given the power to introduce an overnight tourist visitor levy as a percentage of the cost of accommodation rather than a flat fee.
Tina McKenzie, National Chair at the Federation of Small Businesses (FSB), said: "Imposing an uncapped visitor levy in England is a kick in the teeth for the hospitality industry, at a time when small businesses firms are dealing with a deluge of cost rises."
"Running costs have already increased for 91 per cent of small hospitality firms over the last year. These businesses employ thousands and are key to keeping their local economies going – yet the levy risks pushing many to the brink. A third of hospitality businesses have already told us that they are likely to downsize, close or sell up in the next year."
"Allowing levies to be brought in as an uncapped percentage rather than flat fee is hugely disappointing and makes it much harder for businesses to calculate and for authorities to administer."
"This is one-sided devolution, where mayors can only put up taxes and never cut them."
"It’s crucial that the smallest accommodation businesses like B&Bs and guesthouses are exempt from the levy. Local authorities must use their powers to protect the smallest of businesses if they choose to raise a levy. The added burden of extra administration, paired with price sensitivities, will be too much for them to bear."
"This change would also have a disproportionate impact on small businesses and self-employed people staying overnight for work purposes. While bigger companies might be able to absorb these costs, for small firms it will just add to already tight margins."
"Funds raised by the levy need to be spent on our high streets, town and village centres, and local infrastructure, as well as mitigating any adverse impact of high tourism. That must be decided locally, and with small tourism and hospitality firms heavily involved in decision making."
"This will make sure the money is going to the right place, out to day-trip destinations and not just the big cities that may already have well-invested infrastructure."
